Potential Impacts of an Election Year on Advertising 

Election years are a unique period for marketers and advertisers. The political climate, increased media consumption, and heightened public interest in current events create both opportunities and challenges. There are various impacts of an election year when it comes to the marketing and advertising industry. And while it may be tempting to slash your marketing budget to save short-term advertising costs, you’ll pay the long-term price of going dark. From campaign performance, to rising costs, and even strategy shifts – navigating the landscape varies on the targeted outcome, and marketers need to know how to plan accordingly, and how to best speak to performance this fourth quarter. 

Crowded Media Landscape 

Every Q4 advertisers find themselves in a bidding war, all vying for the same thing: consumer attention. From small, local business owners to national brands and franchises, the fight for digital ad space has become increasingly fierce and costly. Add in this year’s influx of political ads and it creates an even more crowded media landscape.  

With so many political messages begging for attention, it becomes more challenging for brands to stand out. This saturation can lead to ad fatigue among consumers, who may become overwhelmed by the sheer volume of advertisements. As a result, non-political advertisers need to be more creative and strategic in their approach to capture and maintain audience attention. 

With Increased Competition Comes Increased Costs 

One of the most significant impacts of an election year is the increase in advertising costs. Political campaigns spend heavily on advertising to reach voters, leading to higher demand for ad space. This surge in demand drives up prices across various media platforms, including television, radio, digital, and even social media. For businesses, this means higher costs for the same ad placements compared to a non-election year. During the presidential election year, it is estimated that the cost of advertising can increase 10-20%, and in the weeks before the election it could be up almost 50%.

Media costs will be in flux as political ad spend increases. Bloomberg originally anticipated $10.2 billion in political ad spending, and costs are likely to ratchet up for brand advertisers looking to get a piece of that real estate.

It is important to keep in mind that it doesn’t only impact national campaigns. Regional and local marketing efforts can also be affected. Advertising prices will vary from state to state as states with Senate races and those that are battlegrounds for the Presidential race will see more ad investment than states with more localized elections. Having a solid Integrated Marketing strategy that aligns all efforts might be a prudent move to achieve your marketing goals and keep costs manageable. Reach out to Location3 today to learn more on how to Maximize ROI with an Integrated Marketing plan. 

Shifts in Consumer Behavior 

Election years often bring about shifts in consumer behavior. People are more engaged with news and political content, which can influence their media consumption habits. For instance, there may be an increase in viewership for news channels and political websites, while entertainment platforms might see a dip.  

Presidential elections can also make social media a hard place to navigate, even if a brand isn’t inherently political. In a typical year, running social media campaigns are complex enough however during a year like this, the impact is inevitable. 

Marketers need to be aware of these shifts and adjust their strategies accordingly to ensure they are reaching their target audience as effectively and efficiently as possible. 

Strategic Placement, Timing and Messaging 

Timing and messaging become even more critical during an election year. Advertisers should carefully plan campaigns to avoid clashing with major political events, such as debates, primaries, and election day. Additionally, the messaging should be clear, concise and true to the brand voice. By being strategic about timing and messaging, advertising campaigns can navigate the complexities of an election year more successfully. 

When scheduling campaigns and dialing in the proper channels to run on, marketers should consider the platforms standpoint on political ads. Some social sites like LinkedIn, TikTok, and certain streaming services, are opting out of political advertising entirely. These could be a great option to include in a media mix when trying to minimize performance impact in Q4. 

Pinterest has taken that one step further by not running ads against political and election-related search terms. Others, like Google and YouTube, allow political advertising to run with certain restrictions. And with both of these sites being heavy hitters in the advertising world, brands may see a direct correlation between the election impacting performance KPIs.

With bans and limitations in place, there is a rise in political ads on Meta, DSPs, and CTV, so we can in turn potentially see increases in CPMs.

Our DSP partner, Basis, shared their thoughts, stating “Political advertisers love video, so the increased demand for advertising space across media will be felt most acutely on CTV, linear, online display video, and those social networks that accept political ad dollars. The impact on CTV will be especially pronounced: 45% of all digital political ad spend in 2024 will go to CTV, up a whopping 26% from the 2020 election cycle.”

Leveraging Data and Analytics 

Data and analytics play a crucial role in navigating the challenges of Q4 marketing and especially so during an election year. By leveraging data, we can gain insights into consumer behavior, media consumption patterns, ideal channels as well as the overall effectiveness of campaigns. This information allows for informed decisions about where to allocate spend and how to optimize for better performance.

Analytic tools can also help track KPIs, identify trends and predict future shifts, enabling marketers to stay ahead of the curve. Be sure to ask Location3 about our Data Science and Advanced Analytics Attribution offerings! 

 

In Conclusion 

An election year undoubtedly impacts marketing and advertising availability, performance, costs, and strategies. Be prepared for the potential impacts of this election year on your advertising by strategically choosing the right platforms, the right timing and geographical placement plus staying agile with budgets to get the best bang for your buck will be crucial to obtain a positive ROAS.

Working with expert agencies like Location3 can help brands like yours stay informed, plan strategically, and leverage accurate data to successfully navigate this election year. Ready to achieve your revenue goals for Q4 and beyond? Contact us today!

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Resource Citations

1. Bedtime Magazine (2024, Feb). Advertising in an Election Year.
2. Bloomberg (2023, Sep) Political Ad Spend Set to Reach Record.
3. EMarketer (2024, Feb) 2024 is a huge year for political advertising. What does that mean for other advertisers?.
4. EMarketer (2024, March) Political ad spend is nearly triple what it was in 2016.
5. Basis Technologies (2024, May) How Political Advertising Will Impact the Media Landscape in 2024.