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>> FRANK SAXE [email protected] >> PAUL HEINE [email protected] (800) 275-2840 Thursday, March 7, 2013 THE MOST TRUSTED NEWS IN RADIO

More companies scrap streaming ad insertion in favor of 100% simulcast. Six months after Saga Communications became the first group to drop ad insertion on its internet streams and convert to a full simulcast of its on-air product, a growing number of radio groups have taken a similar course — at least with some of their portfolio. For some broadcasters the issue isn’t how little web radio sales have amounted to, but rather how much more they estimate they can make with higher ratings from a full simulcast. Liberman Broadcasting and JVC Media are the latest groups to flip their webcasts to a full simulcast of their broadcast product. “It is something we just could not monetize to a level that made sense for us,” JVC president John Caracciolo says. He explains that local advertisers say they want a “4D” experience that not only speaks to the consumer, but also “touches and interacts” with them. “Rather than separate our mediums, we have them work together to give our clients that multi-platform ‘reach out and touch someone’ package,” Caracciolo says. Several other groups have begun testing simulcasting some of their signals online, while keeping ad replacement in place for other stations. The list includes Merlin Media, Broadcast Company of the Americas, Yucaipa, and Royce International, according to “total line” simulcast data submitted to Arbitron. Saga EVP Warren Lada has been championing the idea. He spent six months last year studying the matter and determined there isn’t any legal issue keeping stations from simulcasting. Since last August all Saga stations have scrapped ad insertion. “It is working just fine for us — we haven’t had any issues,” Lada says. Saga has begun to include language in all of its contracts, insertion news INSIDE >> orders and confirmations alerting advertisers and agencies that the spots will on-air and online. >>Senate gets anti- Monetizing station streams: Different strokes for different folks. While some groups are royalty resolution dropping ad insertion altogether, Salem is taking a blended approach, simulcasting stations whose advertising revenue is most closely tied to ratings. That includes its contemporary Christian “Fish” stations in Dallas, Los Angeles and Atlanta. Salem radio division president Dave Santrella says a one-size- fits-all approach doesn’t make sense in the rapidly changing world of digital radio. “For the moment the potential of greater ratings because we’re simulcasting outweighs the benefits of the potential revenue from having the second stream to sell — it’s just math at this point,” Santrella says. That’s not to say Salem is down on ad insertion. Santrella thinks it’s “worth the effort” in many situations. At Salem stations that don’t focus on transactional ad sales, the ad insertion strategy is at work. Hubbard Radio has begun simulcasting a majority of its stations online, with every cluster except St. Louis giving it a test drive. The company first began experimenting with the simulcast on WTOP-FM, Washington (103.5) last fall. The all-news station’s sizable online audience was credited for giving the station a small bump in the ratings. “For WTOP even a slight move up in ratings can mean a significant rise in revenue,” SVP/general manager Joel Oxley told Inside Radio in December. That lift in ratings could also be seen at other stations that don’t have enough online listeners to meet Arbitron’s minimum reporting standards for a digital line in the ratings report. Those listeners will now be credited to the station’s simulcast overall. CBS Radio turns to digital ad exchange to monetize streaming ad inventory. With some radio companies choosing a simulcast model to monetize their streams, CBS Radio is heading in the opposite direction. The company has become the first broadcaster to join Triton Digital’s a2x ad exchange, which allows advertisers to buy inventory through real-time bidding and uses behavioral targeting. CBS has 127 broadcast radio stations and another roughly 200 online-only streams. The a2x ad exchange sells audio ads similar to how most web display and video advertising is transacted. When CBS or another audio publisher puts inventory up for bid, the purchase price for an ad impression is determined via a real-time auction rather than a predetermined fixed rate. The technology establishes a minimum price at which the impression can be sold for. It also relies on behavioral targeting — enabled by tracking cookies used by webcasters to collect information

