Political advertising in the U.S. has surged recently, with Connected TV (CTV) becoming a key method for reaching swing voters, especially in local and statewide elections. Experts predict an increase in spending as the presidential race between Donald Trump and Kamala Harris heats up.
Increased Political Ad Spend
- 2024 vs. 2020: Political ad spend in 2024 is significantly higher than in the 2020 election cycle. MediaRadar data shows $385 million already spent and $322 million scheduled as of August 8, 2024. Democrats are leading in spending.
- Quarterly Comparison: Operative STAQ reports a 35% increase in political ad spend in Q2 2024 compared to Q2 2020. Americans for Prosperity, a conservative PAC, increased its spending by 77%.
- Media Revenue: News organizations like The Washington Post and Gannett have seen revenue boosts from political ads. Gannett's Jason Taylor notes an early surge in local political ad buys.
Spending Trends and Strategies
- Recent Spending: AdImpact data shows $182.1 million spent by presidential campaigns between July 22 and August 11, 2024.
- Cable TV Focus: SKDK's Pia Carusone emphasizes cable TV for major news moments, noting significant spending shifts.
- Campaign Dynamics: Tyler Goldberg from Assembly mentions that uncontested primaries have restrained spending, but expects a surge as the election nears.
Rise of CTV in Political Advertising
- CTV Popularity: CTV is gaining traction due to its enhanced targeting and measurement capabilities. MediaRadar reports 10.5% of presidential ad spending in 2024 on digital channels, with eMarketer projecting this could rise to 28%, with CTV absorbing 45%.
- Targeting and Efficiency: CTV allows for more precise demographic targeting. Junelle Cavero Harnal from My Code highlights increased digital ad spend targeting Hispanic voters.
- Local and Down-Ballot Races: CTV is particularly useful in local contests. Nexxen offers tools for geo-targeting by political districts, and SKDK's Carusone notes varying CTV budget allocations based on race and market.
Efficiency and Future Spend
- Cost Efficiency: The Trade Desk's collaboration with Push Digital shows that CTV campaigns can reach households 36% more efficiently than linear TV due to frequency capping and granular targeting.
- Future Projections: With 65% of 2024's political ad spend expected in the final weeks before the election, the impact of CTV remains to be fully seen. However, the shift towards CTV is evident as political advertisers catch up with brand advertisers in leveraging connected devices.
Political advertising is evolving, with CTV playing an increasingly crucial role in targeting and efficiency, reflecting broader changes in media consumption and campaign strategies.
