PG 1

800.275.2840

THE MOST TRUSTED NEWS IN RADIO

MORE NEWS»

insideradio.com

NEWS@INSIDERADIO.COM | 800.275.2840

FRIDAY, DECEMBER 18, 2015

All Listeners Want For Christmas? It’s Mariah. With the Christmas music format now in full-seasonal flight—about 500 terrestrial radio stations are currently in holiday music mode—just a handful of classic songs dominate rotations. And many of the most popular Christmas songs are older than many of the format’s listeners themselves. Mariah Carey’s “All I Want for Christmas Is You” is the most-played Christmas song across all of radio, airing 6,010 times from Dec. 9-15, according to Mediabase. Brenda Lee’s “Rockin’ around the Christmas Tree” was no. 2, followed by Burl Ives’ “Have a Holly Jolly Christmas” (no. 3), Bobby Helms’ “Jingle Bell Rock” (no. 4) and Nat King Cole’s “The Christmas Song” (no. 5). By holiday music standards, Carey’s rendition of “All I Want for Christmas Is You” is actually recent, having been released in 1994. And while the most heavily played tunes are older, many dating back to the ‘60s and ‘50s, they aren’t tired, radio programmers say. “The holidays are all about tradition and a trip down memory lane. Listeners want the songs that bring back their fond memories,” says Chuck Knight, program director for Jerry Lee Broadcasting AC “More FM” WBEB Philadelphia (101.1). “Traditional songs by the traditional artists are the songs listeners rate highly.” To that point, on WBEB, the most-played holiday song this week is King Cole’s “The Christmas Song.” Among current holiday songs, Seal’s “This Christmas” is the most-played song year-to-date, according to Mediabase. Current Climb—Which current songs rank highest? Go to InsideRadio.com.

New Acts Still Dreaming of a White-Hot Christmas Hit. So what does it take for a new Christmas song to break through? Remakes by current artists or a song with a local tie are most likely to make it into rotation, programmers say. In San Francisco, on Entercom AC KOIT (96.5), program director Brian Figula says he plays classics and traditional songs, and sprinkles in modern tracks. “Most of the new Christmas music are remakes. Rarely can someone top the original,” Figula says, adding he will mix in songs by local artists, such as Tim Hockenberry, Vic Damone and Russ Lorenson, or holiday tunes about San Francisco. KOIT’s top holiday song this week is Nat King Cole’s “The Christmas Song.” In Philadelphia, WBEB’s Chuck Knight says he stays away from new original songs because there isn’t enough time for them to be established. “Within the short five-week Christmas music time frame, new, original music doesn’t become familiar enough to develop passion, no matter who sings them,” he says. And while younger listeners typically crave the latest music and seek out emerging artists, when it comes to Christmas music, older is better, says Jeff Evans, program director for contemporary Christian “Star 93.3,” WAKW Cincinnati, where the most-played song this week is Frank Sinatra’s “Let It Snow.” “Today’s kids are creating their own memories with the same classic songs as the background music,” Evans says. “I think ‘White Christmas’ will be just as popular 50 years from now as it is today.”

Berner Touts Cumulus’ Silver Linings Playbook. During her second companywide webinar as Cumulus Media CEO, Mary Berner highlighted early progress made in starting to turn the company around while reinforcing goals outlined the first time she addressed the troops. November marked an AQH rating high for the company, she said, while Westwood One’s performance has begun to improve. Berner also singled out

On The Inside with...

