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Sequester cuts into some radio spending. The federal government’s sequestration battle may not be getting the sort of headlines that the fiscal cliff got at the end of last year, but it may have a bigger impact on radio — especially in the Washington market. Perhaps more than any station in the country, Hubbard’s all-news WTOP-FM (103.5) and its sister “Federal News Radio” WFED (1500) have the most to lose — or gain — depending on which way the fight over the sequestration and overall federal spending goes. “There are clients that we have worked with over the last six months who specifically reference sequestration, and the unknown part of it, and have cut back on spending,” Hubbard-Washington director of sales Matt Mills says. “It seems defense has been more affected than regular federal contractors.” Contractors targeting the federal government are far and away the top-billing cluster’s biggest source of ad revenue, representing a double-digit percentage of its bottom line. “It’s more than double or even triple than any other category at the station,” Mills says. Government contractors include big local spenders like Boeing and Lockheed Martin, and consumer brands such as computer maker CDW, which has a government sales division. While many federal contractors are pulling back as they wait and see where the sequestration fight goes, Mills says others are taking a dim view. Some started slicing away at ad budgets last year and one client told Mills it cut its 2013 budget and has no intention of adding to the media plan, regardless of whether the spending cuts are restored. The ripple is felt beyond Capitol Hill to Main Street advertisers. The possibility of the federal government furloughing hundreds of thousands of employees for one day a week has the potential to put a pall over local consumer spending — and in turn, the broader local ad market. “There are ripple effects that are going on in the market for sure,” Hubbard-Washington DOS Matt Mills says. “There are a fair number of local advertisers who are not government-related that are using sequestration and the unknown as a reason to scale back, and that’s why the local market is down a little bit right now.” That doesn’t mean all Washington stations are hurting, however. At the Radio One cluster, where government-related dollars aren’t much of a factor, CEO Alfred Liggins told analysts two weeks ago that its Washington stations are “phasing positive” in the first quarter. Despite the uncertainty of the cluster’s biggest ad category, Mills isn’t as worried as might be expected. “Our national billings are through the roof right now,” he explains. The market’s national revenue was up 12% in January, helping soften the decline in local billings. Government ad dollars still flowing to national. Beyond the Washington market, stations may not need to worry right now about losing any billings tied to the federal government. Katz Media Group/Eastman Radio manager Patrick McGee says the rep firm hasn’t seen any cancellations or even hints that buyers might put campaigns on hiatus. Even if they did, McGee doubts there’d be any long-term impact. “There will eventually be some sort of resolution on sequester,” he says. “This is part of the political process so any accounts or accounts impacted will eventually level off.” One reason national dollars may not be feeling the squeeze so far is some federal agencies may have already committed those budgets for the current fiscal year. Beyond federal agency ad dollars, McGee says their team is working to keep the core political and issue advocacy ads flowing to radio. The focus in 2013 is on states with gubernatorial elections. Category Close-up: uptick in restaurants’ radio share. Despite a 5% decline in restaurant spending on radio last year, the category represents a greater share of revenue than in did five years ago. The Radio Advertising Bureau says restaurants

MORE NEWS >> INSIDERADIO.COM PAGE 1 NEWS Monday, March 4, 2013 accounted for 18% of revenue among the top five biggest ad categories last year. That’s a 20% increase compared to 2007.

Hotter role for radio in Buffalo Wild Wings’ media recipe. The restaurant ad category has been a tough one for radio in the past year as that industry has struggled to keep diners coming through the door. Buffalo Wild Wings has been one of radio’s growth stories, and the chain plans to spend more in 2013. “For the first time, we’ll have a significant amount of national radio,” CEO Sally Smith said. She told analysts in a recent conference call that the chain expects to increase its total marketing budget 6-7% this year. “Sports are the cornerstone of our brand,” Smith says. The casual restaurant has strong ties to sports. “Our new TV and radio spots will promote Buffalo Wild Wings as the official hangout of the NCAA March Madness,” Smith said. She notes February and March bring some of their biggest ad spending, with NFL-related commercials putting another focus on September and October. As an official sponsor of the NCAA, Smith says Buffalo Wild Wings has rights to customize its commercials for all 89 championships. “We intend to increase our advertising presence over last year with more weight on radio to support all our marketing campaigns and sales driving initiative,” Smith said. The Minneapolis-based chain has about 861 locations in 48 states. According to Kantar Media, Buffalo Wild Wings spent $19.6 million on radio in 2012.

