SC Client, Moroch, In Digiday

Election Ads Are Crowding Out Local Brands This Holiday Season

Holiday ad planning just got harder for local brands.

Political campaigns are expected to spend $12 billion on the midterms, and AdImpact says about $8.2 billion of that is going to TV and connected TV. In battleground states, regular advertisers are paying the price.

Texas buyers report broadcast rates up 10% to 15%, with some programming jumping far higher. Premium streaming costs are rising too, and YouTube isn’t immune.

National brands can skip an expensive market until the election passes. Local brands can’t. Jacqueline Hoyos, chief media officer at Spelling Communications client Moroch, told Digiday the political surge has had “a huge impact” on local and regional advertisers. One Texas grocery client lost out on live college football in September because political buyers had taken the available slots.

Even booked ads aren’t safe. Local stations can bump a brand for a campaign willing to pay more.

Brands are left with three options: pay up, move to national or premium streaming inventory, or go dark. Going dark in Q4 is the riskiest choice, and few are taking it.

The lesson for next cycle? Plan for political pressure early, especially in contested states.

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