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MONDAY, APRIL 13, 2015 Two-thirds of smartphones sold don’t have FM — Apple the biggest culprit. The number of FM-enabled phones may’ve increased last year but the feature remained silent in a vast majority of the smartphones sold in the U.S. in 2014. That’s according to an analysis of the sales data by NAB Labs. “Two out of three phones are not enabled at all for FM, either because the chip is not in there or not hooked up,” NAB Labs senior director Skip Pizzi said at the NAB Show. Nineteen percent of handsets were sold with FM enabled, up from low-single digits a few years ago. NAB Labs says another 8% of phones sold didn’t have FM turned on, although some version of the handset sold overseas does include the feature. Broadcasters have been lobbying wireless carriers to embrace FM but the analysis suggests Apple holds the key. Pizzi said the number of phones sold without FM keeps rising, and he attributes that to the iPhone, which made up roughly half of all smartphones sold last year. “Even when the carrier wants to enable the phone for FM, Apple doesn’t make the hardware that way and they call the shots,” he said. It’s why the iPhone remains the only Sprint phone not offering FM. But there’s another “Sprint effect” that’s something to call home about. As the NextRadio deal with Sprint ramped up last year, four-times as many phones with FM were sold. But Pizzi says the data also shows Sprint alone won’t be the solution with sales having plateaued at about eight million per quarter. “We are topping out,” Pizzi noted. “It’s great that we sell this many each quarter and get them into the marketplace, but it looks to me like we need those other carriers and all the manufacturers, particularly Apple, to jump in before we get any further along than this,” he said.

Rdio plans to add broadcast streams to its platform. Pureply webcaster Rdio is getting into the aggregation business. The company, which has a content and sales partnership with Cumulus Media, is inviting broadcast groups to add their live station streams to its digital music menu. Branded as Rdio Live, it would give broadcasters the same types of features, functionality and experience that pure digital services offer, such as album art, track info and the ability for listeners to thumb-up, thumb-down and share tracks. Rdio Live would recommend local stations to users based on what the service knows about them from their Facebook profile. A Keep Listening button would remind users of stations they listened to recently. At yesterday’s RAIN Summit in , CEO Anthony Bay pitched it as a way for broadcast radio to reach the billions of devices that don’t have broadcast radio tuners, such as connected TV devices like Roku, where Rdio is featured. He called it “an opportunity to reinvent radio by taking advantage of the innovation occurring in the digital world.”Of course, Rdio would also like to leverage broadcast radio’s reach to lure more subscribers to its on demand music service. Subscribers could download a song they heard on a station stream and add it to a playlist. Broadcasters, too, could use it as a gateway to deeper user experiences of their own, such as exclusive stations and on-demand content, like that day’s “Top 10 at 10” feature, which would live on a participating station’s dedicated page. “There’s all sorts of thing you can do,” Bay said. “Done properly, we think broadcast stations can be one of the top things people listen to when they’re using apps.”

New smell, but familiar sound as radio cume holds steady in newer cars. Radio cume remains steady in newer cars. Broadcast radio’s cume remains the same for motorists, whether they drive a newer, tech-friendlier vehicle or an older model. But given the greater available listening choices, newer car drivers spend less time with the medium than those with older cars, according to new data from Edison Research and Triton Digital. Culled from the 2015 Infinite Dial study and presented in Las Vegas, the newly-

[email protected] | 800.275.2840 PG 1 NEWS insideradio.com MONDAY, APRIL 13, 2015 released findings show 85% of motorists say they cut-currently ever use AM/FM radio in the car — regardless of whether that car is model year 2010-to present or a 2009 model or earlier. AM/FM also remained No. 1 with drivers, regardless of the age of their car, when survey participants were asked what they use all or most of the time, albeit by a lower margin. Just under half (48%) of new car drivers said they listen to radio most behind the wheel, 11 percentage points lower than among older car drivers (59%). Participants who said they use their iPod or smartphones most grew from 13% to 22%, while internet radio inched up from 6% to 10%. “Internet radio is still relatively low for usage in the car,” Edison president Larry Rosin said. “All of this this relates to where things are going, which is having a connected car with easy integration between the phone and the car.” The survey shows satellite radio received the biggest bump from consumers replacing their old cars. Those that report using it most or all the time quadrupled from 5% of older car users to 21% of newer car drivers.