Some menu changes in restaurant category. McDonald’s and Subway may dominate radio’s restaurant category but what could be the next generation of clients is already bubbling up. Jack in the Box says it is developing a radio campaign for its Mexican food chain Qdoba. “It’s probably been over a year since we’ve done any media of any significance, so this will be new for Qdoba,” CEO Linda Lang said last week. She told investors they’ll take to the radio airwaves in the second half of 2013 with a mix of promotional and branding messages. “We’re putting that media plan together as we speak — it’s not going to be in every market,” Lang added. Miller Kaplan says spot radio budgets for quick-serve restaurants jumped 7% last year, propelled by a 40% increase in fourth quarter radio spending. Other chains are slowly testing radio. The Cheesecake Factory has been on the air in a single market for a couple of months to see how consumers respond to a low-key branding message. “There was no offer, no call-to-action,” CFO Doug Benn explained to analysts last week. It also used outdoor and in-mall advertising. “We plan to continue to test, adding a new market this year and to further our learning about what mediums move the sales needle the most,” Benn said. Cracker Barrel — which puts most of its ad budget into billboards — ran radio in 65% of its markets from mid-November through Christmas Day. CEO Sandra Brophy Cochran said radio’s a work in progress for them. “We’re still evaluating radio and how comfortable we are with it, how we could improvement it and how important it was in terms of the mix,” she told analysts last week. For now she says they continue to put ad dollars into radio targeting 25-54 year old women. The challenge remains keeping radio on the menu. Chuck E. Cheese says that although it advertised on radio last February and March, it’s not on the media plan in 2013 with those dollars shifting to national TV. “We believe that the TV and digital more than offsets the radio that we had in the first quarter of last year,” CEO Mike Magusiak says.

It’s not radio, it’s lean times for restaurant owners. The radio industry saw ad spending from restaurants decline 5% last year, and that category is likely to remain challenged in 2013. National Restaurant Association SVP Hudson Riehle says operators remain “decidedly pessimistic” about the overall economy. Just 17% think their business will improve in the next six months. The critical holiday period didn’t bring much help for restaurants as the NRA says December brought “much softer” same-store sales and customer traffic levels than a month earlier. Even so, the trade group still believes restaurant industry sales will grow 3.8% in 2013. If that comes to fruition, it could help spur some owners to restore ad budgets. “Operators will continue to explore ways of navigating the rocky economic landscape to find the road to success,” NRA president Dawn Sweeney says.

