Sanders Is Surprise Leader in Ad Agency Spending

Presidential hopefuls are spending millions on TV ads, direct mail, digital ads, social media and data analytics. But the agency big spender may surprise you: Old Towne Media is the agency that has scored the most campaign cash--thanks to the Democrat's anti-establishment candidate Bernie Sanders. In fact, according to a mid-February analysis by Advertising Age magazine, the Sanders campaign has been more generous with agencies than his rivals, spending $10.6 million with Olde Towne Media, an agency focused on TV ads; $5.6 million with Revolution Messaging, a digital consulting and advertising agency; and $2.9 million with Tigereye Promotions for campaign paraphernalia and merchandising. Sanders' agency spending beat rival Hillary Clinton's outlay; her top three agency investments have been $8.7 million with TV-focused media agency GMMB, $1.8 million to Bully Pulpit Interactive for digital, and $1.05 million for direct marketing with Chapman Cubine Adams & Hussey. Bernie also whips GOP party outsider Ted Cruz's agency investment. Cruz sent $3.2 million to Cambridge Analytica, a data analytics and digital media firm; $2 million to Campaign Solutions, a digital agency; and $1.9 million to The Lukens Co., a direct marketing firm. Marco Rubio, the latest GOP establishment hope, has only one agency scoring over a million dollars: Smart Media Group, a media agency, scooped up $8.6 million from the Rubio campaign. However, the Ad Age story isn't including spending by PACs, target of Sanders' ire. Plus, GOP front-runner Donald Trump, who has coasted on "earned media" coverage and finally aired a TV ad in January, isn't included in the article. Still, looking at primary vote forecasts, it's a good bet many of these agencies will soon lose their political gravy train. For more on candidates' agency spending, read http://adage.com/article/campaign-trail/towne-media-topped-election-agency-spending-2015/302680/

Political Ads Scramble for TV Time, Winning Formula

The TV ad battles in the 2016 political race are heating up, reports The New York Times, and we haven't even reached the primaries. At the same time, candidates and their super PACs are still struggling to find a formula that will translate ad dollars into votes. In 2015, candidates and their allies already spent nearly $100 million on political advertising, including $72 million in Iowa and New Hampshire alone, Kantar Media/CMAG estimated for the NYT story. Now campaigns are feverishly grabbing for TV ad space ahead of the primaries, and negative attack ads are on the rise. “We’re getting down to the firing-squad part of the campaign,” Larry McCarthy, the strategist making ads for Right to Rise, the super PAC supporting Jeb Bush, told the NYT. Yet the biggest spenders, such as the Bush PACs, have reaped only scant improvement in the polls for their efforts. Factors include a changed TV ad landscape thanks to media-master Donald Trump, who has generated hundreds of millions of dollars of free TV time from news coverage and debates, and a failure to break through with distinct content to the target audiences, say analysts. When Right to Rise (Bush PAC), New Day for America (Kasich PAC) and America Leads (Christie PAC), which spent an estimated $26.4 million combined in New Hampshire in 2015, all air an ad focused on Islamic terrorism, no one candidate stands out for voters. As candidates start to recast tactics and budgets (and Trump launches his first paid TV ads), 2015 TV spending is likely to be dwarfed, opined Ken Goldstein, a University of San Francisco professor of politics tracking advertising: “It seems like that was a bunch of money this fall, but that was just the sorbet before the main course. That wasn’t even the appetizer.” To see a current sampling of political TV ad messages, go to the NYT story: http://www.nytimes.com/2016/01/08/us/politics/ad-wars-of-2016-campaign-erupt-in-a-changing-tv-arena.html

Where's the Bang for Political Consulting Bucks?

Candidates pouring money into the coffers of political consultants, especially for TV ads, aren't getting much bang for their bucks so far in this election cycle. In fact, a December 2015 New York Times piece by Adam Sheingate, chairman of the Johns Hopkins University political science department, looked at 2016 presidential hopefuls' spending on political consulting firms and noted an often inverse relationship between dollar outlays and poll rankings. For example, Jeb Bush has spent over $50 million to date with a handful of political consulting firms (mainly for TV ads) to earn 3% support in recent CNN/ORC polls, while Donald Trump spent just $1.2 million in the same period to earn a 39% support position in the polls. A ranking of 10 Republican candidates by consultant spending through the end of 2015 has Bush in the lead, with Carson coming in second (for 10% poll support) and Christie in third place for 5% poll results. (Poll leader Trump ranks ninth in spending out of 10.) On the Democratic side, front-runner Hillary Clinton spent the most on consultants at about $18.5 million in 2015--spread evenly over TV, digital media, direct mail/fundraising and polling--but it has earned her higher poll numbers than Bernie Sanders with his $4.9 million consultant outlay. Thanks mainly to media ad costs, 2016 is on track to outdo 2012 in terms of political consulting spending. In 2012, consultants billed federal candidates, parties and super PACs more than $3.6 billion for products and services, Sheingate notes, with 70% of that amount going to firms specializing in the production and placement of media (mainly TV). As of December 10, 2015, candidates and their affiliated super PACs have already spent more than $163 million on consulting services, compared with just $43 million spent on consulting at the same point in 2012 campaigns. By the way, $45 million of 2015's $163 million is accounted for by Jeb Bush's media (TV) dollars, point out Sheingate. For more detail on spending by candidate and promotional channel, see http://www.nytimes.com/2015/12/30/opinion/campaign-stops/the-political-consultant-racket.html?_r=0