Omar Bennett
Political campaigns can be expensive, and advertising is a significant expense. In the 2020 election, political spending topped $14 billion, and online ad spending in the 2024 election cycle has already exceeded $1.35 billion. Political advertising is essential for campaigns to attract donors or sway voters. While traditional ad spending through television has been the most important way for campaigns to reach voters, digital advertising is becoming increasingly significant, with political campaigns allocating more of their budgets to digital platforms.
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What You'll Learn
Online political ad spending
Political campaigns have many expenses, including staff, office space, advertising, research, travel, and events. Advertising, in particular, can be very costly and may involve buying TV ads, billboards, or online ads.
Online political advertising has become an indispensable tool for modern political campaigns aiming to attract donors or sway voters. In the 2024 election cycle, candidates, parties, and other groups spent over $1.35 billion on online political ads on Google and Meta, with more than half of that spending coming in the final two months before the election. This represented a significant increase from the $619 million spent on these platforms through August 31, 2023.
The biggest online political spender in the 2024 election cycle was the Harris Victory Fund, a joint fundraising committee that primarily put out fundraising ads. Overall, the Harris Victory Fund spent $179 million on online ads, while the second-largest spender was the Harris campaign itself, which bought $146 million worth of ads focused on voter persuasion and get-out-the-vote efforts. In contrast, the Trump campaign spent far less on Google and Meta, with just $41 million spent across the two platforms.
The increase in spending on Google and Meta in the final months of the 2024 election cycle was driven primarily by candidates and joint fundraising committees, which accounted for 40% of the increase, followed by super PACs, which accounted for 26%. Spending related to state ballot measures also saw significant growth, with overall ballot measure spending ($61 million) rivaling the amount spent across all House races ($64 million).
While online political ad spending is playing a significant and growing role in politics, the lack of uniform rules and federal regulations governing the disclosure of political ad data makes it difficult to comprehensively analyze this spending. Platforms collect and disclose political ad data at their discretion, using different definitions of what constitutes a political ad, and some categories of spending, such as paid promotion by influencers, are not captured in the data. Additionally, spenders can use "dark money" nonprofit organizations to keep their donors hidden, further reducing transparency.
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Political action committees (PACs)
There are several types of PACs, including connected PACs, non-connected PACs, and super PACs. Connected PACs, also known as corporate PACs, are established by businesses, non-profits, labour unions, trade groups, or health organisations. They receive funds from a restricted class, such as managers and shareholders in corporations or members of non-profits and unions. Non-connected PACs, on the other hand, are formed by groups with ideological missions, single-issue groups, and members of Congress who wish to support other candidates.
Super PACs, or independent expenditure-only political action committees, can raise unlimited funds from individuals, corporations, unions, and other groups. They use these funds to advocate for or against political candidates but cannot coordinate with or directly contribute to candidate campaigns. Hybrid PACs are similar to super PACs but can give limited amounts directly to campaigns while still making unlimited independent expenditures.
PACs have been a part of the political landscape since 1944, and their influence has been growing. In 1970, a series of campaign reform laws facilitated the growth of PACs by allowing corporations, trade associations, and labour unions to form them. The Federal Election Campaign Act (FECA) of 1971 introduced rules for disclosure, requiring PACs to disclose donations of $200 or more and file regular reports with the FEC. Despite some restrictions, the Supreme Court has often ruled in favour of PACs, citing the First Amendment. As a result, campaign donations from PACs have increased significantly over the years, with $482 million raised in 2022.
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Federal laws and regulations
The Federal Election Commission (FEC) is the independent federal agency responsible for enforcing the FECA and other campaign finance laws. It requires candidates for president, Senate, and the House of Representatives to report the names of individuals and organizations contributing to their campaigns, as well as the amounts received. The FEC also regulates independent expenditures, which are expenses incurred by outside groups to support or oppose a particular candidate without coordinating with their campaign. Generally, there are no restrictions on independent expenditures, and they can come from various sources, including corporations and unions.
