The national campaign will be targeting the station's core 15- to 35-year-old audience, a group that according to Capital Radio chief executive David Mansfield are poised to enter the digital radio set market.
Mansfield said the UK has seen a significant increase in the sale of DAB sets but most have been sold to people in their 40s. The push is aimed at Xfm listeners who regularly access the station online and through digital television.
"Digital development is a core part of our strategy and we have made good progress in developing Xfm from a London station into a national brand. This is an exciting and innovative opportunity to position the brand at the leading edge of DAB," Mansfield said.
The Xfm-branded sets have been developed through a partnership with i.Tech Dynamic, the mobile phone, radio and computer manufacturing arm of Hutchison Harbour Ring, part of Hutchison Whampoa.
Patrick Tsang, general manager marketing and technology of i.Tech, said: "We are working together with Capital Radio because it has enormous expertise in the DAB market and influential brands, like Xfm, which can take our products to the difficult to reach youth market."
The campaign is set for Christmas 2004, with marketing and design coordinated jointly by Capital Radio and i.Tech.
Last month, Xfm launched another extension to its brand by developing a behind-the-scenes TV show on Sky's music channel The Amp.
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