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As we approach the final months before the presidential election, businesses across the country are feeling the pressure. Election years notoriously shake up the business landscape, and 2024 is no exception. With the added challenges of inflation, rising insurance rates, and lingering economic uncertainty from the pandemic, marketing budgets are tighter than ever. Many business owners are asking themselves: Should we pull back on advertising during this time?
The Impact of Election Year on Advertising
During an election cycle, the advertising space becomes a battleground, with billions of dollars funneled into political campaigns. This surge in spending drives up the cost of online clicks and impressions, making it more expensive for businesses to reach their target audiences. As Marilyn Cowley, CEO and Creative Director of PREM PR & Social, points out, "There are billions of more dollars being spent right now, and they are going after your target audience, blanketing the whole U.S."
The result? Many businesses cut back on their advertising spend, particularly on social media, Google ads, and television advertising. This pullback is often fueled by uncertainty—business owners are unsure which party will take office and how that will impact the economy. As a result, sales may soften, leading to further reductions in marketing budgets.
Why Cutting Back Completely Is Risky
While it might seem logical to tighten the purse strings during this period of uncertainty, doing so could have long-term consequences. "Your customers will remember you if you stay present, even during tough economic times," says Marilyn. She advises businesses to maintain a presence in the market, even if it means getting more creative with how they allocate their marketing budget.
It’s important to remember that the election cycle is temporary. After the election, we often see a spike in consumer confidence and spending, particularly as the holiday season approaches. If you’ve maintained your visibility during the election year, your brand will be well-positioned to take advantage of this post-election bump.
Strategies for Staying Visible
So, how can businesses stay visible without breaking the bank? Here are a few strategies to consider:
- Focus on Retaining Your Current Customers: Can you create a customer retention program? Upsell them on a new product? Instead of trying hard to entice new customers, focus on retaining the ones who love your business and product(s).
- Email Marketing: With ad costs skyrocketing, email marketing can be a cost-effective way to stay in touch with your audience. Craft compelling content that keeps your customers engaged and informed.
- Invest in Organic Social Media: While paid social media may be more expensive, organic content still has value. Develop a strong content strategy that resonates with your audience and encourages engagement.
- Get Creative with Digital Advertising: Consider reallocating your budget to less crowded digital spaces or experimenting with new formats. For example, video content can be particularly effective at capturing attention.
- Plan for a Post-Election Comeback: Start preparing your campaigns now for a post-election launch. By being the first to re-engage with consumers when the dust settles, you can capture their attention and drive sales.
- Leverage Traditional Advertising: With many businesses shifting their focus to digital, traditional advertising channels like radio and billboards may offer more value. These platforms can be particularly effective for local businesses.
Looking Ahead
As challenging as election years can be in regard to higher ad costs, they also present opportunities for businesses to refine their strategies and find new ways to connect with their audience. By staying present and maintaining a thoughtful marketing approach, your business can not only survive the election cycle but emerge stronger on the other side.
At PREM PR & Social, we’re here to help you navigate these uncertain times. Whether you need assistance with content creation, digital strategy, or planning your post-election comeback, our team is ready to support you every step of the way.
Special Thanks
We’d like to extend our gratitude to the Fresno Business Journal for highlighting this important conversation. Together, we can help businesses thrive, even in the most challenging times.
