What is Local TV Advertising: Types, Benefits & Costs

Local TV advertising has a broad reach, but you’re often running ads on rigid schedules to people who aren’t your ideal customers. It’s also difficult to measure direct ROI.

With local connected TV (CTV) advertising, you can reach the right viewers at the right time with precise targeting and track key metrics to measure performance.

CTV can work in tandem with local TV to maximize your reach. However, there’s a difference between traditional broadcasting ads and streaming TV ads. Media buyers need to understand targeting and measurement to run successful local TV campaigns.

In this guide, we'll explain what local TV advertising is and how to place commercials on traditional linear and connected TV. We’ll also look at how partnering with Strategus can help you maximize your local advertising reach.

What Is Local TV Advertising?

Local TV advertising displays ads on TV channels available only in specific regions. It helps businesses reach local customers — great for promoting local stores, services, events, or special offers.

Despite these benefits, traditional local TV advertising has several limitations:

• Limited targeting: Often targets broader demographics rather than specific interests or behaviors, resulting in wasted impressions. This means you’re spending your budget reaching viewers who are unlikely to purchase your product or service.
  
  
• Rigid scheduling: Ad spots are often purchased for specific time slots, making it difficult to adjust or optimize your campaign in real-time. If an ad is underperforming, you can’t pause or shift it to a better-performing time slot without losing your investment.
  
  
• Lack of analytics: Metrics are typically limited to general audience demographics, making it challenging to tie revenue to views. Without concrete numbers, you’ll find it difficult to calculate and prove the true return on your ad spend.

Connected TV addresses these limitations. It enables advertisers to target audiences beyond standard demographics and tie spending to revenue.

Consider a Miami-based window installation service targeting affluent homeowners. With CTV, they can precisely target viewers by household income, recent purchases, and lifestyle triggers at the zip code level. Ads are then served to these specific viewers across their streaming apps, with detailed performance tracking throughout the campaign.

Let’s look at a real-life campaign:

A local home remodeling company wanted to increase web traffic and in-store visits. They partnered with Strategus to run a 2-month campaign targeting homeowners in eight areas.

However, the campaign didn’t just broadly target those areas. It focused on households earning $50,000 and homes valued at $100,000 or more, particularly those that had shown interest in home improvement. Viewers were then retargeted with display and online video ads across different touchpoints to reinforce messaging.

The results: 90,269 website visits and 4,094 in-store visits.

Read the case study here.

Types of Local TV Advertising: Linear vs. CTV

Media buyers have two choices for local TV ads: traditional linear TV and programmatic CTV.

Many use both, combining traditional TV’s focus on content with programmatic CTV’s precise targeting. Knowing what each option does best can help you decide how to split your budget.

Here’s a look at local TV advertising:

And here’s a look at programmatic CTV advertising:

Linear TV still dominates ad views, accounting for roughly 86% of TV ad impressions according to an iSpot report. However, CTV generates higher returns on a per-hour viewing basis for advertisers — $2.2 billion in ad revenue for each percentage point of ad time compared to $690 million for linear TV.

So which should you choose?

For most local businesses, a hybrid approach works well. Linear TV excels at building broad brand awareness through wide-reaching scheduled broadcasts, while CTV is ideal for targeting specific audience segments based on data and delivering personalized ads. Combining both can help you maximize your reach across traditional and modern platforms.

That said, let’s look at the advantages of CTV over local TV advertising.

The Benefits of Using CTV for Local TV Advertising

Your audience isn’t watching TV the way they used to. They’re streaming shows on demand across multiple devices, at times that fit their schedule. CTV households now outnumber pay TV households, marking a shift in how people consume media.

For local businesses looking to reach a specific audience, CTV offers a compelling choice for several reasons — it enables precise targeting, supports multi-media delivery, and more.

Precise Targeting Reaches Your Ideal Local Customers

Unlike linear TV, CTV lets you target specific demographics and geographic areas. For example, you can target viewers based on their behaviors, interests, viewing habits, and even household characteristics, such as income or home value.

These capabilities enable you to reach viewers who are more likely to convert, such as homeowners seeking renovations, seniors interested in healthcare services, or individuals seeking a legal firm.

The result: higher engagement and more qualified leads.

Multi-media Delivery Turns Viewers into Customers

TV ads excel at bringing brands to life through catchy jingles, easy-to-remember slogans, and repeat characters. However, they’re mostly one-sided, with viewers watching passively.

CTV advertising supports multi-media delivery through interactive formats, such as QR codes, dynamic overlays, and store locators that prompt viewers to take action.

Here’s an example of an interactive video ad:

(Image Source)

Interactive ads are gaining traction. 30% of viewers have used their phone to scan a QR code while watching shows or commercials, up from 20.7% the previous year. This multi-media delivery turns passive viewing into active engagement.

