Let’s Talk Politics POV

Goodway Group POV

Industry Insights Let’s Talk Politics PREPARED BY

Erin Killion Client Strategy Director at Goodway Group September 2022

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Goodway Group POV

Wondering how to navigate a political year when it comes to your digital marketing strategy?

We’ve got you covered.

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$10B

Political Year Insights

estimated amount that will be spent during this midterm cycle.

Advanced TV Wins the Popular Vote Video is the preferred format for political messaging due to its storytelling ability and emotional appeal. Campaigns are increasingly gravitating to Connected TV (CTV) and streaming platforms because ad placement there is more financially efficient than traditional broadcast TV, with voter groups and geographic areas more easily targeted. Online video is expected to be the primary format within digital, with CTV spend by political advertisers projected to hit $1.2 billion in 2022.

This is an ~8% increase in what was spent during the 2020 presidential election.

Targeting audiences in one of the 16 key battleground states? You’ll need to be extra prepared.

What This Means for Marketers While national buys won’t be impacted quite as much as local and state buys, we can expect inventory constraints and increased costs as we move closer to November 8th. Some site direct partners have seen significant ad dollars for political messaging. Hulu, for example, was a highly sought-after partner in 2020 and is expected to be a big player again during the midterm elections. Local advertisers should anticipate inventory constraints in the final two months across crucial battleground states, but national advertisers are unlikely to see much impact given the scale of these platforms. Flexibility in targeting, timing, or a combination of both can help to minimize the effects of competition with political messaging, particularly in video and CTV.

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Location, Location, Location Political ad spending impact will be felt the most in “battleground” states with multiple overlapping competitive races.

16 Key Battleground States To Watch

15–20%

(or more) increase in programmatic ad rates in the final 4-6 weeks leading up to the election – especially for CTV – in key battleground states.

Arizona California Florida Georgia

Illinois Maryland Michigan Minnesota

Nevada New Hampshire New York North Carolina

Ohio Pennsylvania Texas Wisconsin

In these key states, programmatic ad rates are expected to increase by 15%–20% (or more) in the final 4-6 weeks leading up to the election ­— especially for CTV. While many social platforms restrict or limit political advertising, marketers will see increased demand and rates on Meta’s family of apps due to their large scale, targeting capabilities and overall performance.

What This Means for Marketers Localized campaigns scheduled to run in these geographies will be impacted the most. National advertisers with broad targeting will likely not feel the effects at the same level but should still consider avoiding or reallocating campaigns running during the next 5–6 weeks if it’s not a priority. Consider the state’s size and the impact the political campaign spend will have in that geography. A $100 million spend in New Hampshire will be felt far greater than a $250+ million spend in New York.

If you’d like to keep the conversation going, reach out to us at info@goodwaygroup.com Goodway Group is a leading data-driven and technology-enabled digital media and marketing services firm with teams in the U.S. and the UK. Our diverse team of digital strategists, media practitioners, technologists and data scientists have won the most prestigious awards for innovative marketing technology, impactful work and inclusive remote-first places to work, including being honored as a multiyear winner in Ad Age Best Places to Work, AdExchanger’s Best Use of Technology by an Agency Award and two MarTech Breakthrough Awards.

The firm deploys deep expertise across both consumer and B2B marketing, including brand-performance advertising, retail media and commerce, and advanced analytics using proprietary digital programmatic technologies, data, analytics methodologies and consultation. Goodway Group is an independent and remotefirst media and marketing services firm with a 90+ year history. Goodway Group. Honestly Smart Digital

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