How Does Political Advertising Affect CPCs and CPMs for Non-Political Brands?
Strike Social
Strike Social SWAS ad technology minimizes ad costs and elevates success in campaign outcomes.
(For more data insights and benchmark reports, follow our page) ??
With the 2024 election season upon us, brands not in the political space face a familiar challenge: the surge in political advertising that inflates CPCs (Cost Per Click) and CPMs (Cost Per Impression).
A 15-50% increase in CPMs for CTV and heightened CPMs/CPCs for paid social is expected during the core six weeks of the election and throughout the year in significant battleground states.
As political campaigns pour billions into ad spending, non-political brands must prepare for the ripple effects on CPC and CPM. But how exactly does political advertising influence these metrics, and what can brands do to navigate this competitive environment?
How Does Political Advertising Affect CPCs and CPMs for Non-Political Brands?
?? The Surge in Political Ad Spend
Election years, particularly in the US, bring an influx of political ad spend across various media channels. For 2024, political ad spend is expected to exceed previous records, with billions of dollars pouring into TV, digital, and social media advertising. This surge in spending creates a highly competitive ad market, driving up the costs for all advertisers.
?? What's the Impact on CPCs and CPMs?
Increased Competition
Political advertising primarily affects CPCs and CPMs through increased competition. In 2024, political ad spending on platforms like Google is expected to surpass $553.2 million, a 215.1% increase from 2020.
During peak political advertising periods, it's not uncommon to see CPCs and CPMs rise substantially, sometimes doubling or tripling compared to non-election years.
Audience Saturation
Political ads often target broad audiences to maximize reach, leading to higher overall demand for ad impressions. In 2024, social network political ad spending is projected to climb to $605 million, an 86.7% increase from 2020.
This saturation means that non-political brands must compete harder to capture the attention of their desired audience. As a result, these brands often face inflated costs to maintain their visibility and engagement levels.
Swing States Likely to Increase Political Ad Spend
A “swing state” is a U.S. state that can likely determine or turn over the results of the presidential election, possibly due to unbridled support for one candidate or extremely high poll results leading to the election. In 2016, Trump won 7 out of 11 swing states against Hillary Clinton.?
This year, six swing states are being considered:
@thinkAs of May 2024, here’s how the ad spend for these states has been going.
?? Strategies for Non-Political Advertisers
Navigating the heightened competition and inflated costs of political advertising seasons requires strategic adjustments and innovative approaches.
Here are key strategies and expert tips to help non-political brands maintain their advertising effectiveness during election years. Download your copy ??
?? Adjust Ad Budgets and Timelines
Brands should consider adjusting their ad budgets to account for the anticipated increase in costs. Allocating more funds to critical periods outside the peak political ad times can help maintain campaign efficiency.
?? Use this calendar to understand the key Presidential Election dates in 2024
?? Enhance Ad Targeting and Segmentation
By focusing on specific demographics or interests, brands can increase the relevance of their ads, reduce waste, and potentially lower CPCs and CPMs. Advanced targeting strategies, such as lookalike audiences and retargeting, can also enhance ad performance.
?? Creative and Contextual Advertising
?? Question: How can I compete during political advertising season?
Other Election-related blog posts from the team
Looking Ahead
As political ad spend continues to rise, the importance of strategic planning for non-political brands cannot be overstated. By understanding the dynamics of the ad market during election years and implementing adaptive strategies, brands can navigate the increased competition and maintain their advertising effectiveness.
While political advertising inevitably drives up CPCs and CPMs, non-political brands can mitigate these effects through careful planning, diversification, and targeted advertising efforts. Preparing for these challenges ahead of time will be crucial for brands aiming to sustain their marketing performance in the face of a competitive election year.
Let Seasonal Campaigns Work For You
To make seasonal campaigns work for you, partnering with a trusted agency is key.
At Strike Social, we specialize in aiding and scaling your campaigns, providing critical data points, and guaranteeing results.
Our approach involves setting up hundreds of micro-campaigns for any ad request, using AI technology to identify the best-performing ones, and reallocating ad dollars in real-time.
This strategy ensures that your advertising makes a significant impact, even in the most competitive environments.
By leveraging these insights and technologies, non-political brands can optimize their ad spend and achieve their marketing goals amidst the challenges of an election year.
?? Success starts with a plan. Craft strategies with us.
A. Schedule a Discovery Call:
B. Connect with us directly on LinkedIn (Here's how!) ??
a. Go to Strike Social's Home Page
b. Click the Contact Sales button
c. Provide your email address then click Submit
d. Our team will reach out for your personalized strategy
?? Follow our page for more paid media strategies!
Managing Director N. America Chief Revenue Officer, CTV, Video, , AI Technology, Gaming & Web 3, Executive
3 个月We can help you navigate. Brands and agencies we work with see big savings and great performance. # evolveandsolve
?? MUST READ: What Are the Major Events Impacting 2024 Political Ad Spending? -> https://strikesocial.com/blog/breaking-down-the-2024-political-ad-spending-trends/ #polads #USElections