The way people watch TV has changed — and local businesses can use that to their advantage.
Broadcast TV was has traditionally been a powerful advertising medium. It also came with a high cost: big budgets, rigid schedules, and reach that extended far beyond the customers you actually wanted. For most local businesses, it just wasn't practical.
Connected TV (CTV) advertising changes that equation. As streaming becomes the dominant way households consume video content, the barriers that once kept local businesses off the screen are disappearing. Today, a regional HVAC company, a local law firm, or a single-location retailer can deliver professional video ads to the right households — with the targeting precision of digital and the impact of premium TV.
Here's what you need to know.
Connected TV advertising refers to video ads delivered through internet-connected television devices — smart TVs, streaming sticks, gaming consoles, and similar hardware. When a viewer watches content on platforms like Hulu, Peacock, Paramount+, or a network's streaming app, CTV ads appear before, during, or after that content.
Unlike traditional broadcast TV, CTV ads are served programmatically. That means ad placement isn't tied to a specific time slot or network deal — it's driven by data about the viewer and their household.
A few examples of where CTV ads appear:
Streaming services with ad-supported tiers like Hulu, Peacock, Max, Pluto TV, and similar platforms
Free ad-supported television (FAST) channels like Pluto TV, Tubi, or The Roku Channel that run ads instead of charging a subscription
Network broadcast apps like Peacock (NBC) or Paramount+ (CBS) that networks operate directly on smart TVs
Gaming consoles and connected devices like Roku, Apple TV, Fire TV, or gaming consoles
The experience for viewers looks identical to a traditional TV commercial — full-screen, non-skippable (in most cases), high production quality. The difference is entirely on the back end, in how the ad is bought and who it reaches.
CTV campaigns work similarly to other digital media buys, but the ad appears on the biggest screen in the house.
Target your audience by location and behavior
Rather than buying a broad TV market, CTV lets you define the audience you actually want to reach. That might mean targeting by ZIP code, household income, industry, past purchase behavior, or a combination of factors. For a local business, this is significant — you're not paying for impressions in remote areas you don't serve or demographics that don't match your buyer.
Self-serve or partner with a media buyer
Some platforms — like Roku Ads Manager or Paramount Ads Manager — let local businesses buy and manage campaigns directly. For broader reach across many platforms at once, a media partner or OTT advertising agency can access inventory you can't reach on a self-serve basis and manage placement on your behalf.
Scale your budget more flexibly than traditional TV
Broadcast TV required minimum buys that often started in the thousands. CTV campaigns can be scaled to fit smaller budgets, adjusted in real time, and paused or modified without penalty. That flexibility makes it realistic for local businesses to test the channel before committing significant spend.
CTV pricing isn't one-size-fits-all. A handful of factors shape what you'll actually pay:
Audience competitiveness — A niche B2B audience typically costs less to reach than a broad demographic like "adults 25–54 nationwide"
Platform — Premium inventory on Hulu or Peacock tends to cost more than broader exchange-based buys
Targeting precision — Tighter location and household-level targeting can affect pricing compared to broader reach
Buying method — Direct deals with a specific publisher (like Hulu or Peacock) usually carry a premium for guaranteed placement, while programmatic exchange buys — where an automated system matches your ad to available inventory across many platforms — tend to be more cost-efficient but offer less control over exactly where ads run
Seasonality — Rates tend to climb during high-demand periods like Q4 and election years, when more advertisers compete for the same inventory
Understanding these factors upfront helps your media partner build a campaign that fits your actual budget, rather than working off a generic estimate.
| Connected TV | Traditional TV | |
| How it's bought | Automated based on audience data | Directly from stations, tied to time slots |
| Targeting | Audience behavior, location, demographics | Demographic estimates based on programming |
| Minimum budget | Flexible; can start smaller | Higher minimums, often station-dependent |
| Measurement | Household reach, frequency, completion rates, attribution | Estimated reach via ratings data |
| Flexibility | Campaigns can be adjusted or paused mid-flight | Typically locked in once purchased |
When traditional TV makes sense: Broad brand awareness in markets where over-the-air viewership remains high. Some audiences — particularly older demographics — still consume significant broadcast TV.
When CTV makes sense: Targeted local reach, precise geographic or demographic constraints, tighter budgets, or when you want digital-style measurement from a video buy.
Many well-structured local media plans use both — traditional TV for broad reach and frequency, CTV for targeted follow-up and household-level precision.
CTV doesn't have to operate in isolation. For most local businesses, it works best as one component of a multi-channel media approach.
Integrating CTV into local media plans
A cross-platform advertising campaign that includes CTV, digital display, paid search, and radio creates consistent exposure across the places your audience spends time. CTV adds the visual storytelling element that many digital-only plans lack, without requiring the budget of traditional broadcast.
Supporting radio and digital campaigns
CTV and audio advertising complement each other well. Radio builds frequency and recall through repeated listening; CTV reinforces that message with a visual, high-impact format in a different context. Combined, they reach audiences across multiple touchpoints throughout the day.
Building awareness with high-impact video
CTV sits firmly at the top of the funnel. It builds brand recognition and recall before a prospect has an active need. That awareness investment pays off downstream — in better performance from search ads, stronger email open rates, and shorter sales cycles for prospects who already recognize your brand.
CTV is accessible, but it's not a plug-and-play channel. A few things to have sorted before you launch:
Audience definition
Who are you trying to reach, and where? Vague targeting ("adults 25–54") will produce vague results. The more specifically you can define your audience — by service area, behavior, household characteristics — the better your campaign will perform.
Creative requirements
CTV ads are typically 15 or 30 seconds, non-skippable, and need to work without audio for viewers who have their TV muted (on-screen captions or text overlays help). Production quality matters. If your existing video assets aren't built for a full-screen TV environment, plan for production as part of your campaign investment.
Measurement expectations
CTV measurement is more sophisticated than traditional TV, but it's different from the click-based tracking you might use in paid search. Key metrics include household reach, frequency, video completion rate, and — depending on your setup — attribution to website visits or conversions. Set realistic expectations going in, and make sure your media partner can explain what they're measuring and why it matters.
Download the 2026 Local Advertising Trends Report for data and insights on how local businesses are allocating media budgets, which channels are gaining ground, and what to expect in the year ahead.