MORE NEWS >> INSIDERADIO.COM PAGE 2 NEWS Monday, March 4, 2013 A short-lived retirement quickly turns to return to ownership for veteran broadcaster. “Retirement in Florida did not suit me well,” says Chris Lash, as the veteran owner buys three noncommercial FMs and launches his “Cat Country Network” on the signals. “I lasted about three months, when this opportunity arose in the Midwest,” he says. The move may not come as a surprise, since Lash has spent the past 30 years building, buying and selling stations, as well as creating the classic country format “The Farm.” Lash had left ownership once before, only to buy two Youngstown, OH stations in late 2010. He struck a deal last fall to sell the pair to Sagittarius Communications for $150,000 and gave retirement another try. Lash expects to continue growing his Whiplash Community Radio. “We’ll be adding another station to our mix soon, and will continue to grow in the right markets — stations and FM translators,” he says. In this first deal Lash is buying KLXG, Goodland, KS (88.9); KLXO, Beaver, OK (91.9); and KLXD, Springfield, CO (91.7) from the Better Public Broadcasting Association for $31,200. All will air the classic country format. Lash says the Oklahoma and Colorado stations will be converted into commercial stations as soon as he signs them on. Under a local marketing agreement KLXG was the first to go on the air over the weekend from its new dial position and stronger 50,000-watt signal as “89.1 Cat Country.” Lash plans to syndicate the Cat Country Network — which is based from studios in Florida. As for the closing on his Youngstown stations, he says that’s been delayed by thieves who stole all the copper from the three towers used by the stations. CNN sues Dial Global. Unpaid licensing fees are at the heart of a breach of contract lawsuit filed Friday in New York by CNN. The suit alleges Dial Global owes the cable news channel at least $2.35 million. CNN says Dial Global missed the final two quarterly payments of $1,175,000 apiece last August and November after it pulled the plug on a CNN-branded news product. The suit, filed in New York State Superior Court, says Dial Global informed CNN in December 2011 that it didn’t plan on extending its partnership when the contract expired in December 2012. The two companies agreed Dial Global would continue distributing CNN-branded newscasts through the end of March and pay through December. When the final newscast aired last March 31, the network had about 1,100 affiliates. Many were converted to the new NBC News Radio network. CNN’s lawsuit reveals Westwood One — which was absorbed into Dial Global in late 2011 — agreed to pay CNN $4.55 million in the first two years of its contract, and $4.7 million in the third year. Dial Global hasn’t yet responded to the suit. More platforms mean more reach for content providers. The question of whether mobile platforms simply shift existing content consumers over to new distribution channels appears to have an answer. ComScore says ESPN has seen its digital reach jump 59% over the past year. The only company that had a larger increase was Pandora, which saw its digital reach soar 155%. Twitter ranked third, with a 46% increase in reach as more people started tweeting on their smartphone instead of their desktop. One out of three minutes spent with digital media is now spent on a mobile device. ComScore says as of December, 63% of digital time is on a desktop, while 37% is on mobile device, driven by smartphone and tablet usage. Where consumers go, advertisers are following. “Interestingly, 1.9% of the time spent viewing videos online is spent looking at ads compared to 20-30% of the time that’s spent on TV,” comScore senior director Tiffany Walker said during a company webinar last week. But the gap is likely to close with a 50% year-to-year increase in the number of video ads served to Americans. “We’re also seeing individuals logged 24 more video ads in December 2012 versus 2011, which is a 63% increase,” Walker said. A Borrell Associates report last week said the radio industry booked $33.9 million from video ad sales in 2012, putting it behind display and in-stream audio ads, with just 4% of stations saying video ads were their biggest source of digital revenue. Kentucky broadcasters get biggest bounce from college basketball. Lexington is just wild about the University of Kentucky Wildcats, and that’s good for local radio and TV. The city is the top market for college basketball fans, with 83.3% of Lexington residents saying they follow college hoops on radio and TV. That figure no doubt got a boost from the Wildcat’s Division I tournament win last year, which brought the school its eighth national championship title. Yet the engagement is nearly as high in Louisville where 75.1% regularly follow the sport on local broadcast outlets with a likely assist from the University of Louisville Cardinals. The Media Audit says in a typical U.S. market just 37% of the population follows college basketball. The research shows other b-ball crazed cities include Syracuse, where 62% of the metro area’s population regularly follows the sport, followed by Raleigh-Durham (60.4%), and Greensboro-Winston Salem (58.3%).

