The 2024 election cycle is presenting unique challenges for advertisers, particularly during the busy fourth quarter. While election years often disrupt advertising patterns, this cycle is marked by unusual events such as a major shift in Democratic nominees and an assassination attempt on former President Trump.
These unexpected developments are prompting advertisers to closely monitor the evolving political climate and adjust their strategies accordingly, as both the contentious nature of the presidential race and shifts in ad spending could significantly impact their efforts.
Jennifer Kohl, chief media officer at VML, highlights the difficulties posed by this election’s shorter timeline and the impact of local elections on ad inventory. The unpredictability of candidates and their campaigns complicates ad planning, with local elections taking up a substantial portion of the ad space in the crucial fourth quarter. Advertisers are grappling with these unforeseen shifts and trying to adapt their strategies to the evolving situation.
2024 Election Cycle Presents Advertising Challenges with Political Shifts and Increased Spending
Political ad spending has already begun to increase, with expectations for a substantial rise in the months leading up to the election. Ad buyers anticipate a tenfold increase in spending month-over-month, with approximately $3 billion spent in the first ten months of 2024 and an expected $10 billion in the final four months. Connected TV (CTV) is projected to benefit from this surge, as competition for attention across various media channels intensifies.
Advertisers face several challenges, including a crowded media environment, higher costs per thousand impressions (CPMs), and increased pressure on ad inventory. Kate Kalevich from Rain the Growth Agency points out that a focus on election-related content might reduce the return on investment if consumers are more engaged with political news. Advertisers need to be flexible, monitor rising CPMs, and explore alternative channels to manage these challenges effectively.
Consumer spending habits are also expected to shift due to the election and broader economic factors. Bana Amare from Media by Mother notes that consumer priorities might change, potentially affecting holiday spending.
With many consumers possibly facing financial strain, the election’s impact on their spending behavior could further complicate advertising strategies. Meanwhile, ADT’s DeLu Jackson underscores the importance of communicating new capabilities and adapting to digital trends, such as the growth in online video and streaming channels, to stay competitive.
