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Why Elections Affect All Advertisers and What They Can Do About It

Updated: Jun 12


Saying that election years tend to upend the media landscape is an understatement. 


They wreak havoc on it!


When political dollars flood the market, advertisers have to pivot and get creative about where, when, and how to spend their media dollars. Inventory gets tight and prices soar, but it’s still possible to effectively place media during a political window.


Our team is always planning ahead and around the changes in market conditions, so our clients’ advertising plans face fewer disruptions and rate fluctuations. 


Here is how rates are affected for some of the more popular media channels we buy: 


Broadcast


This is probably the most affected channel due to the FCC requirements that broadcast stations provide the lowest advertised rate to candidates. That rule does not apply to Political Action Committee (PAC) spending, which means regular advertisers are often bumped by issue dollars. 


There is a halo around this as well. Prior to the political season, many advertisers are racing to get their ad spend in, driving up demand and prices. After the campaigns, many bumped advertisers are “made good” so the scarcity of inventory remains, driving up rates for months. 


This doesn't mean that broadcast is out of the question entirely. You have to work smart for clearance during these high demand times. One option is shifting to :15 commercials, since many broadcast stations do not include them on their rate card, making them unavailable to purchase for political. Simply changing to that shorter creative is a great option because advertisers can avoid getting bumped while increasing frequency.


Radio


Radio stations have similar rules due to their FCC licenses so radio is affected similarly to broadcast. Radio stations have some opportunity to recapture ad spend in the form of live-host-read ads and sponsorships which don’t fall under traditional rates. However, the halo effect on rates still exists. 


Cable


Cable channels are not beholden to FCC rules, but they are able to maximize their revenue by bumping traditional advertisers in favor of sky-high political rates. Similar to broadcast and radio, the halo means rates don’t come down to earth for months.  


Out of Home


Out of Home (OOH) isn’t a popular spot for political dollars, but many advertisers who typically spend on broadcast, radio and cable will move their money to OOH during political windows.  This reduces the supply and can affect the rates due to scarcity. We see less impact overall, but it’s important to plan ahead and book your OOH early if you are planning on running during a political window. 


Social Media

Social channels have severely restricted political spending in recent years due to accusations they have too much sway over the electorate. If you’re unfamiliar with the Cambridge Analytica scandal, read up. Due to this debacle, there is less impact on social media rates versus prior years. 


However, from a brand safety perspective, organic content may become more heated and divisive in this time frame, making it less attractive to some advertisers. 


Streaming


Many streaming platforms have exerted more control in recent years to ensure a positive customer experience. No one wants to see the same ad over and over, and that’s a major complaint about political ads. While many Demand Side Platforms (DSPs) do not allow political advertising, it’s still a popular and growing space for political spending. 


In the past CPMs were not as impacted but we expect the impacts on streaming CPMs to grow as streaming advertising becomes more popular.  


Online Video


There are many ways to purchase online video and not all avenues restrict political spending. We expect this will impact CPMs and likely more-so than streaming. This is, in part, due to the fact that online video is clickable so can be used more effectively as a fundraising tool. 


YouTube


Google has been a lot more strict about political advertising so the impact on YouTube is less than other platforms. Still, with advertisers moving dollars away from other channels, there will likely be more competition in this space, having some effect on CPMs. 



The bottom line is that if you are advertising during a political window, particularly during a presidential year, you should be planning ahead and mindful of the impact on the rates. 


A media buying agency will have a strong grasp on the media landscape and how to work around the drastic but temporary changes to it. If you’re concerned about how your media plans are shaping up for the rest of the year, drop us a line! We can help you adjust course!

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