POLITICAL ADVERTISING

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1 POLITICAL ADVERTISING Informing Local Campaign Strategy V01 MARCH COMCAST SPOTLIGHT. ALL RIGHTS RESERVED.

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4 AD SPENDING ON THE RISE For the first time ever, digital advertising will exceed $1.8 billion in 2018 across national and local races as campaigns look to reach voters at a more personal level. 1 Social media is expected to account for more than $1 billion of that total, despite the recent headlines. 1 That said, TV will retain the lion s share of all political dollars, with an estimated $4.3 billion. 1 Cable s slice of the TV pie will see a 70% jump over the last midterm election in 2014, the only platform in addition to digital to project growth from 14 vs More than half of all political advertising in 2018 will come from PACs and special interest groups registered at the state or local level. 1 In 2016, cable TV saw a 52% increase in ad revenue over Cable s share grew by 14% while broadcast TV saw a decline of nearly 20%. 2 Other increases in 2016 were on more traditional platforms like direct mail and telemarketing. 2 But to win your local election, you don t need to spend big, you just need to spend smart. FAST FACTS $8.5B 2.5% 52% 789% Estimated spend on all political ads in Increase TV ads will see over the last midterm in Increase cable ads saw in 2016 vs Increase digital ads saw in 2016 vs Source: FEC, The Cook Political Report, The Rothenberg Political Report, Larry Sabato s Crystal Ball, Center for Responsive Politics, Ballotpedia, Borrell Associates Borrell Associates Inc., The final analysis: What Happened to Political Advertising in 2016 (and Forever) 4 POLITICAL ADVERTISING - INFORMING LOCAL CAMPAIGN STRATEGY 2018 COMCAST SPOTLIGHT. ALL RIGHTS RESERVED.

5 THE WINDOW TO CHANGE MINDS The key to changing minds and winning elections is placing your message in front of undecided voters. 1 Even at the local level, the undecided voter is a key target for critical elections. Weeks prior to the 2016 election, 2 out of 3 voters had still not decided who they are going to vote for in their local community elections. 1 What is your current status today on your local community elections? 66% UNDECIDED 1 IN THE KNOW A candidate s campaign must be offered the lowest unit rate 60 days prior to a general election and 45 days prior to a primary (the pre-election window ). 2 Access to the lowest unit rate applies to a legally qualified candidate for public office, it does not apply to issue advertising. 2 Undecided voters can be swayed right up until their votes are cast. 1 When do you typically make your final decision regarding who you are going to vote for? 70% are undecided a week before election 1 More than a month before A month before One week before 3 or less days before Election Day 1 - Source: Video Advertising Bureau, 2016 Cable Nation Report: Winning the Undecided Voter 2 - Source: Federal Communications Commission, Statutes and Rules on Candidate Appearances & Advertising: Section [47 CFR ] Candidate Rates POLITICAL ADVERTISING - INFORMING LOCAL CAMPAIGN STRATEGY 2018 COMCAST SPOTLIGHT. ALL RIGHTS RESERVED. 5

6 VOTER INFLUENCE PLATFORM Television and digital impact undecided local election voters throughout their decision making process: from first learning about a candidate / issue to their final decision. Undecided Voters: Local Election Where are you most likely to first learn about Political candidates? 9% 16% 24% 32% 37% 65% 75% Which of the following keeps you up to date about political candidates and issues? 6% 17% 28% 36% 32% 68% 72% Which of the following influences your final decision when voting for/about Political candidates and issues? 4% 8% 17% 28% 33% 48% 48% Television Internet Newspaper Word-of-mouth Radio Social Media Direct Mail Source: Video Advertising Bureau, 2016 Cable Nation Report: Winning the Undecided Voter 6 POLITICAL ADVERTISING - INFORMING LOCAL CAMPAIGN STRATEGY 2018 COMCAST SPOTLIGHT. ALL RIGHTS RESERVED.

7 THE NEWS VOTERS TRUST News has traditionally been a trusted outlet for campaign advertising, across multiple platforms. But not all news is created equally. Across all ages, social media, news websites, and cable, TV news leads as the source that people trust for learning about elections, especially over network nightly news and local TV broadcast. SOCIAL MEDIA 1% 5% 15% 35% NEWS WEBSITES 5% 10% 18% 19% CABLE TV NEWS 12% 21% 25% 43% LOCAL TV 10% 10% 14% 19% NETWORK NIGHTLY NEWS 4% 7% 14% OTHER 17% 21% 24% 27% 20% Source: Pew Research Center s Journalism Project, The 2016 Presidential Campaign a News Event That s Hard to Miss, Feb 4, 2016 POLITICAL ADVERTISING - INFORMING LOCAL CAMPAIGN STRATEGY 2018 COMCAST SPOTLIGHT. ALL RIGHTS RESERVED. 7