Voltair catches the ear of the MRC. Widespread use of Voltair by broadcasters in PPM markets has caught the attention of the Media Rating Council. The ratings watchdog is in talks with Nielsen about potentially evaluating Nielsen’s ongoing tests of the audio processor. But the precise role the MRC may play hasn’t been nailed down yet. Nielsen approached the MRC about possibly evaluating its tests of Voltair-processed PPM code, according to MRC CEO George Ivie, but it’s still early in the process. “We have not evaluated, tested or otherwise concluded on any impact the device may have on broadcasting, encoding, code receipt or Nielsen audience estimates,” he told Inside Radio. Should Nielsen decide to improve its encoders, Ivie said the new technology would be subject to rigorous MRC testing. Nielsen would first need to do its own internal testing for internal quality purposes, after which CPA auditors hired by the MRC would do their own independent testing. “In general, changes need to be improvements in encoding or code-capture efficacy,” Ivie said. “We are very unlikely to approve degradations in these processes.” Any changes would need to pass muster with Nielsen clients, in addition to the MRC. “Everything we do on audio goes before the MRC and we want to make sure that all of our clients are comfortable with any recommendation we make in the marketplace,” Nielsen EVP & managing director of local media Matt O’Grady said. Typical MRC testing of how the PPM receives station codes involves both lab and field environments, including some in respondent household and out-of-home environments. Conditions in lab environments are closely controlled for audio levels, noise and other factors. Tests cover an assortment of audio programming and languages. Voltair ‘high priority’ for Nielsen. Although it’s been conducting internal lab tests of the Voltair audio processor for several months, Nielsen says it’s too early to draw conclusions from them. Until the trials are completed, Nielsen EVP Matt O’Grady says the company won’t take a position on the product. The company also has no timeframe for when the trials will be completed. “This is a very high priority for us, we’re moving rapidly and moving diligently on it,” O’Grady told Inside Radio, adding that test results will be shared with clients, Voltair developer The Telos Alliance and the marketplace. Installed in a station’s audio chain, the Voltair box monitors and displays PPM encoding quality based on programming material. Stations can simulate decoding quality in various listener environments and actively process their signals to optimize PPM encoding. Programmers say it has a direct impact on ratings and uncovers shortcomings in Nielsen’s signal encoders. Acknowledging the importance of maintaining the integrity of the PPM system, O’Grady stopped short of saying what Nielsen might do if the tests showed that Voltair improved encoding. “We’re not saying there are any shortcomings,” he said. “The PPM system is a proven and established technology that is accredited.” Although it told clients in a memo last week that “it does not recommend that clients use Voltair until the testing and validation is complete,” O’Grady says there won’t be any negative consequences from Nielsen for stations that continue to use it and the company has no way of knowing which ones are. “We are not telling them to turn it off,” O’Grady said. “It’s their decision.”

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Radio Disney recommits to radio — this time HD Radio is the foundation. Eight months after announcing plans to sell its portfolio of mostly AM stations and focus on digital and satellite radio distribution, Radio Disney is making a fresh commitment to broadcast radio. This time the Mouse House will be built on an HD Radio foundation. The Walt Disney Company has announced a distribution deal with iBiquity’s HD Radio Ad Network to distribute the Radio Disney network on as many as 60 digital subchannels. The initiative taps into the portfolio of broadcasters that iBiquity is working with to sell HD2/HD3 advertising. “By working with iBiquity Digital, we expand our distribution footprint onto the FM dial and become more accessible to families looking for music that can be enjoyed by the entire household,” Radio Disney VP Eric Goldstein says in a statement. Under the agreement, Radio Disney commercial inventory will be sold by iBiquity’s New York-based ad team as well as the network’s in-house sales division. Launched last year, the HD Radio Ad Network is selling four spots per hour at :21 and :51 past the hour on about 200 digital stations owned by Beasley Media Group, CBS Radio, Emmis, Greater Media and Hubbard Radio. It has so far attracted advertisers like AT&T, Best Buy, Geico, and McDonald’s. Adding Radio Disney stations will grow the number of stations in the network. Meanwhile the sell-down of Radio Disney owned-and-operated stations continues. It’s already found buyers in New York; Houston; Atlanta; Detroit; Miami; Charlotte; Pittsburgh; Cleveland; Milwaukee; Richmond; and Albany, NY. Disney plans to keep only flagship KDIS, Los Angeles (1110). Podcast puzzle still filling in as content growth leads gelling of its business model. Podcast use is on the rise and the content opportunities it opens up are seemingly endless. But there are holes in the fast-growing medium’s measurement and monetization strategy that need to be addressed. So said a panel of digital audio experts at yesterday’s RAIN Summit. With everyone from broadcasters and pureplays to magazines and marketers getting into the audio game, there’s no content shortage for spoken word audio delivered on demand. Seeing an opportunity for hyper local content, Univision Radio offers on-demand audio of local political debates and town halls in San Antonio, Miami and other markets. The events are edited down to podcast-friendly length. VP of digital sales Ted Gurley said that has helped Univision expand the audience for two of its Miami AM stations so that 8% of their cume now occurs from digital consumption. But content consumed as a download poses measurement challenges and offers little for marketers to get excited about. Download metrics don’t show how many people actually listened to the podcast or for how long. “This is a crucial business problem that needs to be remedied,” ABC News Radio VP/GM Steve Jones said. Unlike audio that is live streamed, where ads can be dynamically added, podcast downloads don’t allow for addressable advertising to be inserted. The Interactive Advertising Bureau has convened a sub-group to work on podcast monetization solutions. In the meantime, Univision is taking a conceptual sales approach, selling podcasts as part of a package that extends an advertiser across digital platforms. “It’s done on a fixed cost basis and not necessarily accountable on metrics,” Gurley said. “It’s more of a conceptual sale.”

