Standing out as a brand during the holiday season is already a tall order, and with 2024 being an election year, the challenge becomes even more tough. The typical strategy of launching ad campaigns in late September and early October hits right at the same time as a surge of political advertising for the early November elections. The upshot is that ad campaigns flop more than ever. Why? Everyone’s just sick of ads.
In the competition for attention, brands find themselves sinking money into diminishing returns—a scenario that can feel like an advertising death spiral. The solution is to grab a marketing channel that stands out from the typical, often ignored ad barrage. Direct mail kicks these problems to the curb by providing a direct and tangible way to reach consumers. It breaks through the crowded digital scene to engage customers on a personal level and makes your message stand out.
Refining your strategy to emphasize direct mail could boost your advertising impact during the hectic holidays and elections. Digital advertising and Connected TV (CTV) often dominate the conversation. However, direct mail provides unique benefits worth considering. Let’s explore key factors when evaluating these different advertising channels.
Impact of Election Years on Digital Advertising Costs
In an election year, the ad world turns upside down as ad rates on platforms like Meta and Google skyrocket. As political campaigns ramp up their ad spending to capture voter attention, the competition for ad space intensifies. This increased demand for space elevates advertising costs across all sectors.
Tackling Increased Ad Rates
Every election year, ad costs on digital platforms just go through the roof. Political entities pour astronomical money, seeking to capture the attention of potential voters. AdImpact estimates that $10.7 billion will be spent on political ads during the 2024 election cycle, a 19% increase from the 2020 election cycle.
As more advertisers bid for the same space, spending surges and ad rates shoot up like rockets, sometimes by as much as 40%. The presence of deep-pocketed political campaigns can push the cost per click (CPC) and cost per impression (CPI) to levels far beyond what is typical during non-election years. For instance, marketers anticipate a 15-25% increase in Google Ads CPCs and a 20-25% rise in programmatic ad costs in 2024. As a result, brands fail to achieve a worthwhile ROI on their ad placements.
Overcoming Brand Competition
Brands face a Herculean task outbidding the big-money political campaigns in advertising auctions. The fierce bidding in these auctions means commercial brands are forced to contend with less exposure. In turn, reduced ad visibility leads to lower click-through rates and diminished returns on ad spend, making it harder for brands to justify the high cost of participation.
Challenges extend beyond immediate advertising metrics, however. Lower click-through rates (CTR) during the political season reflect broader issues that persist even in scenarios where visibility isn’t directly diminished. Brand advertisements displayed after political ads see a 26% drop in purchase intent among existing customers. If placed next to negative political content, a brand’s reputation and perceived value also decline.
Evaluating Cost-Effectiveness
The feasibility of competing in an inflated market is a major concern for many brands. As ad placement prices climb, companies must constantly assess the return on investment (ROI) they’re getting from their digital advertising strategies. The election period may represent a time of reduced digital ad activity for many, as the high costs no longer justify the potential returns. Instead, brands might seek alternative methods for engagement, such as focusing on less contested advertising platforms.
With digital advertising, brands must adjust their budgets and timing to alleviate the negative effects seen during election years. Direct mail is a helpful alternative, as it’s less prone to spikes in election year spending and is a more stable and cost-effective way to maintain visibility and engagement.
Challenges with CTV Advertising During the Holiday Season
The cost challenges that often accompany digital advertising are even more pronounced with CTV. CTV, which includes any television connected to the internet to stream content poses several unique challenges for advertisers during the holiday season.
Navigating the High Costs of CTV
CTV ads involve substantial expenses beyond crafting engaging content. They also involve navigating the auction-based pricing model where ad spaces are bid on — and it can be really expensive. Brace yourself—the median cost per mille (CPM) for CTV ads ranges from $35 to $65. Prices are higher during the high-demand holiday season when everyone is trying to capture viewers’ attention.
The auction model for CTV ad space adds a layer of unpredictability to advertising costs. Prices can fluctuate widely from one day to the next depending on demand, making it difficult for brands to budget effectively. CTV’s price volatility leads to an unpredictable cost per acquisition (CPA), making it costly for advertisers to secure ad placements that deliver their desired outcomes. As a result, advertisers must be ready to make rapid adjustments to their spending plans to manage the seasonal demand surge.
Brands must anticipate higher production budgets for CTV campaigns to create ads with strong and memorable festive themes that stand out. These added financial pressures can make it difficult for smaller companies to compete effectively in the CTV advertising space. They must either innovate within constrained budgets or risk being overshadowed in the crowded CTV market.
