Converting raster presented in KML to polygon using ArcGIS Desktop?

I have spent quite a lot of time Googling which brought me many places including this site, but I haven't found the resolution.

I have a KML that presents a PNG. Radio Mobile generated the files and it lines up wonderfully. However, I need it as a polygon. The PNG itself doesn't contain any geo-referencing information as that's what the KML's purpose is. However, ArcMap 10 can't take the layer as an input in the raster conversion and when I specify just the PNG, it just makes a solid square that is (as I assumed) not in the right location.

Exported KML and PNG: http://ift.tt/1Fkr1V3 http://ift.tt/1L4tRfn

Screenshot: