WARNING: Election Week Could Sink Your Ad Performance!
Oct 31, 2024
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Dive into the eerie effects of Election Week on ad campaigns! Discover how political spending can shift CPMs and reduce conversions, especially in crucial swing states. Learn strategies to maintain ad performance while navigating this turbulent time. The hosts share valuable insights on preparing for revenue rebounds post-election and optimizing campaigns for shopping events like Black Friday and Cyber Monday. Don’t panic—get the tips you need to keep your ads on track amidst the chaos!
Election Week often leads to decreased ad performance due to political spending, significantly impacting e-commerce advertising strategies.
Advertisers should remain persistent post-election, as historical patterns indicate a rebound in performance alongside the holiday shopping surge.
Deep dives
Impact of Political Advertising on Digital Spending
The upcoming election week is expected to create significant disruptions in digital advertising, particularly due to a spike in political ad spending. It was noted that the week of the election in past cycles has shown a notable decline in performance metrics, such as a 20% drop in new customer revenue reported in 2020. This trend indicates that consumer attention shifts away from commercial activities as they focus on political content, evidenced by large-scale rallies and increased media coverage around candidates. As a result, advertisers in the e-commerce sector should be prepared for a similar effect this election cycle, with a recommendation to manage expectations accordingly.
Strategies for Swing States and Ad Spend
Advertisers are advised to pay close attention to spending patterns, especially in swing states where political advertising is intensifying. Data revealed that ad spending on platforms like Meta and Google has increased significantly in these regions, with spending almost tripling per eligible voter in certain areas. This concentrated spending can lead to decreased visibility for non-political ads, thus impacting overall performance. Additionally, while some suggest excluding swing states from ad strategies, it may be more beneficial to let algorithms optimize delivery rather than making arbitrary cuts.
Post-Election Recovery and Consumer Behavior
Following the election, there is optimism that performance metrics will rebound, especially with the approach of Black Friday and Cyber Monday. Advertisers are encouraged to maintain their presence and not significantly alter their strategies based on temporary lulls in performance. Historical patterns suggest that revenue is often redistributed rather than lost, meaning that advertisers can expect a normalization of shopping behaviors after the elections. Therefore, advertisers should treat the period immediately after the election as a crucial setup for the holiday season rather than a downturn, capitalizing on consumer eagerness to spend.
In this special Halloween episode Taylor and host Richard dive into the spooky truth behind Election Week’s impact on ad campaigns. With an unprecedented wave of political spending flooding digital platforms, advertisers need to prepare for shifting CPMs, reduced conversions, and increased competition—especially in swing states.
From understanding the effects on Meta and Google ads to insights on how to handle performance dips, we’ve got the data and strategies to help you weather the storm. Don’t panic! Taylor and Richard walk through what to expect, how to adapt, and why staying the course is critical for keeping your ads on track as we approach Black Friday and Cyber Monday.
Show Notes:
The Ecommerce Playbook mailbag is open — email us at podcast@commonthreadco.com to ask us any questions you might have about the world of ecomm
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