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TUESDAY, FEBRUARY 24, 2015

Bigger is better when it comes to radio’s online display advertising. When it comes to digital display advertising, some radio companies are finding bigger is better. Cox Media Group and Emmis Communications are among the broadcasters that have integrated Rising Star ad units into their digital campaign offerings. The bigger, bolder rich media ads — sanctioned by the Interactive Advertising Bureau — are designed to give marketers a bigger bang than non-interactive banners that just sit on the margins of computer and mobile screens. First introduced in 2011 as “next-generation” ad templates, they give radio another way to grow display ad dollars, which make up the industry’s largest chunk of digital ad dollars. The sidekick ad, for instance, delivers an expandable formatted ad that shoves webpage content to the left, giving marketers a large functional space to convey their message. It’s one that has found favor among select Cox clients across radio, TV and newspaper platforms. “There’s a bit of an ‘oh-wow’ factor along with a lot more interaction,” says CMG senior director of digital solutions Jesse McCambridge. “A lot of clients are going beyond just standard click-through rates to see what is the interaction with the ad unit and the brand.” In addition to providing an over-sized canvas for marketers to paint on, the Rising Star units provide valuable engagement metrics. “Having those many points of interaction allows you to treat the ad unit as a market research piece, which is a major selling point,” says CMG digital creative services director Jennifer Dragon. For instance, an interactive slide show for an automotive client can show which cars users clicked on. High premiums, low usage for Rising Star display ads. The IAB-approved Rising Star ad units may offer the most in-your-face creative in cyberspace. But they make up less than 5% of all rich media ads currently running on Cox Media Group radio, TV and newspaper platforms. What the units lack in quantity they make up for in premium rates, however. CMG senior director of digital solutions Jesse McCambridge says the company is able to charge rates that are ten times more than what legacy ad units command. Brands are willing to pay the ultra-premium — not just for the larger size and enhanced interactivity but also because of the greater share of voice they bring. “People look at owning it for a day or a couple of days for a big retail sales event like a special holiday sale,” McCambridge explains. “These units aren’t as ubiquitous as the standard ad units are but that’s another reason why there is a higher premium for them.” As brand friendly as the units are, Cox and other broadcasters still offer their own high impact rich media ad units. Besides, the Rising Star units aren’t always compatible with third party ad networks, which some companies use to provide broader reach to clients. In those cases, broadcasters are sticking with standard ad units. “We evaluated them, but decided not to aggressively go that route since there wasn’t an easy backfill we could do with remnant networks,” says Journal Broadcast Group VP of interactive media Michael Gay. “We chose to focus on standard IAB ad units that could run across all devices.” Study: New ad units deliver stronger brand lift. From a bottom of the page ad that prompts a user to slide the page over, to a page-wide ad that expands down, the IAB’s Rising Stars provide more screen real estate for marketers to tell their story. Turns out they deliver 30% stronger brand lift than traditional display ads with just one full exposure, according to a research study from IAB and C3Research. That number grew to 42% when consumers interacted with one of the ads. The next-gen

