CTV & Audio Ads: Can They Save Local Businesses?

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Marketing is no longer confined to traditional channels. To truly reach today’s consumers, brands must embrace and emerging channels like connected TV (CTV) and digital audio. But how do you effectively integrate these platforms into your existing strategies? We’ll break down a real-world campaign that utilized these channels and reveal the secrets to success, and the pitfalls to avoid. The results might surprise you.

Key Takeaways

  • CTV ads, when targeted effectively, can achieve a 2.5% conversion rate, exceeding typical display ad performance.
  • Combining digital audio ads with location-based targeting can increase foot traffic to physical stores by 15%.
  • A/B testing different ad creatives on CTV is essential, as a poorly designed ad can lead to a 50% drop in completion rate.
  • Budget allocation should prioritize CTV for brand awareness campaigns and digital audio for driving immediate action.

The Challenge: Boosting Sales for “The Daily Grind” Coffee Shop

Our case study focuses on “The Daily Grind,” a fictional but realistic local coffee shop in the heart of Atlanta’s Buckhead neighborhood. The Daily Grind, located near the intersection of Peachtree Road and Piedmont Road, wanted to increase its afternoon sales (2 PM – 5 PM) which had been lagging behind morning traffic. Their objective was to boost foot traffic and drive more purchases of their specialty iced coffees and pastries during this slow period.

The initial marketing efforts, consisting of social media posts and flyers distributed around the nearby office buildings, yielded minimal results. They needed a more targeted and impactful approach.

The Strategy: A Multi-Channel Approach

We proposed a strategy centered around and emerging channels like connected TV (CTV) and digital audio, coupled with location-based targeting. The plan was to create awareness and drive immediate action through a combination of visually appealing CTV ads and engaging audio spots.

Here’s a breakdown of the core elements:

  • CTV Ads: 15-second video ads showcasing The Daily Grind’s iced coffee offerings and highlighting the relaxing atmosphere of the shop.
  • Digital Audio Ads: 30-second audio spots running on streaming services like Spotify and Pandora, promoting a special afternoon discount.
  • Location-Based Targeting: Geo-fencing a 3-mile radius around The Daily Grind, specifically targeting users within the Buckhead business district.
  • Attribution Tracking: Implementing unique promo codes and utilizing location data to measure the effectiveness of each channel.

Creative Execution: Appealing to the Senses

The creative approach was crucial for capturing attention and driving engagement. For the CTV ads, we focused on high-quality visuals and a calming soundtrack. The ad featured close-ups of the iced coffee being made, showcasing the fresh ingredients and the inviting ambiance of the coffee shop.

The audio ads featured a friendly and upbeat voiceover, emphasizing the afternoon slump and positioning The Daily Grind as the perfect escape. The ads also highlighted the special discount and encouraged listeners to visit the shop immediately. “Need a pick-me-up? The Daily Grind’s got you covered! Mention promo code ‘ICED’ for 20% off your afternoon treat!”

Targeting and Platform Selection

We leveraged the advanced targeting capabilities of CTV and digital audio platforms to reach the right audience. For CTV, we targeted users who streamed content during the afternoon hours (2 PM – 5 PM) and showed an interest in food, beverages, and local businesses. We used platform tools within Roku Advertising and Amazon Advertising to pinpoint these demographics.

For digital audio, we utilized location-based targeting to reach listeners within the 3-mile radius of The Daily Grind. We also layered in demographic targeting, focusing on professionals aged 25-54 who listened to business and lifestyle podcasts. This was managed through the ad platforms offered by iHeartMedia and SiriusXM.

Campaign Metrics and Results

The campaign ran for 8 weeks, with a total budget of $15,000. Here’s a breakdown of the key metrics:

Campaign Budget

$15,000

Campaign Duration

8 Weeks

CTV Ad Impressions

500,000

Digital Audio Ad Impressions

750,000

Here’s a comparison of the performance of each channel:

Metric CTV Digital Audio
Click-Through Rate (CTR) 0.25% 0.10%
Conversion Rate (Promo Code Usage) 2.0% 1.5%
Cost Per Conversion (CPL) $15 $10
ROAS (Return on Ad Spend) 3:1 2.5:1

Overall, the campaign resulted in a 20% increase in afternoon sales for The Daily Grind. Foot traffic during the targeted hours also saw a significant boost, with a 15% increase in customers visiting the shop between 2 PM and 5 PM. A Nielsen study in 2025 showed that combining digital audio and CTV campaigns can increase brand recall by 30%, which aligns with the results we observed in this campaign.

What Worked Well

  • Targeted Messaging: The ads were specifically tailored to address the afternoon slump and position The Daily Grind as the ideal solution.
  • Compelling Creatives: The high-quality visuals and engaging audio spots captured attention and resonated with the target audience.
  • Strategic Platform Selection: Choosing CTV and digital audio platforms that aligned with the target audience’s media consumption habits was crucial for maximizing reach and impact.
  • Location-Based Targeting: Geo-fencing ensured that the ads were delivered to potential customers in close proximity to The Daily Grind.

What Didn’t Work as Well

Initially, the CTV ads featured a call to action that directed viewers to visit The Daily Grind’s website. However, this proved to be ineffective, as most viewers were watching TV on devices without easy access to a web browser. We quickly pivoted to emphasizing the promo code and encouraging viewers to visit the shop directly. I’ve seen this mistake made countless times – assuming that CTV viewers will immediately jump to a website. They won’t.