JOHN FULLAM

NEWS INSIDE >>

insideradio.com

PG 2 NEWS@INSIDERADIO.COM | 800.275.2840

FRIDAY, DECEMBER 18, 2015NEWS

about a dozen Cumulus markets that are showing positive cash flow that weren’t one year ago. Now 66 days into her tenure, Berner offered both a progress report and a pep talk. She reinforced the company’s shift away from top-down management to one that puts decision making in the hands of its local experts, namely market managers and programmers. In contrast with a previous regime perceived as being dictatorial, corporate’s new role is one that provides support to help local managers achieve goals. At a company once maligned for over-reliance on corporate-mandated playlists, “programmers are ecstatic that they get to have autonomy in the music they put on their radio stations,” said one Cumulus program director after the webinar. Berner’s mention of budgeting for merit raises in 2016 was naturally well received, as was talk about allocating marketing resources for some stations. Berner has been working to build a reputation as an approachable, in-touch CEO. She set up an AskMary@Cumulus.com email account for employees to send questions to, many of which she answered during the webinar. “We get a lot more answers now and we get the answers faster than we ever used to,” the program director said. New Days Ahead—Recently announced upper-management shifts are part of Berner’s strategy; read more at InsideRadio.com.

Nielsen’s Fullam—Total Audio Measure Needed Now. The chairman of the Nielsen Audio Advisory Council says it’s time for Nielsen to make a decision about issues that have held up the rollout of its digital audio measurement service. “We can’t just stand still,” Greater Media Philadelphia senior VP/market manager, John Fullam, told Inside Radio in an interview. At its Audio Client Conference in early December, Nielsen expressed its own frustration that the industry had yet to agree on several reporting issues, including how listening data should be reported when the stream carries a different ad load than the broadcast, and whether the components of the total audience should be broken out separately. “It would be great if everyone was pulling in the same direction and there was 100% agreement but that’s not going to happen,” Fullam told Inside Radio. Nielsen announced at the conference that it was ready to make a decision if the industry couldn’t. “We’ve told the industry we can’t let this drag on indefinitely,” Rob Kass, VP, product leadership, told attendees. “We’re ready to make a decision if need be.” Now the Council, made up of Nielsen-subscribing broadcasters, seems to be saying this time has arrived. “We’re as anxious and as frustrated as anyone. This has dragged on longer than we would like,” Fullam said. “We’ve got to get to a decision quickly and we’ve waited a reasonable period of time. I’m hoping Nielsen does make that decision because they’ve heard from the Council as to where a majority of broadcasters stand.” Read more in “On The Inside With John Fullam” on p5.

Radio Rises Amid Overall Ad-Spend Drop. Buoyed by increased spending from automotive, restaurants and telco advertisers, local radio ad revenue jumped nearly 13% in Q3 2015 in 36 markets measured by Kantar Media. In contrast, overall ad spending on U.S. media fell 3.9% in Q3 to $36.4 billion. Of the 22 types of media monitored by Kantar, 16 reported lower ad spending last quarter. The losses can be attributed to several factors, including one less week in the National Football League this fall due to calendar scheduling, depriving media outlets of NFL-related ad revenue; and a lack of political spending in Q3 2015 compared to Q3 2014, when political advertising injected additional dollars in many media categories and markets. For the radio industry, Kantar says overall radio ad spending grew 5.1% in Q3, propped by strong local radio ad sales in Kantar-monitored markets. (Kantar’s markets represent about half the U.S. population and include 32 of the top 50 markets and 36 of the top 75.) National spot radio, however, slipped 3.9% last quarter, and network radio ad revenue declined 4.8%. Hispanic radio ad expenditures were flat compared to the same period last year. Year-to-date, radio categories are pacing similarly, with local radio up 9.6%; national spot down 2.5%; network radio off 5.2% and Hispanic radio up 3.3%. TV Falls—Television led a crew of media that experienced losses in the quarter; go to InsideRadio.com.

