Election 2024: Record $15.9bn in US political ad spending expected

As the 2024 U.S. presidential election approaches, a new forecast reveals an unprecedented surge in political advertising spending. According to GroupM, one of the world’s leading advertising agencies, a staggering $15.9 billion is projected to be spent on advertising, marking a more than 30% increase from the 2019-2020 election cycle. This figure could even climb to $17.1 billion when including direct mail campaigns.

Despite the public’s familiarity with the likely main candidates, Joe Biden and Donald Trump, this surge in spending is significant. It positions the 2024 election’s ad market as the 10th largest globally, surpassing the entire advertising market of Australia. This growth is not just a one-off; by the 2028 presidential election, political ad spending is expected to reach around $20 billion.

The majority of this expenditure is directed towards local broadcast TV in the U.S., but a growing portion is being allocated to digital platforms. One of the notable trends for the upcoming election is the use of AI in ad placement, which has prompted the Federal Election Commission to open discussions on regulating AI’s use in campaign ads.

GroupM’s projection significantly exceeds other forecasts, with AdImpact predicting a total of $10.2 billion in political expenditures across all media for the 2023-2024 cycle, a 13% increase over the previous election cycle. The breakdown of this spending includes $2.7 billion for presidential candidates, $2.1 billion for Senate candidates, and $1.7 billion for House candidates. The most significant spending, however, is expected in “down ballot” areas – political advertising not directly related to presidential, House, Senate, or governor races, estimated at $3.3 billion.

Source: The Guardian

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