Can you run CTV ads in one city only?

Overview

Connected TV (CTV) advertising refers to video ads delivered through internet-connected television devices, including smart TVs, streaming sticks (like Roku and Amazon Fire TV), and gaming consoles. The ability to target specific geographic locations with CTV ads emerged as the technology matured around 2018-2019, when major platforms began offering sophisticated geotargeting capabilities. Before this development, CTV advertising was primarily national or regional in scope, similar to traditional TV advertising. The shift toward hyper-local targeting was driven by the digital nature of CTV delivery, which allows for precise audience segmentation based on IP addresses and device location data. This evolution has made CTV advertising particularly valuable for local businesses, political campaigns, and regional brands that previously couldn't afford or effectively use traditional TV advertising due to its broad geographic reach.

How It Works

CTV platforms enable city-specific advertising through IP address geolocation and device registration data. When a CTV device connects to the internet, its IP address provides geographic information that platforms use to determine the device's location. Advertisers can then target specific Designated Market Areas (DMAs), which are Nielsen-defined television markets that typically correspond to metropolitan areas. For example, the New York DMA includes New York City and surrounding counties. Platforms like Roku and Hulu allow advertisers to select individual DMAs or combine multiple markets. Some platforms offer even more granular targeting down to ZIP code clusters within cities. The ad-serving technology matches the viewer's location against the advertiser's targeting parameters in real-time during ad auctions, ensuring ads only appear on devices within the specified geographic area. This process happens automatically through programmatic advertising platforms that manage the bidding and delivery of CTV ads.

Why It Matters

The ability to run CTV ads in single cities has significant implications for local marketing and advertising efficiency. Local businesses like restaurants, car dealerships, and service providers can now use television advertising effectively without wasting budget on viewers outside their service areas. Political campaigns can target specific cities or districts with tailored messaging during elections. Regional brands can focus their advertising budgets on markets where they have physical presence or distribution. This precision reduces advertising waste and improves return on investment compared to traditional TV advertising, which typically requires buying broader geographic regions. As CTV continues to grow—with U.S. CTV ad spending projected to reach $31.1 billion by 2024 according to eMarketer—city-level targeting capabilities make television advertising accessible to a wider range of advertisers while providing viewers with more relevant ads.