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Politicians Increase Digital Ad Budgets for Midterms

Politicians and various organizations are estimated to have spent $900 million for digital advertising during the midterm election cycle, up 260% from the 2014 midterm.

At the same time, some campaigns have embraced the latest technologies, including geofencing. Among other functions, geofencing allows for voters in polling lines to be targeted with advertisements.

In a related matter, Facebook’s efforts to improve transparency are providing additional insights into the involvement of businesses in the political process.

Digital advertising has soared, in part, because of highly competitive races, a more radicalized political environment and concerns over gerrymandering, reports Axios. Those concerns have driven an increase in campaign donations, which in turn has resulted in increased spending on digital advertising.

Among other factors, digital advertising also increased because it is an affordable channel for reaching voters. According to Axios, a study by New York University determined that average cost per impression for political advertisements is $.007 on Facebook, $.005 on Google and $.015 on Twitter. 

Growth of political advertising is also being driven by improvements in voter data. After the 2012 elections, The Koch brothers, who are well known for their advocacy of conservative causes, reportedly committed millions of dollars to developing i360, which is considered to be a state of the art platform, reports The Financial Times.

Democratic advocates, for their part, have started Higher Ground Labs, which is an incubator for start-up tech companies. Higher Ground Labs companies include firms that are involved in using data to profile voters and donors.

In addition to being able to pitch highly target advertisements based on individuals’ specific interests, digital marketing is also allowing politicians to reach voters who are waiting in lines at polls. Campaign laws prevent politicians from using traditional advertising at polling locations, but the regulations place no restrictions on advertisements that may appear on individuals’ mobile phones, reports Crain’s Detroit Business.

The technology for targeting voters at polling places with digital advertisements has already been used for other purposes. For example, restaurants can target individuals’ activities. When geographic data shows that a family goes out for dinner every Friday night, marketers can send the diners coupons for a restaurant that are only valid on that weeknight.

In the political realm, geofencing is being used for more than targeting voters at polling locations. In one example, Republicans have used geofencing to capture data on conservative evangelicals during megachurch services. The data is then combined with additional information on the worshippers to create, and then distribute, promotional messages regarding Republicans’ conservative stances on social issues.

Other examples include targeting individuals at industry conferences and then sending out advertisements about a politician’s advocacy of the industry.

Observers of political campaigns, meanwhile, are gaining additional insights into digital marketing by accessing Facebook’s new “Ad Archive Report,” which is a searchable advertising database, reports France24.

The archive displays images of advertisements and provides related information, such as how much was paid for each advertisement and how many impressions were displayed. It also provides status information. In one example, an advertisement promoting an event that celebrates male members of a local church was removed by Facebook because it was deemed to be political and didn’t specify who was paying to display the content.

France24 reports that the database shows that businesses and other entities have spent $256.4 million on political advertisements on Facebook since May to encourage individuals to vote and to influence voting. ExxonMobil, which has spent $2.1 million, is the second-largest advertiser with online petition provider Care2.com being the largest.

Among other initiatives, ExxonMobil advertisements urged voters in Colorado to reject a proposal that would increase required distances of fracking wells from homes, schools and water supplies. The proposal was rejected, according to Vox

Ben & Jerry's, which is part of Unilever Plc, has been another large advertiser, spending approximately $401,000. One of its campaigns supported a Florida ballot measure that would let felons vote. The measured passed, according to the Miami Herald

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