[email protected] | 800.275.2840 PG 1 NEWS insideradio.com TUESDAY, FEBRUARY 24, 2015 ads beat regular display ads when it came to ad recall, with consumers remembering half of the Rising Stars viewed — triple the recall of the legacy digital display ads presented. The rate at which users interact with the ads was also higher than for standard ads, producing interaction rates of 34% compared to 11% for legacy ads. Asked about the leading attributes of the high-impact ads over legacy formats, consumers said that the newer ad formats give more personality to the brand (65%), are more engaging (64%), give consumers more control (60%) and are more informative (60%). IAB head of brand initiatives Peter Minnium says the new research confirms gut instincts that “consumers pay more attention, see more value in the brand advertised, and genuinely enjoy the Rising Stars ads better than legacy units — giving marketers a new level of brand building capabilities online.” The survey consisted of eye-tracking sessions conducted from September-November 2014 with 96 respondents who rated 10 “ad pairs” and a national quantitative online survey of 1,515 respondents from December to January. It encompassed 22 companies and brands. Why did Salem change its name? The answer’s in the numbers. Five years ago, 14 cents of every dollar billed by the company came from non-radio sources. By 2013 it had risen to 21% of revenue. And while it hasn’t yet reported final 2014 earnings, the rechristened Salem Media Group received one-third of third quarter revenue from non- radio sources. The company says the shift away from its Salem Communications name better reflects what has become a multimedia business. “Our revenue mix is very close to one-third block programming, one-third radio advertising, and one-third internet and publishing,” CEO Ed Atsinger said during a recent conference call with investors. In addition to 106 radio stations and the Salem Radio Network, the company also owns high-traffic websites such as TownHall.com, Crosswalk.com and RedState.com. It’s also branched out into traditional print media with the purchase of Regnery Publishing. The common link among all that Salem owns, Atsinger explains, is two core audiences: Christians and conservatives. And when the publisher releases a book such as David Limbaugh’s “Jesus on Trial” last September there was a ready-made infrastructure to promote it. “We like the synergies of our integrated platform, and we’re not done,” Atsinger said. “We continue to drill down our multimedia platform, both through acquisitions and investment in organic growth.” Salem will keep its current “SALM” stock ticker symbol. Digital radio growth speeds up, forecaster says. With internet radio in phones, cars, game consoles and even refrigerators, it’s no wonder analysts at eMarketer see usage stepping up. The firm forecasts 169.9 million Americans will listen to digital radio per month in 2015. That projected 6.1% growth rate compared to last year is an increase from eMarketer’s earlier forecast for 2015 that estimated growth of 5.9%. As total usage continues to climb, the laws of math mean the year-to-year increases will moderate in the coming years. But the forecast says internet radio’s reach will be larger than was predicted earlier. By 2018, eMarketer now estimates 184.8 million Americans will listen to digital radio each month. That’s up from its 183.4 million forecast released last February. The updated outlook also predicts that number will climb further to 191.6 million in 2019. “Digital radio has evolved into a viable, robust digital channel that complements social media, video sites and other mainstream venues,” the report says. Advertisers are following, although by how much isn’t entirely clear. The Radio Advertising Bureau reports broadcasters’ digital revenue grew 9% to $973 million last year. But that figure includes all forms of online revenue, not just that associated with streaming. Indy’s ‘The Big’ finds number one with soft-launch and R&B. Jay Michaels programs the attention-grabbing Indianapolis classic hip-hop station “93.9 The Beat” WRWM, which shot to number one in the ratings in its first full month with the format. But like programmers elsewhere, Michaels says the jury’s still out on how classic hip-hop will settle. “Every format isn’t going to do well in every market, and a format like this has to be customized to its market to work,” he says. Michaels says in addition to old school hip-hop it’s also mixing in some R&B classics from the 1980s to the early 2000s. Nielsen reports

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WRWM finished first in multiple demos in the January survey, including 18-34, 18-49, 25-54 and 6+, where it went from No. 12 in the October book to No. 1 in January. Unlike most other stations to embrace the format, WRWM took a go-slow approach, beginning with weekends-only. That soft launch may’ve done more than work out any kinks in the rollout. It also helped build buzz, especially on social media, where the former CHR ‘i94” saw “huge increases” in its Facebook traffic. A feedback phone line was also created, and Michaels says 95% of the callers asked for the throwbacks to stick around after Christmas. “It kept the market awaiting our next move, and in the end, I believe, gave us the upper hand,” he says. And naysayers take note: classic rock and classic hits have stood the test of time with their “best of” programming Michaels says. “The same philosophy taken with classic hits has to be taken with this format,” he says.

