FCC Authorizes Temporary Process for FM Geotargeting

The order allows FM broadcasters to apply for an experimental license to broadcast geotargeted content originated on an FM booster for a maximum of three minutes per broadcast hour. Prior to Tuesday’s order, the FCC barred using FM boosters to originate content. The experimental license will be conditioned on the broadcaster agreeing to abide by the additional requirements for permanent authorization that the FCC will determine by the FCC based on responses to the accompanying FNPRM. FCC and industry officials told us that the initial draft required broadcasters to apply for special temporary authority to use geotargeting, but STA grants must be renewed every six months, while experimental licenses last a year. “We view experimental use of program-originating boosters as an appropriate mechanism to use during the pendency of the Further NPRM because it allows the FCC to closely monitor the rollout of the technology.” The order directs the Media Bureau to expedite such renewals, and caps at 25 the number of boosters a station can use for originating content.

The FNPRM seeks comment on the specifics of a permanent authorization process, on requiring broadcasters using the tech to provide notice to broadcasters in their markets, and the specifics of how the boosters will interact with the FCC political broadcasting rules and online public file requirements. It also asks about requiring synchronization between boosters and their originating station, and the 25 booster cap.

NAB said the record “clearly did not support full authorization,” and called the temporary authorization “a measured step.” It added, “We look forward to working with the Commission to ensure that it upholds its commitment to the American people that it will not put in play technologies that negatively impact them or put them in harm’s way.” Said GBS of the FNPRM and temporary authorizations, “The FCC identified some implementation issues that need to be addressed in a further rulemaking proceeding.” The company said it "looks forward to working with the agency to resolve these related issues in an expedited manner.”

"This milestone achievement finally elevates radio to stand shoulder to shoulder with TV, cable, print, and digital platforms, putting it on equal footing with other major media channels,” said BIA Capital Strategies CEO Tom Buono in a GBS release. BIA has advocated for FCC approval of the technology. “By enabling geotargeting, FM radio is now equipped to attract advertisers seeking to place hyper-local ads, revitalizing the medium and offering new revenue opportunities,” said GBS. “This rule change comes at a crucial time when the radio industry has faced challenges, including declining ad revenue and increasing bankruptcies.”

GBS’ ZoneCasting geotargeted radio product relies on multiple synchronized FM boosters transmitting targeted signals that FM receivers receive as a single signal. Broadcasters with the ZoneCasting tech would be able to use the system to briefly broadcast particular content at portions of their markets. It is expected the content will primarily be hyper-local commercials. However, GBS said in a release Tuesday that it could also include news and traffic updates. GBS has said it plans to offer broadcasters ZoneCasting at no initial cost and collect a percentage of the sale of ads by users.

The FCC order rejected concerns about interference and adverse effects on the advertising market that NAB and large radio companies, such as iHeart and Beasley Media, repeatedly raised. “We do not think it would advance the public interest for us to reject a new technology based on the fact that it could increase competition among FM stations for advertising revenue and thereby reduce advertising costs,” the order said. “We decline to allow such speculative concerns to persuade us to prohibit a new technology that offers significant public interest benefits, including increased competition, lower costs for consumers, and hyper-local content for listeners.” Beasley and iHeart didn’t comment.

The agency said that it found little evidence in the record that content originating from boosters will interfere with other stations and that its existing interference complaint process is sufficient for the new tech. Boosters originating content could lead to broadcasters interfering with themselves, but users of geotargeted radio “have an economic incentive to properly engineer their systems to maintain the quality of their primary signal and minimize interference,” the FCC said. The agency also pushed back on arguments that the boosters could affect HD radio signals. “We find it significant that Xperi, the developer of HD Radio, has not opposed the adoption of program originating boosters,” the FCC said.

FCC Commissioner Geoffrey Starks and several groups associated with minority broadcasters and civil rights advocacy praised the authorization of geotargeted radio. The rules will allow FM stations “to deploy geotargeting booster technologies responsibly and on a voluntary basis, while also helping small businesses in their communities get on the air,” Starks said. The order “has opened a new chapter for diversity in FM radio ownership, making today a significant milestone," said Rob Neal, CEO of International Black Broadcasters Association, in the GBS release. “This rule change by the FCC is a critical advancement toward leveling the playing field for all broadcasters, particularly those serving minority communities,” said Multicultural Media, Telecom and Internet Council President Robert Branson in the release issued by Starks. “It’s a significant step forward in expanding opportunities for minority-owned businesses, ensuring they have the tools to thrive and succeed,” Congressional Black Caucus Chairman Rep. Steven Horsford, D-Nev., said in the Starks release.