Local Broadcasters Must Evolve (Or Be Left Behind) In CTV’s SMB Revolution

ProximityLocal
Written By Tim Hanlon

Photo Credit: Artem Beliaikin

The connected TV (CTV) revolution is doing more than unlocking new ad dollars — it's reshaping the very foundation of the local broadcast business. At the heart of this shift is the democratization of TV advertising: Small and mid-sized businesses (SMBs) can now buy video ads with the precision, speed, and flexibility once reserved for digital platforms like Google and Meta. The local TV industry's long-held ad gatekeeping role is fading — and what replaces it will depend on how quickly broadcasters recognize both the risk and the opportunity.

The Rise Of Local CTV

For years, local broadcasters and MVPDs treated CTV as a premium “audience extension” for linear TV campaigns. Tools like Madhive’s help local media ad sellers bundle digital reach with local targeting, preserving the role of the station sales rep. But there’s a catch: SMBs have to essentially buy linear inventory first. That barrier is now crumbling.

Per BIA Advisory, local CTV advertising is expected to hit $3 billion — about 10% of all CTV spend. Nearly all of it (90%) is bought programmatically, and a growing portion comes from SMBs shifting portions of their digital video and/or “local TV” ad budgets to CTV. Critically, they’re doing this without involving traditional intermediaries.

The change isn’t just technological — it’s philosophical. SMBs now view CTV as a direct performance channel, not an add-on to linear television. In their eyes, it’s closer to Google Ads than the local evening news. That puts pressure on the traditional managed-service model, which has historically relied on high minimum spends, long lead times, and margin-heavy pricing.

But this moment isn’t just a threat — it’s an inflection point. And local broadcasters still hold key advantages, if they choose to adapt.

The Creative Advantage That Algorithms Can’t Replicate

Even as locally adept direct self-serve CTV platforms gain traction, one persistent pain point remains for small businesses: creative production. Many are now creating 3–5 ad variations per campaign, trying to optimize for relevance and performance. But while AI tools can churn out basic video spots in seconds, they lack the nuance of community storytelling, credibility, and quality that TV demands (and viewers expect).

This is where local stations can shine. Their production expertise, market knowledge, and editorial standards give them a chance to reposition themselves as full-fledged creative partners rather than just media sellers. "Creative-as-a-service" could become a signature offering — one that delivers fast, high-quality, locally resonant campaigns that actually perform.

Credibility Is Still a Moat

Trust remains one of local broadcasters' most valuable assets. When an SMB’s ad appears alongside trusted news anchors or established local programming, it carries more weight than any faceless programmatic placement. This kind of community credibility is hard to buy — and even harder to scale.

Add to that decades of market-specific insights and strong community relationships, and local TV has a chance to do more than just sell inventory. Stations have the legitimate opportunity to serve as strategic marketing advisors — helping SMBs navigate an increasingly complex advertising landscape with confidence.

How Legacy Local TV Can Adapt And Win

The most forward-looking local broadcasters won’t just defend their legacy models — they’ll reinvent them:

  • Hybrid Service Models: Offer everything from full-service managed campaigns to flexible direct self-serve tools with local support. This lets stations/operators serve a broader range of businesses across different price points.

  • Creative Acceleration: Combine AI speed with human storytelling. Become the go-to resource for fast-turn, high-impact creative that’s rooted in local context.

  • Measurement And Attribution Consulting: SMBs still struggle with understanding ad performance and ROI. Broadcasters can add value by demystifying CTV metrics and helping clients optimize their media mix.

  • Strategic Platform Partnerships: Instead of trying to build competitive platforms from scratch, stations can white-label solutions from established CTV tech partners — maintaining local branding while upgrading capabilities.

Riding The Wave, Not Resisting It

CTV isn’t cannibalizing local advertising — it’s expanding it. Many of the dollars flowing into local CTV come from businesses that previously couldn’t afford television. That’s a growth story, not a loss story — if broadcasters are willing to meet these small businesses where they are.

Those who double down on their unique assets — trust, storytelling, market intelligence — will be the ones who thrive. The local station of the future isn’t just a place to buy airtime. It’s a trusted advisor helping businesses break through in the new video economy.

The CTV revolution doesn’t have to leave local broadcasters behind. But survival won’t come from clinging to old “buy us first” models — it will, instead, come from embracing a new role: as creative enablers, local market experts, and essential strategic partners in a bewilderingly choice-filled and democratized video landscape.

Tim Hanlon

Tim Hanlon is the Founder & CEO of the Chicago-based Vertere Group, LLC – a boutique strategic consulting and advisory firm focused on helping today’s most forward-leaning media companies, brands, entrepreneurs, and investors benefit from rapidly changing technological advances in marketing, media and consumer communications.

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