Over the next fortnight, brands face a formidable challenge as they strive to capture consumer attention amidst two competing forces.
As the countdown to election day on November 5 intensifies, presidential candidates Donald Trump and Kamala Harris are poised to unleash a torrent of campaign advertisements across platforms like social media and Google. Their efforts will primarily target undecided voters, particularly among the digitally-savvy Millennial and Gen-Z demographics — the very audiences that digital brands rely on heavily for sales and engagement.
At the same time, the end of October marks a critical window for brands, as they prepare for Black Friday. The increased competition for ad space has already led to a rise in advertising costs, with Google’s cost per click soaring by as much as 12 percent year over year. Meanwhile, Facebook and Instagram are seeing cost-per-thousand impressions climbing up to 8 percent, according to insights from marketing agency Belardi Wong. Experts predict that these costs will skyrocket even further in the coming weeks as political campaigns intensify their efforts in this tightly contested election. Ad tracking firm AdImpact estimates that this election cycle will witness political media spending reaching approximately $10 billion — a 13 percent increase from the 2020 elections.
Greg Portell, a senior partner at the global consulting firm Kearney, commented, “If I were to invest millions in my brand over the next three weeks, the political campaigns will likely allocate four times that amount.”
While it’s commonplace for presidential elections to inflate advertising costs across the board, this particular cycle holds special significance for brands. It marks the first election following Apple’s comprehensive privacy changes in 2021, which not only increased the price of digital ads but also restricted brands’ access to data essential for effectively targeting their audiences. Additionally, brands are contending with heightened competition for consumer attention—not just from other digitally-native competitors, but also from fast-fashion behemoths like Shein and Temu. Although retail sales have shown better-than-expected performance, it is anticipated that shopper behavior will shift to a more cautious approach in the weeks surrounding the election. Adding to the urgency, fewer days separate Black Friday from Christmas this year, prompting brands to roll out their holiday advertising campaigns ahead of schedule, thereby coinciding directly with the election frenzy.
“Historically, the first week of October was when brands would start showcasing their gift guides for the holiday season, unlike the trends we saw five years ago,” shared Ariel Stoddard, chief revenue officer at the intimates brand MeUndies.
This turbulent period is crucial for brands aiming to meet their sales targets before the year concludes. However, even amidst the overwhelming deluge of political advertising, brands can carve out a niche for themselves and stand out from the crowd. Companies are now exploring alternative marketing channels beyond the predominantly used sites like Meta and Google, such as leveraging text message marketing and shopping newsletters to engage with consumers more directly.
“There’s no reason for brand advertisers to get swept up in the chaos of the political cycle,” Portell reiterated.
The Value of Diversification
In light of rising ad costs, brands are increasingly reallocating their advertising budgets towards channels that facilitate direct communication with customers, such as email and text messaging, rather than competing head-to-head on crowded platforms.
In determining where to allocate advertising funds, brands should focus on alternative channels that have already demonstrated effectiveness in engaging target audiences, rather than experimenting with new tactics during peak seasons. According to Calla Murphy, senior vice president of digital strategy and integrated marketing at Belardi Wong, “With rising costs, there’s no need for workaround; it’s apparent that certain channels are already yielding effective results for you.”
The diminishing effectiveness of traditional social media ads has motivated many brands to identify and utilize these alternative channels. For instance, Bedrock, which manages brands like Shinola and Filson, has spent the past year building a robust text message subscriber list to decrease its reliance on costly social media promotions. Earlier this month, Filson tapped into this strategy by sending texts to select customers granting them early access to sales on top-selling items like its premium utility Packer jacket, resulting in the highest sales day from a text message campaign in the company’s history, noted Kevin Wertz, Bedrock’s chief marketing officer. Additionally, Shinola plans to utilize text messaging in the upcoming weeks to promote value-added services such as same-day delivery and gift wrapping.
“Our subscriber lists for email and SMS will significantly drive revenue for both brands during the holiday season,” Wertz emphasized.
Marissa Lepor, director at investment bank The Sage Group, encourages brands to maximize the potential of their existing communication channels. Brands with mobile apps, for example, can leverage push notifications to promote holiday advertising content, directly reaching consumers in a competitive climate dominated by traditional marketing techniques.
“A notable amount of sales can be generated through the app, targeting the most engaged customer base,” Lepor stated.
Brands should also explore advertising avenues that are likely to remain unaffected by political content, even if the reach may be more limited. For instance, Tecovas, a bootmaker, began focusing on shopping newsletters earlier this year — a channel that has gained traction, offering brands access to a smaller but highly dedicated and trust-filled audience that seeks informed purchasing decisions. In August, after being highlighted in the menswear newsletter Cool Material, sales for Tecovas’ $295 Dean boot surged by 45 percent compared to the prior year. The brand anticipates that featuring in holiday-themed newsletters will further enhance website traffic in the upcoming months, as noted by Krista Dalton, Tecovas’ chief marketing officer and senior vice president of digital and e-commerce.
The unpredictability of this period highlights the necessity for brands to cultivate a marketing strategy that remains resilient throughout the year, reducing their dependency on any one solitary timeframe. For those brands that may feel the pinch in the coming weeks amidst the political onslaught, there’s a silver lining: Following the election, consumers are likely to yearn for a reprieve from political discourse, creating an opportunity for ads centered on fashion and lifestyle products to capture their attention.
“Regardless of the election’s outcome, some individuals will feel satisfaction while others might experience disappointment,” Murphy remarked. “The allure of online shopping as a form of escapism and retail therapy is very real.”
