Is CTV better than radio for local advertising?

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Last updated: April 8, 2026

Quick Answer: CTV (Connected TV) offers advantages over radio for local advertising due to its visual capabilities, precise targeting, and higher engagement metrics. CTV advertising in the U.S. reached $21.2 billion in 2022, with local CTV spending growing by 25% annually. Unlike radio's audio-only format, CTV combines television-quality video with digital targeting, allowing local businesses to reach specific demographics within their market. Studies show CTV ads achieve 95% completion rates compared to radio's passive listening, making them more effective for brand recall and conversion.

Key Facts

CTV advertising spending in the U.S. reached $21.2 billion in 2022
Local CTV advertising spending grew by 25% annually in recent years
CTV ads achieve 95% completion rates compared to traditional media
Over 80% of U.S. households had at least one CTV device by 2023
CTV allows targeting by ZIP code, demographics, and viewing behaviors

Overview

Connected TV (CTV) refers to television sets or devices that connect to the internet to stream video content, distinct from traditional broadcast or cable TV. The technology emerged in the late 2000s with devices like Roku (founded 2002) and Apple TV (launched 2007), gaining mainstream adoption by the 2010s. By 2023, over 80% of U.S. households had at least one CTV device, with platforms including smart TVs, gaming consoles, and streaming sticks. This shift created new advertising opportunities, particularly for local businesses seeking alternatives to traditional radio advertising, which has dominated local markets since the 1920s. Radio advertising remains popular for its broad reach and lower costs, but CTV's growth reflects changing consumer habits toward on-demand viewing.

How It Works

CTV advertising operates through programmatic platforms that serve video ads during streaming content, similar to digital advertising but on television screens. Advertisers use data to target specific audiences based on factors like location (e.g., ZIP codes), demographics, interests, and viewing history. For local advertising, this means a business can show ads only to viewers in their geographic area, using real-time bidding to purchase ad inventory. In contrast, radio advertising relies on broadcast signals covering wider regions, with targeting based on station formats and time slots. CTV ads are typically non-skippable and integrated into streaming apps, ensuring high visibility, while radio ads are audio-only and can be missed if listeners change stations. Measurement tools for CTV provide detailed analytics on impressions and engagement, unlike radio's reliance on surveys and estimates.

Why It Matters

CTV's impact on local advertising is significant as it combines the persuasive power of video with precise targeting, helping small businesses compete more effectively. For example, a local restaurant can use CTV to show food videos to nearby residents, potentially driving higher foot traffic than radio promotions. This matters because local economies rely on advertising to connect businesses with communities, and CTV's growth reflects a shift toward digital-first strategies. Additionally, CTV supports measurable ROI through click-through rates and conversions, whereas radio's effectiveness is harder to track. As streaming continues to replace traditional TV and radio consumption, adopting CTV can future-proof local advertising efforts, ensuring relevance in an increasingly connected world.