March 11th 2016

Upcoming Election May Affect Auto Advertising.

Posted by Kristi Wendel

Chief buyers of local television airtime, automotive dealers, may be in trouble as this year’s election roars forward. Come the fall, when most advertisers are getting ready for their back-to-school promotions, TV will be flooded with political campaigns for the two primary candidates- as up to one-third of local broadcast time will be spoken for. With political advertising rates federally protected, an influx of television ads will cause automotive commercials to be bumped, which can result in a lack of sales.

One way to avoid getting in the middle of this advertising boxing match is to re-think where to invest ad campaign money this season. Jennifer Hungerbuhler, VP director of video and audio investment at Amplifi, suggests, “Advertisers should avoid TV news, or at least decrease spending, during such segments, because political advisers seek out those periods first.” By being smart about airtime, businesses can avoid wasted funds by strategically choosing where to run ads without getting dominated by political campaigns. Many will choose to invest higher in print space as opposed to television during this time. 

Data presented by Kelly Blue Book has shown how past elections have negative affected auto sales. In Cleveland, a 16% drop in auto advertising was noted between October 2012 and the final month of the race. During that month, more than 27,000 political ads were aired. The invasion of political commercials bumped automotive ads off the air, which in turn slowed the rise of auto sales by 1.5%. 

Digital and print advertising are both desirable options this election season. While television broadcast is still important, shifting the budget to focus heavily on digital and print mediums may have a higher return on investment. Consider branching out and exercising alternative advertising approaches. Giovatto Advertising offers much more than classic TV ad campaigns. With state-of-the-art facilities and a large experienced staff, your business can thrive through the election slump!

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