Video Marketing – Some Stats

Despite what everyone says about political ads, they are not going to slow down anytime soon. The industry is expected to hit the $9.9 billion mark in 2020, about $3.6 billion more than the last presidential election when the figure was $6.3 billion.

However, it must be mentioned that we spend on political ads not only during presidential elections but also during congressional elections. This is why the figure saw a huge jump in 2018, reaching the $8.7 billion mark.

The Growth is Staggering

Source: WSJ

Here are some historical figures of political ad spending growth:

  • 2008 to 2012: $1.1 billion
  • 2012 to 2016: $2 billion

The amount is nearly double and experts are predicting it to increase at a similar pace and hit a new high in 2020 when the next election season arrives.

What Others Have to Say

Most experts agree that the growth was surprising. Brian Wieser, global president of business intelligence at GroupM, described it as “shockingly high.”

He further added,  “There’s just generally more activity in a presidential year than a non presidential year, so whatever the 2018 number was, 2020 was going to be bigger.”

Why Politicians Spend on Ads

Politicians spend on ads for a variety of reasons. Back in the day, they used ads only to build their image and spread the word. However, today they also use online ads to raise funds.

“Fundraising on the Internet is bigger than ever, and candidates have more reach into low dollars than ever before, and it results in more cash in the system,” said Kyle Roberts, the chief executive of media-measurement firm Advertising Analytics LLC.

Political Spending the Future

Political spending made up 2 percent of total digital ad spending in 2018. The amount is expected to reach $2.8 billion in 2020, totaling 2.2 percent of the total spending.

However, it must be mentioned that it is not only political ad spending that is increasing. Overall digital ad spending is increasing as well. But, it isn’t growing at the same rate as originally expected to (4 percent versus 5.3 percent).

You see digital ads everywhere, from mobile apps to YouTube videos to social media. Big companies like Google, Facebook, Amazon, and Netflix spend millions on digital ads. However, they’re not the only one contributing to the overall expenditure.

Small and growing companies also spend heavily on digital ads. Thanks to them, the total expenditure is $28 billion. The number is expected to hit the $33 billion mark this year, according to experts.

Wieser believes that “the overall economy, and by extension the advertising economy, has been running hot in 2017 and 2018 given the stimulus within the economy between tax cuts and heightened deficits. We would assume both economic growth and advertising growth should decelerate unless a new stimulus emerged.”

Political spending makes a large part of digital ad spending, which would decelerate without its support. But, where is political ad spending heading to? We’ll know in a few years.