May 22, 2018
Advertisers often assume that airing on local TV is cheaper. While local spot costs are indeed less expensive than national buys, the number of local impressions aired is much smaller. To address this difference, a good apples-to-apples comparison can be made by quantifying both type of buys as a CPM (cost per thousand impressions). This comparison is insightful because local TV CPMs tend to be notably higher than national TV CPMs, often by orders of magnitude. For the sake of completeness, we should point out that there is no universal local CPM. Local CPMs vary by geography since audiences can be vastly different from one location to another (e.g. different average household income).