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Sunday, February 9, 2025

Cord Cutters Face Election Overload: Are Campaigns Hijacking Your Streaming Services?

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Political Ads Are Taking Over Streaming Services, As Campaigns Shift Spending Away From Facebook, Google

Consumers who have abandoned traditional cable in favor of streaming services may be surprised to discover that they can’t escape the barrage of political ads. The 2024 U.S. presidential election is just around the corner, and campaigns are aggressively targeting connected TVs (CTV) platforms like Roku and Hulu, leading to a surge in ad spending on these platforms that surpasses even the giants of digital advertising, Facebook and Google.

Key Takeaways:

  • Streaming TV is the new frontier for political advertising: CTV ad spending is projected to reach $1.4 billion in the 2024 election cycle, exceeding spending on digital platforms like Facebook and Google.
  • Traditional TV broadcast is declining: Political ad spending on broadcast TV dropped significantly compared to 2020, showcasing the rapid shift towards streaming platforms.
  • The election ad blitz is just getting started: With Labor Day approaching, expect a flood of political ads on CTV as campaigns amp up their spending in the crucial months leading up to the election.
  • Swing states are a prime target: Georgia, with its 16 electoral votes, is a key battleground, and both campaigns are aggressively securing ad space on streaming platforms and traditional broadcast television.

The Rise of CTV in Political Advertising

Data from political ad analytics firm AdImpact reveals a seismic shift in campaign spending strategies. AdImpact projects that CTV will account for nearly 14% of total political ad spending in the 2024 election cycle, a substantial increase from the mere 2.7% share it held in 2020. Jaime Vasil Winkelfoos, group vice president of candidates and causes at Basis Technologies, highlights the importance of engagement for political campaigns. "CTV is where there is more engagement," she states. "When voters say they are watching TV, they don’t say ‘I’m watching broadcast.’"

This shift is driven by several factors. Streaming services have become increasingly popular, offering a diverse range of content to consumers. Furthermore, the emergence of ad-supported plans on platforms like Netflix has opened up new avenues for advertising. While Netflix currently does not accept political ads, other platforms are welcoming campaigns with open arms, capitalizing on the growing advertising inventory.

The Decline of Facebook and Google

While CTV is experiencing a boom, political ad spending on Facebook and Google has taken a significant hit compared to the 2020 election. The total spending on these platforms is estimated to be less than half of what it was in 2020. One key factor contributing to this decline is the significant spending by Mike Bloomberg during the 2020 Democratic primary. Bloomberg’s hefty investment in digital advertising benefited Meta and Google immensely. This year, the lack of a similar scenario has resulted in reduced spending on these platforms.

Eric Haggstrom, vice president of business intelligence at Advertiser Perceptions, emphasizes the impact of Bloomberg’s spending on digital platforms. "That flowed to direct ads and it benefited Meta and Google specifically," he explains.

The Post-Labor Day Ad Blitz

The ad spending frenzy is about to intensify in the coming weeks. The period following Labor Day is usually a time when campaigns pour resources into advertising to reach potential voters. Robin Porter, head of political for LoopMe, highlights the significant increase in spending after Labor Day, with 60% to 70% of total spending typically occurring during this time.

The Vice President Kamala Harris campaign has already signaled its intent to dominate the ad landscape, announcing plans to spend $370 million in a fall advertising blitz. This includes $200 million set aside for ad space on streaming platforms like Hulu, Roku, and Pandora, demonstrating the growing importance of CTV in reaching voters.

Porter acknowledges the trend of upfront spending on CTV. "There is more upfront spend, especially in CTV, to secure the inventory upfront, even compared to 2022," he remarks.

Swing States Take Center Stage

The race for electoral votes is heating up, and key swing states like Georgia are witnessing an intense scramble for ad space. Both presidential campaigns are actively securing advertising slots on both CTV and traditional broadcast television in Georgia, a state with 16 electoral votes and considered a critical battleground for the election.

A New Era of Political Advertising

This election cycle demonstrates the significant shift away from traditional media and the growing influence of streaming services in political advertising. The CTV landscape is evolving rapidly, presenting new opportunities for campaigns to reach voters. As the election approaches, expect to see a continued surge in spending on these platforms, coupled with a decrease in spending on digital platforms like Facebook and Google. The battle for the hearts and minds of voters is now being fought on the screens of connected TVs.

Article Reference

Amanda Turner
Amanda Turner
Amanda Turner curates and reports on the day's top headlines, ensuring readers are always informed.

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