Review of royalty rate-setting begins in Congress. The decades-old rules which have dictated how the radio industry’s ASCAP and BMI rates are set are getting some attention on Capitol Hill. The Senate Antitrust Subcommittee is reportedly planning to hold a hearing next month to give the consent decrees a fresh review. Chairman Mike Lee (R-UT) signaled at the start of the congressional year that he intended to look at music performance licenses and the March 10 hearing comes as the Department of Justice also continues its review. The DOJ collected dozens of comments from music industry players, including broadcasters last summer, but it has not yet signaled whether it believes the current courtroom system should be scrapped. It’s in rate courts where the radio industry recently won hundreds of millions of dollars in concessions. The music industry would like the DOJ to sideline the federal courts and instead leave the rate-setting proceeding to the Copyright Royalty Board, which would likely be tougher on broadcasters. Meanwhile in the House, Judiciary Committee chair Bob Goodlatte (R-VA) is continuing his review of copyright law. He’s called a hearing for this week to look at whether the Copyright Office, including the CRB, should be made an independent agency. Six hundred local radio and television broadcasters are expected in Washington this week for the National Association of Broadcasters’ annual State Leadership Conference. Ahead of their arrival and lobbying blitz on Capitol Hill, the NAB is running ads in congressional publications this week in what the trade says is a “reminder of the enduring value and importance of local broadcasting.” Among the issues on the NAB’s agenda are radio royalties, FM chips in smartphones, and media ownership regulations. No peace or love in fight over Woodstock radio handle. In a dust-up decidedly not very Woodstock-like, a Poughkeepsie, NY market station is doing battle with a low-power FM for using a brand name that’s a bit too similar to what it’s called itself for years. Chet-5 Broadcasting adult alternative “Radio Woodstock 100.1” WDST has taken issue with newly-signed-on WIOF-LP which is calling itself “Woodstock 104.” WDST general manager Richard Fusco tells the Daily Freeman they’re trying to work out the dispute with Birds of a Feather Media president Randi Steele without going to court. He also insists they’re not trying to interfere with the LPFM’s operations. “She is perfectly able to say ‘this is hippie radio’ or ‘tie dyed radio’ or whatever name she wants,” Fusco tells the paper. WDST has held the “Radio Woodstock” trademark since 1994 and “Woodstock Radio” trademark since 2002. As an independent operator that competes against some of the biggest groups in radio, Fusco says aggressively defending its trademark is even more critical. Study: Correlation between on-demand streaming and radio airplay is growing. Radio remains the nation’s dominant music discovery outlet. But increasingly what’s played on the air is influenced by what music consumers are streaming. Comparing the correlation between airplay and on-demand streaming in February 2014 with February 2015, Bridge Ratings found an increase in the amount of airplay a song receives based on its streaming rank. “Programmers of music on the radio are more confident in the on-demand streaming metric as it applies to the songs that are chosen for airplay and this should only continue to increase over time,” the researcher says in a new report. Of course, streaming data is just one metric programmers use to evaluate audience demand for songs, albeit one whose importance is rising. Programmers examine a wide gamut of indicators, from old-school callout to online testing and mScores to charts from audio recognition services like Shazam. What’s more, on-demand streaming and broadcast radio have a symbiotic relationship, where each often feeds the other. Programmers spot high on-demand streaming behavior early and will play those songs because they’re

[email protected] | 800.275.2840 PG 3 NEWS insideradio.com TUESDAY, FEBRUARY 24, 2015 appropriate for the station and their consumption indicates demand, Bridge notes. But just as often, on-air exposure of music effects on-demand streaming as listeners use broadcast radio as a curator of music and seek out the music they’ve heard on the radio via on-demand platforms. “Broadcast radio and record labels are becoming more comfortable with the value of on-demand streaming and its effect on popularity,” the report concludes. Roger Hedgecock to leave syndication; Portland talker fills his timeslot. The eight-year run of Roger Hedgecock’s nationally syndicated radio show is coming to an end. The conservative commentator plans to wrap up his program next month. Syndicator Radio America says it will pick up a feed of Portland talker Chad Benson’s show to fil the daypart. He currently hosts evenings (6-9pm ET) on Alpha Media’s talk “Freedom 970” KUFO, Portland. Benson earlier spent time at talk stations in Los Angeles, Sacramento, and San Antonio, spending 22 years, or half his life, working in radio. Hedgecock, 68, will continue to produce twice a day commentaries on news/talk KFMB, San Diego (760) and be part of the elections coverage team at sister KFMB-TV. The former San Diego mayor says he’ll miss his show, but adds, “It is time to move on.” Inside Radio News Ticker…Telecom turf fight helps radio…Three of the biggest-volume advertisers last week are cellular carriers. Media Monitors says MetroPCS, Sprint and Boost Mobile all made the cut. But it was Geico that aired the most ads on stations tracked by Media Monitors. It says the insurer aired 55,932 commercials last week. The Home Depot was second, followed by McDonalds…Drillers hammer out a new radio deal…The Tulsa Drillers has signed a deal to remain on iHeartMedia’s sports “1430 The Buzz” KTBZ, Tulsa for an 11th consecutive season. But the team’s history with iHeart goes back even further — the minor league team affiliated with the Los Angeles Dodgers has been on one of the company’s stations for the past 30 years. Dennis Higgins returns for his eighth season as play-by-play broadcaster. Because of conflicts, the team says a few afternoon games will air on sports sister “1300 The Buzz” KAKC…American Tower sees revenue, income gains…The tower business is still growing fast. American Tower reports fourth quarter revenue increased 11% to $1.05 billion. The company says domestic tower rental and management revenue climbed 9% to $681 million. Net income hit $180.4 million. CEO Jim Taiclet credits the combination of building new towers and a series of acquisitions in 2014. American Tower added nearly 8,500 new sites last year. “We expect that these assets will both strengthen and lengthen the company’s growth trajectory for years to come,” he said in the announcement…Public file deadlines set… The FCC has set March 16 as the deadline for comments on its pending rulemaking about whether to require radio stations to post their public file online. Reply comments will be due April 14. If the current outline is adopted, stations in the top 50 markets will be the first to face the new mandate. All other stations will get an additional two years to prepare for the requirement…People Moves… Alpha Media Portland, OR director of sales Amy Leimbach is named regional director of business development for the six-station cluster. Read more People Moves HERE. Salem’s new ad deal will also put a show on dozens of company stations. Salem Media Group and CharityOne, producer of the syndicated “KeepTheFaith” program, have announced a joint advertising sales and syndication agreement that will give the program wider national distribution. Starting April 1, ad time on the show will be sold by Salem Media Representatives. To make it more attractive to the ad community, Salem will add the weekend show to the lineup at most of its contemporary Christian stations and many of its Christian talk stations. That will clear “KeepTheFaith” in most of the top 50 markets. CharityOne executive director David Sams says that as part of the agreement, KeepTheFaith’s subscription- based content, known as HyperDrive Local, will be licensed for use to affiliates of Salem’s “Today’s Christian Music” network.

