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THURSDAY, AUGUST 27, 2015

Broadcasters, Analysts Weigh In On Connected Car Survey. A new report from JD Power found 20% of new-vehicle owners said they never used 16 of 33 in-car tech features and nearly one third indicated they have never used in-vehicle apps. Bob Pittman, iHeartMedia chairman & CEO, says the findings corroborate earlier research from Ipsos, showing 91% of consumers say they prefer physical AM/FM radio buttons and controls built into the car dashboard while 9% said they would want it changed into a dashboard app. “While digital apps may get more attention from news media, we focus on listening to the consumer — and nothing surpasses AM/FM radio as the No. 1 way consumers want to experience entertainment in the car,” Pittman said. Automakers are still trying to discern exactly what the public wants in new car technology, according to Roger Lanctot, associate director in the Global Automotive Practice at Strategy Analytics. “Carmakers are throwing a lot of pasta at the wall and some of it is sticking and some of is not,” he said. Automakers are in a “middle phase” of discerning consumer wants and needs and there have been some slip-ups and stumbles along the way, he added. Despite a growing variety of content coming into the car, Lanctot said Strategy Analytics studies show “radio is still the tent pole but new options are creating a greater fragmentation of the audience.” While some of the options are from web pureplays, others leverage broadcast radio, including new product launches from Rdio and TuneIn. Meanwhile HD Radio penetration is getting “wider and wider,” according to Lanctot. “The challenge for car makers is making [new options] easier to use and none are as easy to use as turning on a radio,” he said.

Why Radio Remains Dominant in the Car. As automakers work to align their vehicle connectivity offerings with consumer wants and needs, one connected car expert says radio will retain a prominent position in the digital dashboard. The demographics of new vehicle purchasers are a big reason why. The fastest growing U.S. car buying population segments are middle aged and older consumers, according to Strategy Analytics associate director Roger Lanctot. Both segments have been shown to spend more time with radio than others. Another reason has to do with the local traffic, news, sports and weather that broadcast radio is known for. “Radio absolutely is the original location-based service,” Lanctot said. “The auto industry is spending billions of dollars to produce what is already there.” Lanctot said it’s tough for anyone to beat local broadcasters when it comes to traffic and other essential community information. “Having that intelligent voice telling you what’s going on – no one has replaced that,” he said. At the same time Lanctot believes there’s no turning back from connected cars. “We can’t put this genie back in the bottle,” he said. Pierre Bouvard, chief marketing officer for and , said it will be a while before streaming audio becomes a mainstream activity in the car. “Asking about streaming in the car is like asking about FM in the car in 1963,” Bouvard said. “It sounded like a cool idea but another decade had to pass to get the FM radios in the cars and it was easy for consumers to figure out.” Bouvard pointed to Edison Research’s Share of Ear study which showed AM/FM with a 71% share of in car audio listening, followed by Sirius XM (14%), owned music (12%), all streaming (2%) and podcasts (1%).

Agency Survey: Audio Moves Up As Client Priority. The number of ad agencies who say their clients’ top campaign emphasis is audio more than doubled in the second quarter, according to a new survey conducted by media buying and selling software provider Strata. Nine percent of agencies surveyed said radio/streaming is their clients’ main advertising channel, up a staggering 102% from Q1. More than half of agencies surveyed (53%) said their clients have increased interest in advertising

[email protected] | 800.275.2840 PG 1 NEWS insideradio.com THURSDAY, AUGUST 27, 2015 on streaming/online radio compared to last year. Asked which media their customers are most interested in advertising on, spot radio came in fourth out of eight media, ahead of spot cable, network TV, out of home and print. Media mix came in overwhelmingly as the biggest challenge facing 40% of agencies, marking an 85% increase from the same time last year. Following media mix was client attraction (24% of agencies) and client spending (11%). Similarly, 22% of agencies expect their clients to make minor budget cuts from last year. The new Strata survey found programmatic buying steadily gaining agency confidence. While 46% of agencies report they are still unsure if they trust programmatic to execute their ad buys, 20% do trust programmatic, a 49% increase from last quarter, while only 11% say they do not trust it, a drop of 32%. Other key findings: 20% of agencies report they are likely to allocate between 11-25% of their ad budgets to paid social media, up 24% from the previous quarter; 39% expect their growth in the second half to be better than the first; and 52% say they expect their future growth to be the same as it was in the first half of the year.

