Tuesday, April 5, 2016

Digital, Radio Push Up Political Ad Spend Prediction

The 2016 election is going to be even more expensive than expected for campaigns and causes, according to the latest update by ad spending monitor Borrell Associates. Borrell boosted its political ad spending estimates by 3.1% in March, raising spending for the year by $357 million, to a projected total of $11.7 billion before Americans go to the polls on November 8. Surprisingly, the upward revision in expected ad spending is not coming from the presidential race, where spending projections were actually lowered by 1.7% thanks to GOP candidate Donald Trump's unprecedented use of "earned media." The report notes that for every dollar the Trump campaign has spent, it has received $189.80 in free media coverage, way above Hillary Clinton's $26.60 in free coverage for every dollar spent. The presidential race still leads ad spending, but state assemblies, local offices and local ballot issues are a close second, expected to contribute just over $1.7 billion each. The media distribution of ad budget growth is shifting, however. With broadcast TV inventory clogged by campaigns and PACs, half of the increased political ad spending will go to digital and radio, and local media in general, per the report. Meanwhile, direct mail and telemarketing spending are also seen grow as part of the "ground game" to recruit new voters. Based on current trends, Borrell foresees a very different political ad landscape by 2020, with a decline in broadcast TV spending and growth in digital outreach. To download the "2016 U.S. Political Ad Spending Update" with state-by-state estimates and breakouts of spending by races for President, Senate, House, Governor, Attorney General, State Assemblies, county/local elections and ballot issues, go to https://www.borrellassociates.com/industry-papers/papers/2016-u-s-political-ad-spending-update-march-16-detail

No comments:

Post a Comment