Big radio lender GE Capital to sell its media business. “Whatever your vision, we can support it” has been the tagline for GE Capital’s media team. And support they have, financing many of radio’s largest deals over the past decade. Most recently it was involved with securing $118 million in financing for Digity Media. But radio executives and the rest of corporate America woke up to the news Friday that General Electric would spin-off GE Capital and focus on its industrial businesses. “This is a major step in our strategy to focus GE around its competitive advantages,” CEO Jeff Immelt says. Over the next 24 months GE will look for buyers of its lending portfolios in a number of sectors, including its Telecom, Media and Technology unit. GE believes it could see as much as $500 billion in proceeds from the sale of GE Capital’s various units. Digity CEO Dean Goodman points out banks and finance companies have come and gone through the years, and while he calls his lenders a “quality and knowledgeable group” he believes others will take their place. “There are many more entities in media lending now so from the industry standpoint, it’s not a factor,” Goodman says. GE’s move comes six years after the recession challenged many lending teams and their clients, including many in radio whose most recent interaction was refinancing their debt with the company. While many other lenders disappeared from radio, GE Capital has remained, leveraging the conglomerate’s diverse portfolio to ride out the industry’s highs and lows. The GE Capital TMT division completed more than 50 transactions totaling $5 billion during 2014.

Triton cracks open streaming measurement door to Nielsen. Triton Digital may compete with Nielsen on the audience measurement front, but as a streaming services vendor to broadcasters it will now make it easier for stations to be measured by its rival. Triton confirms it will integrate Nielsen streaming audio measurement software into its audio players. The move will allow

