With advertiser adoption of geotargeting strategies nearing saturation, new research shows there are location-based marketing dollars to claim with help from technology heralded by former FCC Commissioner Geoffrey Starks as “the dawn of a new possibility for radio.”
According to Advertiser Perceptions, 87% of marketers and media agencies now use geotargeting in their campaigns, up from 70% in 2020. This growth reflects a larger shift in how media planners allocate budgets, especially as digital platforms set expectations for precise location-based delivery.
As analyzed by Cumulus Media/Westwood One’s Audio Active Group, a Borrell Associates survey found 49% of local advertisers said geographic targeting was their most effective method, surpassing demographics, behavioral, and purchase history targeting. Nearly one in four called it their most used tactic.
While radio has traditionally excelled at broad-reach branding, it’s long lacked the tools to match digital’s geographic precision. That changed last year, when the FCC granted broadcasters the authority to use up to 25 FM boosters that retransmit primary station signals, with up to three minutes of programming localized to each specific booster per hour.
The frontrunner in this space is GeoBroadcast Solutions’ ZoneCasting. Familiarity with the service among advertisers has climbed from 28% in 2020 to 63% in 2024, with those saying they are “very familiar” more than doubling.
Advertiser interest is also rising. In 2020, just 20% of marketers said they were very interested in terrestrial radio’s geotargeted ad capabilities via FM geotargeting. By 2024, that figure has more than doubled to 41%. Most notably, 39% of marketers now say the idea of geotargeting makes them “very likely” to start spending or spend more on radio advertising.
That investment opportunity is bolstered by the growing availability of in-car listening data via Xperi’s DTS AutoStage connected car platform. These heat maps, paired with ZoneCasting’s capabilities, allow stations to show retailers exactly where audiences are tuning in and how that aligns with their physical locations.
For advertisers, it closes a long-standing measurement gap between AM/FM exposure and retail proximity.
