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Alpha Media and BIA Weigh In on GBS

Most smaller broadcasters won’t be able to afford GeoBroadcast Solutions’ geotargeted radio tech, said Alpha Media CEO Bob Proffitt in a letter to the FCC filed in docket 20-401. “The substantial investment necessary to deploy ZoneCasting will be out of…

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reach for most broadcasters, and simply out of the question for small and mid-sized broadcasters.” GBS tested an early version of its Zonecast system at an Alpha station, the letter said. Upfront costs to purchase the boosters and other equipment ran over $50,000, and annual recurring costs were close to $60,000. “As of 2021, the average annual revenue for radio stations in markets 210 to 253 was $347,000.00” Proffitt said. GBS supporters have told us the company plans to offer the tech to broadcasters without upfront capital expenses by offering a revenue split once the systems are up. “We have creative vendor financing solutions for station owners like Alpha Media,” said a GBS spokesperson. “Moreover, geotargeting is purely voluntary, meaning Alpha Media doesn't have to deploy the technology if it doesn't want to.” Being able to geotarget ads will mean more revenue for radio broadcasters, said a pair of filings from broadcast analyst firm BIA Advisory Services and its CEO Thomas Buono. GBS is a client of BIA, the filings said. “Many broadcasters, both large and small, would want to have this capability or at least the opportunity to choose for themselves whether to deploy this technology,” said Buono. “Local radio stations and groups commonly sell geotargeted advertising in their digital offers and have done so for years,” said the BIA filing. “Complementing these geotargeted services in their over-the-air services would enhance local radio’s competitiveness,” it said. “We conclude that the NAB’s position that offering geotargeted advertising does not improve competitiveness in today’s local advertising marketplace is not substantiated by facts.”