800.275.2840 MORE NEWS» insideradio.com

THE MOST TRUSTED NEWS IN RADIO

TUESDAY, MAY 12, 2015 Ad insertion, native advertising become part of podcast playbook. With podcasting a new frontier for radio, new ways to monetize the fledgling medium have emerged that go well beyond direct response ads read by hosts. Ad insertion has entered the ring, along with native advertising. Targeting podcast ads based on behavioral data and demographics is becoming more prevalent. Using third party providers, CBS Radio, PodcastOne, audioBoom and other podcast players dynamically insert ads. CBS Radio stitches them into Play.it podcasts, whether the listener is streaming on demand or downloading the audio to their device. Here’s how it works: When there’s a call to the server for a specific podcast, it instantaneously sees what ads are available for that podcast or the demographic behavior purchased by the marketer. It then inserts the ads into the file before it’s downloaded or streamed. “We made the audio on demand business very marketer-friendly,” says CBS Local Digital Media president Ezra Kucharz. Data plays an increasingly important role. “There’s plenty of data, both digitally and through surveys, that can provide all the needed info to brand advertisers on who the audience is and their purchasing makeup,” PodcastOne founder Norm Pattiz says. Native advertising is becoming part of the playbook, too. At its SoundFront presentation, iHeart- Media’s pitch to marketers included inviting them to participate in the creative process for a new slate of podcasts. “We have some ideas, and we want to do it with your brands,” CMO Gayle Troberman said. Client-branded podcasts are a big push at CBS, too, which is working with several brand advertisers to launch podcasts of their own original content toward the end of second quarter. Podcasting transitions from direct response to brand advertising. When PodcastOne launched two year ago, 90% of its business was direct response ads. Audience deliveries were small. But engaged, loyal followings produced strong results and high CPMs. “The podcast audience is worth more for an advertiser because they had to perform a positive act to access the content,” PodcastOne founder Norm Pattiz says. The company’s national brand advertisers have surged from six to 46 during the past two years and it expects to end 2015 with a 50-50 ratio of direct response to brand advertisers. “National brands are starting to use the medium in much more effective ways,” Pattiz says. The company expects to bill $20 million this year, ten times what it booked when it launched two years ago. But despite the runaway success of NPR’s “Serial,” which amassed 80 million downloads, podcasting gets only a sliver of ad dollars. There is no precise tracking of its annual revenue with estimates ranging from as low as $34 million to as high as $60 million with potential to reach $100 million in the near-term. Podcasting’s ace in the hole is a loyal and engaged audience — users seek out and subscribe to specific shows on topics that interest them. Being able to demonstrate a deeper emotional attachment could lead to higher CPMs than your average music stream. “We’re in the early stage and everyone’s trying to assess value,” CBS Local Digital Media president Ezra Kucharz says. “A lot of brands like to associate themselves with passion plays and that’s what this is about.”

A shift away from downloads to on-demand streaming. One-third of the country’s 12+ population has listened to a podcast, some 89 million people, according to Edison Research and Triton Digital. While the trend is one of solid growth, measuring how many people listened to a specific podcast after downloading it is one hurdle the industry will need to overcome to give marketers the metrics they’re accustomed to. Companies like RawVoice, Libsyn and Podtrac measure the number of podcast downloads but they aren’t able to convert them into audience impressions. PodcastOne uses Edison to survey its audience and then fuses that demographic and psychographic data with the raw downloads to convert them into impressions. It also tags spots to validate the number of impressions the commercial received at the time it was consumed or downloaded. The way Americans listen to podcasts is changing. There’s more consumption through on demand streaming than downloads, digital

[email protected] | 800.275.2840 PG 1 NEWS insideradio.com TUESDAY, MAY 12, 2015 executives say. PodcastOne says 60% of its listeners stream its podcasts. As usage continues to shift away from downloads to streaming, podcast measurement is expected to improve. But even without precise measurement, the trend line is clear. PodcastOne programs are downloaded 140 million time a month and generate 100 million monthly impressions, according to the company. Listening to Play.it has increased more than 30% since it launched. CBS Local Digital Media president Ezra Kucharz sees nothing but blue sky ahead for the medium, thanks to consumers already trained to use services like Netflix and Hulu to access on demand video and platforms like Spotify and Rdio to access music on demand. “You’re training consumers to access content when they want it,” he says. “Now it’s spoken word’s turn.”

