INVESTOR PRESENTATIONINVESTOR PRESENTATION NASDAQ: SALM | January 2018 Safe Harbor Certain statements in this presentation constitute “forward-looking statements” within the meaning of the private securities litigation reform act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such “forward-looking statements.” This presentation also contains “non-GAAP financial measures” within the meaning of regulation G, specifically station operating income and EBITDA. In conformity with regulation G, information reconciling the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles is available on the investor relations portion of the company's website at www.salem.cc, as part of the most current report on form 8-K and earnings release issued by Salem Media Group. 1 Who We Are Salem Media Group is a multi-media company 119 Radio Stations targeting Christian and conservative audiences. We reach millions of consumers across the nation through digital media, radio and publishing. Salem Media has one of the largest content libraries with more than 100 highly-trafficked Bible Study Daily Bible website properties and 119 radio stations Tools featuring multiple celebrity talk show hosts. Strong financial model characterized by recurring revenue, adjusted free cash flow and quarterly dividends (currently 5.7% yield)1. 1) As of January 23, 2018 2 We Address a Large & Evolving Marketplace Salem’s Christian and conservative content has US Advertising Media Market Sizes¹ massive reach across two of the largest and In US$ billions | traditional media figures include online equivalents fastest growing media channels: Radio + Online. 2016 2020 . Account for 23% of total US ad spend. Expected to increase 30% to $112B by 2020. $94 71% of Americans identify with a Christian $82 religion, while 42% lean toward the Republican $73 party². $68 Radio reaches over 93% of adult consumers on a weekly basis². Over 268 million people listen every week, with news/talk as the second largest format $18 $18 $17 $17 $19 (following country music). $15 . Christian radio remains the fastest growing Internet TV Advertising Radio Consumer Newspaper format. Advertising Advertising Magazine Advertising Advertising 1) Source: PwC Global Entertainment and Media Outlook 2) Source: Gallup, Nielsen Audio 3 Key Market Drivers Current state of political and religious climate command premiums from advertisers. Mobile Share of US Online Ad Spend¹ Mobile is our fastest growing segment – share in US online ad spend is expected to 49% grow from 41% to 49% in 2020. Hollywood has increasingly recognized the size and buying power of our audience through continued distribution of religious films – affirms the market for faith-based content. 41% 2016 2020 1) Source: eMarketer 4 Our Integrated Multi-Media Approach Revenue LTM Radio Broadcasting September 30, 2017 . #1 in commercial Christian radio broadcasting. 119 stations across 40 markets, with over 3,100 Digital affiliates. Media $44.7 Digital Media Publishing . More than 145 million monthly page views $24.8 $267M across hundreds of website properties. Salem’s fastest growing segment. Radio Publishing Broadcasting $197.7 . Publish more than 2 million books annually. Several high profile authors under contract. Dollars in millions 5 Our Integrated Multi-Media Approach Radio Broadcasting Digital Publishing We’re the Third Largest Radio Broadcaster in the Top 25 U.S. Markets Ownership of Radio Stations Serving the Top 25 Markets 1 160 Number of stations in the top 25 markets Number of top 25 markets represented 117 Approximately half of the adults in the U.S. live in the top 25 markets, where stations have stronger revenue, margins and asset values 73 39 36 32 31 30 24 22 23 18 10 9 9 9 6 6 2 5 7 2 2 iHeartMedia Entercom Salem Cumulus Univision Beasley Urban One Cox Alpha Media Spanish Emmis Broadcasting System 1) Source: BIA/Kelsey and company filings. Market ranking excludes Puerto Rico. As of October 2017. 2) Includes announced acquisitions, divestitures, and exchanges for Salem. 6 Our Integrated Multi-Media Approach Radio Broadcasting Digital Publishing Five Strategic Radio Formats LTM September 2017 Radio Revenue Christian Christian Music – News Talk Programming 10% Teaching and Talk The FISH® 21% of radio revenue 48% of radio revenue 23% of radio revenue Advertising 41 Stations + Sirius XM 13 Stations 33 Stations Other $175M 48% Spanish Christian 42% Business Teaching and Talk 3% of radio revenue 3% of radio revenue 4 Stations 12 Stations Block Programming Programming time sold to national non-profit ministries and local churches. Higher margins than traditional spot advertising. High renewal rates exceeding 95% annually; 2.5-4.0% rate increases. Our top 10 programmers have averaged 30+ years on the air. Programming revenue comprises 48% of radio revenue and 32% of total revenue. 7 Our Integrated Multi-Media Approach Radio Broadcasting Digital Publishing Salem Radio Network – Over 3,100 Affiliates The Hugh The Mike The Dennis The Michael The Larry Elder The Joe Walsh The Eric Hewitt Show Gallagher Show Prager Show Medved Show Show Show Metaxas Show Number of Affiliates: 383 379 370 351 375 267 323 Salem Radio Network Revenue 1,309 234 Affiliates Affiliates $ in millions $17.2 $18.0 $14.7 616 56 Affiliates Affiliates LTM 9/15 LTM 9/16 LTM 9/17 8 Our Integrated Multi-Media Approach Radio Digital Publishing Salem Digital Media National Christian Websites $50 $44.7 $40 National Conservative Websites $30 $20 Church $10.0 E-Commerce Websites $10 $0 Bible Study King James Tools Bible LTM 9/17 New Mobile Apps Revenues Daily Bible One Place Daily Devotion Operating Income $ in millions 9 Our Integrated Multi-Channel Approach Radio Digital Publishing Transitioned From Desktop to Mobile We continue to invest in mobile and tablet 1% platforms given ongoing shift in consumer 8% 22% demand, including mobile apps. 2009 29% 2016 Desktop now accounts for only 22% of page 99% 41% views vs. 99% in 2009. Desktop Mobile Apps Mobile Web Tablet Diversified Mix of Traffic Sources Diversified our traffic sources to avoid reliance from any one provider. 18% 18% 29% 3% 41% 2009 11% 2016 Largest source of traffic is now mobile. 7% 45% 12% 1% 15% Mobile Apps Search Engine Direct Traffic Facebook Email Website Referrals 10 Our Integrated Multi-Media Approach Radio Digital Publishing Publishing Revenue More than 75 books on the NY Times Best Seller List Salem Traditional Book Publishing $25.5 Salem Self-Publishing Services $23.6 $24.8 LTM 9/15 LTM 9/16 LTM 9/17 11 Geographically Diversified Portfolio Seattle, WA Denver, CO Omaha, NE Minneapolis, MN Chicago, IL Columbus, OH Detroit, MI Cleveland, OH Youngstown, OH (12) 4 AM (17) 4 AM, 1 FM (73) 2 AM, 1 FM (15) 4 AM (3) 2 AM (35) 1 AM, 1 FM (13) 2 AM (33) 2 AM, 1 FM (130) 1 AM Pittsburgh, PA (27) 2 AM, 1 FM Portland, OR Boston, MA (21) 4 AM, 3 FM (10) 3 AM Sacramento, CA 4 (26) 2 AM, 2 FM New York, NY (1,19) 2 AM San Francisco, CA 7 (4.36) 3 AM Philadelphia, PA 4 3 (9) 2 AM Colorado Springs, CO 2 2 (88) 1 AM, 2 FM Washington, DC 2 3 1 2 (7) 3 AM, 1 FM 4 3 3 Oxnard, CA 3 2 4 5 2 (119) 1 FM 3 1 Warrenton, VA 1 AM Los Angeles, CA 1 (2) 1 AM, 2 FM 3 3 1 3 Nashville, TN San Bernardino, CA 2 3 3 (42) 3 FM (24) 1 AM 6 5 Greenville, SC Honolulu, HI 7 (58) 3 FM (62) 3 AM, 4 FM 3 4 5 Atlanta, GA San Diego, CA 3 1 (8) 5 AM, 1 FM (16) 2 AM 3 Orlando, FL (30) 4 AM Phoenix, AZ Dallas, TX San Antonio, TX Houston, TX Little Rock, AR St. Louis, MO Tampa, FL Sarasota, FL Miami, FL (14) 3 AM (5) 3 AM, 2 FM (25) 3 AM (6) 2 AM, 1 FM (85) 3 FM (22) 2 AM (18) 5 AM (72) 1 AM (11) 3 AM Top 25 Markets Markets 26-50 Other Markets Source: Radio Market Survey Population, Rankings & Information – Fall 2017, published by The Nielsen Company. Market Ranking excludes Puerto Rico. 12 Why We’re Different Radio hosts drive listeners to websites. Radio stations hold book signing events to grow book sales. Pastor events promote digital Unique Ability resources. to Promote Across All Websites promote radio programs & books. Platforms Cross-selling between radio & digital with larger advertisers. 13 Where We’re Going Grow Digital Media Mobile App Revenues Strong diversification of traffic sources $ in thousands positions us for sustainable growth. $3,742 Utilizing strong cash generation from radio business to acquire more traffic and complementary website properties. Our infrastructure enables us to cut nearly all costs from acquired companies, while maintaining or increasing revenues. $1,189 Increasing traffic to current sites through new mobile apps and cross promotion from $48 $89 our other media platforms. Added 41 apps 2015 – 2017. 2013 2014 2015 2016 14 Where We’re Going Drive Further Monetization of Large Radio Audience Centralizing costs to mitigate overhead. Capitalize on prior radio station acquisitions, which take 18-24 months to turn profitable. Acquired 16 radio stations and 32 FM translators since Jan 2015¹. 1) Includes three stations operated under a local marketing agreement. 15 Where We’re Going Publishing Launched Will Continue to Attract Highly Regnery Faith in 2017 Sought-After Authors 16 Looking Ahead to 2018 Election Year • Increased Political Revenue • Stronger book release schedule from Regnery Improved ratings at KLTY-FM Dallas Elimination of four loss-making magazines in 2017 Third full year operating radio stations acquired from Disney in 2015 17 Key Takeaways We are the market leader in Christian and 1 conservative media.