Auto, Telco, Restaurants Drive Local Radio Gains. According to Kantar Media estimates, automotive, restaurant and telco advertisers increased their radio spending in Q3, helping drive local radio ad sales up nearly 13% in 36 markets that Kantar monitors. While automotive advertising was also soft, particularly on the dealer side, pharmaceutical and travel/

insideradio.com

PG 3 NEWS@INSIDERADIO.COM | 800.275.2840

FRIDAY, DECEMBER 18, 2015NEWS

tourism advertising were both up. Overall, auto ad spending dipped 1.2% in Q3, with $3.49 billion in ad expenditures in Q3 2015, down from $3.53 for the same quarter last year. Dealer ad spending fell 4.9% in Q3 2015, while manufacturer outlays increased 1.7%, compared to Q3 2014. Telecom—one of the brighter spots for radio—decreased overall media spending 5.2% in Q3 2015 to $2.16 billion, as did financial services (-8.2%); restaurants (-1.1%) and insurance (-6.2%). Pharmaceutical advertising was a notable exception, with drug companies increasing ad spending a healthy 18% in Q3 2015 to $1.34 billion. Travel and tourism also posted positive gains last quarter, up 1.1% to $1.2 billion. Among advertising categories overall, retail drove advertising spending in the third quarter, but retailers pulled back slightly compared to a year before. In Q3 2015, retailers spent $4.04 billion on U.S. advertising, according to Kantar estimates, down 5.2% from Q3 2014’s $4.27 billion.

In 2015 Demo Dogfight, CHR Rules the Ratings. Despite a mid-year ratings dip, CHR finished 2015 as radio’s most-listened-to format in the demo that matters most—adults 25-54—in the 48 Nielsen PPM markets. The triumph is especially noteworthy in that the format typically targets 18-34-year-olds, where it also ruled the airwaves this year with a league-leading 12.4 share. Chalk it up to the cross-generational appeal the format has built over the past decade, along with adult women’s desire to stay connected to what’s current and hot. Country, a format dubbed “the other CHR,” finished second in both 18-34 and 25-54, achieving a higher share with the younger demo (9.1) than with the so-called “money demo” (7.8). Hot AC came in third with 18-34-year-olds with a 7.6, followed by urban contemporary (6.5) and AC (6.4). Rounding out the top 10 among with 18-34-year-olds are rhythmic CHR (5.8), alternative (5.0), regional Mexican (4.6), classic rock (4.5) and news/talk (3.6). News/talk remained radio’s top format among listeners aged 6+ with an 8.9 share, followed by CHR (8.2), country (7.9) AC (7.4) and hot AC (6.7). Rounding out the top 10 in the 6+ listing are classic hits (5.3), classic rock (5.2), urban AC (4.9), sports (4.7) and urban contemporary (3.5). Both sports and urban contemporary experienced record-breaking years in 2015, while for the second year in a row, classic hits took home the “Format of the Summer” title but not without strong competition from hot AC and country. Across the three major demos of 6+, 18-34 and 25-54, four formats placed in the top-five of each: CHR, country, hot AC and AC.

Royalty Comments In Sync With Party Lines. Industry reaction to the U.S. Copyright Royalty Board rate ruling was, in a word, mixed. The music industry had hoped the CRB would raise rates more significantly, as high as 25 cents per 100 performances for free, ad-supported services. The Recording Academy called the decision “the latest illustration of a broken music licensing system.” In a statement, Daryl Friedman, chief industry, government and member relations officer, said the new rates are below market benchmarks, and lamented that FM radio stations continue to pay no royalty fees for their broadcasts. “The latest news from the rate court is further proof of the need for the passage of broad music licensing legislation,” Friedman said. Echoing those sentiments, SoundExchange, which collects streaming royalties on behalf of labels and artists, said, “We believe the rates set by the CRB do not reflect a market price for music and will erode the value of music in our economy….It is deeply disappointing to see that broadcasters are being given another unfair advantage.” On the other hand, some say the lower rates may spur more broadcast radio stations to offer streaming audio to their listeners, who are increasingly looking for audio on mobile devices and on-demand. CBS Radio applauded the CRB’s decision, saying in a statement that the ruling will, “provide the catalyst to encourage more investment in streaming and distribution across various digital and mobile platforms, benefiting the music industry, broadcasters and our listeners.”

