Can CTV ads be targeted by city?

Overview

Connected TV (CTV) advertising has evolved significantly since the early 2010s, transforming from basic demographic targeting to sophisticated location-based capabilities. The ability to target CTV ads by city represents a major advancement in digital advertising technology, enabled by the convergence of streaming platforms, programmatic advertising systems, and precise location data. This development parallels the growth of CTV adoption, with over 87% of U.S. households having at least one CTV device as of 2023 according to Nielsen. The technology behind city-level targeting emerged around 2015-2016 as major platforms like Roku and Amazon began developing their advertising ecosystems. By 2020, city-level targeting had become a standard feature across most major CTV advertising platforms, driven by advertiser demand for more precise audience segmentation and the availability of IP address-based location data. The COVID-19 pandemic accelerated CTV adoption and advertising innovation, with more brands seeking localized messaging capabilities during 2020-2022.

How It Works

City-level CTV targeting operates through several interconnected technological mechanisms. The primary method uses IP address geolocation, where advertisers can target specific cities based on the geographic location associated with a device's IP address. When a CTV device connects to the internet, its IP address provides location data that can be mapped to city boundaries with approximately 95% accuracy according to industry standards. Advanced platforms combine this with additional data signals including device registration information, Wi-Fi network data, and user-provided location data from linked mobile devices. Programmatic advertising platforms then use this location data to serve ads only to CTV devices within specified city boundaries. The process involves real-time bidding systems that evaluate each ad impression opportunity against targeting parameters, with city location being one of the key criteria. Some platforms like Roku's OneView also incorporate first-party data from user accounts to enhance targeting precision, while others like Amazon Fire TV leverage the company's extensive e-commerce and AWS infrastructure for location verification.

Why It Matters

City-level CTV targeting matters because it enables advertisers to deliver highly relevant messages to specific local audiences, improving campaign effectiveness and return on investment. For local businesses like restaurants, car dealerships, and retail stores, this capability allows them to compete with national brands by targeting only the cities where they operate. Political campaigns have particularly benefited from this technology, with 92% of political CTV ads using some form of geotargeting during the 2022 U.S. midterm elections according to AdImpact data. The precision also helps national brands customize messaging for different markets, addressing local preferences, weather conditions, or regional promotions. From a consumer perspective, city-level targeting means viewers see more relevant ads for businesses and services in their immediate area, though it also raises privacy considerations that platforms address through opt-out mechanisms and data anonymization. The technology has become increasingly important as CTV advertising grows, projected to reach $31.1 billion in spending by 2024 according to eMarketer forecasts.