MORE NEWS >> INSIDERADIO.COM PAGE 1 NEWS Thursday, March 7, 2013 on the web activities, systems and devices used by their listeners — to deliver the most relevant ad to listeners, regardless of the content they’re listening to. The goal is higher CPMs (cost per thousand impressions) for sellers and a more targeted buy with less waste for buyers. CBS Local Digital Media president Ezra Kucharz says the company will continue to sell digital audio ads through traditional sales means. Joining the exchange will “create additional demand” and allow it to “participate in a new revenue stream targeting mobile and digital budgets,” he says. Triton Digital COO Mike Agovino says a beta phase of the ad exchange “is nearly complete” and additional advertisers are using it every week. Resolution to thwart performance royalty introduced in the Senate. With a blitz of in-person lobbying on Capitol Hill this week by broadcasters, Senators John Barrasso (R-WY) and Heidi Heitkamp (D-ND) yesterday introduced the Local Radio Freedom Act. The bipartisan resolution is non-binding, but it shows opposition for an on-air performance royalty on radio stations. A House version was introduced February 19 with 73 members supporting it. That number has since grown to 89. The NAB-backed resolution covers well-worn talking points. Imposing an on-air performance royalty would upset the “mutually beneficial” relationship between the broadcasting and recording industries. Radio provides publicity and promotion to labels and acts in the form of airplay, artist interviews and concert promotions. Stations would suffer “severe economic hardship” is any new performance fee is imposed and that would harm consumers who rely on the medium for essential information during national emergencies and disasters. Meanwhile, radio’s largest company offered another example of how the radio and recording industries are working together on the performance royalty issue without government intervention. Clear Channel has signed a revenue sharing agreement with the music division of film producer and distributor Entertainment One (eOne), home to such acts as DJ Drama, Faith Evans, Pop Evil and Black Label Society, among others. It’s the seventh such deal the company has signed since last June.

Cox expands its reseller program with Google. Stepping up its partnership with the digital giant, Cox Media Group has become the first radio station owner to become a Google Premier SMB Partner. Acceptance into the elite group of less than 20 companies allows Cox to put Google products on the digital menu it offers local and regional marketers, joining Hearst, Scripps, Advance Digital and others in the revenue-sharing program. Cox sellers will receive training and certification to pitch the latest Google products beyond the AdWords campaigns they already represented. That means a Google-certified Cox Radio account exec can offer Search Engine Optimization tools and advertising on YouTube and Google’s display network in the same breath as the broadcaster’s own digital offerings. “It’s really important to go to our advertisers with an integrated solution,” Cox Media Group VP/GM of digital operations Rich Reis says. Cox Radio’s digital sales repertoire already goes well beyond station website ads to include reach extension, SMS messaging and reputation management. Now it can add full-service campaign management, detailed reporting, one-on-one customer support and a more consultative sales approach. Local sellers receive sales support from Cox headquarters in Atlanta and from dedicated Google representatives — in addition to their local digital sales manager. With 30% growth in 2012, digital efforts pay off for Cox. Cox Media Group is betting that becoming a Google Premier SMB Partner will give it a competitive advantage — not just over other radio and TV broadcasters but over pureplay digital marketing companies like ReachLocal. “Everyone needs help with digital advertising, people are consumed about what they should do and when they should do it,” Cox Media Group VP/GM of digital operations Rich Reis says. The ability to offer local and regional marketers the latest Google products will help Cox sellers start the conversation with digital — before weaving radio into the mix. “Sometimes we need to enter the process from digital first because when you say, ‘I’m from radio station XYZ,’ they may say they don’t want to buy any radio,” he says. The strategy helped Cox grow digital revenue by a whopping 30% in 2012 and attract advertisers who traditionally haven’t used the medium. The company plans to hire more digital-only radio sellers in addition to the handful it currently has. “The combination of radio and digital is powerful,” Reis says. “We have to maximize our current radio advertisers and bring in new ones by leading with digital first. It’s the only way we’re going to grow our local advertising pie.”

