Geotargeting Advances Give AM/FM Radio a Digital Edge

RADIO ONLINE | Monday, July 21, 2025 | 1:20pm CT

Cumulus Media and Westwood One

This week's Audio Active Group blog from Cumulus Media | Westwood One explores a growing trend among advertisers: geotargeting. Chief Insights Officer Pierre Bouvard outlines how new technologies are giving AM/FM radio the same hyperlocal precision long associated with digital advertising -- offering brands the ability to reach specific geographies with over-the-air ads and understand where in-car listeners are tuning in.

According to a recent Advertiser Perceptions study, nearly 90% of national advertisers and media agencies now use geotargeting, up from 70% in 2020. Among small and medium-sized businesses, a separate Borrell Associates survey shows geotargeting is considered the most successful and commonly used targeting strategy.

One of the key innovations gaining attention is ZoneCasting, which allows FM radio stations to air different ads in different areas for up to three minutes per hour. Since the FCC approved full use of ZoneCasting in January 2025, advertiser awareness has grown significantly. In 2020, only 13% of advertisers said the technology would make them spend more on AM/FM radio; by 2024, that number had tripled to 39%.

Meanwhile, DTS AutoStage -- developed by Xperi -- is giving broadcasters unprecedented insights into in-car listening. Already in 7 million U.S. vehicles, the connected car platform provides minute-by-minute data and heat maps showing where people listen to specific stations, including proximity to retail locations. This lets advertisers align local campaigns with actual listening behavior.

Data from Nielsen reinforces the opportunity. Analysis shows auto dealer preference can vary dramatically within a single metro area. For example, in Burlington, Vermont, car shoppers prefer Heritage Auto Group, while those in nearby Plattsburgh, New York, gravitate to Della.

Cumulus Performance Digital reports that pairing geotargeted digital ads with broad-reach AM/FM radio campaigns results in the strongest sales impact. A recent study from Tracksuit and TikTok supports this, revealing that higher brand awareness leads to significantly higher conversion rates -- up to 2.86 times greater for well-known brands.

In an era where performance marketing is under pressure to deliver results, AM/FM radio's ability to geotarget and measure in-car audiences may offer the edge traditional media needs to stay competitive in a digital world.

Read the entire blog post here