By Saul Marquez, CEO & Founder of Outcomes Rocket
The result of the recent U.S. presidential election, with Donald Trump recovering his presidency, is of great importance for business, particularly for digital marketing and advertising. But as the political landscape shifts, so do the CMOs and their strategies must adapt in the ensuing changes. In this post we’ll take a look at three big areas that could be affected, and what CMOs can do to be agile.
1. How Inflation and Ad Spending Shifts
Trump’s economic policies, including proposed tariffs and tax adjustments, are expected to drive inflation upwards. According to eMarketer, US digital ad spending is projected to reach $325.45 billion by 2025, driven by high ROI compared to other channels. This trend suggests that CMOs should indeed focus on high-ROI channels like retail media and CTV to stretch their ad dollars.
Given this inflationary environment, CMOs must now reconsider ad spending, especially for high-growth digital channels such as retail media and Connected TV (CTV). With the potential of cost pressures, CMOs may need to focus on high ROAS channels such as retail media. But that also means that smaller brands lacking retail media experience could find themselves priced out of this lucrative space.
Strategy Tip: Concentrate on High-ROI Channels
If you’re trying to prioritize ad spend, I’d recommend focusing on retail media and essential goods, as consumer spending in these categories continues to be strong. For new brands considering retail media for the first time, now is the time for them to partner with platforms or agencies that have experience in optimizing campaigns quickly. It also helps ad dollars go further in a high-inflation economy.
2. Regulatory Changes and Brand Safety Concerns
With his new policy, Trump could revolutionize tech regulations for good which will 100% affect the content moderation standards. Consumers are demanding safe and moderated content environments more and more every day with 73% of U.S. adults favoring more control over social media content. However, with less pressure on Section 230 restrictions, we could see some varying types of content policies across those major platforms.
Data from the Interactive Advertising Bureau (IAB) also reveals that 60% of consumers are less likely to make purchases from a brand in association with questionable, or divisive content. Therefore, big names in the games such as Meta and Google have invested millions trying to perfect their content moderation tools. This brings guarantees to support their brand safety, further emphasizing the importance of a safe platform.
Strategy Tip: Strengthen Brand Safety Measures
With the expectation of new changes coming in the policies regarding safety measurements in media platforms, we need to reassess brands’ choices. Are they using AI to handle content moderation or humans? Who developed this AI and what type of data it has trained with? What is the demography of people who monitor the content of social media users every day? For the brand, this means separating itself from toxic platforms and only investing in the platform that brings them safety and content. This is how they secure and maintain their reputation.
3. Media engagements and audience shifts in the traditional media.
A “Trump bump” may encourage more engagement in news media at networks that draw conservative audiences. When Trump first ran for president in 2016, Fox saw 10-15% increase in viewership. In 2024, the total political ad spending is expected to hit $12.32 billion. And with Trump being the president again, the discourse will, without a doubt, continue.
Digital news media consumption has grown 12% since last year, but digital newspaper ads present a CMO with an opportunity to reach audiences with better ROI at higher engagement rates. Print news ad spending is falling 7.7% in 2023 and will continue to fall, moving to digital placements.
Strategy Tip: Leverage the Media Surge
Brands that can take a piece of content, share it on the news cycle, and see it become viral have the potential to grow in digital news outlets, exposing them to a politically engaged audience. While advertising near divisive or distressing news can induce consumer backlash, be careful not to lump yourself in with these negative associations by choosing ad placements carefully.
Additional Considerations: ESG Messaging and DEI Initiatives
According to a 2023 Deloitte survey, 57% of people are more loyal to brands with good ESG commitments, and 73% of Gen Z have valued DEI in their brand choices. Political divides, however, mean that some audiences may not deem ESG, and DEI messaging politicized enough.
Importantly, ESG investment is at an all-time high at 25% growth since 2020. And yet, a lot of them are still saying that they get backlash simply for discussing DEI, demonstrating the importance of authenticity in advocacy.
Strategy Tip: Stay True to Your Brand’s Core Values
Whether they “earned the right” to enter political or divisive spaces is an issue that brands have to consider, as what they’ve done in the past and how they think consumers perceive them shapes that. Those who choose this tactic, should stay consistent and grounded in genuine messaging and not lean towards the shiftiness of a one-and-done tactic. For brands not sure they want to wade into these issues, a wait-and-see may be the wise way to go
