Political spend drives CPMs up, challenging advertisers

As we hurdle toward a pivotal U.S. election, Connatix's Mike Caprio discusses how campaigns and affiliated organizations are spending more money on media than ever — and news publishers are benefiting from the increased engagement and higher CPMs.

But while the media industry is buzzing about the positive impacts of an estimated $12 billion in political spending this year, evergreen brands may struggle to optimize already thin budgets as advertising becomes more expensive and competitive.

Based on annual forecasting, average CPMs will increase between 10% to 20% from August through November compared to last year’s monthly seasonal averages across our publisher network. We’re expecting others across the industry to see similar increases. 

Fortunately, price-conscious buyers have a few options to overcome added costs without sacrificing reach, scale or success.

Prioritize direct deals

While programmatic buying on the open market gives advertisers access to a range of inventory, prices also fluctuate in real time, making it difficult to budget appropriately during a busy election season. 

It’s not just news that will become more expensive; political-adjacent placements and sites covering topics high on voter agendas, education, women’s health or multicultural issues will also likely see higher ad prices and increased auction competition. 

However, there are options for price-conscious buyers. Private marketplaces allow publishers to offer select, premium inventory that a small group of buyers can bid on, while programmatic guaranteed deals are struck between one advertiser and one seller with set prices. These deals are a great way to secure high-quality, priority inventory while locking in favorable prices and terms before a campaign launches — keeping brands on budget without sacrificing quality. 

Fund quality journalism in a brand suitable way

News publishers have been hit hard as they grapple with tightened budgets, rising production costs and brand safety concerns causing some advertisers to pull spend. A number of quality news sites have cut staff or shut down entirely, while others have pivoted toward subscription models to stay afloat. 

Ultimately, this hurts consumers who want access to trustworthy, quality reporting — especially during an election year — yet cannot afford subscriptions to multiple publications. This election season, advertisers have an opportunity to make a true impact with their spend by supporting publishers while also helping to build a more informed electorate. 

Many brands want to support journalism, but are concerned about their campaigns running against negative content or the high costs that come with engaged news audiences. Contextual targeting allows brands to select non-news keywords on news sites, reaching them with relevant, tailored messaging while staying on budget. Advanced tools are also emerging to help brands predict what their audience will be interested in based on previous engagement data.