Insights
April 28, 2025
How much does a local TV ad cost? (Q2 2025)
Table of Contents
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$20-40
CTV/Streaming CPM range for local targeting
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$50
Minimum budget to start TV advertising with Adwave
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$0
Production cost with AI-generated TV ads
Local TV advertising costs between $20-40 CPM for streaming/CTV and $5-30 CPM for traditional local cable. That means you can reach 1,000 local viewers for as little as $5-40 depending on your approach. With modern connected TV advertising platforms like Adwave, you can launch a local TV campaign for as little as $50, with AI handling the commercial production for free.
What the data shows
TV advertising costs vary significantly based on platform type, targeting capabilities, and production requirements. Here's what current industry benchmarks show:
Local cable TV: $5-30 CPM, often requiring minimum buys of $500-5,000/month
CTV/Streaming: $20-40 CPM for programmatic, with minimums as low as $50 on some platforms
Broadcast TV: $20-50 CPM for local spots, typically requiring minimum commitments of $5,000+
Premium streaming: $30-65 CPM for direct buys on Netflix, Hulu, and similar platforms
The key differentiator is minimum spend requirements. Traditional TV advertising often requires thousands of dollars upfront, while streaming platforms have democratized access with much lower minimums. Learn more about TV advertising for small businesses.
Breaking down the numbers
Understanding CPM
CPM (Cost Per Mille) is the price to reach 1,000 viewers. At a $25 CPM, $100 gets you 4,000 impressions. At $500, you're reaching 20,000 viewers. The actual cost depends on your targeting, timing, and platform selection.
Production costs
The hidden cost in traditional TV advertising is production. Professional TV commercial production typically costs $5,000-50,000+. However, AI-powered platforms like Adwave generate broadcast-quality commercials from your website or social media for $0 in production costs. This dramatically changes the economics of local TV advertising.
What $100 buys you
With Adwave's average CPM of $25, a $100 budget delivers approximately 4,000 impressions. In a local market, that means your ad potentially reaches several hundred unique households over a campaign period. It's enough to test messaging, build initial awareness, and see if TV works for your business.
Why it matters for your business
Local TV advertising was historically reserved for businesses with substantial marketing budgets. That's changed. Here's why it matters:
The democratization of TV
Streaming TV has made local advertising accessible to businesses of all sizes. Unlike cable, which often requires monthly commitments and long-term contracts, CTV platforms let you start with a single campaign and scale based on results. Explore options for home services advertising or restaurant advertising.
Local targeting capabilities
CTV platforms offer geographic targeting that traditional TV can't match. You can target viewers within a specific radius of your business location, ensuring your ad spend reaches only relevant potential customers. This makes TV advertising practical for single-location businesses.
How to take advantage of this trend
Start with streaming TV
For most local businesses, CTV/streaming is the best entry point to TV advertising. The lower minimums, better targeting, and measurable results make it ideal for testing whether TV works for your business.
Use AI-generated creative
Skip the $5,000+ production costs by using platforms that generate ads from your existing assets. AI TV commercials can be created in minutes from your website or social media, making TV advertising economically viable for small budgets.
Test with a small budget
Start with $100-200 to test messaging and audience response. Run for 1-2 weeks, measure results, then scale what works. TV advertising doesn't have to be a major investment. Learn more about how Adwave works.
Common questions answered
What's the cheapest way to advertise on TV?
The most affordable TV advertising option is CTV/streaming through platforms like Adwave, where you can start with $50 and AI handles production. Traditional cable and broadcast require much higher minimums and separate production budgets.
Is local TV advertising worth it for small businesses?
Yes, if done efficiently. TV advertising builds brand awareness and credibility that digital ads often can't match. The key is using platforms with low minimums and free AI production so you can test without major financial risk.
How do I measure local TV ad results?
Track brand search lift, website traffic increases, phone calls, and foot traffic during campaign periods. CTV platforms provide impression and completion rate data. QR codes in ads can track direct response. The combination gives a complete picture of performance.
Supporting data
Key statistics on local TV advertising costs:
Local TV CPM $5-30 (MNTN, 2025)
CTV CPM $20-40 (Antidote, 2025)
Premium streaming $30-65 CPM (Simulmedia, 2025)
Adwave min budget $50 (Adwave)
Get started with local TV advertising
Ready to reach local viewers on their TV screens? Adwave makes local TV advertising accessible with campaigns starting at just $50 and AI-generated commercials at no extra cost.