Scalper1 News
The election cycle in 2016 should drive a record year in political ad spending, with Facebook[ ticker symb=FB] and Alphabet ( GOOGL ) cashing in on the digital-media slice of the pie. About $1 billion will be spent on digital media platforms during the 2016 election cycle, about five times higher than in 2012, wrote Nomura analyst Anthony DiClemente in a research note. He expects Alphabet to capture 40% of that amount and Facebook 30%. The growth in political-ad spending is due to the intense battles waged between Hillary Clinton and Bernie Sanders to be the Democrat Party presidential nominee and between Donald Trump and Ted Cruz on the Republican side. Another is a greater mix of ad spending by political action committees, especially PACs seeking to deny Trump the GOP nomination. As always, TV advertising will get the bulk of political-ad spending. The reason political spending on digital media is growing in power is the unique ability to track its effectiveness. “Political campaigns have been slow to adopt digital marketing despite clear attribution benefits, competitive ROI, and significant growth in consumer time spent on digital platforms,” DiClemente wrote. “Our checks with campaign ad buyers suggest that improvement in attribution technology and the ability to link ad spend with turnout at a candidate’s rallies is proving a key driver of growth of spend on digital.” Scalper1 News
Scalper1 News