MORE NEWS >> INSIDERADIO.COM PAGE 2 NEWS Thursday, March 7, 2013 Townsquare looks to grow beyond its current borders. From the addition of a digital ad network last year, to the more recent expansion of its live music events business with the purchase of two events in as many months, Townsquare Media’s recent acquisitions have veered it away from a straight path of radio. After growing to 242 radio stations over a series of deals between 2010 and 2012, the company is bringing on a new executive to help expand Townsquare beyond its current borders. Townsquare has hired Michael Josephs as SVP of corporate strategy and development. CEO Steven Price says adding the investment banking veteran will “greatly increase our company’s bandwidth to explore opportunities.” Josephs was most recently a Managing Director at MESA Securities, an investment bank solely focused on the media and entertainment industry. Prior to MESA, he spent ten years at Credit Suisse and Merrill Lynch. Josephs will work alongside EVP of business development/M&A Alex Berkett, who says Townsquare is considering all sorts of options that will dovetail with its radio business. “We are looking at all sorts of things, and you can expect to see us active in ancillary sectors,” he says. The most likely areas of growth are in Townsquare’s existing digital and live event businesses. Townsquare now operates 250 websites, including some nationally-focused brands like Loudwire.com and TasteOfCountry.com, which has its own music festival. But expansion into TV can’t be taken off the table — with print and yellow pages about the only thing executives are putting on Townsquare’s do-not-buy list. Court ruling may help Nielsen get its Arbitron case by regulators. The Federal Trade Commission has begun giving Nielsen’s proposed $1.26 billion buyout of Arbitron a thorough review. But a courtroom in Atlanta may’ve just given Nielsen some of the evidence it needs to move forward with the deal. The U.S. Court of Appeals for the Eleventh Circuit unanimously upheld a lower court decision this week to toss out WSVN-TV, Miami’s antitrust case against Nielsen. The Sunbeam Television station had argued that Arbitron and two other research companies could have entered the TV measurement business if Nielsen hadn’t used anticompetitive practices to lock them out. But the three-judge panel concluded the lower court was correct when it found Arbitron and the two other companies weren’t willing or able to enter the “capital intensive television audience measurement industry and compete against Nielsen.” For FTC and Department of Justice attorneys looking for case law to allow the merger of the two ratings companies to take place, the courts have just provided freshly-minted decisions upon which to draw from. Nielsen should get an indication over the next several days of whether it will face an intensive FTC and DOJ review when the regulators either grant “early termination” status — or open a wider investigation of whether there are antitrust reasons to block Arbitron’s sale.

Michael Smerconish: “I’m frustrated with the industry.” Talk host Michael Smerconish has been sounding an alarm that the conservative tilt of talk radio has been shrinking the tent of potential listeners. He took his message to a high-profile stage at 2011’s Radio Show in Chicago. But Smerconish thinks little has changed since then and that was a factor in a decision to make the switch to Sirius XM Radio. “It played a significant role in the decision,” he says. Smerconish’s final Dial Global show will air on about 80 affiliates on April 5 with his satellite show launching 10 days later. Dial Global will continue to sell advertising for the program. “I’m frustrated with the industry,” Smerconish says. “I don’t believe there’s been any effort to expand the tent… Radio stations have been content to pay their bills by relying on the same small but very loyal constituency.” Insiders say his breaking point was the recent loss of major market affiliates in Boston and Houston due to format changes, and a pending loss of his Indianapolis station. Smerconish, a Republican-turned-independent, thinks talk radio’s problems are similar to the GOP’s. “Demographics are not on our side,” he continues. He says the Sirius XM show will give him to a wider slice of America with the instant live clearance that satellite radio can offer a host. “I think it’s a demo that’s different from the conventional talk formula, which is skewed toward white, male, older and angry,” Smerconish says. His new Sirius XM show on nonpartisan P.O.T.U.S. channel will air from 9am-12noon ET with a 6pm-9pm rebroadcast. Read excerpts from an Inside Radio Q&A with Michael Smerconish HERE. Univision creates team to build a bigger tent of advertisers. Univision aims to grow non-traditional revenue with a new initiative that will work with companies that haven’t been typical Spanish-language media buyers but are interested in growing

