Elections & eCommerce: Staying Ahead When Ad Space Shrinks
Election years can be turbulent for marketers and businesses, especially with presidential races where ad space is fiercely contested. While there's no conclusive evidence that election years lead to a drop in eCommerce sales, the political noise significantly impacts advertising strategies and costs, making it harder for brands to cut through the noise.
Why You See Fewer Ads from Brands You Love
One of the biggest challenges during an election year is competition for ad space. With political campaigns pouring billions into advertising, brands face limited options for visibility. When there are only a few prime spots available for ads, political campaigns often monopolize them and end up pushing brands out. This results in fewer ads from your favorite brands, as political ads dominate channels, especially in key swing states.
Consumer Sentiment During Election Years
While retail sales don't always drop dramatically in election years, historical trends suggest fluctuations in consumer sentiment, particularly leading up to and after the election. Major elections tend to cause pre-election optimism, but post-election periods can see dips in spending, which typically recover around BFCM.
Some examples of previous election cycles:
- 2000 and 2004: Pre-election optimism was followed by slight dips post-election, but holiday sales bounced back.
- 2008: The financial crisis worsened election-related dips.
- 2016 and 2020: A post-election dip in online sales was notable, but strong holiday shopping still followed.
It seems bigger ticket items, like cars or electronics, tend to be more affected by election-year jitters; while smaller, everyday purchases are less impacted.
Ad Costs and Competition: Brands vs. Campaigns
Ad costs increase sharply during election years, with competition for digital and traditional ad space becoming more intense. Brands must adjust their marketing strategies, which may mean shifting away from high-cost media channels, such as CTV or social platforms that see an influx of political discourse. Many brands choose to reallocate ad budgets, focusing on less politically saturated channels or adjusting the timing of their campaigns.
In 2024, political campaigns are expected to spend around $16 billion on advertising, so marketers should plan around this influx. Flexibility is key, whether through adjusting budgets or optimizing campaign schedules to avoid the 30-day window leading up to the election when half of political ad spending takes place.
The Impact on Email Marketing
Political campaigns heavily rely on email marketing, flooding inboxes with campaign ads and fundraising requests. This can lead to "email fatigue," where audiences tune out all email communication, including brand messages. Email marketing expert Jay Schwedelson noted a significant drop in click-through rates and engagement in the month leading up to previous elections.
Brands will be wise to consider pausing or rethinking email marketing efforts during this period, or at least be mindful of the competition for inbox attention.
How to Navigate Marketing During an Election Year
Here are a few ways to adjust your marketing strategies during the 2024 election cycle:
- Revisit your calendar: Consider shifting campaigns or product launches to avoid the political ad deluge.
- Reconsider ad placement and channels: Focus on platforms less saturated by political content, such as LinkedIn, which doesn't allow political ads.
- Target familiar audiences: Instead of focusing on new customer acquisition, prioritize existing customers and highly targeted campaigns.
- Be mindful of polarizing content: Brands should avoid positioning themselves in politically charged environments, which could risk alienating audiences or unintentionally taking a stance.
In an election year like 2024, brands must stay nimble and prioritize clear, value-driven messages to stay connected with their audiences amid the political noise.