Can a local restaurant use CTV advertising?

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Last updated: April 8, 2026

Quick Answer: Yes, local restaurants can effectively use CTV advertising to reach targeted audiences. According to eMarketer, CTV ad spending in the US reached $21.2 billion in 2023, with local businesses increasingly adopting this format. Platforms like Roku and Amazon Fire TV offer self-serve tools that allow restaurants to target specific ZIP codes or neighborhoods. A 2022 study by Innovid found that CTV ads achieve 95% completion rates, making them highly effective for brand awareness campaigns.

Key Facts

Overview

Connected TV (CTV) advertising refers to video ads delivered through internet-connected television devices, including smart TVs, streaming sticks, and gaming consoles. The technology emerged in the late 2000s with the rise of streaming services, but gained significant momentum after 2015 as cord-cutting accelerated. By 2020, CTV advertising became mainstream, with platforms like Roku launching their advertising platforms in 2017 and Amazon introducing Fire TV ads in 2018. The COVID-19 pandemic accelerated adoption, with streaming hours increasing by 74% in 2020 according to Nielsen. Today, CTV represents one of the fastest-growing digital advertising segments, particularly valuable for local businesses seeking to reach cord-cutters who are difficult to target through traditional cable TV.

How It Works

Local restaurants can access CTV advertising through self-serve platforms like Roku's Ad Manager or programmatic marketplaces. The process begins with creating video ads (typically 15-30 seconds) optimized for TV viewing. Restaurants then define their target audience using geographic parameters (ZIP codes, neighborhoods, or designated market areas), demographic filters, and behavioral data. The ads are delivered through ad-supported streaming services like Hulu, Peacock, or Pluto TV, appearing during commercial breaks in content. Advanced targeting uses first-party data from streaming platforms combined with third-party data to reach specific household types. Measurement occurs through impression tracking, completion rates, and sometimes attribution to website visits or online orders using pixel tracking.

Why It Matters

For local restaurants, CTV advertising offers unprecedented targeting precision compared to traditional TV ads, allowing them to reach potential customers within specific delivery or service areas. This eliminates wasted ad spend on viewers outside their market. The format combines the impact of television advertising with digital measurability, providing clear ROI data. As more consumers abandon cable (35% of US households were cord-cutters by 2023), CTV represents the most effective way to reach these audiences. Successful implementations have shown restaurants can increase brand awareness by 40-60% and drive measurable increases in online orders through integrated call-to-action overlays.

Sources

  1. eMarketer CTV Advertising ReportCommercial Data
  2. Innovid CTV Benchmarks StudyCommercial Report
  3. Roku Advertising PlatformCompany Website

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