The NAB came out punching Wednesday, slamming GeoBroadcast’s plan to modify the FCC’s FM booster rule that would allow limited geo-targeted programming and advertising. In a 32-page filing, the NAB says if approved, both advertising rates and revenue will go down and minority and female owned stations will be hit the hardest.
The NAB states that “the vast majority of broadcasters” are in agreement that if The FCC allows program origination on boosters it will almost certainly drive both advertising rates and revenue down as advertisers push to purchase geo-targeted ads.
The NAB goes on to say that most station owners predict that existing advertising customers will likely substitute, rather than supplement, market-wide ads with cheaper, geo-targeted ads, which will cost stations revenue.
Minority and women-owned stations could be hardest hit if the rule is changed, according to the NAB filing, “if they cannot afford the expense of selling geotargeted ads or absorb lower advertising rates and new competition for ad dollars from the boosters of larger stations. And that means, according to the NAB, that “listeners served by minority- and women-owned stations may stand to lose the most under the proposal.”
The NAB says its also concerned about the possibility of interference and the possibility listeners could be confused about what they’re listening to.
In a nutshell, the NAB believes the GeoBroadcast’s proposal could completely undermine radios business model. Read the NAB’s comments HERE.
Connoisseur Media and Neuhoff Communications also filed comments opposed.
Urban One, Davis Broadcasting, Ohana Media Group and Riverfront Broadcasting are opposed. Small Radio Broadcaster Coalition is opposed.
Comments can be submitted until March 12 HERE.