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BORRELL ASSOCIATES REPORTe In 2016 Online Political Ad Spend Seen
Total online political ad spending is projected to soar to almost a billion dollars in 2016 U.S. political races that are expected to generate more than $12 billion for all contests — almost $51 for every qualified voter — according to a report released today by Borrell Associates. Philip Jay LeNoble, Ph.D. of Littleton, CO says that TV and radio station management should endeavor to keep local clients happy during business spike periods and not depend on political revenue to supersede local business as it may imperil future local direct revenue streams.
By Michael Depp
Total online political ad spending is projected to soar to almost a billion dollars in 2016 U.S. political races that are expected to generate more than $12 billion for all contests — almost $51 for every qualified voter — according to a report released today by Borrell Associates.
The expected dramatic growth of online ad spending — almost 500% from 2012 — is tracked and explained in Political Advertising Outlook: 2014 and Beyond.
Digital media still would account for less than 8% of all political advertising, the report says, but the way political advertising money is spent will change dramatically in 2016, affecting every level of spending – from very local to presidential runs.Kip Cassino, Borrell EVP and author of the report, says that “if you look at previous years, [political online ad spending] has jumped levels of magnitude through every cycle.
“The reason is because people are growing more used to the capabilities of online in the campaign,” Cassino says. “Until now, only a few campaigns have made any real inventive use of online in their marketing, and one of them was the Obama campaign.”
The Obama campaign’s efficacy is “beginning to rub off,” he notes.
Cable and online are the only media choices projected to gain share in political ad spending this year, the report says, with two factors underpinning the cable growth:
Most of the digital activity at this point in the election cycle now, the report says, is expected to continue to be done by the digital marketing managers working within the campaigns, managing social media and email communications directly with the electorate.
But, drilling down into how the dollars will be spent in online advertising, the report says, “This year, political ads on social media will capture as much as half of what’s spent, according to Michael Bassik, one of the nation’s foremost experts on digital political advertising and president of global digital operations for MDC Partners in New York City.”
Cassino says advertising is now moving beyond search.
“Now we’re getting into actually targeting people by their affinities, using social and targeted display,” he said. “The other catalyst that is really driving this is the availability of mobile devices and the ability to get to votes through that device.”
Cassino sees more than half of the dollars going to mobile.
Who will be the winners?
“Facebook has been very aggressive about hiring staff that know how to talk to the politicians and use Facebook in campaign efforts,” Cassino notes. “Certainly for video, you have to look at YouTube.”
And, what should local media glean from this report?
“They had better be able to offer online and specifically mobile and video alternatives to what they’ve been offering. It’s not just going to be TV and posters anymore,” he says.
The expected dramatic growth of online ad spending — almost 500% from 2012 — is tracked and explained in Political Advertising Outlook: 2014 and Beyond.
“The reason is because people are growing more used to the capabilities of online in the campaign,” Cassino says. “Until now, only a few campaigns have made any real inventive use of online in their marketing, and one of them was the Obama campaign.”
The Obama campaign’s efficacy is “beginning to rub off,” he notes.
- Price as local and state-centric campaigns try to get more for their money by using cheaper cable alternatives to broadcast, aided by the rise in cable viewership, especially during prime time
- Cable’s ability to target specific demographic population segments through its variety of programming is enormous
Most of the digital activity at this point in the election cycle now, the report says, is expected to continue to be done by the digital marketing managers working within the campaigns, managing social media and email communications directly with the electorate.
But, drilling down into how the dollars will be spent in online advertising, the report says, “This year, political ads on social media will capture as much as half of what’s spent, according to Michael Bassik, one of the nation’s foremost experts on digital political advertising and president of global digital operations for MDC Partners in New York City.”
Cassino says advertising is now moving beyond search.
“Now we’re getting into actually targeting people by their affinities, using social and targeted display,” he said. “The other catalyst that is really driving this is the availability of mobile devices and the ability to get to votes through that device.”
Cassino sees more than half of the dollars going to mobile.
Who will be the winners?
“Facebook has been very aggressive about hiring staff that know how to talk to the politicians and use Facebook in campaign efforts,” Cassino notes. “Certainly for video, you have to look at YouTube.”
And, what should local media glean from this report?
“They had better be able to offer online and specifically mobile and video alternatives to what they’ve been offering. It’s not just going to be TV and posters anymore,” he says.
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