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Local TV Markets Explained

Written by Andrew Laba
Updated today

Understanding how television geo targeting works is key to successful Local TV advertising. Unlike digital advertising's precise zipcode-level or household-level targeting, traditional television advertising operates through TV market areas.

Let's explore how TV markets work and why they're so important for your advertising strategy!

What Are TV Markets?

TV markets are geographic regions defined by television viewing patterns - essentially, areas where specific local television stations capture a dominant share of viewing. They are mostly grouped around major metropolitan centers.

Think of it this way: People don't just watch stations from their own city. They watch stations based on their ability to receive a signal from the nearest broadcast towers or cable provider, which could be 50-100 miles away.

How TV Markets Work

The United States has 210 TV markets, ranging from large metros like New York to smaller regional markets. This creates natural viewing zones where:

  • One central city serves as the media hub

  • Surrounding towns and rural areas receive the same TV content

  • Coverage typically extends 50-100 miles from the market center

How Location Targeting in Skybeam Works

In Skybeam, you have two ways to target your TV advertising:

  1. Direct TV market selection - If you know which TV markets you want, select them directly

  2. Geographic selection - Choose cities, states, or ZIP codes, and our system automatically maps them to the appropriate TV markets

How does this mapping work?

When you select a state, city, or ZIP code, our system automatically activates all TV markets associated with that area.

  • Cities map to their corresponding TV market, which covers a much wider area than city boundaries. Each city belongs to one specific TV market. Same for the ZIP codes – they map to the whole associated TV market.

  • States often activate multiple TV markets since most states contain several markets. These markets don't follow state boundaries and often extend into neighboring states. For example, the Washington DC TV market reaches into Virginia and Maryland, while the Philadelphia market extends into New Jersey and Delaware.

Advantages of Market-Wide Coverage for your Campaign

  • Greater value: Each dollar reaches more potential customers across the entire region

  • Natural audience expansion: Captures commuters, regional shoppers, and surrounding communities

  • Efficient brand building: One campaign establishes presence throughout the market area

Planning Your TV Campaign

Market Selection Tips

Focus your TV markets on areas where you can maximize impact:

  • Choose markets where you have physical presence - stores, offices, or service locations

  • Prioritize markets with distribution capabilities - where customers can actually buy your product

  • Identify high-concentration markets - TV markets with the highest density of your target audience

  • Use Market Metrics to Plan Your Budget:

    • Population size - See how many households each market covers

    • CPM (Cost Per Thousand) - Understand the cost efficiency of each market

    • Estimated impressions - Preview how many views your budget will generate

  • Review these metrics while selecting markets to balance coverage and cost. Markets with lower CPMs or smaller populations may help stretch your budget further while still reaching your target audience effectively.

    • Factor in your budget: Your campaign budget determines how many markets you can select. Skybeam recommends $800 per DMA per week

Review these metrics while selecting markets to balance coverage and cost. Markets with lower CPMs or smaller populations may help stretch your budget further while still reaching your target audience effectively.

Geo Targeting: Digital Advertising vs Local TV Advertising

Aspect

Digital Advertising

Local TV

Geographic Precision

ZIP code or radius targeting

Market-wide coverage

Boundary Type

Follows political boundaries

Follows television viewing areas

Minimum Coverage

Can target single ZIP codes

Entire market areas

FAQ

Q: What Are TV Markets?

A: Think of TV markets as territories where certain local stations are the go-to channels for viewers in that area.

Q: Why can't I target just my city?

A: TV markets serve entire regions. When local stations air your ad, everyone watching that channel sees it, regardless of their specific city.

Q: How many TV markets are there?

A: The United States has 210 TV markets, ranging from large markets like New York to smaller regional markets.

Q: Can one location belong to multiple markets?

A: Yes, some border areas receive signals from multiple markets, potentially expanding your reach even further.

Q: How do I know which markets I'm targeting?

A: When you select locations in Skybeam, we automatically show you the corresponding TV markets where your ads will be shown.

Q: What's the difference between TV Markets and DMAs?

A: They're the same thing! DMA stands for "Designated Market Area" - the technical term used by Nielsen to define TV markets.

Q: How many TV markets can I select? A: The number of markets you can add depends on your budget and campaign length. Skybeam recommends a minimum of $800 per DMA per week to ensure your ads run at a meaningful frequency in each market. See the full breakdown →

Bottom Line

Local TV advertising works differently than digital - and that's actually an advantage. While you can't micro-target specific neighborhoods, you gain the power of regional reach, making every campaign impression work harder to build your brand across entire market areas.

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