MORE NEWS >> INSIDERADIO.COM PAGE 3 NEWS Thursday, March 7, 2013 their share in the Hispanic market. The Corporate Business Development Group will be led by Tonia O’Connor, whose been overseeing the company’s retransmission consent negotiations with cable TV companies. “This is the perfect time to show the marketplace we are open for business and ready to forge new partnerships,” she says. The Corporate Business Development Group will work with all of the company’s divisions on ways to broaden the client list. “The creation of this group puts a laser focus on our efforts to expand our outreach to the many non-traditional outlets that now recognize the growth opportunity afforded to them by serving Hispanics,” CEO Randy Falco says. Toledo morning man-turned webcaster challenges noncompete clause in court. Former CHR “Star 105” WWWM-FM, Toledo morning host Andrew Zepeda is asking a Lucas County, OH court to issue a declaratory judgment saying his new digital program does not violate a noncompete he had with his prior station. Cumulus Media last week sent Zepeda a cease-and- desist ordering he stop doing the app-only show, but he’s so far ignored that request. In a complaint filed this week, Zepeda is also seeking $250,000 from Cumulus for what he says was remaining on the final two years of his contract. His attorney, Beau Harvey, says they will argue the web-only show doesn’t violate the six-month noncompete clauses of Zepeda’s contract and notes other Ohio court cases have given them a foundation to build their case on. Zepeda was fired last December 26th, five days before he was to see his annual salary bumped up from $85,000 per year to $125,000. Harvey says WWWM also did not pay the required 12-weeks severance under his employment contract. No court dates have been set and it could be weeks or months before the issue is resolved, although Cumulus attorneys could seek a temporary injunction forcing Zepeda off the air in the meantime. The company hasn’t yet responded to the suit, but management told the Toledo Blade it views the new show as a “direct violation” of the noncompete.

Inside Radio News Ticker…Saga to buy more of its stock…In a signal that Saga Communications doesn’t have any major acquisitions up its sleeve, the company has announced it plans to dip into its cash reserve and buy back more of its stock. Saga says it will increase the size of its buyback program to $30 million. That’s about twice what the company had remaining under the previous authorization. Saga paid a special dividend to shareholders last October totaling about $7 million… Disney shareholders reject governance proposals...ESPN Radio and Radio Disney parent Walt Disney shareholders have rejected a move to split the two roles held by Bob Iger: chairman and chief executive officer. During the company’s annual meeting, two-thirds of shareholders opposed the split. Iger doesn’t plan to relinquish the CEO role until March 2015, which may’ve made the issue less pressing for many. By a smaller margin shareholders also approved the company’s executive compensation and bonus plans. Iger earned $40.2 million last year…Sandy threatens New York FM…Still fighting with its insurance company to recover from Superstorm Sandy, Pacifica’s WBAI, New York (99.5) has launched an emergency campaign to raise $500,000 by the end of the month to keep the lights on and its transmitter broadcasting atop the Empire State Building. The station says the cash is needed to pay the rent on its transmitter site. Its fall fund drive fell short after Sandy knocked the station off the air for three weeks...People Moves...Two new sports PDs. Read People Moves HERE. Inside Radio Deal Digest — Wichita — Air Capitol Media Group lands its first station with a $2 million deal to buy regional Mexican “Fiesta 99.7” KANR from Daniel Smith. Air Capitol Media is Shane and Kianne Prill, who’ll begin operating the station on May 1 under a time brokerage agreement if the deal hasn’t closed by that date. First-time owner Shane Prill is a financial planner for Raymond James Financial Services and he and wife Kianne also own a cattle-siring business in Wichita. Tennessee — Beverly Broadcasting Company is regaining control of oldies WRKQ, Madisonville (1250) for a little more than the $100,000 it sold the station to Monroe Community Radio for. Beverly will forgive the remainder of the $72,000 promissory note. Michael Beverly owns oldies WDNT, Dayton, TN (1280) and soft AC WRHA, Spring City, TN (970). North Carolina — Johnson Media Group closes a deal to buy gospel WXKL, Sanford (1290) from Thomas Broadcasting for $26,000. Jimmy Johnson owns three other stations, including gospel WYRN, Louisburg (1480) which is about 66-miles away.