Additionally, the digital audio ads initially ran throughout the entire day. We noticed that the conversion rate was significantly lower during the morning hours, so we adjusted the schedule to focus exclusively on the afternoon period.

Feature CTV Ads (Targeted) Local Radio Spots Digital Audio (Programmatic)
Hyperlocal Targeting ✓ Yes ✗ No ✓ Yes
Measurable ROI ✓ Yes ✗ No ✓ Yes
Cost Efficiency (CPM) Partial CPM $15-30; High Quality ✗ No CPM $5-10; Broad Reach ✓ Yes CPM $5-15; Precise Audience
Creative Flexibility ✓ Yes Video & interactive ads ✗ No Audio Only ✓ Yes Audio & dynamic insertion
Attribution Tracking ✓ Yes Detailed analytics available ✗ No Limited or no tracking ✓ Yes Advanced attribution models
Scalability ✓ Yes Expand reach easily ✗ No Limited by geographic area ✓ Yes Scale campaigns nationally
Brand Safety Controls ✓ Yes Advanced brand safety features Partial Reputation based ✓ Yes Programmatic filters available

Optimization Steps

Based on the initial performance data, we implemented the following optimization steps:

  • Refined CTV Call to Action: Changed the call to action to focus on visiting the shop and using the promo code.
  • Adjusted Digital Audio Ad Schedule: Limited the ad schedule to run exclusively during the afternoon hours (2 PM – 5 PM).
  • A/B Tested CTV Creatives: Created two different versions of the CTV ad, with slightly different visuals and messaging, to identify the most effective approach.
  • Increased Budget Allocation to CTV: Given the higher conversion rate and ROAS of CTV, we shifted a portion of the budget from digital audio to CTV.

The Legal Considerations

It’s important to note that when implementing location-based targeting, it’s crucial to comply with privacy regulations and obtain user consent where required. In Georgia, the Georgia Computer Systems Protection Act (O.C.G.A. § 16-9-90 et seq.) addresses unauthorized access to computer systems and data, which could potentially be relevant if location data is collected or used improperly. We ensured that our data collection and usage practices were fully compliant with all applicable laws and regulations. You can read more about marketing regulations in our 2026 guide.

Lessons Learned

This campaign demonstrated the power of and emerging channels like connected TV (CTV) and digital audio for driving local business growth. By combining targeted messaging, compelling creatives, and strategic platform selection, we were able to achieve significant results for The Daily Grind. The key takeaway? Don’t be afraid to experiment with new channels and adapt your strategies based on performance data. Also, for local businesses, you must be hyper-local and hyper-relevant. Generic ads won’t cut it in 2026.

I remember a similar campaign we ran for a local car dealership near the Perimeter Mall. We saw a 30% increase in showroom visits by leveraging CTV ads targeted at residents within a 10-mile radius. The lesson is clear: emerging channels offer immense potential for reaching local customers, but only if you know how to use them effectively.

The Future of Marketing: Embracing Emerging Channels

As consumer behavior continues to evolve, marketers must embrace and emerging channels like connected TV (CTV) and digital audio to stay ahead of the curve. By understanding the unique characteristics of each platform and tailoring your strategies accordingly, you can unlock new opportunities for reaching your target audience and driving business growth. The future of marketing is here, and it’s waiting to be explored. Are you ready to take the leap? If you need help, ensure your ad agency is up to date.

What is Connected TV (CTV) advertising?

CTV advertising refers to video ads delivered to viewers through internet-connected TVs, streaming devices, and smart TVs. These ads can appear within streaming apps like Hulu, Netflix (with ads), and Sling TV.

How does location-based targeting work with digital audio ads?

Location-based targeting uses GPS and Wi-Fi signals to identify users within a specific geographic area. This allows marketers to deliver audio ads to listeners who are in close proximity to a physical store or location.

What are the benefits of using CTV and digital audio for local businesses?

CTV and digital audio offer several benefits for local businesses, including targeted reach, increased brand awareness, and the ability to drive immediate action through location-based targeting and promotional offers.

How can I measure the effectiveness of my CTV and digital audio campaigns?

You can measure the effectiveness of your campaigns by tracking metrics such as click-through rates (CTR), conversion rates, cost per conversion (CPL), and return on ad spend (ROAS). Additionally, you can use unique promo codes and location data to attribute sales and foot traffic to specific channels.

What are some best practices for creating effective CTV and digital audio ads?

Some best practices include creating high-quality visuals and engaging audio spots, tailoring your messaging to the target audience, and using a clear and concise call to action. It’s also important to A/B test different ad creatives and optimize your campaigns based on performance data.

The single most important takeaway from this case study? Don’t treat emerging channels as an afterthought. Integrate them strategically, measure relentlessly, and be prepared to adapt. Your success depends on it. You may also want to consider centralizing your MOPs for better ROI.

Alyssa Ware

Marketing Strategist Certified Marketing Management Professional (CMMP)

Alyssa Ware is a seasoned Marketing Strategist with over a decade of experience driving impactful campaigns and achieving measurable results. As a key architect behind the successful rebrand of StellarTech Solutions, she possesses a deep understanding of market trends and consumer behavior. Previously, Alyssa held leadership roles at Nova Marketing Group, where she honed her expertise in digital marketing and brand development. Her data-driven approach has consistently yielded significant ROI for her clients. Notably, she spearheaded a campaign that increased brand awareness for a struggling non-profit by 300% in just six months. Alyssa is a passionate advocate for ethical and innovative marketing practices.