Are Political Ads Killing Sales?: State of the Industry
Ecommerce Playbook
· with Jeremiah Prummer, Yarden Shaked, Steve Rekuc
· October 23, 2024
· 27 min
Summary
Political ad spending significantly impacts DTC advertising costs and performance. Ecommerce operators need to understand these trends to strategically navigate Q4, especially concerning Meta and Google ad platforms, and adapt new customer acquisition strategies.
Key takeaways
Anticipate increased CPMs and decreased ROAS on Meta during election periods due to political ad spending, similar to 2020 trends.
Shift focus or budget to Google Search ads during peak political spending, as this channel has shown inverse trends with lower CPMs and higher ROAS.
Prioritize strategies for customer retention and increasing returning customer revenue, as new customer acquisition becomes more challenging and expensive during election cycles.
Leverage historical data from previous election years (e.g., 2020) to forecast potential impacts on ad performance and overall sales.
Be aware of seasonal lulls, especially July and August, and differentiate them from election-driven impacts when analyzing performance.
In this month's State of the Industry, we tackle some of the biggest questions facing ecommerce brands in 2024. Why are 7-figure stores seeing a slowdown in growth? How are political ad spending and shifting consumer behaviors affecting your bottom line? And most importantly, what can you do about it heading into the critical Q4 period?
Join our panel of experts as we break down the data behind the Direct-to-Consumer Confidence Index (DTCCI) and explore theories on why revenue growth is stalling. We’ll discuss the impact of the upcoming election, the growing trend of value driven consumers waiting for bigger discounts, and how large ecommerce brands are adjusting their strategies in a tighter, more competitive market. Plus, we’ll dig into what this means for Black Friday, Cyber Monday, and your holiday sales.
If you’re navigating the complexities of ecommerce right now, this episode is packed with insights to help you adjust your strategy and drive profitability. Don’t miss these critical discussions on the future of DTC brands!
Show Notes:
Go to https://your.omnisend.com/CTC to 20% off your first 3 months with code CTC20.
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Frequently asked about this episode
What does this episode say about e-commerce strategy?
Anticipate increased CPMs and decreased ROAS on Meta during election periods due to political ad spending, similar to 2020 trends.
What does this episode say about economic impact?
Shift focus or budget to Google Search ads during peak political spending, as this channel has shown inverse trends with lower CPMs and higher ROAS.
What does this episode say about market trends?
Prioritize strategies for customer retention and increasing returning customer revenue, as new customer acquisition becomes more challenging and expensive during election cycles.
What does this episode say about paid acquisition?
Leverage historical data from previous election years (e.g., 2020) to forecast potential impacts on ad performance and overall sales.
What does this episode say about e-commerce strategy?
Be aware of seasonal lulls, especially July and August, and differentiate them from election-driven impacts when analyzing performance.
