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THURSDAY, JUNE 11, 2015

Want to succeed as an air talent? Build your brand. Radio stations live and die by how successful their brand is in the market. But personalities are brands too and one of the biggest challenges they face is understanding how their brand fits into the larger station brand. So said iHeartMedia VP of talent development Dennis Clark at the Hivio conference last week in Los Angeles. “You’ve got to be a great show inside the package of the station,” Clark said. “You need to know what the brand values are of the station and where you fit inside that.” Helping young personalities understand the nuances of a station, its branding and style isn’t easy, Clark said. But comprehending them and making the show seamlessly fit that brand are essential, he said. Clark, who coaches talent that includes Ryan Seacrest, Elvis Duran and “The Breakfast Club,” pointed to syndicated morning man Bobby Bones as one who was able to build a new brand for his show when he segued from CHR radio to country. Just as important as branding is creating content that Clark called “repeatable,” that gives listeners something to talk about and repeat to their friends. With competing audio providers continually trying to reposition radio, Clark said the role of air talent can’t be underestimated. “Talent is the difference maker of what radio is today and what it could be in the future,” he said. “We realize our point of differentiation is the talent we have at these stations.”

Co-hosts launch podcasts to fortify their own brand. When you’re one of a half-dozen or more personalities in an ensemble show, it can be difficult to build your own radio brand. To help strengthen their brands, some co-hosts have launched their own podcasts. Angela Yee of the New York-based “Breakfast Club” syndicated show hosts “Lip Service,” a video podcast. As the only female co-host in the three-person “Club,” iHeartMedia VP of talent development Dennis Clark said the podcast helps her expand and bolster her voice and brand. Along the same lines, members of “Elvis Duran & The Morning Show” host a “My Day Friday” podcast. “The truth is these shows have a fantastic fan base and spinoffs like these help grow the passion,” Clark said. “It makes them much more interesting and they get to fortify their own brand.”

Radio still getting attention and dollars from small and mid-sized businesses. A new Borrell Associates report shows more local marketers say they’ll increase their radio spending than decrease it, even while reporting that online media has become “ubiquitous and necessary.” The firm’s “Local Advertising Hits A Tipping Point” is based on a survey of 7,228 small and mid-size business executives. Eight in ten said they’ve established their own website and/or social media presence while seven in ten said they are spending more on their web services than on traditional advertising. “Over the next year, spending by small and mid-size businesses will shift so far that traditional advertising models will begin to look like niche support mechanisms to a local business’s digital marketing plan,” the report says. It’s not all doom and gloom. The report estimates that in the next year, 60% of local businesses will spend the same amount on radio, and nearly 23% will increase their spend; that’s better than TV, cable, outdoor and newspaper, which appears to be losing favor fastest of all. The report finds a twofold increase in the percentage of NEWS INSIDE >> advertisers who plan to increase radio or TV budgets in the next 12 months. Borrell says the numbers of “won’t buy” are increasing for all media — including online. In April brings another 2010, 22% said they didn’t plan to buy any radio. This year the number increased to listening boost to online 37%. But that’s not unique to the medium. And in many charts, radio looks stable as audio traditional advertising gets pounded all around.

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Targeting seen as key to navigating local ad market. The precise audience targeting enabled by digital media has made it an advertising magnet. But with narrowly-tailored formats, targeting is one of radio’s strengths that can help it differentiate itself in a crowded local ad marketplace. “Small and mid-sized businesses always hear about targeting, and so they get a Facebook page and find out what targeting means,” says Corey Elliott, director of research for Borrell Associates. “But radio ad executives might scream, ‘We’ve been telling you about targeting for years!’ But until they see it, they don’t believe it.” Elliot says a radio station’s challenge is to “know thyself” and sell the station’s specific attributes and get away from the kind of audience measurement that dwells on the “big number.” Another strategy espoused by Borrell, one being embraced by a growing number of radio stations, involves forming an in-house digital ad agency. “Millions of local businesses are in need of marketing leadership,” the report states. “Their digital savviness is lacking . . . and they yearn for someone with a marketing plan that makes sense of it all.”

