800.275.2840 MORE NEWS» insideradio.com

THE MOST TRUSTED NEWS IN RADIO

MONDAY, AUGUST 10, 2015

The Inside Story: Tale Of Radio’s Reach Must Be Told. The news that radio’s weekly reach hit an all-time high of 245 million is being seen as a validation for the industry, a tangible confirmation of something that broadcasters have intrinsically felt for some time. But industry leaders say radio needs to spread the news far and wide, from agencies on Madison Ave. to hometown businesses on Main Street. Andre Fernandez, who took over CBS Radio as president & CEO in April with a diverse media background honed at Journal Communications and GE/NBC, says it’s important to get the word out to an advertising community that continues to experiment with other forms of media. “Radio has shown great stability in their audience which puts it in a good position when taking our story out to the advertising community,” Fernandez told Inside Radio. “We also need to continue to spread the word on all the things we’re doing beyond broadcast radio as clients are increasingly faced with a growing number of digital advertising alternatives.” Alpha Media founder Larry Wilson said more can be done to spread the news in the advertising community. “People need to hear the story and we haven’t been doing a good job as an industry telling it,” he told Inside Radio. Several CEOs referenced the new reach stat in their earnings calls last week. Saga Communications CEO Ed Christian called the new reach stat “pretty impressive. If we do our craft properly, these 245 million people respond to our advertising messages and business continues to respect [our] power and reach,” Christian said. He asked investors and analysts to “please disregard” those who have overstated the importance of digital advertising. “We are not going to be replaced by targeted display,” Christian said. “There’s room for targeted display, but not entirely at our expense.” “The case for radio continues to strengthen”—Read more corporate reactions to the number at InsideRadio.com.

Classic Hits Looks Strong In Summer Format Battle. As the summer season heads into its heated home stretch, Nielsen Audio’s “Format of the Summer”—which tracks format ratings growth trends for June, July and August—reveals the top three contenders: classic hits, hot AC and country. Rankings are based on which formats have demonstrated the greatest audience growth over the season. In a new report released today, classic hits maintained its steady ascent by increasing audience share among listeners 6+ (trending 5.4%-5.5% from June to July), 18-34 (3.4%-3.5%) and 25- 54 (4.7%-4.8%). These are the best results for the format since last August, when it rode that wave to become summer victor last year. Nielsen notes, “Another strong showing next month could secure the first back-to-back winner in this race since its inception in 2011.” But classic hits isn’t taking things lying down. The format’s overall audience shares were up 9% in June and July, compared to the beginning of the year. A look at the just-released July PPM numbers certainly lends credence, with the format ranking tops in Boston (WROR-FM), St. Louis (KLOU), San Antonio (KONO-FM) and Cleveland (“Majic 105.7” WMJI). In New York, WCBS-FM is closing in on perennial victor AC “106.7 Lite FM” WLTW, while in Los Angeles, “K-Earth” KRTH remains firmly entrenched at No. 3. Handicapping the format of the summer has been a seasonal sport since 2011, when Nielsen predecessor Arbitron launched the ticklish pastime. Each year, it tracks the amount of audience growth registered during June, July and August, compared with the first five months of the year. So far…a different format has won in each of the past four years.

Country Suddenly Looks BBQ-Hot. Country continues to be cool as the summer heats up, according to Nielsen Audio’s Format of the Summer match. With rankings based on which formats have demonstrated the greatest audience growth over the three months of the season, the perennial-fave format is trending in July just behind classic hits. Nielsen’s new report

[email protected] | 800.275.2840 PG 1 NEWS insideradio.com MONDAY, AUGUST 10, 2015 released today reveals that country has risen by more than half a share point among listeners age 6+ (from 7.5% in January to 8.2% in June and July) and with the 25-54 crowd (7.5% in January to 8.1% in June and July). But the real news is in the 18-34 audience numbers—which faltered late last year. Nielsen says, “There, the format has jumped a full share point (8.6% in January to 9.6% in July) and sits just off the pace of 2013’s summer results,” when country was the season’s winning format. Based on July’s PPM results, there’s plenty of good news to be had. Baltimore’s WPOC remains No. 1; in Columbus, WCOL-FM rules, amping its share from 11.7-11.7-12.9; and in Boston, country is tied for second place (WKLB-FM). Perhaps the biggest news is in Seattle, where No. 3 “100.7 The Wolf” KKWF posted its best PPM to date (4.9-5.6-5.8). July marks country’s fourth-straight month of national growth, putting it back at the level it enjoyed in fall 2014. Later that year, it suffered a surprising downtrend among its 18-34 year-olds.

