Political Campaign Ads: Paid Promotion Pricey?

Political campaigns are costly affairs, with candidates and outside groups spending billions on advertising to promote their message. In the 2022 midterm elections, over $6.4 billion was spent on advertising, with almost $50 million spent on Facebook and Google ads alone. This figure is expected to rise to $9.7 billion by Election Day in November. With the high cost of running for office, it is no surprise that political advertising is an indispensable tool for modern political campaigns. Online political advertising is a rapidly growing sector, with spending topping $1.35 billion in the 2024 election, more than double the amount spent in the previous 20 months. This surge in spending is driven by candidates' appeals to voters and national groups seeking to influence state ballot measures. With the high cost of political campaigns, it is worth asking: are paid ads expensive in a political campaign?

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Online political advertising

Political campaigns are becoming increasingly expensive as candidates compete for voters' attention. Online political advertising is an indispensable tool for modern political campaigns aiming to attract donors or sway voters. In the 2020 election, political spending topped $14 billion, according to OpenSecrets, making it the most expensive election cycle. This trend is expected to continue, with new technologies and digital platforms that campaigns are willing to spend a lot of money on to reach voters and micro-target people with their messages.

In the 2022 midterm elections, campaigns spent over $6.4 billion on ads, with a large portion going to TV, radio, and digital ads. Almost $50 million was spent on midterm ads on Facebook and Google alone in the 30 days leading up to the election. This spending reflected the urgency of both parties to gain power in Washington and across the country, with slim margins separating them in the House and Senate.

For the 2024 election cycle, online political advertising spending is expected to continue surging. In the weeks before the election, candidates' appeals to voters and national groups seeking to influence state ballot measure results drive this surge. Spending on online political ads on Google and Meta accelerated in the weeks before the 2024 election, with a total of $1.35 billion spent since January 1, 2023. This amount is more than double the amount spent in the prior 20 months combined, indicating that online political advertising is an area that campaigns are increasingly focusing their resources on.

Ad spending on Google and Meta

Political advertising is a booming business, with campaigns increasingly investing in digital formats like CTV and social media. In the 2020 election, political spending topped $14 billion, and that number is expected to grow in the 2024 election cycle.

Google and Meta (which owns Facebook and Instagram) are two of the largest digital ad platforms. A recent analysis by the Brennan Center, OpenSecrets, and the Wesleyan Media Project found that between January 1, 2023, and August 31, 2024, political advertisers in the United States spent more than $619 million on these two platforms alone.

The same analysis also revealed that spending in favor of Democrats was more than three times the amount spent in favor of Republicans. For example, in the second and third weeks of September 2024, the presidential campaign of US Vice President Kamala Harris (a Democrat) spent $22.8 million on Meta ads and $17.3 million on Google ads. Her competitor, former President Donald Trump (a Republican), spent $1.4 million on Meta ads and $6.5 million on Google ads during the same period.

Google's data also shows that during the 2022 midterm elections, campaigns and outside groups spent almost $46 million on Google ads over a 30-day period. The Senate Leadership Fund, a super PAC aligned with Senate Minority Leader Mitch McConnell, spent $2.72 million on Google ads attacking Democratic Senate candidates since late August. The Democratic Senatorial Campaign Committee, meanwhile, spent just over $1 million on Google ads.

As the internet continues to play a larger role in American life, it's clear that online spending will continue to be a significant factor in political campaigns, and that Google and Meta will be key players in this space.

Political action committees (PACs)

In the United States, a PAC is a tax-exempt 527 organisation. At the federal level, an organisation becomes a PAC when it receives or spends more than $1,000 to influence a federal election and registers with the Federal Election Commission (FEC). Federal law allows for two types of PACs: connected and non-connected. Connected PACs, sometimes called corporate PACs, are established by businesses, non-profits, labour unions, trade groups, or health organisations. Non-connected PACs are formed by groups with an ideological mission, single-issue groups, and members of Congress and other political leaders.

