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All Political Advertising Is Local

Tim Hanlon

Element5 Digital/Unsplash

The long-mythic idea that "all politics is local" is originally attributed to the late former U.S. House Speaker Thomas "Tip" O'Neill (1977-87) - who believed that a politician's success in representative government is directly correlated to her/his ability to appeal to the simple, everyday concerns of their local constituents, rather than focusing solely on big, national issues. 

In principle, the core idea is that voters care most about the personal, local issues that directly impact their daily lives, such as the condition of their roads, the quality of their schools, and the services provided by their local government. In other words: local, community-level concerns often take precedence over broader national or global political debates.

More than 40 years since O'Neill held the gavel, however, that once-sage notion has given way to a very different political landscape - one where elections have become increasingly nationalized, and voters seemingly more influenced by national partisan trends and themes rather than purely local issues.

Don't tell that to TV broadcast station groups, however - or even the cozy cadre of political advertising consultants who plan and spend billions each cycle on advertising media on behalf of their candidates and PACs.  According to local media forecasters BIA Advisory Services, local is still very much where the action is for political advertising - with linear broadcast TV alone projected to command a nearly $5 billion windfall before 2024 is done and dusted.

While still very much the lion's share of where political ad spend occurs, linear local broadcast's supremacy is very much in question in future cycles, especially as mobile, digital and TV-adjacent connected TV (CTV) gain increasing favor with consumers as prime news (and entertainment) media destinations.

This week, we check in with Gray Television's head of digital political advertising Nicole Meade to get a sense of where things stand so far in this year's unique political advertising cycle, how broadcasters like hers continue to benefit from the ongoing linear largesse, but also how they are evolving their ad value propositions in the face of fast-changing viewer behaviors.

TVREV: Give us a little bit of background about your role at Gray and your experience in political advertising prior?

Nicole Meade, Sr. Director/Digital Political Sales, Gray Television: I've spent the past 15 years working in the political arena, having experience on both the Republican and Democratic sides. This involved direct involvement with campaigns and political action committees (PACs), where I focused on determining the media mix, allocation, and associated costs. Approximately 85% to 90% of my work has been in linear media, with a significant emphasis on television due to its predominant role in campaign budgets, alongside some involvement in digital and radio. My connection with Gray began when I expressed interest in entering the connected TV (CTV) space. This led to discussions revealing Grey's lack of representation in selling digital services to political agencies, ultimately resulting in a partnership and then my move here.

TVREV: What's different about political advertising on the sales side vs. the buy-side?  And how do the relatively new opportunities of "digital" and connected TV (CTV) influence those two dynamics?

Meade: I spent a few years working on the sales side at Scripps, focusing on the automation space, specifically with political sellers. In that role, I saw the rapid emergence of digital ad products, and witnessed the initial challenges traditional linear TV ad sellers had incorporating them into sales propositions - let alone the TV-heritaged buying community understanding them.  That said, I quickly found that building relationships is the cornerstone of success in this field. Trust is paramount, especially within the close-knit political community where outsiders are often met with skepticism. 

Over the past five years, there's been a notable increase in linear buyers looking to invest in connected TV (CTV). They appreciate working with someone who understands both linear and digital aspects, guiding them through this evolving landscape with ease.

Comparing the political sector to general local ad sales, the differences are significant. While digital advertising isn't regulated by the FCC, the fast-paced nature demands a deep understanding of operational dynamics. During my first year at Gray, I focused on internal processes to ensure readiness for political campaigns. From shortened timelines to payment structures, preparation is key in an industry where there's little room for error.  To be successful, you have to understand the intricacies of behind-the-scenes operations and deliverables before diving into sales. It's about being proactive and knowledgeable, ensuring seamless execution even amidst high pressure - which is a hallmark of political ad campaigns!

TVREV: Can you give us a sense of how political ad budgets are created and brought to market?  Political ad campaigns seem to follow very different budgeting and executional schema than those of more traditional local/regional advertisers like retailers or car dealerships or quick service restaurant chains?