Radio’s share of local auto dollars to remain above 10%: report. The average auto dealer will spend more than $640,000 on local advertising this year, according to a new report from BIA/Kelsey. Combined with what the carmakers will spend in the local market, it projects $11.3 billion will be spent on local media across all automotive sectors — or more than one out every 10 dollars spent in local advertising. While more dollars are shifting to digital and mobile, the vast majority of automotive ad budgets are earmarked for traditional media. BIA/Kelsey forecasts 77% will go to tried-and-true advertising outlets this year. Radio’s share is estimated at 11.6% for 2015, slipping a point to 10.6% by 2019. “Radio is still an important part of an advertising mix and even as the average quarter hour numbers decrease a little bit, radio still reaches a very sizable portion of Americans,” BIA/Kelsey chief economist Mark Fratrik says. “If you have a local auto dealer with a 72 hour sale this weekend they can be pretty sure he can reach a larger number of people if he does an advertising buy across the top three to five radio stations.” Online radio remains a bit player. The report pegs its share at 0.6% this year, forecasting it to inch up slightly to 0.8% by 2019. That’s in contrast to the rest of digital ad spending, which is forecast to grow 12% a year over the next five years. As a result, BIA/Kelsey estimates 30% of all local auto ad dollars will go toward digital by 2019 compared to 12% today. “Broadcasters can play in this game in a big way by showing that multimedia campaigns are complementary and better than just going straight TV, radio or online,” Fratrik says. Why radio is different from newspapers for car dealers. Over the next five years local newspapers are projected to lose a third of their auto-related advertising dollars. BIA/Kelsey forecasts their current share will fall below radio, shrinking to 9.9%, down from their current 14.7%. “There’s an interesting contrast,” BIA/Kelsey’s Mark Fratrik says. “Newspapers will not maintain their share like radio and TV because they play a different type of role.” More consumers are heading to the internet to gather information for their car buying research, which he believes has supplanted the role of the local newspaper for car dealers. “TV is an image with beautiful women and good looking guys driving fancy cars, and radio is a complement to that by providing information about local dealers and sales,” Fratrik says. “I think that has a lot to do with the advertising mix.” That’s backed up by National Auto Dealers Association data which shows local dealers boosted radio spending 14.5% in 2014 to $1.16 billion. As more is spent on digital, the analysis points to most of the new dollars flowing into mobile advertising which Fratrik expects will resemble TV strategies with mobile video dominating. The BIA/Kelsey report — the latest in its series on various advertising verticals — also points out there’s more to the overall auto ad sector than just car dealers. There are also auto parts stores, tire dealers, and motorcycle and RV dealers. Not to mention gas stations, which AdMall estimates spent an average of $29,000 per location on local advertising last year. Ratings war report: L.A. hip-hop battle tightens. The gap between the two rivals in hip-hop’s biggest battle since 2Pac versus Biggie has narrowed slightly. Emmis’s incumbent “Power 106” KPWR, didn’t reclaim the 18-34 market share it lost in March to iHeartMedia upstart “Real 92.3” KRRL. In fact, its 18-34 number slipped 5.0-4.7 to remain in fifth place. But challenger KRRL wasn’t able to maintain the 6.3 share it achieved in April, sliding to a 5.7 in April, just a full share ahead of “Power.” After having second place in the crucial demo all to itself in March, KRRL shared second place with hot

[email protected] | 800.275.2840 PG 2 NEWS insideradio.com TUESDAY, MAY 12, 2015 AC sister “104.3 My FM” KBIG in April — each had a 5.7. The skirmish hasn’t put a crimp on CHR sister KIIS-FM (102.7) which continues to reign supreme in the 18-34 demo, this time with an 8.6, almost three shares ahead of its sister stations. IHeartMedia has vowed to spend $1 million to market “Real” while “Power” has more marketing firepower as it confronts its biggest competitive challenge in years. Emmis has increased KPWR’s marketing and promo spending from $300,000 to $950,000 and locked program director Jimmy Steal into a new four-year contract. Meantime, in the hip-hop war on the opposite coast, Emmis has regained its lead — if only by a tenth of a share. Rhythmic CHR “Hot 97” WQHT, (3.5- 3.8) pulled ahead of “Power 105.1” WWPR (3.7-3.7) in 6+ share for the first time since June 2014.

