AFTER A LONG COURTSHIP, DC AND AD TECH ARE GETTING SERIOUS

By Collective August 20, 2015

Eyebrows and heart rates went up in 2012 when political ad spending across digital media surpassed $150 million.

Analysts are shocked that campaigns and super PACs are projected to spend only $1.1 billion in 2016. The media research firm Borrell Associates released a report on Tuesday that demonstrates the gradual embrace of digital marketing methods by political groups, and the budgets that will be in play during the next cycle.

For all the touted progress about ad tech companies integrating with DC, consider that Borrell expects digital media spending to closely rival telemarketing in 2016, but to potentially surpass TV by 2020.

Local

Local expenditures are the “invisible force” for political ad spenders, according to Corey Elliott, Borrell’s research director. The most high-profile campaigns – for president, senator or governor – represent a combined 0.5% of all electoral contests to be held in November 2016. About 29,000 races will be for school boards, county commissions and city councils, and while the amount needed for a local or city campaign is only $62,000 (compared to a US Senate candidate, who must raise almost $4 million to remain competitive), “those add up fast,” said Elliott.

Local campaigns will account for 40% of all political ad dollars, but the fractured nature of that spending undercuts its value for digital tech companies. “Historically, very little money has been spent on digital in these types of races,” said Eli Kaplan, co-founder of the liberal digital agency Rising Tide Interactive. Kaplan said this practice is “bizarre,” since the “weirdly drawn” districts and city lines that characterize local races are ideal for digital’s geofencing and targeting capabilities…

Read more on how this affects spend in TV/Digital and Social