How CTV is rewriting the political advertising rulebook this campaign season

It’s not breaking news that the political divide in the U.S. has never been more extreme—or fraught. But in an era of continual fragmentation, tech-driven disruption and the growing challenges of reaching audiences, the one thing a vast majority of all voters have in common, regardless of party affiliation, is seeing streaming as the preferred platform for viewing TV. With political ad spending on CTV forecast to grow 600% since the previous presidential election, to $1.56 billion, according to eMarketer, LG Ad Solutions recently published a comprehensive report titled “The Big Shift: Political Edition” to examine the evolving TV viewing habits among U.S. adults along with their political affiliations. The study reveals that 84% of U.S. viewers now own a connected TV. This shift is consistent across the board, with Democrats at 83%, Republicans at 85% and Independents at 84%. The report also shows that it’s not just younger audiences: In fact, 57% of viewers ages 35 and older prefer streaming over linear TV, with 76% watching the same or less linear TV compared with just a year ago. Good news for advertisers: 69% of this same age group prefer free ad-supported streaming TV (FAST) over subscription-based video on demand (SVOD) channels. LG Ad Solutions VP of Political Practice Keith Norman recently joined Ad Age Studio 30 Editor John Dioso for a one-on-one conversation about how the massive shift of viewers from linear to CTV is changing the landscape of political advertising during this crucial election season as well as the advantages and opportunities that streaming offers political advertisers. Broad reach and precise targeting Perhaps the biggest change to TV as an advertising platform, Norman said, is that CTV used to be regarded by many as a channel that offered precise digital targeting as its key advantage compared to linear TV. But with the massive shift in viewership habits outlined in the LG Ad Solutions study, he said, “this is the first cycle where political marketers now have the ability to reach all voter demographics on streaming TV in a way that was not possible in the past.” Additionally, focusing on streaming-only voters could “make a difference in many races that may be decided by only a few thousand votes,” Norman said. “When you have the scale, the reach and the targeting capabilities of CTV, you can run campaigns based on ZIP codes rather than just buying large DMAs, like previously done with traditional television. For instance, in Georgia, which is a really important state this cycle, with linear TV, many have traditionally had to buy Jacksonville, Florida, or Greenville, South Carolina, or the Tallahassee market. ZIP targeting is a great way to achieve media efficiencies and will be very beneficial this cycle- especially for down ballot races.” Overcoming fragmentation with ‘direct-to-glass’ Beyond the reach and targeting that is now commonplace in CTV, another advantage LG Ad Solutions and the other major OEM players offer political marketers is using ACR to employ a “direct-to-glass” strategy, Norman explained. This approach involves understanding how TV is being watched in a household, whether through streaming, linear or a secondary device such as a gaming console. Direct-to-glass also helps mitigate the challenges of fragmentation that plagued TV advertisers and now political marketers. A ‘direct-to-glass’ strategy provides detailed insights into viewing behaviors and ad exposure allowing for more sophisticated and effective media planning, reducing wastage. This strategy increases the impact of political campaigns by informing political marketers about what is being watched on smart TVs in the households they’re trying to reach across everything they are watching from different streaming apps, FAST channels and even gaming. They can also see what ads are being served to ensure maximum efficiency and ability to manage ad frequency,” Norman said. Among the other primary benefits the OEMs’ ACR offers political marketers are decreasing ad fatigue among voters and enhancing retargeting opportunities for the 93% of viewers who multitask on other devices while watching TV, according to LG Ad Solutions’ study. As political marketers prepare for the one of the most consequential elections in U.S. history, embracing the capabilities of CTV will be essential for reaching and persuading voters effectively, Norman said. “CTV is one of the main pillars for political marketers this cycle,” he emphasized. “Without CTV, they’re leaving hundreds or thousands of votes on the table.”

How CTV is rewriting the political advertising rulebook this campaign season

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