Alternative Advertising Channels to Consider During an Election Year
In an election year, marketing channels that offer cost stability are invaluable for businesses aiming to manage their budgets. Among the options, only a few maintain stable pricing unaffected by macroeconomic changes:
- Direct mail: Known for consistent pricing, direct mail avoids the auction-based pricing system typical of online ads. The costs associated with printing and mailing are relatively stable and prices remain predictable. Its audience targeting capabilities also make it more cost-effective.
- Email marketing: Once you have access to an email marketing platform, the costs are typically based on the size of your subscriber list or the volume of emails sent, rather than dynamic pricing models. However, it’s often considered less personal and easier to overlook than other methods.
- Outdoor advertising: Costs for outdoor advertising, such as billboards, can be more stable compared to digital ads, as it’s less susceptible to sudden market changes than many other channels. However, it doesn’t allow for immediate customer engagement or analytics tracking.
- Print advertising: Similar to direct mail, print advertising in newspapers or magazines involves fixed pricing for ad space that is agreed upon in advance and is not typically subject to rapid fluctuations. However, it lacks the real-time tracking and audience targeting precision other channels provide.
Consider exploring alternative advertising channels during election years for their stable pricing, as they shield businesses from the rapid price fluctuations that digital platforms often experience.
Direct Mail is Predictable, Reliable, and Affordable
Many businesses consider direct mail a practical choice for their marketing efforts, as it offers several advantages over other marketing channels during the election and holiday seasons:
- Predictable pricing: Unaffected by economic shifts or seasonal demand spikes, direct mail provides a reliable foundation for budgeting. The contrast becomes evident during the election and holiday seasons when other marketing channels experience large price fluctuations.
- No auction dynamics: Unlike social media or search engine marketing, direct mail does not rely on auctions to gain ad placement. Mailers go out the door, to the correct address, 100% of the time. Its fixed pricing model eliminates the need for competitive bidding, allowing brands to secure ad space without a price war.
- Brand safety: Direct mail offers greater control over ad placement, minimizing the risk of associating with undesirable content. By delivering on-brand messages directly to customers, direct mail ensures the highest level of brand safety.
- Reliable marketing channel: As a stable marketing channel, direct mail shields companies from the volatility of digital advertising prices. It also offers a consistent avenue for preserving brand reputation in a cluttered advertising environment.
Overall, direct mail stands out as a dependable alternative to more volatile marketing channels, providing budget predictability and enhanced brand safety during critical advertising periods. However, even the most reliable systems can encounter seasonal strains, such as those experienced during election years.
Avoid Mailbox Fatigue by Planning Ahead
Though significantly less so than digital ad fatigue, consumers can experience mailbox fatigue during an election year as recipients face an influx of direct mail from deep-pocketed political campaigns mixed in with brand messaging.
Here are several strategies to help brands cut through the clutter and engage recipients:
- Personalization: Tailor offer content for the recipient to increase engagement. Use data analytics to refine messaging to have it resonate with the targeted audience.
- Timing: Avoid sending mail during peak times when consumers likely feel overwhelmed. Scheduling mailings for less busy periods is a simple way to make your message stand out.
- Creative design: Use eye-catching designs and innovative formats, but lean into the nostalgia of the holidays. The most successful marketing campaigns during the holiday season are holiday-themed.
- Integrated campaigns: Combine direct mail with digital marketing efforts to create a cohesive brand experience. Reinforcing messages across multiple channels can improve your response rate.
- Clear and concise messaging: Keep the content of the mail clear and to the point. Overloaded messages can overwhelm recipients and increase the likelihood they will disengage.
These strategies can help marketers navigate the challenges of mailbox fatigue and keep their direct mail campaigns effective and engaging.
The Importance of Early Planning
We can all breathe a bit easier if we plan ahead. A bit of foresight lets us lock in better ad spots before the prices soar. This becomes even more essential during an election year when demand for ad space skyrockets. The heightened competition underscores the need to anticipate market conditions and schedule campaigns early to secure the most effective advertising spots.
Direct mail offers predictable costs and stability, even in the face of election-year price fluctuations. If you’re looking to diversify your advertising strategy and optimize your ad spend during the busy holiday season, consider exploring the benefits of direct mail with a demo from Postie. This strategic move could strengthen your marketing efforts during the election season.