There are also three other types of PACs: super PACs, hybrid PACs, and leadership PACs. Super PACs, or independent expenditure-only political committees, can raise unlimited amounts from individuals, corporations, unions, and other groups to spend on ads for or against political candidates. They are subject to the same reporting requirements as traditional PACs. Hybrid PACs solicit and accept unlimited contributions from various groups to a segregated bank account for independent expenditures and other political activity, while maintaining a separate bank account that is subject to statutory amount limitations. Leadership PACs are established by candidates or individuals holding federal office to raise money to help fund other candidates' campaigns.

PACs have been around since 1944, when the Congress of Industrial Organizations (CIO) formed the first one to raise money for the re-election of President Franklin D. Roosevelt. The legal term PAC was created in pursuit of campaign finance reform in the United States, and campaign finance laws are enforced by the FEC.

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Advertising on traditional media

One of the key advantages of traditional media advertising is its ability to reach a broad audience. TV and radio, in particular, have been go-to platforms for political campaigns due to their widespread reach, especially among older demographics that may be less engaged with digital platforms. Buying ad space on these platforms can be costly, but the potential to reach millions of voters makes it an attractive option for campaigns with significant financial backing.

Newspapers and direct mail offer a more targeted approach to traditional media advertising. By placing ads in specific publications or mailing them to particular neighbourhoods, campaigns can tailor their messages to specific demographics or geographic areas. This level of targeting may be less precise than what is possible with digital microtargeting, but it can still be an effective strategy for reaching key voter segments.

Billboards and other forms of outdoor advertising are another traditional media option for political campaigns. While they may not offer the same level of targeting as other platforms, billboards can be strategically placed in high-traffic areas to maximise exposure. This form of advertising is particularly effective for building name recognition and brand association, as simple and memorable messages can be communicated to large numbers of people over an extended period.

While traditional media advertising still plays a significant role in political campaigns, it is important to note that the landscape is constantly evolving. The rise of digital and social media platforms has provided campaigns with new and innovative ways to reach and engage with voters. As a result, the allocation of advertising resources is becoming increasingly nuanced, with campaigns having to carefully consider their strategic options across a diverse range of platforms and formats.

Disclaimers and authorisation in political ads

Political campaigns can be expensive, with candidates vying for voters' attention. In the 2020 election, political spending topped $14 billion, making it the most expensive election cycle. The 2022 midterm elections are also on track to be one of the most expensive, with over $6.4 billion spent on TV, radio, and digital ads.

With the high costs of political campaigns, it is important to ensure that any paid political advertisements are properly authorised and include the necessary disclaimers. Here are some key points regarding disclaimers and authorisation for political ads:

Disclaimers:

• Any public communication made by a political committee, including communications that do not explicitly advocate for or against a specific candidate, must display a disclaimer. This includes communications on websites, internet applications, and certain emails.
• Disclaimers must be “clear and conspicuous” and easily noticeable by the audience.
• For electronic mail, a disclaimer is required when more than 500 substantially similar communications are sent by a political committee.
• If a communication is authorised by the candidate or campaign but paid for by another entity, such as a political action committee or an individual, the disclaimer must identify the person or entity that paid for it and state that it was authorised.
• For communications not authorised by a candidate or campaign, the disclaimer must include the full name of the payer, any abbreviated names used, and the permanent street address, telephone number, or website address. It must also state that it was not authorised by any candidate or campaign committee.
• On Facebook and Instagram, ads about social issues, elections, or politics must go through an authorisation process. These ads will be reviewed by Facebook's team, and they may be flagged by AI or reported by the community.

Authorisation:

• The Federal Election Commission (FEC) is the federal agency responsible for enforcing campaign finance laws and overseeing political spending.
• Decisions by the FEC are ideally bipartisan, as it takes four commissioners to make a decision, and no more than three can be from the same political party.

By following the appropriate disclaimer and authorisation guidelines, political campaigns can ensure they are complying with the law and providing transparency to the public regarding their advertising practices.

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