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    Connected TV

    Will 2022 be the Year Local Advertisers Invest in CTV?

    The future is looking bright for local advertisers on CTV

    Will 2022 be the Year Local Advertisers Invest in CTV?

    3 Min Read

    By now, it’s clear that the transition of ad budgets from traditional linear television to Connected TV isn’t slowing down. In 2021 alone, 60% of advertisers looked to make the shift and according to the IAB, the advertising budget share is projected to move another 6% from traditional television to digital budgets this year. However, local advertising budgets have yet to follow the same trend. Could 2022 be the year local advertisers take the leap?

    Local Advertisers Have Been Slow to Transition from Traditional Ad Budgets

    Despite the rapidly shifting landscape of TV advertising, local advertisers have yet to make the shift away from linear TV. Local advertising on CTV was projected to hit just $1.2B in 2021, a small part of the overall $14B+ CTV spend. With a forecasted $137.5B total ad budget for the previous year, local advertisers have a lot of room to grow their CTV advertising investments. As key demographics continue to cut the cord and move exclusively towards streaming, they will no longer be accessible by traditional ad budgets, leaving local businesses struggling to reach their target audiences. For example, only 46% of Adults 30 – 49 receive their TV through linear TV as compared to 73% in 2015. Without updating their ad spend strategies, local businesses are missing out on key opportunities to reach potential customers.

    Technology Offers New Options for Local Advertisers

    One reason local advertisers may have not made the switch to CTV is the misconception that CTV does not offer the ability to target specific markets, a key capability needed to deliver targeted messaging. Local advertisers may have previously found themselves relegated to less than ideal content across other digital spaces, including user-generated content with questionable brand safety. However, industry leaders such as MNTN Performance TV allow advertisers to get specific, targeting their ads to either DMAs or zip code specific markets served on premium TV content. As viewing habits continue to evolve, local businesses can ride the wave and reach their audience where they are watching. 

    Local Businesses Can Reach Who They Want, Where They Want

    With the TV evolution, local businesses have even more options to reach their unique and specific audiences. No longer are they relegated to just location targeting, but local businesses can now layer on interest or demographic-based target options, as well. Whether it’s adults between the ages of 18-34 in San Francisco or fitness enthusiasts in Seattle, the technology is available to help advertisers reach those specific audiences. In this way, CTV / OTT campaigns allow ad dollars to work harder to ensure that these hyper-targeted ads are reaching the right eyes while avoiding wasted impressions. As audiences make the switch from linear to streaming, now is the time for local businesses to join in and make the most out of their ad budgets.