Small markets (DMA 100+) have different CTV dynamics than major metros. Lower costs, less competition, but also different challenges. Here’s how to make CTV work in smaller markets.
Small Market Characteristics
DMA 100+ Markets
Examples: Amarillo TX, Fargo ND, Lincoln NE, Macon GA, Waco TX
Population: Under 500,000 TV households: 100,000-400,000 Competition: Often less intense Costs: Generally lower
Pros
- + Lower CPMs (less demand from advertisers)
- + Easier to achieve meaningful frequency
- + Less crowded marketplace, with first-mover advantage
- + Stronger community recognition potential
- + Full-market coverage is affordable
Cons
- − Smaller audience pool overall
- − Limited premium inventory volume
- − Fewer targeting options on some platforms
- − May need longer campaigns (90+ days) for impact
Budget Recommendations
Minimum Viable Budget
$12,000-15,000/month
At this level:
- ~300,000 monthly impressions
- Meaningful frequency build
- Basic optimization possible
- Results trackable
Recommended Budget
$15,000-25,000/month
At this level:
- 400,000-600,000 monthly impressions
- Strong frequency (5-8 per household)
- Multiple audience testing
- Solid data for optimization
Strong Presence
$25,000-40,000/month
At this level:
- Dominant frequency
- Full market saturation possible
- Premium inventory access
- Aggressive growth mode
Targeting in Small Markets
Full DMA Approach
In small markets, full DMA coverage is often appropriate:
- Entire market is your service area
- No need to exclude distant suburbs
- Maximum reach for the budget
Behavioral Layering
Even with full DMA, layer behavioral targeting:
- Auto loan holders in DMA
- Motorcycle owners in DMA
- Workers’ comp researchers in DMA
This maintains geographic coverage while improving relevance.
Exclusion Considerations
May still want to exclude:
- Adjacent small markets (different bar admission)
- Very rural areas (long drive to office)
- Areas with no case history
Creative Considerations
Local Emphasis
Small markets respond to local connection:
- “Serving [City] for 20 years”
- Local references
- Community involvement mentions
- Local office presence
Production Approach
Options for small market creative:
Full production: $15,000-25,000
- Same quality as larger markets
- Professional results
- Longer lifespan
Efficient production: $8,000-15,000
- Quality but streamlined
- Fewer shoot days
- Good for testing
The creative still needs to be good. Small market doesn’t mean small quality.
Inventory in Small Markets
What’s Available
- National streaming services (Hulu, Peacock, etc.)
- FAST channels (Tubi, Pluto)
- Local station streaming apps
- Sports streaming (regional)
What May Be Limited
- Premium inventory volume
- Local-only premium options
- Advanced targeting in some platforms
Platform Recommendations
| Platform | Small Market Availability |
|---|---|
| Hulu | Good |
| Peacock | Good |
| Tubi | Excellent |
| Pluto TV | Excellent |
| Local apps | Varies |
FAST channels often have strong small market inventory.
Competition Dynamics
Lower Competition Reality
Many small market PI firms haven’t adopted CTV:
- First-mover advantage available
- Less bidding competition
- Easier to stand out
Opportunity Window
As CTV grows, competition increases. Early investment in small markets builds position before others arrive.
Competitive Intelligence
Research who’s advertising:
- Watch local streaming
- Note competitor presence
- Identify gaps
Measurement in Small Markets
Sample Size Challenges
Smaller markets mean smaller numbers:
- Fewer impressions
- Fewer verified visits
- More statistical noise
Patience Required
Small market campaigns need:
- Longer evaluation periods (90+ days)
- More tolerance for variability
- Focus on trends not daily numbers
Key Metrics
| Metric | Small Market Benchmark |
|---|---|
| Verified visit rate | 0.20-0.35% |
| CPL | $150-400 |
| Cost per case | $1,200-2,500 |
Ranges may be wider due to smaller sample sizes.
ROI Expectations
Small Market Economics
Lower media costs but same case values:
- $20K media → 50,000-60,000 impressions
- Same $15,000-25,000 average case value
- Potentially better ROI ratios
Timeline
| Period | Expectation |
|---|---|
| Month 1-2 | Building frequency, minimal leads |
| Month 3-4 | Leads starting |
| Month 5+ | Established performance |
ROAS improves 24% after 90 days. This applies to small markets too.
Integration Requirements
Small market doesn’t mean simple:
Still Need
- Branded search protection
- Call tracking
- Website tracking
- Attribution setup
Search Coordination
CTV without search protection wastes budget in any market.
When Small Market CTV Makes Sense
Good fit:
- Firm is committed to growth
- Budget meets minimum ($12-15K/month)
- Search foundation exists
- 90+ day commitment possible
Not ready:
- Budget under $10K/month
- No search presence
- Need immediate results
- Can’t commit to timeline
Scaling Up
As small market CTV succeeds:
Increase Budget
$15K → $25K → $35K
- More frequency
- Broader reach
- Faster growth
Add Markets
If firm serves multiple small markets:
- Expand to adjacent DMAs
- Replicate successful approach
- Economies in creative
Upgrade Creative
Initial success justifies:
- Higher production investment
- Multiple creative versions
- More frequent refresh
For complete local strategy, see the local CTV advertising guide.
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/