As the U.S. gears up for another election season, businesses are bracing for the impact it will have on their digital marketing efforts. With over nine years of experience in the digital marketing space, our agency has seen firsthand how election cycles can drive up advertising costs. While some advertising platforms may be more affected than others, it's crucial for businesses to understand where these impacts will occur and how to navigate them effectively. In this post, we'll delve into how the U.S. election will affect your ad campaigns, focusing on Google Search, Google Display, YouTube, and LinkedIn ads, and provide strategies for both B2B and B2C lead generation advertisers to thrive during this time.
Impact on Each Ad Format & Channels
Google/Microsoft Search
Google & Microsoft Search ads, being keyword intent-based, are expected to be less affected by the election-related advertising surge. This is because Google Search ads target users based on their specific search queries, meaning that someone searching for "buy a new furnace" will see ads relevant to furnaces, not political campaigns. The specificity and intent behind these searches help insulate Google Search ads from the broader impact of increased election ad spending.
Google Display, Demand Gen and YouTube Ads
During the 2020 U.S. election, CPCs (cost-per-click) for Google Display and YouTube ads saw substantial increases due to heightened competition. Political campaigns, with their substantial budgets, drove up the cost of advertising on these platforms. This year, we can expect a similar trend. According to Insider Intelligence, digital ad spending during election seasons can increase significantly, leading to higher CPCs and CPMs (cost per thousand impressions) on these platforms.
LinkedIn Ads
LinkedIn, primarily a B2B platform, will also be affected. Political campaigns often target specific professional groups with tailored messaging. For example, campaigns might target healthcare professionals, educators, or business leaders with ads that resonate with their professional concerns and interests. This increased competition for ad space will likely drive up the CPCs on LinkedIn, making it more expensive for businesses to reach their audiences during the election season.
Connected TV (CTV) Ads
Expect huge surges here. Whether it's Google TV, YouTube TV or Netflix ads through the Microsoft Ads network, this will be one area that will likely see huge surges in CPMs. Adjust accordingly.
Meta/Instagram Ads
Paid social platforms such as Meta (formerly Facebook) ads will experience a significant impact, with political campaigns increasing competition and driving up costs likely more than any other platform. Political campaigns' extensive use of audience-based targeting on these platforms will create a highly competitive environment, leading to increased advertising costs.
When Will Increased Costs Be Seen The Most?
The six weeks leading up to the election are particularly critical. With the 2024 election scheduled for November 5th, advertisers should be prepared for heightened competition and increased costs during this period. Political campaigns ramp up their advertising efforts, leading to a surge in demand for ad space and driving up CPCs across various platforms.
Strategies for B2B and B2C Lead Generation Advertisers
Given the expected increase in competition and costs, here are three strategies that B2B and B2C lead generation advertisers can use to thrive during this election season:
1. Plan Your Audiences Wisely
Utilize custom audiences and more granular audience targeting to optimize your ad spend. By identifying and focusing on lower-cost, higher-return audiences, you can reallocate your budget to maximize ROAS (Return on Ad Spend). Custom audiences allow you to target specific user segments based on their interactions with your business, making your campaigns more efficient and effective.
2. Flexible Ad Spend Strategy
It's crucial to anticipate and plan for increased advertising costs during the election season. Allocate your budget strategically, considering the expected rise in CPCs and CPMs. One effective approach is to move ad spend between battleground and non-battleground states as needed. In battleground states, we anticipate spikes in CPCs of over 50% due to the intense competition. In non-battleground states, more moderate spikes of up to 20% can be expected. Monitor your campaigns closely and be prepared to adjust your spending to maintain efficiency. By budgeting wisely, you can ensure that your marketing efforts remain sustainable and effective, even in a competitive landscape.
3. Build Tailored Messages for Each Audience
Creating tailored messages for different audience segments can help overcome user ad fatigue that often happens during this window. Develop personalized ad creatives that speak directly to the interests and needs of each audience group. This isn’t any different from how you would approach your overall strategy during non-election periods, but during this window it will become increasingly more important to create engagement considering the higher costs.
Conclusion
Flexibility and the capacity to swiftly adjust strategies in response to a shifting advertising landscape are paramount. This election, like past elections, will demand a thorough reassessment of marketing tactics. By planning your audiences wisely, implementing a flexible ad spend strategy, and building tailored messages for each audience, B2B and B2C lead generation advertisers can navigate this challenging period successfully.
By understanding these dynamics and implementing strategic measures, your business can continue to thrive, even amidst the competitive landscape of an election season.