Big-screen Effect Captures Attention

Despite the era of multiple devices, viewers remain highly attentive to TV content. Unlike other video ads that run on YouTube or Instagram, TV ads can’t be skipped or scrubbed. With completion rates as high as 96% for CTV, your viewers stay engaged throughout your message.

Cost-effective Targeting for Small Businesses

When placing local TV ads using CTV, smaller businesses can connect directly with their local customers. This helps minimize wasted ad spend on viewers outside your service area or target market. In other words, you only pay to reach people who matter to your business.

Learn more: How Much Does It Cost To Advertise on Streaming Services?

Real-time Data Quantifies ROI

TV advertising often takes a “spray and pray” approach, meaning businesses broadcast generic messages to a broad audience in the hopes of reaching the right people. The challenge is connecting the dots between ad exposure and revenue.

CTV changes that by offering comprehensive analytics that enable businesses to measure campaign performance and attribute revenue to views. This lets you quantify your ROI and optimize campaigns in real-time based on actual performance data.

CTV also works with retargeting strategies. For example, you can reach viewers on the big screen through CTV ads and re-engage them with follow-up videos and display ads across other devices. Since it can take viewers multiple “touches” before they convert, retargeting can reinforce your message and move them down the funnel.

Which Industries Benefit from Local CTV Advertising?

Local TV advertising has been a powerful tool for businesses to connect with local customers. However, the rise of CTV has breathed new life into this strategy.

Unlike traditional linear TV, CTV offers superior targeting capabilities, enabling advertisers to reach specific demographics and tailor messages with precision.

At Strategus, we work with companies in the following industries to design and execute local TV campaigns:

1. Automotive: TV advertising is an important touchpoint for auto dealers. With CTV, car dealerships can pinpoint in-market buyers with dynamic ads that highlight real-time inventory.
   
   
2. Art and entertainment: From college sports to broadway musicals, CTV is a perfect fit for entertainment brands because it showcases the sights and sounds of an event on the biggest screen in the house.
   
   
3. Education: CTV offers education providers a targeted way to connect with high school graduates, professionals seeking career advancement, alumni, and other key audiences.
   
   
4. Home services: Home services, such as plumbers, electricians, and landscapers, can leverage CTV to reach local homeowners with targeted ads based on their needs.
   
   
5. Law firms: Modern legal marketing is all about being in the right place at the right time. With CTV, law firms can identify prospects in need of their expertise by customizing their audience based on recent auto collisions, urgent care visits, or specific occupation types.
   
   
6. Political: Political advertisers are turning to CTV’s targeted reach to deliver hyper-focused messages to specific voter demographics.
   
   
7. Retail: From furniture stores to luxury goods, CTV allows retailers to target local consumers with product-specific ads, influencing purchase decisions at the peak of home entertainment.

With so many industries benefiting from local CTV advertising, the next question is: should you stick with linear TV, go all-in on CTV, or use both? To help you answer, let’s look at some of the differences.

How to Buy Ad Spots on Linear TV for Local Advertisements

Local TV advertising is an effective way for businesses to target specific geographic areas and build brand awareness, but it requires a different buying approach than digital channels.

When purchasing local TV ads on legacy TV networks, the process works as follows:

1. Identify Your Target Audience

With legacy TV, the onus is on media buyers to figure out where their audience is tuning in.

As such, the first step is to understand your target audience. Consider basic demographics, like age, gender, interests, and purchasing habits. Make note of the shows and time of day they’re likely to watch TV.

2. Contact the Station

Next, you’ll want to contact your local stations for details on price and viewership numbers.

Some stations can target ads based on a specific demographic (such as viewers aged 50+), but that’s the extent of their targeting capabilities. That means a portion of your impressions will likely be served to people who don’t fit your ideal buyer persona.

3. Negotiate Ad Rates and Schedule Your Ad

Ad rates are dynamic based on the network, time of day, day of the week, and number of ad spots purchased. Most stations also have a minimum ad buy, so you’ll want to start there.

Once you’ve settled on a station and time of the day, you can schedule your ads to run based on the specific programming they’ll accompany.

4. Track Your Results

Measurement capabilities are pretty limited on linear TV, so calculating ROI will be a bit of a guessing game. Pay attention to any metrics prompted by the call-to-action (CTA) used in your ad (e.g., phone calls that resulted from an ad telling viewers to call your branch directly), and also review the station’s affidavit of performance.

For advertisers seeking more precise measurement and control of their local TV campaigns, CTV offers a modern alternative to linear TV. Let’s look at how the process works.

How to Buy Ad Spots on CTV With Strategus

If you’re looking to run local ads on CTV, Strategus can help you as your managed service provider. Here’s how the process works:

1. Onboarding: We get to know you, your brand, your goals, and your audience. We’ll work with you to build custom audiences based on a mix of tactics, including retargeting website visitors, modeling lookalike audiences from CRM data, identifying in-market buyers who match specific demographics, and more.
   
