So rather than the signal filling a longer or shorter distance, in this situation the signals fill a larger or smaller time volume. I don't know how else to picture it. (You can draw it quite simply using each clock "tick" as the radius of the time bubble, and the Lorentz transformation is the same). Anyway, Einstein said a body's acceleration is equivalent to a gravitational field- which is associated with mass. So if you use e=γmc^2 you can describe the bubble's increase in relativistic mass and come to an analogous conclusion regarding a body's
relative increase in mass. Relative and relativistic mean different things. To illustrate the idea, see this image from Wikipedia
http://en.wikipedia.org/wiki/Gravitational_redshift#mediaviewer/File:Gravitational_red-shifting2.png
A body with greater relative mass receives a higher frequency of wavelengths, just as a body with greater
relativistic mass does. You can re-imagine the larger sphere representing the rotating body compared to the central smaller sphere. But if you do so, the sphere's shown are now filled with relative time, not relative mass. (Or you can say each is composed of different relativistic mass, but not necessarily of different relative masses.).
Einstein introduced the equivalence principle. But equivalence does not mean identical. As I'm trying to convey, relativistic mass is not identical to relative mass. But as long as this distinction is clear, then it's OK to say a body's relativistic mass increases while its relative length contracts, although it's kind of using mixed terminology. Maybe that's why the term relativistic mass is avoided nowadays. In my early readings it was difficult to understand why writers would say the relativistic mass would increase, while elsewhere they would say it's length contracted. The distinction between relativistic and relative were not clear in the textbooks I read.