[email protected] | 800.275.2840 PG 3 NEWS insideradio.com MONDAY, APRIL 13, 2015 stations that subscribe to Nielsen to combine their streaming and over-the-air ratings listening data. Inside Radio first reported the alliance last week. “We are pleased to support the needs of broadcasters, as well as the audio industry as a whole,” Triton president of market development John Rosso says in a statement. Triton joins a list of about three dozen broadcasters and third-party vendors in the beta test of Nielsen’s Software Development Kit (SDK). Once installed the meter will feed listening data to Nielsen, which will crunch the numbers and report them to any subscribing station, giving stations a way to track streaming that can be easily combined with on-air ratings. In addition to Triton, Nielsen is also working with WideOrbit and jacapps, among others. SBS is first media partner for WideOrbit’s programmatic platform. Advertisers looking to use streaming audio to reach the nation’s growing Hispanic population can now leave the busywork to the machines. Ad management software provider WideOrbit is opening a sell-side programmatic beta program for digital audio and has enlisted Spanish Broadcasting as its first media partner. The pilot program is the result of WideOrbit integrating its audio streaming platform with its sell-side exchange, known as WO Programmatic Digital. SBS will make streaming inventory from 13 stations available to brands, agencies and demand-side platforms. Mike Davis, general manager of product at The Trade Desk, a demand-side platform that has partnered with WideOrbit on the beta, says it’s the first time his platform will offer digital audio and Spanish-language audio inventory to its customers. WideOrbit’s entry into the fast growing programmatic space integrates its sell-side exchange with the company’s WO Streaming platform, formerly known as Abacast. The company says stations will be able to transact inventory through direct selling channels, ad network partners, and programmatic technology from a single solution. SBS EVP of digital media Jesus Lara sees programmatic as “the future of radio revenue generation” and says it gives SBS a new way to realize the full value of its online audiences. The alliance “will deliver incremental revenue from our unsold inventory in the most efficient way possible,” Lara said. Les Moonves’ CBS payday tops $57 million. CBS chief Les Moonves remained not only the best-paid executive in media last year, but nearly all of corporate America. His $57,175,645 in total compensation is more than the combined salary of every chief executive at a publicly-traded radio group. CBS says Moonves received a $3.5 million salary plus a cash bonus of $25 million — more than twice his target bonus. On top of that Moonves received stock and options worth $24.5 million. The CBS board justifies the salary by saying, under Moonves’ leadership, the company “continued to execute on its long-term strategy, including focusing on and growing its core content businesses” despite last year’s “challenging advertising market.” It cites CBS Radio’s multimarket swap with Beasley Media Group, which gave the company stations in Philadelphia and Miami, as “furthering the company’s large market radio strategy.” Moonves’ salary is actually less than it was in the past two years — he pulled in $67 million in 2013 and $62 million in 2012. Moonves signed a new contract in December that will keep him at CBS through June 2019. In a filing with the Securities and Exchange Commission late Friday, CBS also disclosed chairman Sumner Redstone was paid $10.8 million in salary, stock and bonuses. That’s a fraction of the $57 million he received a year earlier. COO Joe Ianniello earned $27.1 million, up from $24.6 million. Inside Radio News Ticker…Chicago personalities due back pay: report…A Chicago arbitrator has ruled about a dozen air personalities at classic rock “97.9 The Loop” WLUP and modern rock WKQX (101.1) are due back pay after the stations’ use of voice-tracking exceeded what was allowed under the terms of their union contract. Media blogger Robert Feder reports the union took issue with Cumulus Media last May after it began using voice-tracking of hosts seven days a week, while paying the talent for just five days of week…Las Vegas CHR hints at changes…With 100,000 broadcasters in Las Vegas for the week, iHeartMedia is giving the radio folks something to listen for. CHR “My 93.1” KPLV is hinting at a rebrand or other tweaks as it calls itself “What is 93.1?” The changes will be unveiled Friday morning. KPLV had a 2.4 share (6+) in Nielsen’s February ratings. It trails two rhythmic CHRs: CBS Radio’s KLUC-FM (98.5), which had a 5.9 share, and Kemp Broadcasting’s “Hot 97.5” KVEG, which pulled a 3.6… No profit, but Spotify value tops $8 billion…Streaming pureplay Spotify is raising $400 million in a funding round that values the still unprofitable company at $8.4 billion. The Wall Street Journal says Goldman Sachs and the Abu Dhabi sovereign-wealth fund are among the new investors. Spotify has 45 million users of its ad-supported service, plus another 15 million who pay $10 a month for the ad-free product. In February, Triton Digital reported Spotify had 797,498 sessions, up 5% from its January debut in the Monday-Sunday, 6am-8pm daypart. That put it behind the largest pureplay, Pandora, according to Triton...People Moves... CHR “96.5 Amp Radio” WRDW, Philadelphia names Bobby Smith as its new programmer. And ABC News Radio anchor Richard Davies is retiring after three decades at the network. Read all the latest People Moves at InsideRadio.com.

[email protected] | 800.275.2840 PG 4 MUSTMUST READ READ MONDAYMONDAY insideradio.com MONDAY, APRIL 13, 2015 5 Tips for Writing the Perfect Email Marketing Subject Line (That Doesn’t Look like Spam!)

With so much hype surrounding “new” digital marketing efforts like social media and retargeting, it’s hard to believe that something so “dated” as email marketing could be effective. However, the numbers don’t lie: direct marketing via email has a 4300% ROI according to Copyblogger—which is why Hubspot calls it the best marketing channel for customer retention. In fact, in a survey by BtoB Magazine, 59% of businesses polled claimed that email marketing is the most effective in revenue generation and 49% report spending the majority of their marketing energies on creating email marketing campaigns.

Beware: according to MailChimp, between 10% and 20% of emails sent out are forever lost to virtual trash bins and spam folders. The main culprit? The email’s subject line. Email marketing subject lines have the ability to grab attention or be caught by spam filters. Knowing what works and what doesn’t when it comes to your subject lines will determine your email marketing campaign’s success or failure.

Here are some rules to keep in mind when composing the email subject line:

1. Minimize Punctuation & Avoid the Caps Lock: A sale may — MUST READ MONDAY SPONSORS — be exciting for you--and require an extra exclamation point for emphasis--but spam boxes think otherwise. Special characters and overused punctuation such as question marks and exclamations are quickly caught by filters. And all-caps can come across as yelling rather than generating excitement and is definitely scrutinized by spam filters.

2. Know What to Say: There are some words that grab more attention than others. Slideshare reports that words like “free,” “quick,” and “tomorrow” are opened 10-15% more often. These words are considered “triggers,” meaning that they incite and imply action and incentives, making the email worth the time to read. Also, know what NOT to say. Words and phrases such as “buy,” “discount,” and “earn” all lead to a quick trip to the spam folder.

3. Stick to the Truth: According to MailChimp, when readers think your email is more spam than legitimate, they are more likely to report a message as abuse. Too many reports and your email marketing could be sent automatically to spam regardless if your message is truthful or not.

4. Short but Sweet: Research by Marketingprofs shows that emails with subject lines that include 6 to 10 words are opened 20% of the time, while subject lines with 11 to 15 and 0 to 5 words are opened 16% and 13% of the time, respectively. Subject lines longer than 15 words see their open rates drop off dramatically. That’s why short- but-sweet subject lines are your best friend in email marketing. 35% of emails are now opened via mobile devices, meaning fewer words (typically 5-6) will appear in the subject line than when the email is opened on a computer.

5. Personalize to Recipients: One of the most effective and overlooked email subject line tips is personalization. It could be a simple: “To Our Favorite Subscribers” or the use of the person’s name directly. Retention Science showed a 2.6% email open rate increase when names were used versus when they were not.

Follow Best Practices for Email Marketing With so many marketing strategies to consider, it can be easy to overlook the power and importance of an email subject line. However, with only one second to impress email openers, perfecting the subject title cannot be missed. Avoid spam folders and delete bins by crafting a message that gains attention, passes the filters, and speaks directly to your customers.

CLICK HERE for more marketing tips and best practices.

Great ideas and products featured in Must Read Monday come from innovative companies, sponsors and our greatest resource-our readers! If you have a successful product, an idea, or a innovative service to share, email: [email protected].

[email protected] | 800.275.2840 PG 5 CLASSIFIEDS insideradio.com MONDAY, APRIL 13, 2015 qualMEDIA ADVERTISING & SPONSORSHIP SALES FOR SALE This is not a normal job-posting… because this is not a job! We WITK have “one” incredible opportunity available, that will change your Pennsylvania AM 1550 life. The only question is “Are you that person?” Ramsey Solutions day 10KW / night 500 watts has an opening for the right person who possesses as a minimum: Covers Scranton & Wilkes Barre Cash $650,000. • Proven track-record of closing million dollar deals • Ability to deliver results for your client b/c you seek the right solution Email: • Personal integrity that allows your to rise above your competition [email protected] • Aptitude to hear the word “No” as an opportunity or, call 336-946-0197. • Fortitude to manage the resources of Radio, Video, Digital, Print, and Event Sponsorships to create unlimited earning potential • Strong working knowledge of what we do and “Why” it works so well GENERAL MANAGER This full-time position located in the Brentwood, TN provides the Keokuk/Burlington IA ability to represent all Dave Ramsey products. The opportunity to and Quincy, IL. prove what you can do begins now! Need a General Manager If you have what it takes to fill this “one” position with solid business knowledge then it’s your assignment to get our attention. to grow our station cluster. When we find this person we will commit to We have 3 FMs, 100kw, 50kw, providing an incredible work environment, un- 6kw and heritage full service AM. paralleled resources with a brand that delivers results, and the ability to control your own This position requires a earning potential with no corporate imposed community leader that ceiling. E.O.E. understands the importance of radio. Great opportunity to build Apply online at daveramsey.com/careers. your own team. Must be a leader and trainer with qual DIGITAL CONTENT COORDINATOR involvement in the community; and lead by example. Good iHeartMedia is searching for a Digital Content Coordinator to area, great communities to live. support their five Washington DC and four Baltimore, MD radio Experienced Sales Managers are stations. The Digital Content Coordinator will be responsible encouraged to apply. for maintaining and moving our sites forward with current industry trends and creating unique content under the direction and parameters Send resume and cover letter to: of the Senior Digital Content Coordinator. This position is located in [email protected] their Rockville, MD offices with potential travel to Baltimore 4 times Please place GM position in a month. the subject line. EOE. The ideal candidate will be able to create new original online content and add existing content to our nine station sites and social media accounts as needed. He/She will understand and manage reporting needs for the team, and make design choices based on analytical data, and troubleshoot site issues and escalate when needed.

Experience in entertainment internet is preferred, along with experience with image/video/audio file protocol and proper file compression(s) with relevance to all graphic formats and multimedia formats.

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