Mark your calendars for November 5. The 2024 general election is not just a pivotal moment in politics; it’s also a significant event that impacts various aspects of the economy, including advertising costs for businesses. In addition to the presidential election, all 435 seats in the U.S. House of Representatives, 34 of the 100 seats in the U.S. Senate, and 13 state governorships (as well as numerous other state and local elections) will be contested.
As all those candidates vie for attention and voters, the media landscape becomes more competitive, and B2B brands must navigate the implications this has on their advertising budgets. Let’s delve into how the 2024 election will influence paid media and advertising costs for B2B companies.
1. Increased Competition for Ad Space
Presidential elections are notorious for saturating media channels with advertisements. From television commercials to social media campaigns, candidates flood the airwaves with their messaging, creating intense competition for ad space. According to a recent study from Axios, ad spend on U.S. elections and advocacy issues is estimated to increase by 31% this year compared to 2020, reaching an unprecedented $15.9 billion in 2024. This increased demand inevitably drives up advertising costs, making it more challenging for B2B brands to reach their target audiences without breaking the bank.
Competition is likely to increase the most on traditional media (TV, radio, and billboards/out-of-home), with the majority of political ad spend going to local broadcast TV. Nielsen Ad Intel data from the 2020 election showed a major increase in TV and radio advertising impressions purchased by presidential campaigns and identifiable political organizations (with 5X increase in English language ads and a 3X increase in Spanish language ads in the third quarter). So if you’re planning to advertise on traditional media during Q3-Q4 (particularly in places like news and business programming), you should be securing that inventory as early as possible, as it is likely to be limited.
2. Rising CPMs and CPCs
This go round, digital advertising will look a little different than it did in 2020, as Google, LinkedIn, Amazon, Pinterest, and TikTok have already banned political ads, pushing more paid traffic to Meta, X (formerly Twitter), DSPs and Connected TV (CTV). With more advertisers clamoring for limited ad inventory, B2B brands can expect to see a “ripple effect” surge in CPMs (Cost Per Thousand Impressions) and CPCs (Cost Per Click) across those platforms. As a result, every impression and click becomes more expensive, requiring businesses to carefully optimize their advertising strategies to maximize ROI. This might involve refining audience targeting, experimenting with different ad formats, or diversifying advertising channels to mitigate the impact of rising costs.
Where will most of the digital political spend be concentrated? According to eMarketer, 45% of the projected $3.46 billion in digital political ads will go to ConnectedTv (CTV). That means marketers should plan for a 15-50% increase in CPMs for Connected TV, as well as increased CPMs and CPCs for paid social, during the core six weeks of the election. And if your business’ geographic targeting is inclusive of key battleground states (which traditionally include NC, GA, AZ, MI, WI, PA, and FL), you may need to pad budget in those states by up to 50% to maintain reach between September 15-November 5. And if it’s not in your budget to increase spend during that time period, you may want to also consider adding blackout dates to your media plan for the days leading up to/on key political events, such as the presidential debates (October 1 and 9) and election day (November 5).
3. Shifting Consumer Attention
Keep in mind that as individuals focus on political developments, they may be less receptive to commercial messages, leading to decreased engagement with your ads. To counteract this trend and ensure your message doesn’t get lost in the shuffle, you may need to get even more creative than usual with ad content. Keep a close eye on your engagement rates as we get closer to the election, and if you start to see them plummet, consider taking a pause or investing in more neutral, alternative channels with less political noise.
In the midst of the election frenzy, timing and messaging become critical factors. Brands must be mindful of the political climate and avoid inadvertently aligning themselves with controversial issues or candidates that could alienate potential customers. Crafting a message that strikes the right balance between relevance and neutrality is essential for maintaining brand integrity during turbulent times.
Perhaps most importantly, if what’s looking like a national crisis begins to emerge in the days ahead (sorry to be grim, but nothing would surprise me at this point), you should be prepared to press pause and go dark as a brand. I agree with Jack Appleby’s one-liner judgment call regarding when to stop marketing during a crisis: if you’re even having to wonder whether your brand should go silent, you probably should.
The 2024 presidential election will undoubtedly have significant cost implications for B2B advertising. As businesses gear up for heightened competition and increased ad spending, strategic planning, creative execution, and agility will be key to maintaining a competitive edge in the marketplace. By understanding the dynamics at play and proactively adjusting their advertising strategies, B2B brands can navigate the complexities of election season and emerge stronger on the other side.