Meade: On the buy side, when a campaign approaches us—let's take a governor's race in North Carolina as an example—they typically ask for the cost of a statewide ad campaign. Traditionally, we would create a media plan focusing on linear advertising, providing details on CPMs and the cost of running 1000 points per week. However, with the integration of CTV into linear plans, the process has evolved. Buyers now need to engage digital vendors to determine potential impressions achievable within specified parameters. While historically, local campaigns heavily invested in linear TV, there's now a growing need for understanding the impact and pricing of CTV inventory alongside traditional TV. Agencies are increasingly working to create sophisticated medi​a mixes, balancing allocations between CTV, cable, and linear. Political campaigns, in particular, are embracing CTV coverage as part of their television-first mentality, with CTV now being included in linear plans. However, not all agencies share this mindset, and the adoption of CTV varies across the industry.

​TVREV: How about from the sales perspective? You're representing, in bulk, TV stations in over 100 markets around the country with vastly different demographics.  Would you rather sell CTV separately, or does it make everybody's job easier to have CTV sold as an extension of a television buy? 

Meade: I encourage our National Sales Managers to include a line item for CTV when submitting their regular avails. While not every buyer may purchase it, having it there raises awareness. During October, there's often a surge in available funds, and CTV can serve as a release valve, especially considering the limitations on linear avails due to increased competition closer to election day.

Moreover, if you're buying linear, particularly news programming, there's a portion of the audience that has cut the cord and relies on local apps for news consumption. By incorporating CTV, you're tapping into this additional audience segment.

Many buyers transact programmatically, and we've facilitated numerous programmatic deals as well. However, there's a growing trend where buyers prefer to buy programmatically first and then directly from publishers, like us, who own and operate these apps. This ensures transparency and safety in ad placement, making the proposition more appealing.

TVREV: Considering the fluidity and urgency of the political ad process compared to traditional marketing, how do you become aware of potential campaigns, and what strategies do you employ to attract and pitch to them effectively?

Meade: I rely heavily on the relationships I've built, especially from my time at one of the largest Democratic buying agencies. Being visible and engaged at events helps me stay connected and informed. When it comes to responding to inquiries, I need to act swiftly, often within an hour, even if I'm not at my desk - especially from mid-September-onward. It's like being on call all the time, akin to a triage situation. I've trained both internal and external colleagues to expect and understand the urgency. The turnaround for executing ads needs to be rapid.  The good part is that TV stations already are well-equipped to do it fast; political advertising is "king" in local broadcast - it's financially very important, right?  It's a very big revenue stream for us. So, everything kind of stops a little bit. And if a spot needs to be changed right away, we're certainly able to do that.

TVREV: Do you think the political advertising sector is ahead of the curve or behind the curve when it comes to keeping pace with consumer media behavior?

Meade: Behind! Many political consultants have a persistent focus on television - where GRPs and hitting specific point targets are still the norm. Educating clients about alternative strategies can be challenging, especially when efficiency is so tactically prized.  However, the reality is that consumer behavior is evolving, and many audience groups are shifting away from traditional linear TV viewing.  Still, TV stations are reluctant to disrupt the every-two-year revenue bonanza status quo. And consultants are fearful of changing their historically effective "tried-and-true" methods.

That dynamic can sometimes feel like the "blind leading the blind," with neither side eager to embrace change. However, there has been a noticeable shift in recent years, particularly in how agencies and consultants now approach, and even incorporate, CTV advertising into the strategic mix. Still, there's a lingering mindset that assumes TV as the primary platform for reaching voters - especially those over 35, who are seen as the most engaged voting demographic. 

Competitive spending also plays a significant role in shaping campaign decisions. When one client airs an ad with 1000 ratings points, competitors often adjust their spending accordingly, creating a competitive landscape where campaigns match each other's ad placements point for point. Convincing a campaign to deviate from this norm - even if it means reallocating funds to digital assets - can be challenging when decisions are primarily driven by competitors' actions.

However, there's gradual progress in shifting perceptions and adopting more diverse advertising strategies to align with evolving consumer behaviors. Despite the challenges, campaigns are beginning to recognize the importance of adapting their spending strategies to reach audiences in new and effective ways.

(Transcript edited for clarity and brevity)

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