Local advertising is poised to surge 16.4%, from $113 billion in 2015 to $132 billion this year, according to a new forecast from Borrell Associates. Key drivers are a $5.5 billion injection from state and local election ads, and $17 billion in additional spending that local businesses are likely to dole out for digital media.
With TV ad spending on the GOP presidential race five times higher than at the same point four years ago, the unprecedented slugfest will make digital solutions a more attractive media option.
TV viewers in many contested states are likely to be exposed to 3,000+ political commercials in the 60 days preceding the 2016 election. And that has important repercussions for every advertiser. First, gaining share-of-voice in this cluttered environment “is going to be virtually impossible to achieve with every candidate trying to out-shout the other”. Secondly, the negative tone of political ads is shown to have a toxic effect on commercials from non-political advertisers. “When there’s 3, 4 or 5 political commercials in every television commercial break, it’s impossible for any advertiser to escape unscathed from this environment of negative mudslinging,”. Third, a commercial’s effectiveness is diminished when multiple competitors for the same office attack each other. All of which could make for a much stronger case to shift dollars to digital solutions. Already there are encouraging signs.
How Digital Can Benefit From TV’s Lack of Political Ad Effectiveness
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