8 REACHING VOTERS BEYOND THE NEWS But it s not just news that will capture an audience. In fact, news and other typical live-viewed programs like sports make up only 13% of local market viewership. 1 That s 87% of your potential audience you could be reaching with other programming. 1 Local Market Viewing of News & Sports 1 PRIMETIME ANYWHERE TOP 200 ad-insertable VOD programs are primetime shows. 2 77% VOD viewing is 13% News & Sports 87% Other outside of prime. 2 67% VOD viewing is non-broadcast. 2 AND BEYOND TRADITIONAL PRIMETIME Ditch traditional planning methods of handpicking a few networks and blocking out primetime if you want to reach more of the right voters. The top five ad-insertable networks make up less than 15% of all linear time spent in the local market. 1 57% of All Linear Time Spent with TV Occurs Outside of Primetime. 1 43% Prime 57% Outside of Prime 1- Source: Comcast Internal Viewership Data, Aggregated Viewing Time by Daypart, Prime defined as 7p - 11p M - Su, Calendar May 2017, Local Market (Manchester) 2- Source: Rentrak OnDemand Essentials, 2Q 17 8 POLITICAL ADVERTISING - INFORMING LOCAL CAMPAIGN STRATEGY 2018 COMCAST SPOTLIGHT. ALL RIGHTS RESERVED.

9 FOLLOW THE DATA Political campaigns historically were reluctant to experiment with advertising strategies that didn t focus on the tried-and-true approach of buying primetime shows and news programming, automated calling and direct mail. 1 But now, media buyers base advertising decisions on information such as whether a program s audience is more likely to vote or be registered gun owners, for instance. 1 They are buying audiences, not products. THE KEY INFLUENCER OF THIS SHIFT? DATA. Elections are influenced by the access, understanding and application of big data, psychographic profiling and targeted content. 2 Big data will get even bigger and more fine-tuned as candidates use data science to analyze greater amounts of information producing more accurate results. 1 The use of more data will enable candidates to geo target voters in a more effective manner. Media buying has shifted from campaigns purchasing networks and dayparts to buying audiences 1. TV, and especially digital, can offer aggregate household and user profile information that predicts the likelihood of a behavior. 2 ARE YOU A DATA HAVE OR HAVE NOT? AdAge notes the biggest, most successful disruptors of the day, across distinctly different industries and business models all share a [common] transparency a window into their target audience. 3 How to Become a Data Have Become data obsessed! Work with vendors and partners who provide you with data and insights Leverage this data with your own to maximize marketing performance 1 Source: AdAge, Feb Data Drives Political Advertisers to Buy More Cable ( 2 Source: Firstpost.com, Jan Big Data and Psychographic Profiling Helped Donald Trump Win news-analysis/big-data-and-psychographic-profiling-helped-donald-trump-win-the-us-presidential-election html 3 - Source: POLITICAL ADVERTISING - INFORMING LOCAL CAMPAIGN STRATEGY 2018 COMCAST SPOTLIGHT. ALL RIGHTS RESERVED. 9

10 TARGETING THE VOTERS WHO COUNT Your campaign platform design, marketing data strategy, and content development all come down to one thing how, when and where you implement it. Without the right targeting, you could be spending precious hours and dollars on audiences who can t influence your campaign on election day. Putting careful effort into a plan to target the audiences who count will pay dividends in the end. Targeting with TV When it comes to political TV ads, traditional methods of buying might generate a lot of waste on audiences who are either outside of your target or even ineligible to vote for you. But today, data and smarter advertising tools mean you can create more efficient schedules that target audiences who can sway the election. BE SOCIAL Today, it s a necessary part of any campaign to have a presence on social media as a means to distribute information and connect directly with voters. But in addition to free posting, paid social content and advertising is also a great route for efficiency and audience targeting. 2 Microtargeting with digital has been around for a decade, but social has greatly opened up data points on audiences and their preferences. 2 While the basic rule of thumb in digital advertising might say that 1 out of 2,000 people who view an ad will respond or take action 1, social is a very low cost option for campaigns. 1 - Source: Source: 10 POLITICAL ADVERTISING - INFORMING LOCAL CAMPAIGN STRATEGY 2018 COMCAST SPOTLIGHT. ALL RIGHTS RESERVED.