MORE NEWS >> INSIDERADIO.COM PAGE 4 CLASSIFIEDS Thursday, March 7, 2013 qualOPERATIONS MANAGER/KCYY PROGRAM DIRECTOR qualSTATION MANAGERS SAN ANTONIO, TEXAS RADIO DISNEY Cox Media Group-San Antonio, TX is seeking an Operations Manager Radio Disney is looking for for our seven station cluster. (This position includes KCYY Program motivated Station Managers in Director duties.) Must have excellent motivation, leadership and Boston, St. Louis & Charlotte organizational skills and have a proven track record in obtaining to join the Disney Media ratings results. Requires at least 5 years programming experience as family. The Station Manager a Program Director and/or Operations Manager. is responsible for all sales and promotional initiatives, as well Qualified candidates should send their material to: Cox Media Group, as day to day operations for 8122 Datapoint, Suite 600, San Antonio, TX 78229, Attn: Human the radio station. A minimum 3 Resources or, email to: [email protected]. EOE years experience in sales or sales management is required.

Boston, MA REQ ID#91297 Charlotte, NC REQ ID#88916 St. Louis, MO REQ ID#91299 qual VP OF SALES - CUMULUS, HUNTSVILLE AL Cumulus Huntsville is looking for a VP of Sales to lead our sales operations in the “Rocket City.” You will have the most powerful brands in the market along with the best resources and coaching in Get more details or apply now: the industry at your disposal. If you are looking for the opportunity www.disneycareers.com. to grow and take that next step in your career towards becoming a Search by REQ ID# above. Market Manager, you’ve found it. Our search will include candidates Radio Disney is an Equal who are currently carrying a DOS or GSM title. Opportunity Employer.

Inquiries will be held in the SALES - METRO ATLANTA strictest confidence: [email protected] North Metro Atlanta 100,000 Equal Opportunity Employer watt South 107 is looking for experienced reps to help take a qual SALES EXECUTIVES - BOSTON growing Country formatted station to the next level. For Account Bloomberg will shortly be launching a radio station in Boston and Executives with a passion for we are searching for sales executives to spearhead this exciting sales, and a background in direct initiative. The successful candidates will focus on developing new selling in medium/major market accounts for the station across a wide range of financial, auto, radio sales, this is an excellent corporate, technology and luxury accounts. opportunity to join a company with expanding market partnerships. The candidates will work with Boston based clients and advertising This is an ideal position for those agencies through across all aspects of the sales process. We are tired of “corporate radio” to looking for “self-starters” with strong presentation and organizational work in a “local decision making skills. environment” and to have some fun doing it! 5+ years of recent and relevant media sales experience, ideally with a radio background. Strong track record of new business development, including with the A detailed job description and automotive category. Find more application can be found at qualifications and requirements, or if qualifed applyHERE . E.O.E. south107.com/jobs.com INSIDE RADIO, Copyright 2013. www.InsideRadio.com. All rights reserved. No part of this publication may Send your resume to: be copied, reproduced, refaxed, or retransmitted in any form. Address: P.O. Box 567925, Atlanta, GA 31156. [email protected] To advertise, call 800-640-8852. Classifieds, email: [email protected]. Subscribe to INSIDE RADIO monthly subscription $39.95 reocurring payment. Call (800) 248-4242 to subscribe. Managing Editor, Frank An Equal 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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