Anticipating CRB Move, Pandora Reset Strategy. The long-awaited ruling from the U.S. Copyright Royalty Board increases the rates Pandora will pay for non-subscription streaming music, but the Internet radio company has been preparing for such

insideradio.com

PG 4 NEWS@INSIDERADIO.COM | 800.275.2840

a possibility. Pandora has been diversifying its portfolio to rely less on its music service and grow its audio-related business. The deals the company made, including purchasing an online ticket retailer and moving into non-music programming, may help Pandora weather the increased costs from royalty payments, and the growth of competitors, namely Apple Music and Spotify. Per the ruling, Pandora’s royalty rate for its free, commercial-supported tier climbs to 17 cents from 14 per 100 plays. For other Internet radio services, including iHeart Radio, the rate drops to 17 cents from 25 cents. For paid tiers, the rate is 22 cents per 100 performances. The new five-year rate schedule takes effect January 1, 2016, and represents, for Pandora, a 15% increase over 2015’s effective per-performance royalty rate. According to Music Business Worldwide calculations, Pandora will pay about $94.1 million more in royalties next year. Top competitors Spotify and Apple Music allow users to select the songs they want to hear, and they negotiate deals directly with labels and artists. Pandora has been on a buying spree of late as it seeks to grow business. Last month, the company agreed to pay $75 million for the technology used by streaming service Rdio, which is shutting down on Dec. 22. Other deals this year include purchasing music analytics provider Next Big Sound, which should help Pandora better monetize its reams of user data and improve ad targeting for its ad-supported free tier, as well as its $450 million acquisition of TicketFly, an online concert ticket seller. Known Quantities—Pandora execs see company managing impact through new moves; read more at InsideRadio.com.

Mercedes-Benz’ ‘Mbrace’ Allows iHeart Access. Mercedes-Benz is integrating a new “mbrace” in-dash platform, which will allow access to thousands of iHeartRadio stations and live streams. Drivers of 2014, 2015 and 2016 vehicles who currently have either mbrace Mercedes Benz apps or an mbrace entertainment subscription will be able to subscribe to the new initiative by the end of December. According to an iHeart release, “This means that you’ll never have to worry about losing access to your favorite radio programs simply because you drive out of range.” In addition to accessing live stations, Mercedes-Benz drivers with compatible head units will be able to access custom stations, podcasts and My Favorites Radio, with search functionality via the in-dash app by genre or location. Mbrace is a standard connectivity app on late model Mercedes that also allows users to start the car remotely, heat or cool the interior, remotely lock or unlock, sound the horn, locate your vehicle and request assistance. It was launched in 2008, first as a navigation tool. Because it is built in the dash, mbrace does not require a connected smartphone to function. A story in Auto Trader deemed it, “a kind of virtual copilot, hanging with you every step or turn of the way.”

Format Swap-o-Rama Gets Huge Play in Lubbock. More than 12,000 radio commercials airing across eight stations. A good 4,300 TV commercials airing over five stations. Talk about a campaign that was impossible to miss. But with five radio formats relocating to new frequencies in Lubbock, TX, a lot was at stake for “Radio Station Moving Day.” What set the frequency swap-o-rama in motion was a deal by Brad Moran’s Ramar Communications to trade his Class C2 at 104.3 for Barton Broadcasting’s C2 at 106.5. The deal closed Thursday, paving the way for five formats, and later their call letters, to relocate to new frequencies Friday at 10am. Not missing a beat, the two companies sold sponsorship rights for “Radio Station Moving Day,” to…wait for it…a moving and storage company. Here’s the preset alert: sports “Double T 104.3” KTTU-FM to 97.3 as “Double T 97.3;” hot AC “97.3 YES FM” KLZK-FM to 107.7 as “107.7 YES FM;” classic hits “107.7 The Eagle” KLBB-FM to 93.7 as “93.7 The Eagle;” Tejano “Magic 93.7” KXTQ-FM to 106.5 as “Magic 106.5;” and Tejano “Power 106.5” KEJS-FM to 104.3 as “Power 104.3.”