Stacking streaming up against radio. Are Pandora and Spotify overhyped? Maybe so. Pierre Bouvard, the newish chief marketing officer at Cumulus Media and Westwood One says, “If you ask any hip person on the island of Manhattan about Spotify, they’ll tell you, ‘Man, it’s No. 1.” But in fact, as he notes in his blog, it isn’t. Bouvard cites the just-released first quarter 2015 Share of Ear study from Edison Research showing Americans’ share of audio time spent goes first to AM/FM at 55%, followed by consumer-owned music at 14%. Despite its notoriety, Pandora’s actual share of listening is quite small (7%) – the same size as SiriusXM Radio and a little bigger than time spent with cable music channels. Spotify, Bouvard told Inside Radio, is among the also-rans, lumped among “other streaming audio,” which Bouvard says is just 2%. Edison’s pinwheel chart is a persuasive sales tool, he says. “We should be going door-to-door to our advertisers with this,” he says. How does radio compare to Pandora and Spotify based on reach? The Edison research says AM/FM’s daily reach is 74%. According to this research, 11% listen to both AM/FM and Pandora; only 4% are reached exclusively on a daily basis by Pandora . A majority of Pandora (73%) and Spotify (64% ) listeners also listen to AM/FM. Few Americans are reached daily by Spotify (5%).

Bouvard on Why Pandora Isn’t Audio’s Netflix. Cumulus Media and Westwood One CMO Pierre Bouvard makes an interesting comparison between the mystery of Spotify and Pandora’s real audience numbers and the same bewilderment the TV business may feel about Netflix. None of those online entertainment services are rated by Nielsen. Bouvard’s blog unearthed stats from the research firm Ipsos MediaCT’s TV Dailies service, which does track video streaming and says that for one week in April, among 18-34 year-olds, Netflix was most viewed, just ahead of YouTube and out front of the Big Four networks. Those stats caught his attention because Bouvard recently moved over to the radio business from TiVo and knew that television and online executives speculate wildly about Netflix’s real popularity. But neither Spotify nor Pandora carry Netflix’s cache with young listeners, apparently, and on his blog, Bouvard explains that might be because Netflix spends freely to produce new, exclusive content, while Pandora “seems to be replacing time spent with consumers’ own recorded music.”

April brings another listening boost for online audio. Listening to online audio continued to expand in April with Triton Digital reporting positive growth in both major dayparts when compared to April 2014. Listening during the primetime Monday through Friday, 6am-8pm daypart jumped 38.6%. The increase was a steeper 41.8% across the broader Monday

[email protected] | 800.275.2840 PG 2 NEWS insideradio.com THURSDAY, JUNE 11, 2015 through Sunday, 6am-midnight time period. CHR experienced the largest monthly listening gain in April, compared to March, with a 5.6% increase in the Monday through Friday, 6am-8pm daypart. Classic rock posted the second largest gain (3.6%), followed by country (2.9%), alternative/modern rock (2.1%) and urban AC (0.8%). Three cities experienced monthly listening increases north of 8%: Boston was up 8.9% over March, Phoenix grew 8.8% and Seattle saw an 8.7% boost. Minneapolis (5%), Tampa (4.4%) and Pittsburgh (3.9%) also showed positive growth from March. Setting Apple up for the launch of its revamped Apple Music service at the end of the month, 38% of listening took place on an iOS device during the weekday daypart in April, followed by Android (30%), Flash Player (9%) and Google Chrome (8%). Comparing listening by operating system within the top 10 markets in April, New York had the most iOS listeners during the weekday daypart while Los Angeles had the most Android users.

ESPN, iHeartMedia made streaming gains in April. ESPN Radio and iHeartRadio were the only broadcasters with year- over-year streaming listening gains in April among the 10 largest webcasters tracked by Triton Digital. Fueled by the NCAA Final Four, the start of the baseball season and the NHL playoffs, ESPN Radio grew listening sessions by 36% in April, compared to one year earlier, in the Monday through Friday, 6am-8pm daypart. ESPN ranked ninth among all streamers in April with Average Active sessions of 31,741. iHeartMedia saw a 3% listening lift over April 2014, hitting 345,687 average active sessions to rank first among broadcast streamers. All other broadcasters in the Triton’s top 10 were down from one year ago. EMF (-15%) and NPR (-11%) posted the largest percentage declines. Among pureplay webcasters, Pandora topped the bill with 2.42 million average active sessions, up 10% from one year ago. Spotify was second with 904,490. Triton began tracking Spotify in January so April 2014 data isn’t available. Pureplay Slacker lost 8% of its listening sessions in the past year while Iodobi gained 5%. View Triton’s April Webcast Metrics HERE.

