Online Political Spending to Hit $73 Million in '08 Cycle

  |  December 7, 2007   |  Comments

PQ Media's estimated $73 million in Web revenues from political advertisers represents a measly 1.6 percent of the $4.5 billion to be spent this cycle.

ClickZ_Campaign08_katefinal.jpgSpending by political advertisers on Internet ads, marketing and promotional efforts is poised this election cycle to be 150 percent higher than the last presidential election cycle. However, although a new PQ Media report shows it could hit $73 million by next November, Web revenues from political advertisers are still a drop in the bucket.

The preliminary Political Media Buying 2008 forecast from PQ estimates $4.5 billion will be spent by political advertisers in '08 and leading up to this year's presidential primaries on all media measured, including broadcast and cable TV, direct mail, PR, newspaper and Internet. The estimated $73 million sliver expected to go towards the Web represents a measly 1.6 percent of the whole.

Growth is steady, though. In the 2004 presidential election cycle, political advertisers spent $29 million on the Web, and during the '06 congressional elections, they put $40 million online. While the numbers are relatively small compared to broadcast TV and direct mail, the anticipated 150 percent leap between the '04 and '08 presidential elections -- when typically far more money is spent compared to non-presidential election cycles -- is a clear sign that the Internet is gaining momentum when it comes to political spending.

Online media spending doesn't mean just display or search advertising. As reported by PQ in 2006, the majority of dollars spent by political advertisers on the Web will go towards e-mail marketing efforts, the method of choice for online fundraising pitches.

"Spending is probably about a three-to-one, with more of it going towards the e-mail marketing and fundraising aspect of it," said Dr. Leo Kivijarv, VP head of research at PQ Media. Leading up to the 2006 election, PQ pegged e-mail spending at 80 percent of all online political dollars.

Mobile media expenditures by political campaigns are increasing, according to Kivijarv, but the numbers are still tiny in the scheme of things. PQ combined mobile and print magazine spending in a catchall category estimated at around $3 million this election cycle. "Mobile is slowly becoming a larger portion of that ["other" category]," he said, noting, "It's still difficult to ascertain how much candidates are really spending on mobile."

Even though Internet spending is set to account for only 1.6 percent of all political media expenditures, online represented 1.1 percent in the '04 presidential cycle, according to Kivijarv.

"There's definitely momentum," said Kivijarv. "Where the problem exists is when you compare it to the other media," he continued. Broadcast television is set to collect $2.3 billion from political advertisers by the '08 election, and direct mail comes as a distant second with around $1 billion. PR, promotions and events will garner $395 million, according to PQ, while cable TV is expected to grab $200 million.

Kivijarv chalks up miniscule online spending to the fact that political advertisers still consider the Web to be a national medium.

Local media publishers and ad networks enabling geo-targeting down to the zip code may balk at such a notion. And a glance at data provided to ClickZ News by Nielsen Online AdRelevance indicates Republican campaigns for Mitt Romney and Senator John McCain have made a point of buying display advertising on local media sites in important early caucus and primary states including Iowa and South Carolina, along with several other states.

Since April, Democratic and Republican presidential hopefuls ran more than 172 million display ad impressions online between April and October, according to AdRelevance data.

The fact that political advertisers often need to target advertising on a neighborhood or precinct level, narrower parameters than zipcodes, means they tend to rely on media like direct mail, at least when it comes to getting out the vote in tight-race regions. "They just don't have the demographic measurements or the ROI measurements [on such a refined basis]," said Kivijarv.

Tags:

ClickZ Live San Francisco This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!

ABOUT THE AUTHOR

Kate Kaye

Kate Kaye was Managing Editor at ClickZ News until October 2012. As a daily reporter and editor for the original news source, she covered beats including digital political campaigns and government regulation of the online ad industry. Kate is the author of Campaign '08: A Turning Point for Digital Media, the only book focused on the paid digital media efforts of the 2008 presidential campaigns. Kate created ClickZ's Politics & Advocacy section, and is the primary contributor to the one-of-a-kind section. She began reporting on the interactive ad industry in 1999 and has spoken at several events and in interviews for television, radio, print, and digital media outlets. You can follow Kate on Twitter at @LowbrowKate.

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter. Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

BigDoor: The Marketers Guide to Customer Loyalty

The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.

WEBINARS

    Information currently unavailable

Jobs

    • Interactive Product Manager
      Interactive Product Manager (Western Governors University) - Salt Lake CityWestern Governors University, one of the 20 largest universities...
    • SEO Senior Analyst
      SEO Senior Analyst (University of Phoenix (Apollo Education Group)) - San FranciscoSEO Senior Analyst   Position Summary...
    • SEM & Biddable Media Manager
      SEM & Biddable Media Manager (Kepler Group LLC) - New YorkAs an Optimization & Innovation Manager at Kepler Group, you will be on the bleeding...