Inside Radio is written by Paul Heine, Chuck Taylor and Allison Romano, and is edited by Rob Edelstein. If you have comments on a story, a news release, or a news tip, send it to editor@insideradio.com, or call 800-275-2840. To advertise in Inside Radio, contact Karen Bak karynbak@insideradio.com, and for anything else, contact Gene McKay, genemckay@insideradio.com

— Get more news, people moves and insider extras @ www.insideradio.com. —

FRIDAY, DECEMBER 18, 2015NEWS

insideradio.com

PG 5 NEWS@INSIDERADIO.COM | 800.275.2840

FRIDAY, DECEMBER 18, 2015On the Insidewith...

Check out other recent Insider Interviews >> Mark Fratrik | Delilah | Steve Goldstein | Jim Thompson | Elvis Duran | Tommy Page | Deon Levingston | Scott Herman | Jimmy Steal | Kevin Gallagher | Gordon Smith | Peter Smyth | Pierre Bourvard | Paul Brenner | Rod Phillips

On The Inside With... John FullamVoltair sparked a loud, public, sometimes ugly debate about the quality of Nielsen’s encoders in 2015. In the middle of the firestorm was the Nielsen Audio Advisory Council, chaired by Greater Media Philadelphia senior VP/market manager John Fullam.

As the veteran exec (former president & COO of CBS Radio, ex-regional VP for Clear Channel) concludes an eventful term as chair, he spoke with Inside Radio about the still-evolving encoding issue, why radio needs digital audio measurement now and what’s ahead for the Council in 2016. An edited transcript follows.

IR: What were the Advisory Council’s greatest accomplishments in 2015? The Council and Nielsen were tested by a few important issues. The first, encoding and Voltair, gave us an opportunity to talk about the encoding process in greater detail with Nielsen. This past June, Nielsen and the Council agreed to form a new Technical Subcommittee, made up of several top radio industry engineers, programmers and executive Council members, along with Nielsen technical personnel. Nielsen gave this group unprecedented access to the entire encoding process and their lab. The committee spent several months asking the hard questions and making suggestions to ensure radio receives listening credit across many formats and in different listening environments. I give Nielsen credit for their transparency and for collaborating with the industry to be part of the solution. Nielsen moved fast on a solution that addressed concerns from those who felt [there was] not a level playing field. As almost everyone knows, the new enhanced CBET began to roll out last month, faster than anyone would have predicted. Of course more work needs to be done and real-world testing is underway but it was a good first step and significant progress has been made. Nielsen also committed to continue to work with the industry on improvements with encoding.

The second issue was how digital audio will be reported when the stream has the same content but a different ad insertion. The Council voiced our opinion to Nielsen last summer.

IR: What additional real-world testing is needed to gauge how enhanced CBET affects different formats and programming types?Everybody’s audio chain and processing is different so

we need to get stations that have upgraded to give us their feedback so we can look at real-world testing across formats and different listening environments. Every week, more of that data is coming back and the technical subcommittee and Nielsen are looking at it. We’re in an important time now and will be for the next few months.

IR: Do stations using both CBET and Voltair need to dial Voltair back to avoid distortion? The technical subcommittee is looking at all that data with Nielsen. There

aren’t any final conclusions, since we’re relatively early in the rollout. It’s going to be a few more months. One of the great things that came out of this was a mindset of continuous improvement. That’s critical and that job is never done, especially as technology improves. We need to, as an industry, continue to look at how we can improve the measurement system. We’ve got a commitment from Nielsen that they feel the same way.

IR: How would you rate Nielsen in terms of listening to its customers and being responsive to their needs?I give them enormous credit for listening to their customers this year. We’ve never had an opportunity as an industry to sit inside the lab with their engineers and look at encoding and do a deep dive into what the encoding process is and where it can be improved. It’s a good first step but we have work to do. We want to see how enhanced CBET addresses the concerns of broadcasters and whether it gives us the credit we deserve for radio listening.

