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TUESDAY, APRIL 28, 2015 Programmatic: it’s all about the data. Technology that combines rich audience data and computer algorithms to make smarter advertising decisions is coming to a radio dial near you. Broadcasters and agencies are laying the foundation for a programmatic system where audience behavioral data would flow into a data management platform to enable targeting beyond old school age and gender demos. Pulled by advertisers accustomed to digital buying practices, agencies say clients want to apply programmatic across more of their media buys. “Clients are starting to say, ‘Who can do programmatic, where can I get the insights,’” says OMD U.S. director Natalie Swed Stone. “If radio can’t do it soon enough, some of that money will go to the digital audio piece.” A new private ad exchange is expected from iHeartMedia in the coming months, followed in 2016 by Katz Media Group’s programmatic Expressway initiative for all of its industry clients. Both are being built on an infrastructure developed by tech company Jelli, which has already attracted Entercom, Emmis, Townsquare Media and Digity Media to its automated buying platform. “We’re going to get there in stages,” Swed Stone says. “You start with the software and the system to transact and then start layering in the targeting and insights so you can segment it out to serve the right ad to the right person at the right moment.” Programmatic could help elevate radio and level the media playing field, agencies say. Enhanced targeting, takes radio from a “cheap frequency medium” or an “add-on” to a primary media type, on par with video in the planning process, says Magna Global EVP of buying analytics Janice Finkel-Greene. How data and machines will change radio sales. The laborious task of buying radio one market at a time is likely to be upended by the arrival of programmatic technology. Using a single data management platform, buyers could look across all markets to pinpoint their largest pockets of target density by market, station, format, daypart or other variables. It could show an advertiser is better off with morning drive in some markets and afternoons in others. “It’s fewer buyers, less time and more target for the money,” says Magna Global EVP of buying analytics Janice Finkel-Greene. The goal is to move beyond traditional demos to more sophisticated segmenting based on consumer behavior, psychographics and characteristics like income, ZIP code or proximity to a retail location. “We’re sort of limited and a little bit retro with the current systems,” says Finkel-Greene. “Audio has been neglected and this is a real opportunity to bring it back into focus.” Broadcasters and agencies are determining what targeting data will best meet client needs. “If we can put in characteristics that the advertiser needs and are important to their product, what’s going to spurt out is the best inventory for them at the best price,” iHeartMedia CEO Bob Pittman said at the NAB Radio Show. Data inputs could include research from Nielsen, Scarborough and other third party data providers. Buyers

[email protected] | 800.275.2840 PG 1 NEWS insideradio.com TUESDAY, APRIL 28, 2015 and sellers predict it will expand the use of trigger-based campaigns, beyond weather activations to spots that capitalize on what’s trending culturally. Letting the machine pull the trigger will allow advertising to seize the moment in real time, they say, whether it’s storm, or exuberance around a sports event. Seller’s role expected to evolve under new buying paradigm. A common concern about programmatic is that it will lessen the importance of media sellers, with man being replaced by machine. But humans are still required to optimize campaigns and plan strategies. “It’s not a disintermediation of the relationship, but a change in the relationship,” Michael Kassan, CEO of media consultancy MediaLink said at the NAB Show. Agencies predict the seller’s role will evolve into part researcher and part real salesmanship, as opposed to order taker. “It won’t be, ‘Here are your avails, I made it cheap, give me your order,’” predicts Magna Global’s Janice Finkel-Greene, who is an active participant in the initiative. The conversation will instead pivot to the seller using qualitative listener info to position and differentiate the station’s audience based on how it matches up with the client’s target. Required skillsets will change from negotiating and relationships to analytical and conceptual abilities or what OMD’s Natalie Swed Stone calls “analysis-driven creative.” “Figuring out what the algorithm should be based on is where people come in,” Finkel-Greene says. “I don’t necessarily see people, certainly in the near future, being taken out of their negotiation process.” In two to three years, Bob Pittman says he would like iHeartMedia sellers to stack up with those selling Facebook and the other big digital players. “We can make everything better with more data applied to it,” Pittman said. “It requires that our company be a marketing collaborator, we can’t be a negotiator for spots s and GRPs.” Taking the busy work out of ad sales will allow sellers to spend more time on actual sales, Pittman said. On the back-end, more analysis to track ROI. Beyond planning and buying, programmatic proponents say it will enable more sophisticated post-buy analysis and enable a faster feedback loop so advertises can adjust campaigns on the fly. One goal is to track campaigns in flight, monitor their impact on sales and make necessary tweaks along the way. IHeartMedia CEO Bob Pitman said it will allow radio “to layer data in on a regular basis, looking for attribution in the way the client is looking for it.” A movie studio may want to drive people to watch a trailer before the movie comes out, which can be tracked against an ad campaign. “It’s aligning all of the data and all of the investments for the client to track everything that they’re doing and see how it all works together and what the ROI was and how it affected sales,” OMD’s Natalie Swed Stone says. Chipotle keeps radio on its intentionally lean media menu. Chipotle has used radio to build its brand, and as the restaurant chain makes headlines for scoring its first billion-dollar quarter its media strategy isn’t changing. Chief creative and development officer Mark Crumpacke told investors this week that the company is airing radio spots in 30 of its top markets and using more streaming radio ads than ever before. “The campaign runs in two flights — one is spring, and another this fall,” he said, adding, “We are running more national advertising than ever before.” Chipotle spent $4.8 million on radio in 2014 according to Kantar Media, which gave the medium a 25% share of the chain’s total media spending last year. Radio could see an uptick in total dollars, even though the media mix and calendar remains the same. “We are actually spending more than ever this year,” co-CEO Montgomery Moran said. Chipotle is also buying print, outdoor and social media ads, but television is still noteworthy for its absence. “Very early on we decided to spend more on our ingredients and less on our marketing,” Crumpacke said. He credits their current media mix, combined with local events, for helping making the Mexican-inspired menu “quite buzz- worthy.” During a conference call Crumpacke also took a whack at other fast food chains that are spending a lot more on marketing with limited-time offers and new menu items. “These new menu items and offers rarely build long term loyal customers. Instead they only provide a spike in sales during the advertising window,” he said.