Broadcasters see Apple’s Beats 1 as reaffirmation of the power of radio. Apple hopes to sell subscriptions to its new digital music service by first getting listeners in the door with its take on broadcast radio. Beats 1 will feature live personalities, including “Hot 97” WQHT, New York morning man Ebro Darden. Some see it as more of a reaffirmation of the power of radio than a threat. Reactions from broadcasters in Great Britain could just as easily have come from U.S. operators. “It’s good for the radio industry that a tech company so used to changing the way we operate as human beings – with iPads and smartphones – wants to do radio,” BBC Radio 1 controller Ben Cooper said. Roy Martin, managing editor of Radio Today, doesn’t expect Beats 1 to have much impact on local radio stations, especially those providing local news and information. “Apple is targeting new music lovers and fans,” Martin tells the BBC. “Apple will put lots of marketing behind Beats 1 and pay large amounts to attract star guest presenters, which will be good news for radio in general.” Jeff Smith, head of music at BBC Radio 2 and 6 Music, sees Apple Music as a manifestation of former WABC, New York programmer Rick Sklar’s “art meets science” programming credo. A free radio service will provide “another gateway into the Apple walled garden” and help attract listeners from Sirius XM Radio and Pandora, he says. Smith believes the ultimate impact will be to make programmers better at their jobs. “We’ll have to rely even more on our own ears, tear up the research, ditch the music consultants and let great music programmers come to the fore again,” Smith says.

The Power of Radio: Ulta Beauty shifts dollars to radio, and the results are pretty. Specialty retailer Ulta Beauty put radio on its holiday advertising list of media last year and the results, in a word, were pretty. The company is crediting those national radio ads as one reason for the store’s brand recall among a targeted “beauty enthusiast” customer. “For the first time we brought radio into the mix, which we think was a really strong addition to our promotional activity during the key holiday season,” chief marketing officer David Kimbell told analysts during a conference call. In today’s data-driven world it is numbers on which Ulta is basing its brand recall conclusion. “As a result of these efforts, aided awareness of Ulta jumped up seven points, year-over-year,” CEO Mary Dillon said. Ulta also reported its first-ever $1 billion sales quarter with an 8%

[email protected] | 800.275.2840 PG 3 NEWS insideradio.com THURSDAY, JUNE 11, 2015 increase in the number of transactions and a 3.4% increase in the size of the average ticket. Because of how well radio has worked, Dillon said the company will begin spending on the medium “throughout the year” and not just during the fourth quarter holiday season. “We plan to fund these brand awareness-building activities by reducing Sunday newspaper inserts and other print vehicles,” Dillon added. Ulta, which operates 696 stores in 46 states, offers a full-service salon in its retail locations which specialize in cosmetics and beauty products. It’s currently looking to expand its store count by testing a small store format.

Judge tosses three of four claims in shareholder suit against SBS. A Delaware court judge has dismissed three of four claims of a lawsuit brought by preferred stockholders of Spanish Broadcasting System, which alleged the company violated the terms of its Series B Preferred Stock by incurring debt. Filed in the Delaware Court of Chancery in December 2013, the lawsuit alleged that not paying certain dividends caused a “voting rights triggering event” for the company’s Series B preferred stock, which in turn prohibited it from incurring debt. Last month the court granted SBS’s motion to dismiss three of the suit’s four counts. One count, which has to do with the company’s October 2013 Series B Preferred Stock repurchase, remains outstanding. “This latest decision is consistent with our long-standing position and we are pleased to see these claims resolved in our favor,” chairman & CEO Raúl Alarcón said in a statement. SBS says the claims were similar to those alleged by Lehman Brothers in a suit that was decided in SBS’s favor last year. In that suit, Lehman Brothers alleged SBS violated the terms of its loan agreements when it bought the Houston television station KTBU-TV in 2011 for $16 million and took on new debt while missing quarterly dividends payments.

