Heavy Election Ad Spending May Disrupt Brands’ Holiday Marketing Strategies

Political Ad Spending and Its Impact on Holiday Campaigns

While marketers gear up for the holiday season this fall, many U.S. consumers will be focused on the political landscape. Those living in competitive states and districts will be bombarded with slogans and attack ads in the lead-up to elections. The 2024 election cycle is set to break records, with political ad spending expected to exceed $12 billion.

Timing of Political Ad Spend

Seventy percent of this political ad spend will occur after Labor Day, according to Mark Positano, head of political at DSP StackAdapt. This places brands in a position where they need to be strategic and selective with their messaging, as the overlap with holiday shopping campaigns could create a crowded advertising environment. Marketers must also weigh whether to tap into customers’ voting interests or remain neutral to avoid polarizing their audience.

High Demand from Political Campaigns

This election season is particularly notable due to the unexpected political changes, such as Vice President Kamala Harris replacing President Biden on the Democratic ticket. This has intensified interest, especially in swing states, resulting in increased demand for ad space. Political campaigns, mainly focused on competitive states like Pennsylvania, Michigan, and Nevada, are driving up ad costs in these areas, potentially affecting brands’ marketing budgets.

Leveraging Data to Reach Voters and Consumers

Despite the growth of digital video, traditional media like linear TV and out-of-home advertising continue to play a major role in political campaigns. According to Positano, campaigns will blend these media with advanced CTV and social media targeting, using smart TV data to ensure precision in reaching voters. Brands with pre-set budgets should continue targeting high-value customer segments while minimizing ad spend waste.

Should Brands Get Political?

A significant question for brands is whether to engage with political messaging. According to a survey by Sitejabber, 41% of consumers prefer that companies keep their political positions private. Brands must carefully assess whether aligning with political causes resonates with their audience or risks alienating customers.

Out-of-Home Advertising in Political Hotspots

With out-of-home (OOH) advertising gaining popularity, brands are navigating political hotspots carefully. Many are opting for messaging that stays clear of political rhetoric while maintaining visibility in key areas. For example, Grubhub is capitalizing on the enthusiasm around the Democratic National Convention by increasing its out-of-home presence in Chicago. Meanwhile, platforms like OUTFRONT Media offer a “Political Avoidance Network” for brands wanting to avoid political content altogether.

Influencing Voters and Consumers

Out-of-home advertising can also influence voter perceptions. A study by OAAA found that nearly half of voters find OOH political ads informative, and 56% trust them more than other media. Brands can leverage this trust to strengthen their connection with audiences during election season, positioning themselves as credible and culturally aware.