Local TV Advertising Costs: 10 Factors to Consider

Advertising, Connected TV

Marketers often assume viewers skip every ad they see. Reality tells a different story: when an ad feels relevant, 69% of consumers say they’re happy to watch it through. That shift in attitude, combined with streaming’s dominance, makes local Connected TV advertising one of the most efficient channels available today.

Yet efficiency only happens when TV advertising costs stay in check. Local CTV campaigns routinely deliver significant ROAS for performance-focused brands, but only when marketers understand the variables that drive spend. Below are the ten factors that most directly influence your local TV advertising costs, updated for today’s programmatic landscape.

1. Target Audience

Audience size and specificity remain the biggest cost driver. The broader the reach, the higher the price. Precision targeting flips the equation: narrowing in on high-intent households can reduce wasted impressions by as much as 80-90%.

Today, over 90% of U.S. CTV inventory is bought programmatically. Platforms that layer first-party data, contextual signals, and real-time behavioral triggers let you reach “in-market” viewers without paying for the entire DMA.

For instance, MNTN’s platform utilizes machine learning to automatically optimize for high-intent viewers, enabling you to scale reach without increasing costs. This is ideal for local TV advertising campaigns aiming to hit niche groups like urban millennials interested in eco-friendly products.

2. Geographic Reach

The geographic reach of your campaign significantly impacts your local TV ad costs as well. CTV platforms allow you to narrow down your audience to specific regions, cities, zip codes, or even neighborhoods. 

Some CTV platforms even allow you to position your content in front of audiences using a custom radius around your store or place of business. That sort of customized hyper-local targeting provides major efficiency gains compared to linear TV models, under which you would have to purchase ad space for an entire designated market area (DMA). 

3. Creative Production Costs

You need compelling ads that tell a story and showcase the value proposition of your products or services. But you also need to be mindful of your total video production costs, which include everything from scriptwriting and filming to editing and post-production. 

Artificial intelligence can also help keep costs low. Platforms like QuickFrame AI allow brands to drastically lower creative costs versus traditional shoots while maintaining (or improving) performance lift.

4. Ad Placement Types

Under a traditional broadcast model, there’s only one ad placement type. CTV, on the other hand, provides several different placement options. Pre-roll remains the workhorse, but new formats are reshaping budgets. Shoppable ads, pause-screen takeovers, and interactive overlays now command premium CPMs because they drive significantly higher conversion rates.

While rates vary across platforms and display times, there’s still a general pricing structure. Banner ads tend to be some of the cheapest, whereas pre-roll spots may be more expensive (given they must be watched to access the content even partially).

5. Time Slots and Channel Selection

CTV offers more flexibility in terms of channel and time slot selection. You can schedule your OTT ads to appear during windows where your audience is most likely to be watching, regardless of prime time constraints. You’ll also be able to target specific genres of content, such as action, drama, comedy, and so on. 

Taking advantage of that flexibility can lead to better engagement while also reducing your local TV advertising costs. For example, you could choose a time slot with slightly lower viewer activity (i.e., weekday afternoons) but precisely target programming that aligns with the interests of your audience. Your per-display costs will probably be lower, but your content will still be presented to relevant audiences. 

6. Duration and Frequency of Ads

Ad duration has a huge impact on your total marketing costs. Shorter ads that run for 15 seconds are going to be cheaper than those that run for 30 or 60 seconds. In fact, 15-second ads often come in at 25-50% lower CPM, on average. 

Additionally, ad frequency will have a direct impact on pricing. Getting your brand and products in front of consumers more frequently can help recall and improve brand awareness. However, it also means you’ll burn through your budget faster. 

7. Budget Allocation and ROI

At the end of the day, you determine how much money you can devote to advertising. And CTV works to lower the barrier to entry and give you more control in that regard, allowing you to spend more money on production or run longer campaigns. 

It’s essential to allocate your budget in a way that maximizes ROAS. While consumers want to see quality content, overspending on production may reduce your total reach. Try to strike a balance that engages customers while optimizing reach. 

8. Competitive Bidding and Auction Dynamics

Depending on the backend platform you use, CTV advertising often involves competitive bidding and real-time auctions. During the campaign creation process, you’ll set a total budget, daily or weekly spending limits, and a bid amount for each ad display.

When someone in your specified audience views content on the CTV channel you’re advertising on, your ad will be entered into an auction. Platforms that adjust bids in real time based on conversion probability (rather than just win rate) keep you competitive without overpaying.

9. Duration of Advertising Campaign

The overall duration of your campaign also impacts your local TV advertising costs. Short-term campaigns may have higher per-ad costs, but they’ll allow you to make adjustments quickly and gather feedback about consumer preferences. Running a longer campaign will allow you to be more selective with your bidding and achieve a sustained presence. 

A 90-day campaign typically achieves lower CPMs than three consecutive 30-day flights with the same total budget.

10. CTV Platform Selection

Lastly, choosing the right CTV platform is critical to the success of your campaign. Different platforms offer varying audience sizes, targeting capabilities, and pricing structures. If you go with native CTV platforms, such as Netflix or Hulu, you’ll only be able to buy ad space on those channels. Another concern is that some platforms charge extra for targeting and data analytics. 

You can overcome all of these shortcomings with a unified solution like MNTN Performance TV. As a MNTN client, you’ll enjoy access to premium ad space, a wealth of tools at no extra charge, and all of the support you’ll need to mitigate local TV advertising costs. 

MNTN and QuickFrame Make Local TV Advertising Easy

Want to make your local TV advertising budget go further? MNTN’s platform brings digital precision to local CTV campaigns, helping you target specific regions, measure results in real time, and optimize performance automatically. With premium inventory and AI-powered targeting, your brand reaches the right audience without overspending.

Here’s how MNTN Performance TV helps marketers maximize local TV ROI:

• Premium CTV Inventory – Run ads on top streaming networks with local targeting capabilities and guaranteed, brand-safe placements.
• MNTN Matched – AI-powered targeting refines your reach by city, state, or DMA, ensuring every impression counts.
• Verified Visits™ Attribution – Connects ad exposure to site visits and conversions, giving you visibility into local campaign performance.
• Automated Optimization – AI continuously fine-tunes your campaign in real time to maximize efficiency and reduce wasted spend.
• Reporting Suite – Access real-time insights into regional performance, audience engagement, and ROI.

Run smarter local TV marketing campaigns that deliver measurable results—sign up today to get started with MNTN’s self-serve software.

Local TV Advertising Costs: Final Thoughts

As CTV viewership hits 46% of total TV viewing time, embracing trends like ad-supported streaming growth means local advertisers can achieve much better efficiency.

Under traditional TV advertising models, it’s tough to track and reduce local television advertising costs. Fortunately, Connected TV and platforms like MNTN Performance TV put the control back in your hands with dynamic bidding tools, precision targeting capabilities, and all of the insights you need to maximize your impact.