Local TV Advertising. Guideline from Simulmedia

Local TV advertising in the U.S. is a very prospective market, and it's not just about its growth; it's forecasted to transform local advertising economics. According to the BIA report, local CTV/OTT ad spending is expected to grow by 20% from 2023 to 2025. This year's spending is projected to reach $2.8 billion, increasing TV ads' share of the local TV ad market from 9.1% (2023) to 10.7% (2025).

History of Local TV Advertising

The era of local TV ads started in the 1950s as TV became a primary medium for local advertisers, with stations offering targeted slots during local programming.

The 1960s–1980s were the "golden age" for TV and TV advertising, and the industry developed very fast. Later, in the 21st century, the era of CTV began. Streaming platforms like Hulu (2008) and Roku (2008) transformed local TV advertising because they allowed household-level targeting via demographics, location, and behavioral data. Also, advertisers started to use self-serve platforms (e.g., Hulu Ad Manager), which enabled small businesses to bypass traditional production costs.

Today, advertisers prefer a mixed model, combining both - linear and streaming.

Key milestones that impacted Local TV Advertising Development

How Much Does a Local TV Commercial Cost

The price for advertising could be very different. The production cost may vary from 0 if it is created with free AI tools to billions if a famous director shoots it.

Airtime cost also may vary. It depends on the popularity and audience size of the local network and the location (in which state advertisers want to run ads). For example, running an ad on a local network in LA will be more expensive than in Montpelier, Vermont. The time of day also matters; airing an advertisement at 2 am will be much cheaper than at 7 pm prime time.

More factors can impact the price, such as ad length, targeting, etc. Here are some average numbers for airtime cost in 2025:

• Local TV: $500–$5,000 per 30-second spot during off-peak hours
• Prime-time slots: $5,000–$50,000+ for high-demand programming

Also, agency fees should be included in the calculation.

However, a successful campaign depends more on reaching the right target audience than on reaching a large number of viewers. Understanding audience behavior is more important than simply just buying the most expensive time slots.

How Much Does a 30-Second Local TV Ad Cost

The average cost of 30-second local TV ads will depend on where advertisers want to run ads. Local TV advertising markets in the U.S. are segmented into small, mid-sized, and large markets based on Designated Market Areas (DMAs).

The key factors that influence market size are:

• Population of the area
• Prime time audience size

Here are local market classifications and prices for a 30-sec ad for 2025 created by Nielsen (they researched 210 DMAs)

Why Advertise on Local TV

1. Precision Targeting and more engagement

Local TV allows advertisers to focus on specific geographic areas (e.g., ZIP codes, DMAs) and demographics, so advertisers may run an ad that will resonate with local lifestyle, events, and even weather conditions, creating emotional and memorable storytelling.

2. Cost Efficiency

As we mentioned previously, running ads on national TV is much more expensive than on local TV. Brands can optimize their ad spending by running ads in different DMAs.

3. Credibility and Trust

Ads aired during trusted programming (e.g., news, sports) build brand authority and trust.

4. Integration with Digital Strategies

Local TV ads complement digital campaigns by driving search traffic and cross-device engagement. Incremental Lift studies show that brands gain in web traffic and conversions after starting to run TV ad campaigns.

5. Political and Community Impact

Local TV is critical for political campaigns and community-focused businesses, enabling targeted outreach to voters or local audiences during elections or events.

How to Get a Commercial on Local TV

To advertise on local TV, advertisers need to plan with clear steps.

1. Campaign Goals and Target Audience

Clear, measurable goals are key to a successful campaign. Specific metrics and KPIs should measure every goal.

2. Target Audience

Who is the target audience, how do they consume, and what needs can be covered by the brand's product or service? The more detailed - the better the outcomes.

3. The Budget

Determine your budget to ensure proper campaign management and media allocation

4. The Balance Between Linear and Streaming

Platforms like TV+ help brands see the optimal balance between traditional and streaming to reach the maximum viewers and divide the budget accordingly.

5. Trusted partner

Marketers can work with agencies or find platforms that will help to run local TV ads. It's better to look at testimonials and case studies and work with companies that are experienced in local markets.

6. Local Network Research

Conduct proper local network research to get a strong understanding of your local market and demographics to ensure your campaigns are as effective as possible.

7. Rates' Negotiation and Ads' Scheduling

Select a network with suitable rates, choose ad length, and develop a schedule for ads.

8. Ad Creative Creation

Advertisers should find an agency to create a video with AI tools or repurpose existing videos (from social media ads, for example) into the appropriate format.

9. Performance Tracking and Optimizing

It's best to monitor such metrics as impressions, clicks, and ROAS (or even phone calls if it is the main campaign goal). Platforms like Simulmedia’s TV+ provide users with real-time insights to help you optimize your campaigns.

By aligning your strategy with audience data and platform capabilities, local TV advertising can drive measurable results at scale.

How Can Small Businesses Optimize Local TV Ad Budgets

Self-serving platforms are like best friends to small businesses and agencies. Tools like Skybeam, a self-serve video platform, allow small businesses to create and air ads affordably. These platforms often include analytics for real-time tracking and optimizing.

Here are some more tips on how to save a budget:

• Understand the audience.
• Use Interest and behavior-based targeting.
• Target by ZIP code or neighborhood to avoid wasting impressions.
• Use Shoppable Ad formats.
• Test on small budgets.
• Run short CTV campaigns around key promotions.
• Test multiple creatives and messages with small budgets to see what resonates.
• Combine with other channels like digital or offline.

The main goal - is not simply to look for the cheapest impressions; it’s about being targeted, understanding your market, and maximizing each dollar spent.