Hot AC Continues Steady Rise. How hot is hot AC? With one month until Nielsen Audio declares the Format of the Summer, the format has put up its dukes with classic hits and country. In the final stretch, a new report released today shows hot AC continuing to break its own ratings records—however, it remains in third place based on the tidy list of rules for the race, which compares the average of January through May to June, July and August. In the new PPM July ratings, the format is tops in a number of markets, including Minneapolis (KSTP-FM, tied with classic hits “Kool 108” KQQL), San Diego (“Star 94.1” KMYI), Salt Lake City (“Now 97.9” KBZN) and West Palm Beach (WRMF). Hot AC ranks No. 2 in L.A. (KBIG), and Chicago (“101.9 FM The Mix” WTMX). “Hot AC is breaking more records this year than any other format and has been a model of consistency so far in 2015,” Nielsen says. “It has tied or set a new record for audience share each of the past four months across all of demographics.” In July, hot AC set a new high with audiences 6+ (6.9%, up from 6.8% in June) and tied previous records with both 18-34 (7.7%) and 25-54 (7.3%). In addition, the past two years have been the best two ever for the format under PPM measurement. Since June 2012, hot AC has grown its audience share by more than 17%.

Operations, Integration Help Steady Beasley. Beasley Media Group is making solid progress integrating the Tampa and Charlotte clusters it acquired from CBS Radio late last year but still has work to do to maximize their full potential. While revenue for the new clusters declined 7% or $1 million in the second quarter, the company reduced operating expense by 11%, or $1.2 million, which led to a 4% increase in operating income. “We are heading in the right direction as we further integrate the new Charlotte and Tampa stations and implement our operating discipline and focus on localism,” executive VP/CFO Caroline Beasley said Friday. The company “made progress closing the gap” between its own revenue performance and that of the seven Miller Kaplan-tracked markets where it operates, she said. Beasley operates in a total of 12 markets. The company said its revenue declined in Charlotte, Las Vegas and Wilmington but grew in Tampa, Ft. Myers, Fayetteville and Greenville-New Bern. Beasley stations out-performed their markets in Tampa and Greenville. The company recorded gains in the auto, consumer service, entertainment and retail categories while beverage, fast food and telecom declined. Beasley said its station ratings grew in nearly all of its markets, including country WSOC-FM, Charlotte which posted a 32% ratings gain in the quarter, helping the Charlotte cluster carve out a 31 share of the market. But Caroline Beasley said the company’s revenue “isn’t reflecting the strength of our ratings and we fully expect this disparity to be closer in the near future.” Second-quarter revenue for Beasley grew 4.4% to $27 million on a combined continuing and discontinued operations basis. On a pro forma basis, Beasley reported a Q2 revenue decline of 6%.

[email protected] | 800.275.2840 PG 2 NEWS insideradio.com MONDAY, AUGUST 10, 2015

‘Steady Results’ for Scripps Radio Division. Looking back at the first full quarter of operating the 34 radio stations it acquired April 1 in a transaction with Journal Communications, the E.W. Scripps Company likes what it sees. “This division is already showing steady results and has a talented group of people who we’re really enjoying having onboard,” Scripps senior VP of television Brian Lawlor said Friday. Scripps entered the lucrative country arena in Milwaukee, its largest radio market, flipping adult hits “94.5 The Lake” WLWK to country WKTI in late May. The change began to show promising results during the second quarter. “We are already reaping the benefits of that move with a boost in ratings and look forward to competing in leadership in the country genre,” Lawlor said during the company’s Q2 earnings call. Meanwhile, news/talk WTMJ (620), the radio network flagship of the Milwaukee Brewers, is having a “very successful season of sales,” Lawlor said, and the company’s Knoxville cluster ranked No. 1 in the market for the first time in a while. Lawlor also pointed to “excellent results” at Scripps’ Omaha and Wichita clusters. SVP of radio Steve Wexler said second quarter local business in the markets where Scripps operates was down about 2% while company revenues were flat. “We’re very pleased in the quarter on our performance versus the market, particularly locally,” Wexler said. NTR and events revenue grew “a little bit better than half a percent” in markets where the sector was down about a percent, Wexler said. “We had a good performance versus our markets in radio.” Scripps reported flat second quarter revenue of $19.4 million for its radio division on an adjusted combined basis.

