CTV Budgets by Market Size: What to Spend in Your DMA

"How much should we spend on CTV?" depends primarily on one factor: market size. The same $50K monthly budget that dominates Lincoln, Nebraska barely registers in Chicago.

The Market Size Framework

CTV budget requirements scale with population and competition:

Small market (DMA 100+): Smaller audience, less competition, budget goes further Mid-size market (DMA 50-100): Moderate scale, competitive but not saturated Major market (DMA 25-50): Significant population, established competitors Top market (DMA 1-25): Massive audience, intense competition, premium pricing

Small Market Budgets (DMA Rank 100+)

Population: Under 500,000 Examples: Lincoln NE, Amarillo TX, Fargo ND, Springfield MO

Budget Level	Monthly Spend	What You Get
Entry	$10-15K	Limited reach, frequency building
Working	$15-25K	Solid reach, measurable impact
Strong	$25-40K	Market presence, competitive visibility

Recommendation: $15-25K/month for sustainable presence

Why it works: Smaller markets have fewer households to reach. Your budget builds meaningful frequency quickly. Competition for CTV inventory is typically lighter.

Typical metrics at working budget:

• Monthly impressions: 350,000-600,000
• Household reach: 40-60% of target
• Weekly frequency: 3-5 exposures

Mid-Size Market Budgets (DMA Rank 50-100)

Population: 500,000 - 1.5M Examples: Louisville KY, Oklahoma City, Memphis, Richmond VA

Budget Level	Monthly Spend	What You Get
Entry	$20-30K	Basic presence, limited frequency
Working	$30-50K	Real market presence
Strong	$50-75K	Competitive pressure, strong frequency

Recommendation: $30-50K/month for meaningful impact

Why it matters: Mid-size markets have enough population that entry-level budgets get diluted. Working budgets build the frequency needed to drive recall and action.

Typical metrics at working budget:

• Monthly impressions: 750,000-1,250,000
• Household reach: 35-50% of target
• Weekly frequency: 3-4 exposures

Major Market Budgets (DMA Rank 25-50)

Population: 1.5M - 3M Examples: San Diego, Denver, St. Louis, Portland, Charlotte

Budget Level	Monthly Spend	What You Get
Entry	$35-50K	Presence, limited reach
Working	$50-80K	Competitive presence
Strong	$80-120K	Strong market position

Recommendation: $50-80K/month to compete effectively

Why it scales: Larger populations require more impressions to build awareness. Competition for premium inventory increases prices. Budget thresholds rise accordingly.

Typical metrics at working budget:

• Monthly impressions: 1,200,000-2,000,000
• Household reach: 30-45% of target
• Weekly frequency: 2-4 exposures

Top Market Budgets (DMA Rank 1-25)

Population: 3M+ Examples: Chicago, Dallas, Houston, Philadelphia, Atlanta

Budget Level	Monthly Spend	What You Get
Entry	$50-75K	Minimal presence
Working	$75-150K	Competitive visibility
Strong	$150-300K+	Major player status

Recommendation: $100K+/month to meaningfully compete

Why it's expensive: Top markets have massive populations, premium inventory costs, and intense competition. Entry-level budgets spread too thin to build frequency or awareness.

Typical metrics at working budget:

• Monthly impressions: 2,000,000-4,000,000
• Household reach: 25-40% of target
• Weekly frequency: 2-3 exposures

The Minimum Viable Budget

There's a floor below which CTV doesn't make strategic sense:

If you can't meet minimum thresholds, consider concentrating budget in other channels until you can afford meaningful CTV presence.

Budget Allocation Within Campaigns

Once you set total budget, allocate across components:

Component	% of Total
Media (impressions)	70-80%
Management/platform	10-15%
Data/targeting	5-10%

Example: $50K monthly budget

• Media: $37,500-$40,000
• Management: $5,000-$7,500
• Data: $2,500-$5,000

This doesn't include creative production—budget that separately.

Scaling Considerations

Starting Up

Begin at working budget level for your market. This provides enough scale to generate meaningful data while building initial awareness.

Proving ROI

Run 90 days minimum at working budget before evaluating. ROAS improves 6.6% after 30 days and 24% after 90 days. Short tests miss CTV's compounding effect.

Scaling Up

Once ROI is proven, scaling follows diminishing returns:

• First $50K has maximum impact per dollar
• $50-100K continues efficient reach building
• $100K+ reaches more households but incremental efficiency declines

Competitive Response

When competitors increase CTV presence, maintaining share of voice may require budget increases. Monitor competitive activity quarterly.

Budget vs. Results Expectations

What should different budgets achieve?

Monthly Budget	Expected Leads	Cost Per Lead
$25K	50-75	$333-500
$50K	100-150	$333-500
$100K	175-275	$364-571
$150K	250-400	$375-600

CPL increases slightly as budgets grow because optimal audiences saturate first. But absolute lead volume keeps climbing. And that's what matters for case generation.

Seasonal Budget Adjustments

Consider adjusting budgets seasonally:

Increase budgets:

• January-February (New Year resolution period)
• Q4 (holiday travel, winter accidents)
• Local event periods (local festivals, sports seasons)

Potential decreases:

• Summer months (vacation season, lower TV viewing)
• Q1 if competitors pull back

Maintain baseline presence year-round; pulse up during high-opportunity periods.

Multi-Market Budgeting

For firms in multiple DMAs:

Option 3: Test and expand — Working budget in one market, entry in others. Scale winners.

Most firms see better ROI from Option 1. Dominance in one market beats presence in several.

References

• MNTN Research. (2023). Increased investment in CTV leads to better performance. https://research.mountain.com/trends/data-reveals-increased-investment-in-ctv-leads-to-better-performance/