MORE NEWS >> INSIDERADIO.COM PAGE 3 NEWS Monday, March 4, 2013 HD-fed translator expands classical format in St. Louis. When “Classic 99” KFUO was sold in 2009 and flipped to a contemporary Christian format, it left St. Louis without a fulltime classical music outlet for the first time in 50 years. Things improved last summer when Emmis leased the HD-2 signal of classic hits “K-Hits” KIHT to the Radio Arts Foundation, a local group that previously provided financial support for “Classic 99.” Now Radio Arts has landed an FM translator at 107.3 to give the classical station an FM analog signal. The St. Louis Post Dispatch reports that former KFUO station manager Jim Connett is managing the new station and is planning to hire additional staff. Milwaukee format shaken and stirred. After stunting with an all-Elvis format, Milwaukee Radio Alliance has flipped its talk-blues WMCS and launched adult standards “1290 Martini Radio” WZTI promising a “modern twist” on adult standards — with a playlist that ranges from Dean Martin to Michael Bublé and Adele. “It’s rat pack meets brat pack,” newly-named operations manager Stan Atkinson says. The target is listeners aged 35+, though GM Bill Hurwitz says it’s “a station that everyone can enjoy, from grandparents to parents to young adults.” WMCS’s previous talk/blues format had a 1.1 share (6+) in Arbitron’s January ratings. Northern Arizona classic rocker hardens up. With classic rock spanning four decades of music, a narrower strain of the format has emerged in a handful of markets. The latest comes in Flagstaff, AZ where Guyann’s “93.9 The Mountain” KMGN has evolved from Boston, Creedence and Foreigner to harder edged music primarily from the late ‘80s and the early ‘90s. Core acts include AC/DC, Guns N’ Roses, Nirvana, Pearl Jam, Metallica and Stone Temple Pilots. Similarly formatted hard- edged classic rockers have sprung up in Detroit; St. Louis; Columbus, OH; Rochester, NY; Portland, OR; and other markets.

Inside Radio News Ticker…Flat quarter for LFM…Lincoln National tells investors its 15-station group Lincoln Financial Media had a flat fourth quarter with revenues holding steady at $21 million. But for the full year, LFM revenue increased 5% to $81 million. That beats the 3% gain posted in 2011. And LFM expenses were cut by 4% during 2012. Lincoln National pegs the value of its media assets at $341 million…EMF launches ‘K-Love’ awards…In a brand extension of its national contemporary Christian radio format, EMF will produce the K-Love Fan Awards Show, June 1st at Nashville’s Ryman Auditorium. Fans will begin voting in May for their favorite Christian artists, athletes, authors and entertainers with winners unveiled at the show. Hosted by Phil & Kay Robertson and Jase & Missy Robertson from A&E TV’s “Duck Dynasty,” the show will include performances by some of the biggest acts in Christian music, including TobyMac, Steven Curtis Chapman, Third Day and Casting Crowns…People Moves…St. Louis 29-year personality J.C. Corcoran returns to the air — but in Houston. And Cumulus remakes its Albuquerque cluster management team. Read People Moves HERE.

Dodgers want Korean radio outlet. Spanish-language play-by-play has been common in big league sports. The Los Angeles Dodgers reportedly would also like to have a Korean-language play-by-play radio outlet. The team, which will have TV broadcasts in three different languages, hopes to leverage its signing of starting pitcher Hyun-Jin Ryu to find a Korean- language radio home, according to The Los Angeles Times. The Dodgers have plenty of options with four Korean-language stations in the L.A. market, including JMK Communications’ “Radio Seoul 1650” KFOX, P&Y Broadcasting’s “Radio Korea” KMPC (1540), Korean Gospel Broadcasting Network’s KGBN (1190), and Multicultural Radio Broadcasting’s KYPA (1230) — whose transmitter site coincidentally near Dodger Stadium. Inside Radio Deal Digest — Greenville-Spartanburg, SC — Ardell Sink’s Mountain Valley Media files to buy news-talk WFIS (1600) from Golden Strip Broadcasting for $40,000. WFIS has 1,000-watts day and 250-watts night. Sink also owns three North Carolina stations. Utah — Canyon Media Group has struck a deal to buy the currently-silent KENT, Parowan, UT (1400) for $12,000. Canyon already owns several stations in St. George and Logan, UT. The station was previously owned by Morgan Skinner’s Legacy Communication, which was forced by creditors, including US Capital, to put the group in receivership. Then in November 2011 they took it a step further, and took Legacy into bankruptcy court. As part of the liquidation, broker Greg Merrill of Media Services Group was brought onboard to sell the stations. Seven bids were collected last fall and Merrill says deals are pending for the remainder of the Legacy stations.