Union Sends Verizon Angry Radio Message. A dispute between Verizon and the Communications Workers of America (CWA) is playing out on the airwaves in the Northeast in the form of a significant radio buy. The union is attacking the communications giant over a series of radio ads for its failure to develop universal FiOS broadband service across the East Coast. The 30-second spots began running Friday in New York, New Jersey, Massachusetts, Pennsylvania, Maryland, Virginia, Delaware and Washington, DC. “Radio is an effective way to reach a large number of people from Massachusetts through Virginia,” said CWA spokesperson Michael Rabinowitz-Gold. “Radio reaches a wide variety of listeners in a cost-effective way. We believe that people need to know what’s at stake in the Verizon contract dispute, as Verizon, which makes a billion dollars in profit a month, is refusing to build high-speed Internet in many areas and wants to outsource even more family-supporting jobs out of the country.” The ads are running in many top Northeast markets. “New York City, Philadelphia, Boston, Worcester, Pittsburgh, Washington, D.C., Richmond, Baltimore, Atlantic City, and Wilmington are some of the biggest,” added Rabinowitz-Gold. “It’s a robust buy in each market.” The eight radio ads are in response to Verizon’s move to allow its labor contract to expire on August 1 at midnight, leaving 39,000 CWA- and International Brotherhood of Electrical Workers (IBEW)-represented telecom workers without an agreement. It’s unclear how much was spent on the spots or how long they will run, but through the radio campaign, the union hopes to spread its message that Verizon needs to come to the bargaining table ready to negotiate issues such as health care and job security.

End of a Family Affair in Radio. For Greg and Marcia Jablonski, saying goodbye to the station they’ve owned for more than a quarter-century isn’t easy. Howell, MI-licensed classic hits WHMI-FM (93.5) – Livingston County’s only locally-based radio station – is being acquired by Krol Communications for $3.5 million. The retiring couple, who’s run the station located between and Lansing since 1989, has fond memories of their “baby,” which they are turning over to Rodney Krol, who owns a handful of other Michigan stations: classic rock “103.9 ” WRSR, Flint; AC “Z-92.5 The Castle” WJSZ, Ashley; and classic country “The Big M” WMLM, St. Louis (1520). In an open letter to the Livingston County community, the Jablonskis described the transition as a mix of “sadness, happiness and gratitude”, calling Krol an “independent Michigan broadcaster with strong values and a commitment to community.” They also thanked their listeners, advertisers, local news makers and former employees, calling the current staff a “close-knit family.” Greg Jablonski actually began his career at the station as a contract engineer in 1969, for former owner Ann Bignell. Jablonski played a key role in helping the station make the transition to FM in 1977, before he and his wife purchased WHMI more than a decade later. Pending FCC approval, the sale is expected to be completed in the next three months. The Jablonskis noted that the change in ownership will not affect programming, staffing and community involvement, adding they will remain in the area and plan to continue tuning in to their favorite station.

[email protected] | 800.275.2840 PG 3 MUST READ MONDAY insideradio.com MONDAY, AUGUST 10, 2015

ABC’s Dr. Jen Ashton, Creating New Revenue Opportunities for Local

As part of ABC Radio’s re-launch earlier this year, the industry’s leading news provider focused their commitment on leveraging the resources of the Walt Disney Company and ABC TV to bring new, dynamic opportunities to radio.

With the recent debut of Your Body with Dr. Jennifer Ashton, a one-minute, female- empowering health and wellness feature, stations and advertisers have a new vehicle to engage women.

Hosted by GMA’s Senior Medical Contributor, Dr. Jen Ashton, sellers now have the opportunity to connect local advertisers with national brand power—and convert that into revenue.

Your Body is a daily medical report (Monday-Friday), crafted specifically for women enabling sponsors to engage female P1’s in a friendly environment.

Dr. Jen talks about what matters to women; from celebrity health, “healthy living” and personal struggles, to raising children. Her passion for women’s health, nutrition, and parenting is evident. It’s honest, fun and designed to keep female listeners connected—both on the radio and online.

“Deep, meaningful engagement is a requirement for advertisers and their media plans. Many agencies and direct — MUST READ MONDAY SPONSORS — clients consider this as they measure return on investment,” said Steve Jones, VP/GM, ABC Radio. “When the Your Body feature was crafted, local monetization was the focus. Female star power was a must to attract women—and being able to offer a parallel digital health component was critical,” continued Jones.

When stations sign-up for the feature, they receive a complimentary, online digital health feed to reach listeners across multiple platforms.

SHOW DETAILS: :60 Medical Report for Women Available Daily: Monday-Friday Contact us for a demo or find out how Dr. Jen can be customized for your market. Heidi Oringer, 212-456-5541 [email protected] Learn More >>

Great ideas and products featured in Must Read Monday come from innovative companies, sponsors and our greatest resource-our readers! If you have a successful product, an idea, or a innovative service to share, email: [email protected].

[email protected] | 800.275.2840 PG 4 CLASSIFIEDS insideradio.com MONDAY, AUGUST 10, 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 5