11 BROADCAST VS. CABLE $0.75 of every $1.00 spent on broadcast advertising for political campaigns is wasted on the wrong voter. 1 With cable, you re able to avoid all that waste by geographically targeting specific pockets of the market specific to your campaign. Even if your campaign is state-wide, it s still critical to reach those undecided voters. One of the ways to achieve this specificity is using data to direct advertising dollars to areas where there is a high percentage of swing voters. Both local cable and digital video can achieve this for your campaign. 75 cents out of every broadcast dollar has been wasted on the wrong voters 1 APPROXIMATE DIST. TOTAL SPEND ON TARGET SPEND WASTED SPEND* WASTE 1 IL-10 $ 19,148,540 $ 1,389,261 $ 17,759,279 93% 2 AZ-01 $ 16,309,500 $ 1,870,398 $ 14,439,102 89% 3 FL-26 $ 11,282,110 $ 1,858,346 $ 9,423,764 84% 4 CA-07 $ 11,016,750 $ 1,945,917 $ 9,070,833 82% 5 VA-10 $ 9,986,960 $ 1,077,946 $ 8,909,014 89% 6 CA-52 $ 10,930,130 $ 2,607,551 $ 8,322,579 76% 7 CO-06 $ 9,947,960 $ 1,701,335 $ 8,246,625 83% 8 MN-08 $ 8,871,800 $ 1,394,446 $ 7,477,354 84% 9 TX-23 $ 9,031,120 $ 1,760,792 $ 7, % 10 GA-12 $ 10,856,490 $ 3,918,875 $ 6,937,618 64% 1 Source: Approximate spend resulting in out-of-district impressions, based on the ratio of households with registered voters inside the district to all households in intersecting media markets. POLITICAL ADVERTISING - INFORMING LOCAL CAMPAIGN STRATEGY 2018 COMCAST SPOTLIGHT. ALL RIGHTS RESERVED. 11

12 THE POWER OF VIDEO Build Recognition and Relationships Using video to tell your campaign story helps you: Build Relationships Connect Emotionally Aid Top of Mind Brand Recall Develop Audience Familiarity Premium Digital TV with Comcast Spotlight From cable subscribers to cord cutters and OTT viewers, we deliver your message to your target audience across all devices when and where they re watching. Premium Digital TV allows you to engage with audiences watching TV and digital programming on their computers, phones, tablets, and connected TV devices. BY THE NUMBERS 5:14 Average hours U.S. adults spend watching video every day 1 1:17 Average hours spent daily watching video on mobile devices and computers % Increase in U.S. households that have both pay TV and subscription VOD in the past 3 years 2 Our reach extends to audiences watching non-skippable advertising and Video On Demand on Xfinity set top boxes and on OTT-connected TV devices. We target geographically at the market and cable zone level, providing premium efficiency. We offer brand-safe, high-quality programming. And proof-of-performance reporting shows you high view completion rates across all screens. 1 - Source: emarketer Report, September Source:eMarketer, May POLITICAL ADVERTISING - INFORMING LOCAL CAMPAIGN STRATEGY 2018 COMCAST SPOTLIGHT. ALL RIGHTS RESERVED.

13 THE KEY TO CREATIVE Good political video ad creative includes: Answers to voters questions Short, attention-grabbing spots Tailoring to the platform and audience An important reminder about your ad: Sponsor identification must appear at the beginning or end of your video Source: Federal Communications Commission, Statutes and Rules on Candidate Appearances & Advertising: Section [47 CFR ] Candidate Rates POLITICAL ADVERTISING - INFORMING LOCAL CAMPAIGN STRATEGY 2018 COMCAST SPOTLIGHT. ALL RIGHTS RESERVED. 13

14 THE COMCAST SPOTLIGHT DIFFERENCE Comprehensive Research and Analytics Comcast Spotlight works with the top names in research to help our clients understand how their target audiences consume media. The process begins with a custom needs analysis for each campaign, serving as the foundation for a media plan designed to achieve each campaign s goals. Advanced Technology Comcast Spotlight offers our clients the ability to deliver targeted video advertising based on geographic, demographic and psychographic criteria. Our geographic targeting tools allow you to reach distinct audiences with more relevant messaging and without the waste outside your voter area. Exclusive Data We match Comcast household set top box viewership data to third party data sources to create privacy compliant, audience segments for you to utilize in your campaign. Audience rankers across DMA, district and state geographies Audience insights on how they consume linear and VOD 14 POLITICAL ADVERTISING - INFORMING LOCAL CAMPAIGN STRATEGY 2018 COMCAST SPOTLIGHT. ALL RIGHTS RESERVED.

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16 For more information, please call (888) or visit ComcastSpotlight.com/political