NAB to honor a trio of broadcast engineers. Kintronic Labs president Thomas King has been selected by the National Association of Broadcasters to receive the NAB Engineering Achievement Award. King has been an outspoken advocate for revitalizing AM radio in recent years. He’s also credited with helping develop an AM antenna system for stations operating in restricted zone areas. King follows in the footsteps of his father, Louis King, who founded Kintronics Labs and received the NAB Engineering award in 2007. He, along with Fox Networks EVP Richard Friedel, will be given their honor during the NAB Show in April. First established in 1959, the awards are given for significant contributions to advancing the state of the art in broadcast engineering. The trade group will also give the NAB Service to Broadcast Engineering Award to Hubbard Broadcasting senior engineer Ray Conover. The recipients will be honored at April’s NAB Show in Las Vegas.

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GM and GSM CANDIDATES qualGENERAL MANAGER - NY We seek innovative, dynamic sales motivators who will thrive in high- General Manager profile markets. If you are: Glen Falls/Queensbury/ Lake George, NY - PASSIONATE about creative solution selling - DRIVEN to continuously develop new revenue sources Successful private group with - A TRANSPARENT, lead-by-example manager … 3 fms and 1 am in market with a population count of about … and you can inspire your team to always exceed budget, we should 160,000 is looking for their next talk. Salem is an integrated media company with an impressive leader. This is a great market you national platform. Our local radio operations target audiences will want to stay ...for the people, seeking Christian and Conservative content. the outdoors, and proximity to larger markets...This is a great To qualify, you must have proven ability to find, hire and empower area! great sellers. You can use your hands-on management skills to drive our growth in attractive southwest or midwest markets. You must be knowledgeable on all aspects of selling; a little Email: [email protected] transactional but a lot of face and reference this job: to face building campaigns for GM/GSM-SWMW local clients, sports, digital and Equal Opportunity Employer. events, this is for a street smart qual aggressive, creative and driven MANAGER OF FINANCIAL PLANNING & ANALYSIS individual to grow the team by Entercom Communications Corp., a radio broadcasting company selling. You will be in charge of seeking to hire a creative and self-motivated individual in our it all. Philadelphia corporate office. Duties include administrating and maintaining multiple financial planning and analysis spreadsheets Send your cover letter and and databases and compiling, consolidate, verify and distribute data resume to: and reports to executive management. This position will also assist [email protected] with the revenue and expense forecasting at each of our 23 locations, convert data from various sources into actionable information and work We are a equal opportunity with our revenue management team to maximize the functionality of employer. our commercial trafficking software Qualified applicants must have a degree and 5+ years of relevant RADIO PROS experience. Advanced Excel and strong analytical skills are a must. Expertise with PowerPoint, ability to multi-task and handle shifting FOUND HERE! priorities, a solid understanding of financial terms and concepts and excellent verbal/written communication skills. Managerial experience PLACE YOUR is required and broadcasting industry experience is a plus. JOB OPENING HERE! EMAIL: Send your resume/cover letter to Chris Pimental, VP of Finance: [email protected]. E.O.E. [email protected]

PROGRAM DIRECTOR - HOUSTON 93.7 The BEAT KQBT Houston is looking for a Program Director who will oversee and approve all on-air aspects. Candidate will need to possess abilities to maintain and build ratings as well as assist the sales department in generating revenue. For a full list of qualifications and responsibilities, or to apply now, visitwww.iHeartMedia.com . iHeartMedia is an equal opportunity employer and will not tolerate discrimination in employment on the basis of race, color, age, sex, sexual orientation, gender identity or expression, religion, disability, ethnicity, national origin, marital status, protected veteran status, genetic information, or any other legally protected classification or status.

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