Chicago: CHRs tie, country skirmish widens. CBS Radio and iHeartMedia are duking it out in Chicago in radio’s two big- gest music formats: CHR and country. In one battle, the race is tighter than a drum. In the other, the battle is widening. The long-running CHR clash between CBS Radio’s heritage “B96” WBBM-FM and iHeartMedia’s “Kiss 103.5” WKSC has reached an impasse. Both tied for fourth place among all listeners aged 6+ in April. It’s the first time that “Kiss” hasn’t outperformed “B-96” in total audience since June 2014. But the score isn’t as close in the country skirmish between the two companies. CBS Radio’s heritage “US95” WUSN (2.6-2.7) has opened up wider lead over new challenger “Big 95.5” WEBG (2.3-2.0)

Here’s proof that FM brings a younger audience to all-news format. Nielsen no longer reports Chicago all-news twins WBBM (780) and WCFS (105.9) as a total line entity now that CBS Radio is splitting the simulcast for Cubs baseball, which airs on 780 while 105.9 makes sure “the news watch never stops” for Chicagoans. The split shows how the audience is divided between the two signals. With a second place 5.4 in 6+, the AM pulls in more than twice the share of the FM, which ranked 19th with a 2.2 share. But the FM is attracting a considerably younger audience to the all-news brand. Half of WBBM’s AM audience is aged 65+, compared to only 28% of its FM sister. Conversely, 59% of the audience composition for WCFS is aged 35-64 compared to just 37% for the AM.

New York’s Lite shines brightest in three years. Christmas in July? Not exactly, but Nielsen’s latest ratings gave iHeartMedia AC “106.7 Lite FM” WLTW reason to ring the bells months after the holiday season ended. Rocketing 7.0-7.6-7.9 in 6+ share since February, the top-rated station turned in its best non-holiday PPM ratings since May 2012. That puts it 1.6 shares ahead of second-place CBS Radio classic hits WCBS-FM (6.4-6.3). Meanwhile, Spanish Broadcasting System tropical “Mega 97.9” WSKQ rallied 5.2-5.3-5.7 for its best 6+ performance since at least November 2010. That’s two full shares above where the station sat two years ago. Catch all the thrills and spills from Nielsen’s April PPM report at StationRatings.com.

Even small markets are investing in live performance spaces. Performance studios to host travelling bands aren’t just for the major markets. The trend of investing in spaces for intimate concerts to fuel new content is spreading to markets like Sussex, NJ. It’s market No. 248. IHeartMedia unveiled a new addition to its facility in Franklin, NJ to be used for recorded and live performances on classic rock WNNJ (103.7), soft AC WSUS (102.3) and hot AC “Max 106.3” WHCY. The new facility seats 80 with an elevated stage and a rear booth with mixing board. Senior VP Gary Cee says it will host top artists, local rising stars and guest speakers for public affairs programming, even school choirs to perform for listeners. “The studio is a great opportunity for our radio stations to connect with , and for our advertisers to connect with our listeners,” Cee says. Next month the cluster will host an opening-night client party with Al Chez and the Brothers of Funk. It has already sold naming rights to the facility which is known as the Franklin-Sussex AutoMall Performance Studio. Royalty supporter encourage noncoms to split with rest of radio. Public radio, college stations and other noncommercial operators are being encouraged to break ranks with the rest of the broadcast industry and embrace a performance royalty. In a letter to stations, the pro-royalty Content Creators Coalition says under the bill pending in Congress they’d only be charged a flat fee of $100 per year. The Coalition says the National Association of Broadcasters is “trying to fool” college radio stations and other noncommercial stations that they’d be hurt by the change. The letter comes as some public radio employees have criticized NPR for joining the NAB and commercial radio in the Music, Innovation & Consumers (MIC) Coalition, a group that’s fighting a radio royalty. That has NPR’s Policy and Representation department defending the decision in an internal email obtained by Trichordist. “Our participation in this coalition is not an endorsement of the business plans or activities of other members,” it reads, noting no specific proposals have been made. “We will reassess our participation in the coalition as such