MMTC Uses Katrina Anniversary To Push For Multilingual EAS. Just days before the 10th anniversary of Hurricane Katrina, the Multicultural Media, Telecom and Internet Council (MMTC) is putting pressure on the Federal Communications Commission to require radio and television stations to air multilingual emergency alerts in key markets where sizeable populations are non- English speaking. Joined by 25 other national and regional civil rights and consumer organizations, MMTC says updating the Emergency Alert System to serve an increasingly diverse population “must be a priority.” The FCC has been studying the idea since MMTC filed the first “Katrina Petition” in September 2005. It proposed that the FCC adopt a “designated hitter” system that would designate which station(s) in each radio market would be responsible for providing multilingual emergency information if no other station in that language remained on the air during or in the wake of the emergency. FCC chair Tom Wheeler testified before a congressional hearing in March that he supports making EAS multilingual but the agency has yet to take any formal action. “When wireless towers went down during Katrina, broadcast stations survived, and because of this, station owners and operators should be proactive in updating their alerts to be multilingual,” said David Honig, MMTC’s president emeritus and the author of the 2005 petition. “It must be part of the evaluation of their fitness as license holders with the FCC and the American public.” It is estimated more than 25 million people living in the U.S. have limited English proficiency.

Subaru Goes All In On HD Radio. Subaru has joined a growing group of automakers that are making HD Radio a standard feature across all of their vehicle lines. The move expands a longstanding partnership between the Japanese automaker and HD Radio developer iBiquity Digital. “We’ve worked closely with Subaru for a number of years and are excited to see them take this important step to bring the latest in digital broadcast technology to all of their loyal customers,” Jeff Jury, COO of iBiquity, said in a news release. HD Radio-equipped cars are currently available at Subaru dealerships across the country. In expanding its deal with iBiquity, Subaru joins Bentley, BMW, Mercedes Benz, Mini, Rolls Royce, Scion, Tesla and Volvo among automakers and auto brands that have made HD Radio receivers standard across all of their vehicles. All major auto manufacturers now incorporate HD Radio receivers across more than 200 models of vehicles, according to iBiquity.

Live From Zürich on HD Radio. , iHeartRadio’s LGBT-themed radio station, is helping boost awareness of HD Radio multicast channels – in the U.S. and in Europe. Heard on HD side channels in 15 cities, the station will broadcast live from the International Radio Festival in Zürich, Switzerland. Pride Radio 2pm-6pm personality will host a live broadcast about LGBT life in Zurich, its popular music scene, LGBT-friendly tourism tips and his experiences with radio broadcasters from around the world on Friday from 2pm-6pm Eastern and Saturday from noon-6pm Eastern. The show will simulcast across a network of HD2 channels in over 15 markets, including , , , and Washington, D.C. and through the Pride Radio stream on iHeartRadio. Positioned as “the pulse of gay America,” Pride Radio first launched on iHeart’s streaming app in 2013 before spreading to broadcast radio this June on an HD-fed FM translator in . It plays dance remixes and pop hits from Sam Smith, Katy Perry, Zedd, Nick Jonas, Rihanna and other acts. The station includes personalities and LGBT community news, along with a handful of music and entertainment shows. Joe D’Angelo, SVP, iBiquity

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Digital, said the live broadcast “provides an excellent opportunity to showcase the unique programming found on HD2 and HD3 channels across the country during this important event for the radio industry.”

Edison Dissects Radio vs. Streaming by Generations. For all the hype about streaming music services, a new Edison Research analysis shows broadcast radio still commands a larger share of listening — even with younger consumers. According to Edison’s Q2 2015 Share of Ear study, Millennials (ages 13 to 34) listen to AM/FM radio almost twice as much as streamed music with a 39 share for radio, compared to a 21 share for streaming audio. Radio stations get credit for their own live audio stream, but Edison says that’s a minor contributor to overall radio listening. Edison notes the current U.S. population is nearly evenly divided into three key demographic groups – persons aged 13 to 34, adults 35-54 years-old and adults 55+ — and that radio outperforms streamed audio with all three groups. (Edison’s Share of Ear study also measures owned music, podcasts, and other categories of audio, but did not include those categories in this analysis.) Among adults 35 to 54, radio commands a 55 share to streaming audio’s 11 share, while the gap widens even more with adults 55+, with radio at a 71 share to streaming audio’s 4 share. Among the streaming services, Edison says that Pandora claims the lion’s share of listening, with about half of all the streaming usage in all three age groups.

