WARNING: Election Week Could Sink Your Ad Performance

Summary

In this Halloween-themed episode of the Econic Playbook podcast, hosts Richard Gaff and CEO Taylor Holiday discuss the upcoming election's impact on the digital advertising landscape. They emphasize that the intense political ad spending, particularly in swing states, will distract consumers and lead to a temporary decline in e-commerce performance. The hosts advise marketers to maintain their ad presence, avoiding knee-jerk reactions to short-term performance drops, and to prepare for a rebound in sales post-election, particularly leading into Black Friday. They stress the importance of contextualizing data and staying the course amidst the election chaos.

Takeaways

• 🎃 Election week is historically challenging for digital advertising due to increased political spending.
• 📉 There was a significant decline in new customer revenue during the election week in 2020.
• 💰 Swing states are seeing disproportionate ad spending, increasing competition for consumer attention.
• 🔍 Marketers should monitor performance in swing states but avoid excluding them entirely from ad targeting.
• ⚠️ It's crucial for marketers to prepare for lower performance metrics during this time without overreacting.
• 📈 Past trends indicate that revenue often rebounds quickly after the election.
• 🗓️ Treat November 6 as a new starting point for holiday sales, akin to how you'd approach November 1.
• 🚀 Maintain ad volume during the election week to capitalize on recovery post-election.
• 💬 Communication with executives and clients about expected performance dips is essential.
• 🌟 Brighter consumer spending days are ahead, with Black Friday and Cyber Monday approaching.

Q & A

What is the significance of Halloween in the context of this podcast episode?

Halloween marks the release of this episode and serves as a segue into discussing the upcoming election week, which is particularly important for the digital advertising industry.

What key trend in political ad spending was highlighted for the upcoming election?

There is a notable increase in political ad spending, particularly in digital media, which has seen a 150% increase compared to the last election cycle.

What historical data was referenced regarding consumer behavior during election week?

In 2020, there was a 20% decline in new customer revenue and a 50% drop in average order value during the week of the election.

How should marketers approach ad spending during election week?

Marketers should maintain their ad spending despite expected lower performance, as history shows a rebound in performance post-election.

What advice was given regarding swing states and advertising?

While there is significant spending concentrated in swing states, marketers are advised to monitor performance there rather than exclude them from campaigns hastily.

What is the expected consumer behavior following the election?

After the election, consumer attention is anticipated to shift back to shopping, leading to an uptick in performance as businesses prepare for Black Friday and Cyber Monday.

What warning did the hosts provide regarding emotional responses to ad performance?

They cautioned against making hasty decisions based on temporary low performance metrics, emphasizing that such fluctuations are normal during high-stakes events like elections.

What is the relationship between ad performance and political events according to the podcast?

The hosts noted that during politically charged weeks, ad performance can decline due to consumer distraction, but this should not be viewed as a failure of ad campaigns.

How can marketers prepare for the post-election period?

Marketers should plan for an increased focus on holiday promotions immediately after the election, treating the week following as a launchpad for sales activities.

What overall message did the hosts want to convey to marketers during this election cycle?

The key message is to stay the course and not overreact to short-term performance dips, as the market will stabilize and consumer interest will return.