   
2. Planning and strategy: Once we pin down your target buyers and KPIs, we’ll develop a strategy personalized to your business needs. We provide access to countless publishers and marketplaces — giving you that agility to reach viewers wherever they are and adjust your campaigns on a dime.
   
   
3. Campaign activation: Our CTV experts execute customized campaigns and monitor the data, so you can focus on what you do best. Most of our campaigns also incorporate cross-device retargeting to drive performance across additional touchpoints. Target your audience on the big screen, then re-engage them across other screens and channels.
   
   
4. Reporting and attribution: We’ll provide all the tools to quantify ROI and understand your customers’ journey, including a 24/7 dashboard. You’ll gain insight into the entire buyer’s journey, from first ad exposure through purchase.
   
   
5. Continuous optimization: CTV ads can be adapted on the fly, so we take a hands-on approach to monitoring performance and optimizing accordingly. Furthermore, we’ll schedule reporting calls as needed to provide personalized recommendations and discuss alternative strategies.
   
   
6. Ongoing support: As our team of experts becomes an extension of your team, you’ll have access to resources to ask questions, make changes, and scale your campaigns as your local TV advertising needs evolve.

Read how a pizza franchise used local CTV ads and display retargeting to drive a total of 12,195 in-store visits.

Ready to Launch High-Performing Local TV Campaigns?

Linear TV is an effective way to reach a large audience, but it lacks the precise targeting and measurement capabilities that businesses need to scale their operations.

Partner with Strategus and get everything you need to win your local market with precision:

• Hyper-targeted CTV ads based on real-time data
• Access to premium inventory across 800+ deals
• Full-funnel attribution and 24/7 performance dashboard
• Expert strategy, optimization, and ongoing support

Take the guesswork out of local TV advertising and start driving real results.

Contact us today to get started with local CTV advertising.

Frequently Asked Questions

How Do I Advertise on TV With a Limited Budget?

Start with connected TV, which lets you target specific households and avoid wasted impressions. Use short, repurposed videos to reduce production costs. Focus on one geographic area or audience segment to keep spending low. Platforms like Strategus help you run lean, efficient campaigns.

How Can You Better Target Your Audience Through TV Advertising?

Use first-party data, geolocation, and online behavior to build a custom audience. Connected TV platforms let you target based on zip codes, purchase history, demographics, and interests. You can also retarget website visitors or model audiences based on your customer list to reach more potential buyers.

What Do You Need to Have Ready Before You Launch a TV Campaign?

Gather your creative assets, define your target audience, and set campaign goals. Prepare any first-party data, like emails or CRM records, for audience matching. Outline your call-to-action and choose key performance metrics. Having a clear plan helps you launch quickly and track results effectively.

How to Evaluate the Performance of a Local TV Advertising Campaign?

Use metrics like impressions, completion rate, and site visits after ad exposure. For connected TV, track conversions, store visits, or lead form submissions linked to viewers. Compare these metrics against your campaign goals. Use attribution tools to connect ad views with real customer actions.

How Do TV Stations Measure Viewers and Impressions?

Linear TV uses Nielsen ratings to estimate the number of people who watch each program. These ratings are based on panel data and represent the average viewership. Connected TV platforms measure impressions directly based on device-level delivery, offering real-time data on who saw your ad and how they engaged with it.

What’s the Difference Between Regional and Local TV Advertising?

Local TV ads target smaller areas, such as a city or specific zip codes. Regional ads cover larger markets, often including multiple cities or counties. Use local campaigns for precise targeting and regional ones to reach broader areas while still avoiding national costs. Choose based on your audience and budget.

How to Advertise on Streaming TV Platforms Like YouTube TV or Pluto TV?

Use a programmatic platform or work with a managed service provider to access ad inventory on YouTube TV, Pluto TV, and other apps. Define your audience, upload your creative, and set a budget. These platforms support advanced targeting and real-time performance tracking, making them ideal for local reach.

What Are the Different Types of TV Ad Placements (Pre-roll, Mid-roll, Sponsorships)?

Pre-roll ads play before the content starts. Mid-roll ads appear during natural breaks within shows or videos. Sponsorships include branded segments or sponsored content. Use pre-roll for short messages, mid-roll for high engagement, and sponsorships to build long-term awareness. Each format suits different goals and attention spans.

What Makes a Good Local TV Ad Creative?

Keep the message clear and direct. Focus on one offer or benefit and highlight your brand early. Use strong visuals, short scripts, and a clear call-to-action. Ensure the ad appears visually appealing on a large screen and aligns with the local audience’s interests, values, and viewing habits.

What Are the Best Data Sources for Targeting Local TV Ads?

Use your CRM or customer list for direct matching. Add third-party data, such as income, interests, or past purchases. Website pixel data helps retarget recent visitors. Location data shows where people live, shop, or visit. Combining these sources lets you create accurate, high-performing audience segments for local campaigns.