Late Back to School Shopping Spells Radio Opportunity. New research from Nielsen suggests it isn’t too late for radio to book back-to-school business. More than ever, consumers are putting off their back-to-school shopping, pressuring retailers to make a late push to bring customers into their stores. According to fresh Nielsen data, 54% of back to school shoppers are delaying their purchases until the end of the summer. As back-to-school shopping stretches into September, advertisers will likely need to buy additional advertising time. One of radio’s sales propositions in targeting back-to-school dollars is the medium’s ability to reach customers when they are in their vehicles, making it often the last media message before the point of purchase. Retailers need to get consumers into their stores, and soon. Nielsen says 64% of consumers still plan to make back-to-school purchases, but, by waiting until the end of summer, customers are poised to save with sales and local tax-free holidays. Nielsen says 61% of consumers report price will drive their back-to-school purchases, and 42% will be looking for value. Nielsen says data from the past two years shows August is the biggest month for back-to-school items including home, school and office supplies. Even so, with online shopping on the rise, local retailers need to get consumers into their stores. This year, Nielsen estimates 30% of back to school shopping will be done online, up 10% from a year ago.

Advertiser News: Toyota to Issue New Ad Guidelines. Toyota is preparing to forbid its U.S. dealers from advertising Toyota brand vehicles at below-invoice prices, according to Automotive News. Some Toyota dealers welcomed the move, saying it would result in higher vehicle prices and improved gross profits. The new ad guidelines are expected to take effect in January. Toyota dealers in several regions of the country told Automotive News they informed of the new guidelines by national and regional Toyota sales representatives. They described an approach similar to one enforced by Honda in the U.S. …Speaking of Honda, the Civic is vital to the success of any Honda dealer, and the tenth generation of the car is set to be unveiled September 16. The on-sale date hasn’t been decided yet, but is expected to be before the end of the year… Automotive News reports Ford is in talks with the UAW about bringing the midsize pickup Ranger back into its U.S. lineup. The less expensive sibling to the F-series was discontinued in the U.S. in 2011, but has remained on sale in foreign countries. At its peak, Ford sold almost 350,000 Rangers in a year, but sales had dropped to just over 70,000 by 2011… Fiat Chrysler chief Sergio Marchionne shared upcoming vehicle plans with about 7,000 dealers at a meeting in Las Vegas this week, highlighting a new plug-in minivan, an updated Dodge Charger that some saw as a 4-door version of the Chevrolet Corvette, and new Jeep vehicles, including a small compact SUV and a larger Grand Wagoneer.

Radio Out-Performs TV, Online For ecommerce Upstart. Radio listeners showed higher awareness, visitation and purchases for e-commerce upstart Jet.com when compared with TV and internet users, according to a Cumulus Media-commissioned

[email protected] | 800.275.2840 PG 3 NEWS insideradio.com THURSDAY, AUGUST 27, 2015 survey by research firm Ipsos of heavy/medium media users. Thirteen percent of radio listeners visited Jet.com compared to 7% of TV users and 7% of online users. Jet.com purchases were two times higher among radio listeners than TV or online users. And radio listeners were most aware of the new Amazon competitor, which launched July 21 – 21% of radio listeners were aware, followed by TV viewers (14%) and online users (13%). Yet the new e-tailer launched with no advertising, relying instead on a PR blitz and word of mouth to drive awareness. What drove radio listeners to the site at double the rate of TV and online users? “One explanation could be busy working persons with families,” says Pierre Bouvard, chief marketing officer at Cumulus Media and Westwood One. The profile of the e-commerce shopper and radio listener “are a perfect match,” he says, namely working Americans with larger households and incomes of $50,000 or greater. According to Nielsen, 77% of radio listening comes from people that work full- or part-time, giving it a much heavier concentration of working persons with families than TV. “People who save time by shopping online are working and on the go – just like radio listeners,” Bouvard says in a blog post. The online study surveyed 1,005 Americans aged 18+ from July 31 – August 3. It follows an earlier Cumulus- commissioned Ipsos study that found radio advertising was the most effective method for converting knowledge to buys for Amazon.com’s first-ever Prime Day event on July 15.