Report: Wheeler backs Pandora buying South Dakota FM. Pandora’s long-delayed purchase of hot AC “Hits 102.7” KXMZ, Rapid City, SD has reportedly won the backing of FCC chair Tom Wheeler. Two unnamed sources tell Bloomberg that Wheeler is recommending Pandora should be given a waiver of the foreign ownership rules. While Pandora hopes the deal will allow it to pay the same streaming royalties as broadcasters, it’s not copyright issues that are behind the two-year delay. Instead, the proposed sale has become a test case for the FCC’s new policy of allowing foreign ownership of broadcast

[email protected] | 800.275.2840 PG 2 NEWS insideradio.com TUESDAY, APRIL 28, 2015 stations to exceed 25% on a case-by-case basis. Because it can’t say definitively how much of its stock is owned by foreign entities, Pandora is seeking a waiver to the decades-old cap. KXMZ seller Connoisseur Media has already collected two- thirds of the $600,000 purchase price as Pandora has been operating KXMZ under a local marketing agreement.

NAB, RTNDA seek voluntary rules governing media’s drone usage. Any doubt that drones will play a bigger role in electronic journalism was grounded last week with a quick walk through the drone pavilion at the NAB Show in Las Vegas. But before stations can begin using drones, the federal government must first spell out the guidelines. The National Association of Broadcasters and the Radio Television Digital News Association are pushing for “voluntary best practices” rather than strict rules of the air. In a joint filing with the National Telecommunications & Information Administration, which is writing the rules, the NAB and RTDNA say attempts to regulate drone use for newsgathering “raise serious First Amendment concerns.” They point to Supreme Court decisions that provide protections for how the press gathers information in addition to what it reports. They argue the NTIA should work to ensure the drone guidelines adopted “do not unduly restrict or penalize the important and protected newsgathering activities of media organizations.” Dozens of state privacy laws are already in place, which the NAB and RTDNA say address concerns including trespassing, invasion of privacy, nuisance, electronic eavesdropping, wiretapping, stalking, assault and reckless endangerment. “If not carefully considered and drafted, new and additional privacy guidelines could potentially chill free speech activities, particularly breaking news reporting, which, by definition, depends on the rapid dissemination of captured sights and sounds,” the trade groups argue. Next-gen news gathering. Most stations are still waiting to see what rules the government drafts, but a handful are already getting ready for the drone invasion. Alpha Media’s Portland, OR cluster has struck a deal with a local drone manufacturer to begin piloting the aircraft around the market for news and programming uses, and last month iHeartMedia’s news/talk KFI, Los Angeles (640) became the first in the nation to give every field reporter a drone to help with newsgathering. “There is no doubt in my mind that this is the future of news gathering,” KFI programmer Robin Bertolucci said. Similar to arguments for putting FM into smartphones, NAB and RTDNA say drones could provide critical information during emergencies, that media outlets “serve as surrogate eyewitnesses for citizens” and drones “have the potential to enhance the public’s access to information through compelling and previously inaccessible photos and video.” They point out they’re not only cheaper than manned aircraft, but drones can access hard-to-reach areas that would be impossible for news choppers to get to. When wildfire season arrives in Southern California, Bertolucci believes drones could help KFI better cover the story and warn residents of where the fire is spreading. “It will give us a way to get the story in new ways,” she said. Gen Media Partners goes back to school. High school sports have been a part of local radio for generations, and a now Gen Media Partners alliance looks to loop in national advertisers. The rep firm has announced it will start working with School Sports Media, an ad firm that allows marketers to reach high school fans across a variety of media platforms. That includes a location-based, hyper-targeted mobile technology that can deliver a text message to cell phones within 100 yards of the field targeting students and parents in the viewing stands. “The synergies with radio allow us to create unique local and regional advertising packages and draw revenue from promotional budgets that are earmarked for local sports marketing,” Gen Media CEO Kevin Garrity says. He says it will also give the rep firm another shot at introducing radio to new advertisers on the national, regional and local level. School Sports Media was launched in 2010 and it currently operates in the West Palm Beach and Albany, NY markets. It’s an offshoot of Winstar Interactive Media with radio veterans John Foley and Bill McEntee part of the management team. In addition to high school and college sports, the technology is also marketed for events like concerts and graduations. SSM funnels two-thirds of its proceeds back to the participating school. Streema adds Apple Watch. Broadcast radio is getting another entry point into the Apple Watch. Digital radio aggregator Streema has released a new version of its Simple Radio app that will allow Watch owner to wrist tap their way to most local radio station webcasts. The Apple Watch app marks Streema’s entry into the wearables market. Launched in 2007, Streema evolved from a hybrid between streaming and social media last year into focusing on making it easier for users to

