ZoneCasting: A Blueprint For Local TV’s Future?

Local
Written By Tim Hanlon

As the media industry evolves, new technologies continue to rapidly reshape how content is delivered, monetized and consumed. One of the most intriguing developments of late is ZoneCasting, a radio-specific innovation that allows stations to deliver hyper-local content to specific geographic areas. While ZoneCasting is making early waves in radio, it also offers a glimpse into the potential future of over-the-air TV broadcasting as NextGen TV, powered by ATSC 3.0, continues to build out.

The technology — developed by suburban Chicago-based GeoBroadcast Solutions — allows FM radio stations to use boosters to divide their signals into multiple targeted geographic zones, enabling them to broadcast different content to distinct areas within their coverage range. This approach allows stations to tailor programming — whether it’s news, weather alerts, or ads — to specific “sub-DMA” locations without affecting the broader market audience. For example, a station could provide traffic updates relevant to downtown commuters in one zone while simultaneously offering local suburban sports coverage in another.

Despite facing early industry opposition (potential economic impacts on smaller stations) and FCC scrutiny (possible signal interference), ZoneCasting is already being tested in-market by a handful of broadcasters, showing some promising initial results.

The Parallel With NextGen TV

Driven by the rapidly deploying ATSC 3.0 broadcast standard, NextGen TV promises to revolutionize television much like ZoneCasting is attempting to transform radio. With its IP-based backbone, NextGen TV offers a host of potential “better TV” features: higher picture resolution, improved audio quality, interactivity, and, crucially, the ability to deliver targeted content.

In this regard, the parallel between ZoneCasting and NextGen TV are striking. Both leverage advanced signal management to create more personalized experiences. Applying ZoneCasting’s targeting principles to television could enable OTA broadcasters to similarly “zone” their transmissions, delivering hyper-local news, weather updates, or advertisements to specific neighborhoods. Imagine a local TV station providing tailored election coverage focused on municipal races by neighborhood viewers or broadcasting timely weather or public safety warnings to specifically at-risk locations.

This level of content localization could significantly enhance the relevance of local broadcast television, offering a compelling alternative to digital media’s dominance in hyper-local news.

New Revenue For Broadcasters?

ZoneCasting’s most transformative potential lies in its ability to unlock new revenue streams through hyper-local advertising. Traditional over-the-air broadcasters have long been confined to selling broad, DMA-wide ads that often lack the audience precision that modern, digitally adroit marketers seek. A ZoneCasting-like model in TV could enable OTA broadcasters to sell highly targeted ad spots, allowing local businesses to reach their core customers more directly and effectively.

For example, a TV station could offer advertisers the ability to target ads to specific neighborhoods, tailoring messages to different demographics within the same market. A car dealership with multiple locations could run distinct promotions in various parts of the local region, or a restaurant chain could advertise location-specific deals that resonate with the most immediately nearby viewers. This level of customization, common in digital advertising, has been out of reach for traditional TV due to technological limitations — barriers that NextGen TV is poised to overcome.

This approach benefits both marketers and TV stations. As marketing expenditures increasingly shift to digital platforms, local broadcasters need more innovative strategies just to maintain their share of local ad dollars, let alone grow it. “Zone-based” advertising could actually enhance the competitive position of over-the-air TV by attracting new revenue from previously untapped (and untouchable) performance-based "below-the-line" marketing budgets — such as promotions, co-op, trade, and direct-to-consumer (DTC).

Existential Risks & Rewards

Evolving to a ZoneCasting-like operational framework in OTA TV will undoubtedly present numerous implementation challenges, from regulatory hurdles to technical complexities; ad sales processes and back-end trafficking systems will also require significant reformulations. There’s also the question of consumer adoption; much like the rollout of ATSC 3.0 itself, the success of NextGen TV depends on viewers having broad access to compatible devices and a more innate understanding of the value of the enhanced experience.

However, the potential rewards far outweigh the risks. As NextGen TV deployment advances, local TV broadcasters have a generational opportunity to rethink and reinvent how they serve both their audiences and their advertisers via the advent of sub-DMA content targeting. While ostensibly “just” a radio-only technology, ZoneCasting is also a real-time glimpse into what a major part of the potential future of over-the-air television broadcasting might look like and eventually evolve to.

As NextGen TV and ATSC 3.0 technology advancements push towards redefining the OTA television experience, broadcasters should keep an eye (or ear) out for how ZoneCasting’s initial forays into hyper-local content targeting might translate into local TV’s future success.

Tim Hanlon

Tim Hanlon is the Founder & CEO of the Chicago-based Vertere Group, LLC – a boutique strategic consulting and advisory firm focused on helping today’s most forward-leaning media companies, brands, entrepreneurs, and investors benefit from rapidly changing technological advances in marketing, media and consumer communications.

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