“Born on 9/11” Is Focus of New PSA Campaign. The charity 9/11 Day has released a new public service campaign that features the positive outlook of children who were born on September 11, 2001. The multimedia ads, titled “Born on 9/11,” promote service on the anniversary of the national tragedy, with a focus on charitable engagement and good deeds. The centerpiece of the campaign is a documentary-style TV ad featuring Hillary O’Neill, who was born in Norwalk, CT on the afternoon of September 11, 2001. According to a release, she was “raised in a world of uncertain safety and war, and emerged as an optimistic, connected and can-do young lady intent on making a positive difference in the world.” In the spot, she voices a call to action: “This 9/11 Day, do one good deed.” The ads will run through September 11 on numerous television networks, while iHeartMedia is distributing radio spots to its 850+ stations. The NAB is also making the PSAs available to its 14,000 member radio stations and 1,400 TV stations. “When we interviewed children born on 9/11, we found they feel strongly that they represent what’s good in the world,” said Andreas Dahlqvist, chief creative officer of Grey New York, which developed the campaign. “They are very hopeful about the future and are determined to give back to others.” 9/11 Day was created in 2002 and is organized annually by the 9/11 nonprofit MyGoodDeed. The organization says it expects “to inspire more than 40 million Americans to do good deeds this year.” On September 11, 2001, there were 13,238 children born in the U.S.

FCC Hosts EAS Workshop. The FCC will host a workshop to promote wider use and increased accessibility of the Emergency Alert System today from 1pm-4:30 pm. Suzanne Goucher, chair of the NAB’s National Alliance of State Broadcaster Associations EAS Committee, will participate in a discussion on how to increase EAS flexibility and expand its use by emergency managers at the state and local levels. The workshop will present a trio of case studies and include opening remarks from Rear Admiral (ret.) David Simpson, chief of the FCC Public Safety and Homeland Security Bureau. Reps from FEMA and other national and local government officials are also scheduled to appear. The workshop will stream live at http://www.fcc.gov/live.

Report: ESPN Shakes Up NYC Lineup. ESPN will reportedly rejigger the talent roster at its FM. Alan Hahn and Rick DiPietro will move from their current 7pm-10pm slot into middays on “ESPN NY 98.7” WEPN-FM, according to the New York Daily News, replacing Daily News columnist Mike Lupica’s 1-3pm show. To fill the night opening, WEPN will move Dave Rothenberg, who currently co-hosts the noon-1pm show with Ryan Ruocco, to 7pm-10 pm, according to the newspaper’s sources. WEPN-FM is also reportedly planning to pick up ESPN Radio’s nationally syndicated Dan Le Batard for 10am-noon, replacing Colin Cowherd, who joins Fox Sports Sept. 8. LeBatard, now heard from 4pm-7pm on ESPN’s national feed, is said to be the sports network’s top choice to replace Cowherd, although a deal has yet to be announced.

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Ft. Myers-Naples, FL James Schwartzel’s Sun Broadcasting files a $3.045 million deal to buy WLVO (98.5) from Educational Media Foundation. The station carries EMF’s contemporary Christian “K-Love” network, although EMF has already installed the format on cross-town WDLV (88.7) which it is buying from as part of a $21.7 million three-station, three-market deal. Sun Broadcasting will convert WLVO back to a commercial operation. It already owns five other Ft. Myers-Naples market radio stations including classic rock “94.5 The Arrow” WARO, “93X” WXNX, “92.5 Fox News” WFSX-FM, and the sports simulcast “1240/1270 The Fan” WFWN/ WNOG, “CW 6” WXCW-TV. Broker: Doyle Hadden (seller)

Raleigh-Durham, NC Leslie Rudd files a $545,000 agreement to buy news-talk WCHL, Chapel Hill (1360) from VilCom Interactive Media. Rudd Media won the station at a bankruptcy auction on August 7 at which the Wichita, KS-based investor beat out a bid by VilCom to keep the station. It also operates a local marketing services company. The deal includes the translator W250BP at 97.9 FM. The Triangle Business Journal reports WCHL was appraised to be worth $500,000 earlier this year.

Maryland A Troy Hill-led partnership has struck a $460,000 deal with MTS Broadcasting to buy country WAAI (100.9) and classic hits “107.1 The Duck” WTDK in the Salisbury-Ocean City market; and on the Chesapeake Bay it gets hot AC “106.3 The Heat” WCEM-FM and adult standards “Radio 1240” WCEM in Cambridge, MD. The filing shows Hill is the majority 70% owner with 15% stakes held by partners Beverly Jones and Shane Walker.

Bryan-College Station, TX Bryan Broadcasting files a $100,000 deal to buy the College Station-licensed translator K249ET at 97.3 FM from American Family Association. The signal will simulcast one the HD-4 channel of CHR “Candy 95” KNDE which currently offer rock, country and sports programming options. Broker: Barger Broadcast Services

Missouri Lake Area Educational Broadcasting Foundation files to buy gospel/contemporary Christian KNLQ, Cuba, MO (91.9) from New Life Evangelistic Center for $63,000. James McDermott-led Lake Area Educational Broadcasting already owns 13 other full-power FMs in Missouri.

