Making Local TV Advertising Available To Small Businesses

One of the barriers many local small businesses face when it comes to advertising is being able to advertise on TV. The costs associated with local TV advertising spots can be fairly expensive for small business owners. In some cases, a single ad campaign could use up the business’ entire marketing budget for the year. Fortunately, as viewership habits are changing, there is now an affordable way for small businesses to break through this barrier thanks to CTV. 

How Much Does Local TV Advertising Cost?

The cost of local TV advertising can vary based on:

• The time of day the ad is played
• The popularity of the program where the ad is played
• The viewership when the ad is aired
• The length of the ad

Primetime and highly viewed shows will cost more than other times and less viewed shows. Generally, the average cost can run between $5 and $35 for a 30-second ad and double that for a 60-second ad per 1,000 viewers. 

What Is CTV Advertising?

CTV (connected TV) is quickly becoming the most popular way people view television shows, movies, and other media. Connected TV requires a connected device, such as:

• Smart TVs
• Gaming systems
• Streaming devices

People launch streaming apps like Disney+, Paramount+, or Peacock to view their favorite programs. As streaming services’ costs increase, most services offer a less expensive version with ads, which are referred to as CTV advertising.

What Is OTT Advertising?

OTT (over-the-top) advertising is another term used along with CTV advertising. Some people also use the terms interchangeably. However, there are some differences. OTT includes all streaming services, like Disney+, Peacock, and Netflix. OTT also includes other devices, such as:

• Smartphones
• Tablets
• Laptops/desktops

On the other hand, CTV primarily means that people are streaming content onto a television screen using a connected TV. On the other hand, OTT advertising targets viewers on all connected devices. 

Can CTV Be Used for Local TV Advertising?

CTV is the way local businesses should choose to use it for their modern TV advertising due to its precise targeting, which can be customized using the following criteria:

• Geographical region
• Age 
• Specific show/viewership habits
• Shopping habits
• Brand loyalty
• Streaming service

Connected technologies can look for specific viewers who meet your ad criteria and play your ad during commercial breaks. You can also limit the number of times the ad plays to a specific viewer so they are not repeatedly bombarded with your ad. 

How Can CTV Ads Help Me Reach My Target Audience?

When you purchase local TV advertising to use on CTV, the ad plays during commercial breaks on the show the person is viewing through a streaming network. Streaming services deliver the ads to the person’s connected smart TV. 

Is CTV Local TV Advertising Cost Effective?

CTV local TV advertising is very cost-effective because local businesses can target specific locations, audiences, and regions. CTV advertising also costs much less than traditional TV advertising. Other reasons CTV ads are cost-effective are:

• Entire ads are viewed: Most people watching ad-support steaming content view the ad completely because they are invested in the show they are watching. 
• Ads cannot be skipped: Most streaming services do not allow viewers to skip ads. 
• Reaches your specific audience: You do not waste money on ads that reach the wrong audiences. Instead, ads play when the viewers meet your criteria.
• Expanded household reach: Since ads are limited to the number of times they play for each person/household, they are then targeted to other viewers/households, further increasing the number of unique views. 

If you are already using other forms of digital advertising and social media marketing, CTV advertising is the next step in taking your business to a new level to reach current and future customers.

How Does CTV Local TV Advertising Work?

When someone streams ad-supported content, the program has set commercial time slots. Streaming services sell these time slots to businesses that want to reach specific viewers. Their streaming device sends unique data to the streaming service, such as their local zip code. When a commercial plays, it looks for specific user data, like their zip code, and plays an ad for their local area. If there is no local ad, it plays a regional or national ad instead. 

How Does CTV/OTT Advertising Benefit Small Businesses?

CTV/OTT advertising benefits small businesses in numerous ways, including:

• Access over multiple streaming devices: Small businesses can reach people viewing shows on any streaming device like their smart TV, Roku, tablet, or smartphone. 
• Reach Millennials and Gen Z: The younger generations usually do not have cable or satellite TV. Instead, they use streaming services. So, to reach them, you need to use CTV advertising.
• Target entire households: CTV advertising allows you to target not just individuals but entire households and all connected devices in that household. 
• GPS targeting: You can reach viewers who fit your criteria and are traveling or on vacation visiting your area when they access streaming apps on their phone, tablet, or laptop. 
• Unique ad formats: Ads can be customized using a wider range of formats than conventional TV ad campaigns. For example, an interactive ad could feature a call to action where viewers could engage immediately by clicking a button on the TV screen or their remote control. 

Which Is Better? CTV or OTT Local TV Advertising?

Both CTV and OTT local TV advertising provide affordable options for small businesses to reach their target audiences. Deciding which one is better depends on how you want to reach your audience. Do you want to focus on people viewing streaming content on their televisions, or do you want a wide reach and also reach people on their smartphones, tablets, or computers? CTV and OTT work best when you use both and develop a multi-channel ad campaign to account for all of your target audience’s streaming habits. Another thing to remember is that 99% of households subscribe to at least one streaming service, as reported by Forbes. 

Quick Stats About CTV/OTT

Some interesting statistics, as reported by Nielsen, when considering CTT/OTT ads:

• 70% of U.S. homes own a smart TV
• 85% of the unique 1.1 million video titles were available only on streaming services
• Among 21 to 34-year-olds, almost 74% consume CTV
• Among 12 to 17-year-olds, over 80% consume CTV 

Take Your Small Business to the Next Level With CTV Local TV Advertising

Advertising on local TV does not have to be expensive or out of your reach. With OTT/CTT advertising, it is affordable to reach local audiences and build brand awareness within your community. For further information about OTT/CTV local TV advertising and how it can benefit your small business, contact Levy Online today.

Sources: 

Amid the Fragmented TV Landscape, Time Spent with Content is the Best Planning Data There Is. (2024).

Durrani, A. (2024). Top Streaming Statistics in 2024. 

Need to Know: What’s the Difference Between OTT, CTV, and Streaming? (2024).