The US election season is here, and with it comes an unprecedented spike in ad spending. In just the last week, nearly $1 billion has been poured into political advertising, particularly on digital and TV platforms. This wave of political ads isn’t just setting records—it’s creating a ripple effect in advertising, affecting everything from ad costs to campaign visibility. For small businesses and brands gearing up for Black Friday, the timing of this surge presents unique challenges and opportunities in how they should approach their ad strategies.
The Rise in Election Ad Spending
Political advertisers have flooded the market, particularly on platforms like Google, Meta, and various streaming services. This surge, fueled by high-stakes midterm elections, has intensified competition for ad placements. According to CNBC, the concentration of ad dollars is especially heavy in key battleground states and spans across TV, digital, and streaming services. The result? A noticeable increase in CPM (cost per thousand impressions) and a scarcity of prime ad inventory that’s pushing smaller brands to rethink their approach.
The Impact on CPM and Digital Ad Costs
The influx of political advertising has caused CPM rates to soar, particularly on social media and video platforms. eMarketer reports that this ad spending spike has pushed CPM prices higher than usual, which means that brands now face more significant financial pressure to reach audiences effectively. Smaller businesses, often working with tighter budgets, feel this impact the most. While larger corporations can afford to increase their ad spend, smaller businesses may find themselves priced out of certain placements or unable to sustain the competitive bids necessary to secure top spots.
How Black Friday Campaigns Are Adapting
For marketers preparing for Black Friday, the increased competition and costs associated with the election season are forcing a strategic pivot. Instead of relying solely on expensive ad channels, brands are focusing on maximizing their ad spend’s efficiency. Here’s how some businesses are adapting:
Shifting to Lower-Cost Platforms
Rather than competing directly with political ads on high-traffic platforms, some brands are diverting their budget to lower-cost channels. Email marketing, SMS campaigns, and influencer partnerships on niche social networks are becoming attractive alternatives, allowing brands to reach audiences without breaking the bank.
Rethinking Timing
To avoid competing with political ads, many brands are choosing to adjust the timing of their Black Friday campaigns. Launching promotions earlier or extending sales into December are popular approaches this year, allowing businesses to bypass the most intense ad congestion.
Optimising Organic Reach
With paid ads proving expensive, brands are investing in organic reach strategies, such as SEO, content marketing, and social media engagement. By building organic engagement and customer loyalty, brands can maintain visibility without relying solely on high-cost ad placements.
Targeting Local Markets
Political ad spending tends to focus on key swing states, making certain areas more competitive than others. Smaller brands, especially those that operate regionally, can benefit by targeting less politically saturated areas where ad costs are comparatively lower.
Implications for Small Businesses
For small businesses, this election ad surge presents both risks and opportunities. The key challenges lie in rising ad costs and limited ad inventory, which can reduce their visibility at a crucial time of year. However, small businesses also have an advantage in their agility and ability to pivot quickly. By experimenting with alternative channels and focusing on community engagement, small businesses can still connect with their audience and build excitement for their Black Friday offers.
What Lies Ahead for Digital Advertising Post-Election
After the election, political ad spending will ease, potentially leading to a drop in CPM and opening up more ad inventory. This shift will likely come just as the holiday shopping season kicks into high gear, creating a more favorable environment for brands looking to ramp up their campaigns in the lead-up to Christmas.
Until then, brands—especially small businesses—can best navigate this competitive landscape by adapting their strategies, experimenting with new platforms, and maintaining a flexible approach to ad spend. By doing so, they can make the most of their ad budgets while staying competitive amid a heated election season.
While the US election season has created a more challenging advertising climate, it’s also driving innovation and strategic thinking among brands. With the right adjustments, small businesses can still succeed in reaching customers, even in a highly competitive market. The key is to stay flexible, explore alternative channels, and focus on building genuine connections with their audiences as the holiday shopping season unfolds.
