Geotargeted Ads Won't Bring Down Radio Ad Rates, GBS Says

Geotargeted radio ads won’t have negative economic consequences for radio stations because the tech would be voluntary under the proposed change to the FCC’s booster rules, said GeoBroadcast Solutions in an ex parte filing posted Monday in docket 20-401. “No broadcaster will do so if it would not be economically advantageous,” said GBS, which owns the geotargeted radio technology. Under the proposal, “some radio broadcasters may continue to offer market-wide ad buys,” said GBS. “Other broadcasters may realize that they can increase revenue, in a race to the top, by segmenting the market.” Opponents of the rule change, which include large radio industry groups such as iHeart, have said geotargeted ads would bring down ad rates for the whole industry. “It is not the FCC’s job to legislate business approaches,” GBS said.