IR: Nielsen and the Council For Research Excellence are testing the feasibility of a combined ratings sample in diary markets. How is that going and why is it important? It’s early but I think it’s very important—sample has always been one of the biggest issues that Council continues to press. The opportunity to work with a larger and better quality sample is a great opportunity. We’re really encouraged and hopeful that this could be a big thing for all markets.

Improvement Continues — Fullam talks about ways to better measure diary markets and the potential (and holdup) for cross-platform measurement, HERE.

insideradio.com

PG 6 NEWS@INSIDERADIO.COM | 800.275.2840

FRIDAY, DECEMBER 18, 2015MEDIABASE

insideradio.com

PG 7 NEWS@INSIDERADIO.COM | 800.275.2840

FRIDAY, DECEMBER 18, 2015CLASSIFIEDS

INSIDE RADIO, Copyright 2015. www.insideradio.com. All rights reserved. No part of this publication may be copied, reproduced, or retransmitted in any form. This publication cannot be distributed 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: ads@insideradio.com.

MORE OPPORTUNITIES @ INSIDERADIO.COM >>

LSM & DSM — BALTIMORE

Hearst is one of the nation’s most diversified media, information and

technology companies and we believe in impactful live and local radio. Our Baltimore stations are news/talk powerhouse WBAL-

AM and the legendary 98 ROCK, and we are the flagship for the

Baltimore Ravens and Navy Football. We need both a Local Sales Manager and Digital Sales Manager who share

our desire to combine superior local content with exceptional sales leadership. Our team is determined and energetic, and our work environment is

respectable with a high standard of excellence. To Apply and Learn

more about Hearst and these leadership opportunities:

CLICK HERE EOE

TWO POSITIONS AVAILABLE — BEASLEY MEDIA GROUPDirector of Sales (DOS) / Las Vegas, Nevada

Director of Sales (DOS) / Fayetteville, North Carolina The Director of Sales manages sales activities of the following revenue lines: radio, digital, live events and our line of interactive products. This individual will manage and oversee the daily operations of the market’s integrated sales department. The successful Director of Sales will develop strategies to attain sales revenue and market share goals within the market.

The ideal candidate will: • Lead the local sales team in creating value and delivering results for advertisers;• Develop and implement strategic integrated sales plans;• Maintain a weekly on-street presence, meeting with key clients;• Demonstrate ability to innovate and change quickly, based upon market and industry needs.

Qualifications:

• Proven advertising industry experience including but not limited to: TV, Radio, Print, Digital ad products• Track record of leading sales teams to meet and exceed revenue goals • 3+ years of overall advertising sales experience• 3+ years of sales management experience

Contact the following parties no later than January 8, 2016. Send cover letter and resume to:

Heather Monahan heather@bbgi.com and Kim Barber kim.barber@bbgi.com

Beasley Media Group, Inc. is an Equal Opportunity Employer.

qual PROMOTIONS DIRECTOR - DALLASAre you a highly organized, experienced manager of people: an experienced radio Promotions Director that understands radio Programming, Promotions and Sales operations? Are you an excellent multi-tasker with a highly creative mind? Do you believe in excellence in Programming, Sales and Promotions with on air products that delivers great, clean content Safe for the Whole Family? Do you possess large event management skills?

Salem Media Group Dallas is looking for a radio Promotions Director for our Dallas Cluster; a person that can document your performance history including unquestionable integrity, high standards and superior performance as a radio Promotions Director that will work side by side with one of the best broadcast teams in America.

Please send your resume and cover letter documenting why you are the highly qualified Promotions Director we should consider for one of the best radio jobs available today to:

John L. Peroyeaoperationstx@salem.cc

Salem Media Group, Inc EEO