While the consumer transition to streaming TV has caused a large shift of ad spend away from linear television towards Connected TV (CTV) Platforms, local advertisers have not transitioned at the same speed. In 2021, total CTV ad spend reached over $14B in 2021[i] with local advertising projected to account for $1.2B of that total[ii].For many local business owners, traditional TV Advertising has historically presented barriers to entry and provided few options for local businesses. The rapid growth of Connected TV presents an opportunity for small business owners to put their business on the big screen more affordably and efficiently than ever before.
With traditional Local TV advertising, it’s common to run ads in dayparts and airtime is purchased on a channel or program basis, making it difficult to control and gauge who is really seeing your ads. Traditional TV’s skippable commercials and inefficient targeting mean you’ll likely have to overspend to reach your target customer, which results in wasted ad impressions.
Additionally, Traditional TV is often purchased at a Designated Market Area (DMA) level – an approach that is too widespread for many small businesses whose target customers are likely to choose an alternative over a farther travel distance. Connected TV offers many new capabilities for localization and hyper-targeting. Small businesses can run commercials at a zip code level, allowing them to reach only consumers within a reasonable driving distance and decrease spend by eliminating those that aren’t.
As consumer viewing habits continue to evolve, local businesses will be missing a large portion of their target audience by remaining only on traditional TV. With Connected TV’s ability to reach specific audiences, businesses can reach their target customer more efficiently with connected TV advertising. You’ll also receive higher quality impressions with non-skippable commercials at a 95%+ completion rate. Both of these factors lead to fewer wasted impressions and more affordable campaigns.
For any size and type of business, the ability to localize TV advertising is now more attainable than ever before with Connected TV. Highly targeted and localized campaigns allow business owners to reach only their target customers and geography, resulting in more affordable and effective advertising. With audiences making the switch to streaming, local TV advertisers have a growing audience to reach on CTV. Read our previous Marketing Tip of the Month to learn more about why millions are cutting the cords with cable and how Connected TV viewership is projected to grow in 2022.
Sources:
[i] https://www.emarketer.com/content/us-ctv-advertising-will-approach-60-growth-by-year-end
[ii] https://www.insiderintelligence.com/insights/ctv-fastest-growing-channel-digital-advertising/
