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WARNING: Election Week Could Sink Your Ad Performance!

Ecommerce Playbook · with Taylor Holiday · October 31, 2024 · 14 min

Summary

Election week presents unique challenges for ecommerce advertisers due to a surge in political ad spending and decreased consumer attention. Ecommerce operators should prepare for potential dips in ad performance and strategically adapt their campaigns to weather the storm, focusing on long-term gains rather than short-term pullbacks.

Key takeaways

Themes

ad performancemarket dynamicsq4 preparationstrategic planning

Topics covered

black friday/cyber monday strategyconversion rate optimizationcpm fluctuationselection impact on adsgeo-targetingpolitical ad spending

Episode description

In this special Halloween episode Taylor and host Richard dive into the spooky truth behind Election Week’s impact on ad campaigns. With an unprecedented wave of political spending flooding digital platforms, advertisers need to prepare for shifting CPMs, reduced conversions, and increased competition—especially in swing states. From understanding the effects on Meta and Google ads to insights on how to handle performance dips, we’ve got the data and strategies to help you weather the storm. Don’t panic! Taylor and Richard walk through what to expect, how to adapt, and why staying the course is critical for keeping your ads on track as we approach Black Friday and Cyber Monday. Show Notes: The Ecommerce Playbook mailbag is open — email us at podcast@commonthreadco.com to ask us any questions you might have about the world of ecomm

Frequently asked about this episode

What does this episode say about ad performance?
The election week typically sees a 20% decline in new customer revenue and a 50% decline in AMER due to increased competition for ad space and shifted consumer attention towards election news. Prepare for this dip by communicating proactively with stakeholders.
What does this episode say about market dynamics?
Political ad spending sees a 150% increase in digital channels compared to 2020, with a total of $3.5 billion. This primarily affects ad platforms like Meta and Google, increasing CPMs and reducing conversion rates for ecommerce businesses.
What does this episode say about q4 preparation?
Swing states (e.g., Michigan, Ohio, North Carolina, Pennsylvania, Arizona, Nevada) experience a 2-3x increase in ad spend per eligible voter. Monitor performance in these states and consider geographical adjustments, but avoid drastic exclusions as algorithms often optimize delivery.
What does this episode say about strategic planning?
Resist the urge to pull back ad spend during election week. Revenue tends to be redistributed rather than lost, with an uptick in performance immediately following the election. Maintaining ad volume helps capture this rebound and prepares for Black Friday/Cyber Monday.
What does this episode say about ad performance?
Consider moving up your Black Friday/Cyber Monday campaign launch windows, treating November 6th like November 1st to gain an extra week of promotional activity before the peak shopping season. Avoid launching major sales amidst the election noise.

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