Report: Local CTV Reshaping US Ad Market

Why It Matters

The findings reveal a rapidly diversifying local CTV landscape, forcing advertisers to recalibrate budgets and creative tactics to stay competitive as inventory tightens ahead of major events.

Key Takeaways

• Outside top 50 markets generate 52.5% impressions.
• Q4 accounts for 29.6% of yearly impressions.
• Q1 spend exceeds impressions, premium CPMs.
• Home category leads local CTV impressions.
• Advocacy & Government spend rises ahead of 2026 midterms.

Pulse Analysis

Local connected‑TV (CTV) is emerging as a pivotal channel for advertisers seeking granular reach beyond national broadcasts. The AdImpact report underscores how fragmented inventory—especially in smaller markets—delivers a disproportionate share of impressions, signaling untapped opportunities for brands with regional focus. As data‑driven platforms mature, marketers can leverage granular audience insights to allocate spend more efficiently, capitalizing on the lower CPMs that typically accompany non‑prime markets while still accessing a sizable viewer base.

Quarterly dynamics further illustrate the strategic timing required in local CTV planning. Q4’s surge to nearly 30% of annual impressions coincided with a 10% CPM dip, creating a cost‑effective window for high‑frequency campaigns. Conversely, Q1’s premium spend reflects advertisers’ willingness to pay more for early‑year visibility, often tied to fiscal planning cycles. Understanding these seasonal price swings enables media buyers to synchronize creative launches with periods of optimal inventory pricing, preserving budget while maximizing reach.

Sector‑specific trends add another layer of nuance. Home improvement brands dominate impressions, leveraging CTV’s visual format to showcase products in a contextually relevant environment. Meanwhile, advocacy and government entities are scaling up ahead of the 2026 midterms, turning local CTV into a battleground for voter persuasion. Automotive advertisers maintain strong performance in mid‑tier markets, suggesting a strategic focus on regional dealership networks. Looking forward, events like the World Cup and upcoming elections will intensify competition for inventory, prompting advertisers to adopt more sophisticated bidding strategies and creative personalization to retain market share.