[email protected] | 800.275.2840 PG 3 NEWS insideradio.com TUESDAY, APRIL 28, 2015 sort through the myriad of streaming radio products on the market. CEO Richard Monte says its focus on simplifying mobile listening is especially well-suited for the wearables market. “This simplicity is even more important for wearers of Apple Watch, as the limited screen real estate makes navigation and selection a challenge,” he says in a statement. Streema currently has more than five million monthly users worldwide. It allows user to see what others are listening to down to the street level. The general manager becomes the owner in Lake Tahoe. The era of station managers transitioning to owners has largely faded, so when Cherry Creek Radio announced it was selling its two Lake Tahoe, CA stations, the buyer was noteworthy. It’s a partnership headed by current general manager and sales manager Steve Harness. “This will allow me to control the futures of KRLT and KOWL for the next 20 years or more,” he tells the South Lake Tahoe News. In a $650,000 deal filed with the FCC, the Harness-led D&H Broadcasting is buying hot AC “93.9 The Lake” KRLT and news/talk KOWL (1490). One of his partners in the company is KRLT afternoon personality Stacy Driskill. Cherry Creek CEO Joe Schwartz says it was important that they found a local owner-operator for the stations, crediting Harness for the success that the AM/FM combo is experiencing. Harness tells the paper no programming changes are planned, adding, “I’ve put eight years of sweat equity into both stations and I did not want to see that work undone by new owners.” D&H will begin operating the station under a local marketing agreement on July 1 if the deal has not yet closed. Inside Radio News Ticker…WBAL pools resources with TV sister…Hearst’s “News Radio 1090” WBAL, Baltimore went wall-to-wall with the breaking news of the city’s riots yesterday, pooling resources with sister WBAL-TV, whose helicopter provided an aerial vantage point for station talk hosts. General manager Cary Pahigian said his staff is “staying nimble and flexible” as events develop. “Our goal is to keep the community up to the minute and provide an opportunity to discuss and analyze the situation with WBAL talk hosts in a responsible manner,” he says…Imus: I’m Leaving Fox Biz…Don Imus says his six-year relationship with Fox Business Network is coming to an end. He told listeners yesterday his final show on the cable network is May 29. The 74-year old Westwood One syndicated host said a few guests were trying to get in an appearance before then. “Why? I do not know,” Imus said, taking a crack at the low-rated channel. “Ten or even 100-times more people listen to the radio than watch the television.” Imus’ show was earlier simulcast by MSNBC…Samsung cracks radio’s top 10… Wireless carriers often use radio, but Samsung is embracing the medium as well to market the new Galaxy 6 phone. Media Monitors reports Samsung ran 30,398 radio spots last week on stations it tracks, putting it at No. 4 on the Spot Ten ranker. In a particularly light week for wireless carrier advertising, Samsung ran more ads than all the carriers combined. Media Monitor says The Home Depot stayed at No. 1, followed by Geico and Walgreens…Rush connects tractor company and vets…A lot is written about Rush Limbaugh’s advertisers, but tractor maker Mahindra is wrapping itself in the flag and the conservative talk host for a Memorial Day giveaway. Mahindra is giving away a tractor to an active duty service member or veteran of the U.S. military, driving entries with promos on Limbaugh’s show. The company ran a similar promotion last year and it netted 4,500 entries. The winner was a 25-year Army vet living in