[email protected] | 800.275.2840 PG 3 NEWS insideradio.com TUESDAY, MAY 12, 2015 proposals are drafted,” NPR tells staff. The email does, however, remind employees that changes to copyright laws could have “a direct impact on public radio stations’ abilities to bring music to listeners nationwide.” Back on Capitol Hill, members of the House are receiving a letter from the Council for Citizens Against Government Waste. It urges lawmakers to support a bill that would create a royalty. “All music should be treated the same regardless of its source,” it says. To date 177 House members have come out against adopting a radio royalty, still short of the 218 needed to block a bill. Beasley goes long on texting short codes. A group of 18 Beasley Media Group stations is leaving the text message short code behind and allowing listeners to text them directly through the station’s request or call-in studio phone numbers. Partner- ing with cloud texting service provider Zipwhip, the stations to integrate the technology are located in Tampa, FL; Fort Myers- Naples, FL; Las Vegas, NV; Charlotte, NC; and Fayetteville, NC. Zipwhip has aligned with carriers Verizon, AT&T and Sprint to provide the service. Beasley VP of product development Kimberly Sonneborn says the integration gives listeners the ability to text directly to a phone number they’re already familiar with while eliminating the need to remember a call-in number and a short code. “When turning on this service, our program directors were shocked to discover how many people are already trying to text the studio number,” Sonneborn says, adding that it gives on-air talent “another simple way to connect directly to their listeners.” Inside Radio News Ticker….EMF enters Los Angeles market…Educational Media Foundation has struck a deal allowing the religious broadcaster to gain a toehold in the market. It has filed a $1.075 million deal to buy religious KTLW (88.9) from Life On The Way Communications. The Class A signal covers the Lancaster-Palmdale area. Its L.A. market coverage improves with three translators included in the deal: the Studio City-licensed K220HC at 91.9 FM; the Simi Valley- licensed K220FR at 91.9 FM; and the Santa Clarita-licensed K205EP at 88.9 FM. Despite owning hundreds of stations, EMF has had limited coverage in Southern …Mom’s Day delivers for radio…Radio was a Mother’s Day reminder beacon last week, at least in terms of ads that ran. The impending holiday popped Jared The Gallery of Jewelry to No. 10 on Media Monitor’s weekly Spot Ten ranker of the biggest-volume advertisers. That was up from No. 39 the week before. ProFlowers wasn’t far behind at No. 13. But springtime ruled as Home Depot stayed at No. 1 with 57,126 ads on stations Media Monitors tracks. Geico was next, followed by Verizon Wireless hinting the soft telecom ad market may be picking up...AdsWizz names European president...Digital is tearing down borders for more than just listeners. Tech service providers are also increasingly finding customers around the globe. So while AdsWizz grows its U.S. business the company is also naming a new president of its European operations. Digital consultant Gary Goodman joins the company, charged with helping audio producers on that side of the Atlantic grow their revenue. The San Mateo, CA-based AdsWizz already has offices in London, Paris, Berlin, Brussels and Bucharest. In the U.S., AdsWizz provides streaming ad insertion to radio companies including iHeartMedia, Emmis, New York Public Radio, TuneIn and Marketron...Read more People Moves at InsideRadio.com.

Mike & Mike heads to New York — and “Good Morning America.” On Monday, February 8, 2016 most of the country will be talking about what happened the night before. It’s the morning after Super Bowl 50, and it will also be the first time that Mike Greenberg and Mike Golic begin hosting their “Mike & Mike” morning show from New York’s Times Square. Just a floor away from ABC-TV’s “Good Morning America,” the Disney-owned cousins will begin swapping talent and guests, and the 15-year old radio show that’s been based at ESPN headquarters in Bristol, CT will expand its horizons beyond just sports to the world of entertainment and pop culture. When there’s big sports news, Greenberg and Golic will turn up on GMA. And GMA’s contributors and in-studio guests will appear on ESPN Radio. The sports network says the two Mikes will remain the focus, but as part of an ensemble cast. The show — which is simulcast on the ESPN2 cable channel — gets a slicker TV set and will feature more on-camera guests rather than telephone call-ins. “The physical move to New York combined with a strong working relationship with ABC will help evolve it into a very powerful and engaging morning sports entertainment talk show,” ESPN EVP of programming Norby Williamson says in a statement. The Walt Disney Company announced last year it was taking a fresh look at radio after it sold most of its owned-and-operated stations in 2006. ESPN Radio and ABC say the content alliance will allow their sales team to sell packages to advertisers across the Disney-owned networks. ESPN says other changes are coming to the show. Sports Business Daily reports that will adding NFL Network morning host Molly Querim as the program’s third personality.

[email protected] | 800.275.2840 PG 4 insideradio.com TUESDAY, MAY 12, 2015

[email protected] | 800.275.2840 PG 5 CLASSIFIEDS insideradio.com TUESDAY, MAY 12, 2015

INSIDE RADIO, Copyright 2015. www.insideradio.com. All rights reserved. No part of this publication MORE OPPORTUNITIES may be copied, reproduced, or retransmitted in any form. This publication cannot be distributed @ INSIDERADIO.COM >> beyond the physical address of the named subscriber. Address: P.O. Box 567925, Atlanta, GA 31156. Subscribe to INSIDE RADIO monthly subscription $39.95 recurring payment. For information, visit www.insideradio.com. To advertise, call 1-800-248-4242 x711. Email: [email protected].

[email protected] | 800.275.2840 PG 6