Ecommerce Playbook: Numbers, Struggles & Growth
The Impact of Political Spending on DTC: July State of the Industry Podcast
Aug 20, 2024
Join industry experts Jeremiah, Yarden, and Steve as they dissect the effects of political spending on DTC businesses. They explore how the upcoming election could shift advertising costs and alter consumer behavior. The discussion includes a look at historical data from the 2020 election, comparing trends and analyzing July's e-commerce performance. Key insights reveal the impact of political advertising on revenue growth and campaign effectiveness, plus strategies for navigating the complexities of this election year.
39:49
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Quick takeaways
- Political spending during election periods significantly increases advertising costs for DTC brands, necessitating strategic adaptations in their marketing efforts.
- Consumer behavior is impacted by political ads, leading to potential declines in e-commerce purchasing and highlighting the need for timing in advertising strategies.
Deep dives
Impact of Political Spending on E-commerce
The episode examines the implications of political spending on e-commerce businesses, particularly as the United States approaches a presidential election. It highlights the historical trend where significant advertising dollars are allocated during the election period, often leading to increased CPMs, which can affect advertising costs for e-commerce brands. The discussion indicates that in prior election years, the last 90 days before the election saw a dramatic rise in ad spending, with a significant portion of the annual budget being utilized in this timeframe. This spike in political advertising can lead to competition for ad space and subsequently impact the effectiveness of advertising for brands focused on e-commerce.
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