Kentucky. Mihandra VP Cleo Franklin calls it “an honor” to partner with Limbaugh saying the promotion is a “great addition” to the company’s Military Appreciation Program…Salem has ‘The Answer’ for Pittsburgh…Salem Media Group has begun promoting it will launch conservative talker “1250 The Answer” WPGP, Pittsburgh on May 13. The station has already put its website online and lists several Salem Radio Network personalities who will appear on the station. Salem has not yet closed its $1 million deal with the Walt Disney Company for the Radio Disney outlet. Salem already owns contemporary Christian WORD-FM (101.5) and religious WPIT (730) in the market…FB&HW takes the stage — at night…Perhaps it was the name of the show, Free Beer and Hot Wings, that helped draw a crowd of 2,000 last weekend in Grand Rapids. The Compass Media Network show held what it billed as a “Live At Night” show featuring a live and uncensored rendition of its morning show including videos, crowd participation and elements from the regular morning show. This was Free Beer and Hot Wings’ fifth “Live at Night” show. The next will be May 22 in Portland, ME...People Moves...Read the latest People Moves at InsideRadio.com. Correction: Due to incorrect information provided to Inside Radio, yesterday’s issue said the IAB will be holding a presentation to promote digital audio advertising in Detroit. That meeting will instead be held in Dallas. Also, no New York presentations have been held.

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MORNING CO-HOST - ENTERTAIN DC COMMUTERS! AE - NORTH CAROLINA Centennial Broadcasting’s market leading HotAC, WBQB, B101.5 Radio Account Executive in Fredericksburg, VA seeks our next morning superstar! With long-time morning radio co-host Dee Daniels, WCMC-FM, Raleigh, NC is you will entertain DC Metro commuters with a searching for and experienced “family friendly” approach. With over 55,000 sales professional to manage and Facebook followers, you need to be ready to grow existing station accounts post relevant trending and original content and new business development. and also be comfortable “on camera” as we 2 – 3 years’ of media sales consistently produce professional video content. experience required.

Centennial Broadcasting is a phenomenal place to work; in fact, our last full-time opening was almost 6 years ago! If you’re looking for a stepping stone for your next career move, this IS NOT the job for you. But if you’re looking for a long-term radio home, a great place to live and work, and a chance to be a local celebrity, let’s talk.

Salary will be commensurate with experience and ratings history. To be considered for this Rush your résumé, success stories, ratings history, references, link position, please to Facebook page, and mp3 to: [email protected] with subject APPLY ONLINE heading “B101.5 Mornings”. NOTE: Your mp3 should be 2-3 minutes limited to 5MB max. More details HERE. E.O.E. All Capitol Broadcasting Company properties are tobacco free. DIRECTOR OF CONTENT - KPLU - SEATTLE, WA Capitol Broadcasting Company participates in E-Verify. KPLU radio, serving Seattle and the Puget Sound Region is EOE M/F searching for a Director of Content.

The position draws upon local and national sources to build programming that meets the needs of the Puget Sound and the jazz audience world-wide. The successful candidate will provide leadership and participate in policy development as a member of the Management Team.

KPLU is being assisted in this search by Livingston Associates. Visit: www.livingstonassociates.net/openings.html for the full job posting and to apply.

For best consideration apply by May 3, 2015. E.O.E.

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