Pandora closes on South Dakota FM. Two years after first striking the controversial deal, Pandora has closed on its $600,000 purchase of hot AC “Hits 102.7” KXMZ Rapid City, SD from Connoisseur Media. Pandora has said that owning the station will qualify it for the lower royalty rates paid by over-the-air broadcasters. Early last month the FCC cleared the transaction but placed several conditions on it. Pandora’s foreign ownership must be kept under 50% and no individual foreign investor will be allowed to hold more than a 5% stake in the company. There’s also a stipulation that Pandora must present the FCC’s deal conditions for a shareholder vote at its 2016 annual shareholder meeting. If approval isn’t obtained then, it’s required to try again at the 2017 meeting. If shareholders still haven’t approved the deal conditions by then, the webcaster will be required to sell KXMZ. Dr. Oz ‘Daily Dose’ returns via Premiere. Dr. Oz’s five-year-old syndicated “Daily Dose” feature is making comeback, this time with Premiere Networks. The return of the 60-second daily feature, which last aired May 29 via Westwood One, is part of an expanded partnership between iHeartMedia and the surgeon, author and TV personality. The alliance also calls for Dr. Mehmet Oz to be a regular go-to health news expert, delivering analysis of breaking national and local news events across some of the company’s local stations and nationally-syndicated morning shows, including “Elvis Duran and the Morning Show,” “The Johnjay & Rich Show.” “the Bobby Bones Show” and “the Kane Show.” The doctor will also host a 24/7 station on iHeartRadio that includes both archival and custom content.

Personalities take center stage at Conclave. “The world is unmoved by caller 10.” That’s the provocative title for an air talent session at this year’s Conclave Learning Conference, set for July 17 in Minneapolis. A group of leading personalities will discuss how listeners today crave stories they can relate to and what it took for the hosts to climb the radio ladder. Moderated by Heather Cohen, EVP at the Weiss Agency, the session will include CHR “Z100” WHTZ, New York pm driver JJ Kincaid; modern rock “The Buzz” KRBZ, Kansas City morning host Lazlo and afternoon drive jock Afentra; talk “102.5 The Bone” WHPT, Tampa morning man Mike Calta and CHR KDWB, Minneapolis morning host Dave Ryan. The 40th annual Conclave takes place July 16-17 at the Doubletree-Minneapolis/Park Plaza. — Get more news, people moves and insider extras @ www.insideradio.com. —

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Dallas and Boston Salem Media Group files to buy a pair of Radio Disney stations in top 10 markets from the Walt Disney Company. Salem is paying $3 million for KMKI (620) licensed to Plano in the Dallas market. The religious broadcaster has made a $150,000 deposit and will pay the balance on closing. In the second part of the deal, Salem is paying $500,000 for WMKI, Boston (1260) with a $25,000 deposit and the balance due on closing. Broker: William B. Schutz for seller

Fayetteville, NC Paperwork has been filed at the FCC for the previously announced sale of jazz-news-talk WFSS (91.9) from Fayetteville State University to the University of North Carolina at Chapel Hill’s North Carolina Public Radio. The deal includes $1.35 million in cash plus $400,000 worth of future underwriting announcements for FSU and internship opportunities for two students annually who are interested in radio or journalism. North Carolina Public Radio has made a $67,500 deposit with the balance due at closing. It’s currently operating the station under a local marketing agreement. In addition to its WUNC, Raleigh-Durham (91.5) home base, the public radio network now airs on signals that cover large sections of the Piedmont east to the Outer Banks. Brokers: Patrick Communications (for seller) and Public Media Co. (for buyer)

Arizona Rick Murphy’s Murphy Air files to purchase rock “103.7 The Eagle Rocks” KZGL in the Flagstaff-Prescott market from Towers Investment Trust for $850,000. Murphy has made a $25,000 deposit with $75,000 due at closing and the remaining $750,000 in the form of a promissory note. Towers Investment Trust’s only other station is the currently silent WBNK, Greenville-New Bern-Jacksonville, NC. Murphy owns five other stations in Arizona and Nevada. Broker for seller: Robert O. Mahlman

Florida Fiorini Broadcasting has cut a deal to buy talk WFLN, Arcadia (1480) from Integrity Broadcasting for $325,000. WFLN is Integrity’s only radio station. Broker: Hadden & Associates

North Carolina Icon Broadcasting files to purchase country “99.3 The Bull” WQDK, Gatesville from Max Broadcast Group Holdings

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[email protected] | 800.275.2840 PG 5 DEAL DIGEST insideradio.com THURSDAY, JUNE 11, 2015 for $100,000. Icon began operating the station under a local marketing agreement June 1 and any fees it pays to Max Broadcast under the LMA will be deducted from the purchase price at closing. The balance will be paid in the form of a promissory note over five years at an interest rate of 6% per year. Icon is made up of three partners: Charles Marsh, who owns 50% of the company, and Mark Tarte and Don Wendelken (25% each). Max Broadcast still own five stations in North Carolina.