To address concerns about the influence of large donors and the role of money in politics, Congress has passed additional laws and amendments. The Bipartisan Campaign Reform Act (BCRA), also known as the McCain-Feingold Act, was enacted in 2002 to prohibit national political parties, federal candidates, and officeholders from accepting soft money contributions in federal elections. Soft money refers to donations made to political parties without limits on the amount, and it can come from corporations, unions, or any other source. While soft money cannot be used to directly advocate for a specific candidate, it can be spent on activities that influence elections, such as issue ads.
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Traditional media advertisements
Political campaigns have been spending on advertising since long before the advent of the internet. Traditional media advertisements have been a key part of political campaigns for decades, and they still play a significant role today, despite the rise of online advertising.
In the past, newspapers, direct mail, radio, and television were the primary vehicles for political ads. Today, while online advertising may be cheaper and more targeted, traditional media advertisements still play an important role in political campaigns. This is especially true for candidates with well-funded campaigns who can afford to advertise across multiple platforms.
There are several reasons why traditional media advertisements remain relevant. Firstly, they allow candidates to reach audiences who may not be paying attention to the election or who are less engaged with online media. Secondly, traditional media advertisements can help build name recognition and highlight important issues. Finally, they can be used to call attention to the shortcomings of an opponent.
In the United States, the Federal Election Commission (FEC) is responsible for enforcing campaign finance laws and overseeing political spending. This includes traditional media advertisements, which must comply with certain requirements and disclaimers. For example, television and radio ads require an audio statement from the candidate approving the communication. Despite this regulation, there are concerns about the influence of money in politics and the potential for a cycle of influence where corporations and special interest groups hold too much power.
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Grassroots-funded campaigns
Grassroots campaigns are about mobilizing people and building a movement. They are often underfunded and face challenges in raising money. To start a grassroots-funded campaign, it is important to focus on your inner circle—those already invested in your cause or most likely to contribute. This helps create a sense of ownership and ensures long-term commitment. Building relationships and sustaining momentum are key to effective fundraising.
Grassroots campaigns should explore creative strategies such as hosting community events, leveraging crowdfunding platforms, or partnering with local businesses. They can also utilize social media platforms like Facebook, Twitter, and Instagram to organize efforts, fundraise, and spread their message. Social media is a powerful tool for grassroots campaigns, allowing them to reach a wider audience and engage with voters directly. Combining digital outreach with in-person efforts can maximize the impact of a grassroots campaign.
Volunteers are essential to grassroots campaigns and help sustain and lead the movement. It is important to develop a clear strategy for recruiting and building a solid campaign team. Identifying the likely supporters and understanding the issues they are passionate about is crucial for effective messaging. Empowering volunteers by grouping them based on their skills and interests and providing them with training can turn them into passionate advocates for the campaign.
Grassroots campaigns may face limitations in their advertising budgets, restricting them from expensive mediums like TV ads or billboards. However, social media provides an inexpensive and targeted advertising option. Paid promotions on social media platforms can help ensure that messages reach the intended audience. Additionally, online political advertising platforms, such as Google and Meta, offer opportunities for grassroots campaigns to reach a wider audience, although this can be costly.
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Frequently asked questions
In the 2020 election, political spending topped $14 billion, doubling the amount spent in the 2016 presidential election. In the 2022 election cycle, online political advertisers spent $1.35 billion on Google and Meta, with 98k online advertisers spending $2.1 billion on Google and Facebook political ads.
Political ad spending is funded by the campaign itself, or by outside groups such as super PACs, corporations, or nonprofits.
Campaigns tend to focus their ad spending on key battleground states, such as Pennsylvania, Michigan, Wisconsin, Georgia, North Carolina, Arizona, and Nevada.
Political ads have traditionally been run on television, but digital channels are becoming increasingly important, with campaigns spending heavily on Google and Meta ads.
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