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Alabama WP Broadcasting files to buy gospel WBNM, Alexander City, AL (1050) from Alabama for $30,000. In a separate but related deal, WP is buying the Alexander City-licensed translator W275DL at 102.9 FM for $90,000.

Wisconsin Stewards of Sound files a $22,000 deal to buy the Bloomer, WI-licensed translator W276CP at 103.1 FM from Edgewater Broadcasting. Terry Steward will simulcast Eau Claire, WI market talk station WOGO (680) on the signal. Steward has also filed to change the translator’s location and increase the power from 177 to 250 watts.

Illinois Frank Glass McCoy files a $5,000 deal to buy the Waukegan, IL-licensed translator W221DD at 92.1 FM from Cornerstone Community Radio. If McCoy resells the translator at some point he agrees to pay one-third of the profit to Cornerstone. The filing says McCoy will continue to relay WJWR on the signal.

C L O S I N G S

Tusla Oregon Jose Torres and Jose Moguel’s Key Plus Broadcasting Radio Beam closes on its $35,000 purchase of a closes an $800,000 deal to buy “The Kross” trio of Gearhart, OR construction permit for a new station Christian CHR/rock stations in the Tulsa, OK area from at 93.3 FM from Resonance Media Group. This will ABS Communications. The deal includes Chelsea-licensed be the only station owned by Radio Beam, which sold KTFR (100.5), Taft-licensed KCXR (100.3) and Locust- the Monmouth, OR-licensed KSND (95.1) to Donald Grove-licensed KEMX (94.5.) Key Plus already owned Coss in 2007. Broker: MCH Enterprises regional Mexican “Que Buena 1530” KXTD in Tulsa. “The Kross” will continue as an online-only format. Oklahoma Richard Witkovski’s North Texas Radio closes on its Flagstaff-Prescott, AZ $25,000 deal to buy the Tipton, OK-licensed Class Roger and Nancy Anderson’s Flagstaff Radio closes a deal C3 construction permit from FMI Media. The station to convert a local marketing agreement into a $491,400 covers an area to the west of Lawton, OK. FMI Media purchase of CHR “Hits 106” KFSZ from LKCM Radio Group. received a 35% bidding credit when they won the CP They’ve been operating the station since August 2010. The in Auction No. 94 in 2013. Because Witkovski owns Andersons already own “92.9 KAFF Country” KAFF-FM, hot three other stations – none of which overlaps with AC “Magic 99.1” KTMG, “Flagstaff Country 93.5/AM 930” the Tipton CP – so it qualifies for a lesser 25% credit; KAFF, rock “93.9 The Mountain” KMGN, and “Fun Oldies agreeing to pay the so-called enrichment penalty 1450/100.9” KNOT in the Flagstaff-Prescott market. totaling $350 to the FCC.

West Palm Beach Chattanooga Carline Clerge’s Caribbean Media Group closes a deal to Piedmont International University closes on its buy out her two partners in ethnic Haitian news/talk “Radio acquisition of religious WDYN (980) and the Vision Media” WHTY (1600) for a combined $420,000. She Chattanooga, TN-licensed translator W235AO at currently owns 42% of license holder Travis Media. She 94.9 FM from Temple University. No cash paid $370,000 to majority owner Robert Travis, who owns is changing hands, and the transfer is related to a 51% stake, and $50,000 to David Urbach who owns a the merger of the two schools. WDYN will retain its 7% share. Station requests new call letters WPOM. religious format.

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VICE PRESIDENT/GENERAL MANAGER ACCOUNT EXECUTIVE SCRIPPS TULSA StateNets, a well-established regional We have a rare opening for a VP/GM for our radio rep firm, is seeking a full time new 5-station Tulsa radio cluster. Great staff and business development Account Executive stations in a very competitive market. to cover portions of the southeastern . This position requires travel with the We also operate a co-owned TV station, so opportunity to work from a home office. there are lots of opportunities to do big things together! Looking for a people-oriented, We are looking for a self-motivated individual culture-building, strategic leader who loves to with a strong desire to succeed and build win. long-term relationships. Sales experience is required and a broadcast EOE. Referrals or letters of interest held in media sales background is a plus. confidence. Send Resume to Dave Martin: Drop me an e-mail: [email protected] [email protected] No phone calls, please. E.O.E.

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