Oregon Radio Beam files to buy a construction permit for a new station at 93.3 in Gearhart from Resonance Media Group for $35,000. Contract terms call for Radio Beam to pay the total sale price at closing. Resonance owns another construction permit at 96.9 in Grand Portage, MN. This will be the only station owned by Radio Beam, which sold the Monmouth, OR-licensed KSND (95.1) to Donald D. Coss in 2007. Broker: MCH Enterprises for buyer

Wyoming Clifton Topp’s Red Desert Communications files to buy the construction permit for KREO (93.5), licensed to James Town in the southwest corner of Wyoming, from Michael Radio Group for $10,000. Deal terms call for a deposit of $3,000 with the balance due at closing. Topp is the former general manager of Big Thicket Broadcasting, which owns four Wyoming stations.

Washington James A. Dalke files to buy the Kirkland-licensed religious teaching KARR (1460) in the Seattle market from Family Stations for $3,000 with the total sale price due at closing. This is Dalke’s first station. Family Stations will retain the KARR call letters. Since the start of the year, the non-profit has cut deals to sell stations in Sacramento and Rapid City, SD along with a translator in Gillette, WY.

California Catalina Island Conservancy files to donate variety KCFH (89.1) in the Los Angeles market to Common Frequency. The Two Harbors-licensed station has been off the air more than it has been on since it filed for its license. Common Frequency has also filed for silent status for the station. Dedicated to helping get community radio stations on the air, Common Frequency consults low power FM stations and non-commercial community stations trying to launch or in risk of losing their licenses.

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MARKET MANAGER SENIOR VP OF SALES, DESI 1250 is coming to Seattle! ALBANY NY

Universal Media Access seeks a manager to run operations and sell iHeartMedia is seeking a marketing solutions. Candidates should have a minimum three years dynamic sales and business broadcast experience, three years sales experience and a strong development leader on the knowledge of the local community. East Coast to take media and entertainment markets to the Resumes in confidence to: next level. [email protected] EOE The SVP Sales is responsible for revenue growth for iHeartMedia LOCAL RADIO SALES $100,000 PLUS broadcast, digital, and live entertainment products. The Are you happy with the money and commissions you are ideal candidate will drive and making so far this year? If not, let me introduce to you to Direct manage the short and long Media Power, Inc. (DMP). DMP partners with every major national term strategy, new business radio network and 1000s of local radio stations nationwide to liquidate development and account millions of dollars of their unsold commercial service efforts via aggressive radio airtime. And we are currently looking account development strategies for aggressive, local area Account Executives and capabilities. who want to work a proven inside sales system from our suburban Chicago location and make The successful candidate will $100,000 plus. We are, however, NOT looking for sales people who focus on short and long term are content with making $60K/year. With DMP you have the potential strategy, communicating and to earn a high income within 30-60 days of employment, with no executing the vision, forecasting territory boundaries (you will be selling to national clients) and no trends, capitalizing on new caps on commissions. In addition, you will work for a growing and and future opportunities, new entrepreneurial company. This is a radio salespersons dream job! business and revenue growth We are looking to add 4-6 salespeople to our growing team in June. including leading and developing a strong sales and sales Don’t miss out on this opportunity. For immediate consideration, management team. please email your cover letter and resume to: [email protected], or, just give her a call: 630-256-8600 ext 7031. EOE

RADIO ADVERTISING SALES - PORTLAND OR

Oregon’s 2014 Radio Station of the Year, News Talk 860 KPAM, and sister station Sunny 1550, are seeking Portland’s next great radio Qualified candidates, Account Executive. If you know how to build long-term relationships CLICK HERE to apply. with small to mid-size business owners, care about bringing results to iHeartMedia is an Equal those businesses, and can do it without ratings, then KPAM and Sunny Opportunity Employer. could be your next home. The successful candidate will be motivated with high integrity and a strong desire to win and make a good living. Experience in broadcast media sales is necessary. KPAM and Sunny are two locally-owned radio stations offering excellent benefits and above average compensation plans in an employee focused environment. We are an equal opportunity employer.

Please send resume to our GSM: [email protected] No phone calls please. E.O.E.

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