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MORE NEWS >> INSIDERADIO.COM PAGE 5 CLASSIFIEDS Monday, March 4, 2013 qualOPERATIONS MANAGER/KCYY PROGRAM DIRECTOR qualPD - GREATER MEDIA SAN ANTONIO, TEXAS 94.7 WCSX, Detroit’s #1 Cox Media Group-San Antonio, TX is seeking an Operations Manager station for Classic Rock, seeks for our seven station cluster. (This position includes KCYY Program a Program Director who Director duties.) Must have excellent motivation, leadership and will take our product to new organizational skills and have a proven track record in obtaining heights. The ability to direct ratings results. Requires at least 5 years programming experience as and inspire a legendary staff, a Program Director and/or Operations Manager. create extraordinary imaging, theatrics and promotions within Qualified candidates should send their material to: Cox Media Group, a solid strategic framework and 8122 Datapoint, Suite 600, San Antonio, TX 78229, Attn: Human to effectively oversee all facets of Resources or, email to: [email protected]. EOE this legendary brand are essential. Three years or more major market programming success required. E.O.E. If you fit this description and would like to be a part of the Greater Media Detroit team send your package to:

SALES - METRO ATLANTA Steve Kosbau, Market Manager North Metro Atlanta 100,000 watt South 107 Greater Media Detroit is looking for experienced reps to help take a One Radio Plaza growing Country formatted station to the next Detroit, Michigan 48220 level. For Account Executives with a passion Or, email: for sales, and a background in direct selling in [email protected] medium/major market radio sales, this is an excellent opportunity to join a company with expanding market partnerships. This is Greater Media Detroit is an an ideal position for those tired of “corporate radio” to work in a Equal Opportunity Employer “local decision making environment” and to have some fun doing it! A detailed job description and application can be found: south107. qualSTATION MANAGERS com/jobs.com. Send your resume to: [email protected]. EOE RADIO DISNEY

qual VP OF SALES - CUMULUS, HUNTSVILLE AL Radio Disney is looking for motivated Station Managers in Cumulus Huntsville is looking for a VP of Sales to lead our sales Boston, St. Louis & Charlotte operations in the “Rocket City.” You will have the most powerful to join the Disney Media brands in the market along with the best resources and coaching in family. The Station Manager the industry at your disposal. If you are looking for the opportunity is responsible for all sales and to grow and take that next step in your career towards becoming a promotional initiatives, as well Market Manager, you’ve found it. Our search will include candidates as day to day operations for who are currently carrying a DOS or GSM title. the radio station. A minimum 3 years experience in sales or sales Inquiries will be held in the management is required. strictest confidence: [email protected] Boston, MA REQ ID#91297 Equal Opportunity Employer Charlotte, NC REQ ID#88916 St. Louis, MO REQ ID#91299 FIND MORE JOB OPENINGS ONLINE @ WWW.INSIDERADIO.COM >> Get more details or apply now: www.disneycareers.com. INSIDE RADIO, Copyright 2013. www.InsideRadio.com. All rights reserved. No part of this publication may be copied, reproduced, refaxed, or retransmitted in any form. Address: P.O. Box 567925, Atlanta, GA 31156. Search by REQ ID# above. To advertise, call 800-640-8852. Classifieds, email: [email protected]. Subscribe to INSIDE RADIO Radio Disney is an Equal monthly subscription $39.95 reocurring payment. Call (800) 248-4242 to subscribe. Managing Editor, Frank Opportunity Employer. Saxe [email protected] 800-275-2840 x702/Senior Editor, Paul Heine [email protected], 800-275- 2840 x703. General Manager, Gene McKay 800-248-4242 x711.

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