Political ad spending in the U.S. is on the rise as the 2024 election approaches, with a noticeable increase in the use of connected TV (CTV) to reach swing voters. CTV has gained popularity, especially in local and statewide elections, which account for the bulk of U.S. political advertising.
This trend is expected to continue as the presidential race between former President Donald Trump and presumed Democratic nominee Vice President Kamala Harris heats up. Industry experts predict that spending will surge in the coming months.
As of August 2024, spending has already surpassed levels seen during the 2020 election cycle. MediaRadar reports that presidential campaigns and their allies had spent $385 million by early August, with an additional $322 million in planned ad buys. Democrats have outspent Republicans so far.
Data from Operative STAQ indicates a 35% increase in political ad spend during the second quarter of 2024 compared to the same period in 2020, with significant contributions from conservative political action committees like Americans for Prosperity.
Major news organizations have seen a boost in revenue due to political ad spending, with The Washington Post recording its best commercial week of the year after President Joe Biden stepped aside from the race.
Gannett, which owns USA Today and local newspapers, has also experienced an increase in political ad buys earlier than expected. Spending typically ramps up closer to election day, but recent developments have accelerated the process, particularly with the Republican and Democratic conventions now over.
CTV is emerging as a critical platform for political advertising. More campaigns are turning to digital channels for ad spending, with CTV gaining a larger share. MediaRadar reported that 10.5% of all 2024 presidential ad spending went toward digital channels, and this could rise significantly as CTV attracts more attention.
This is partly due to the increased inventory in CTV since the last election and improvements in targeting and measurement that make it a more efficient media buy compared to traditional TV.
In down-ballot races, CTV is becoming a favored method for reaching local voters. Some ad tech vendors offer tools that allow campaigns to geo-target specific political districts, making it easier for local and statewide campaigns to reach their target audiences.
Agencies like SKDK are adjusting their media budgets, accordingly, sometimes spending up to 80% on CTV depending on the race and media market. This shift is helping campaigns to maximize their reach and spending efficiency in key areas.
As the election nears, more political ad spending will likely shift to CTV, particularly in the final months. The Trade Desk estimated that 65% of total political ad spending would occur during the last eight to 10 weeks of the campaign.
The efficiency and targeting capabilities of CTV make it a valuable tool for political advertisers, allowing them to reach households more effectively than traditional TV. This mirrors broader trends in advertising as more viewers shift to connected devices, and political campaigns are starting to catch up to the CTV opportunity already embraced by brands.
