Black Friday 2024: Navigating Digital Ad Costs in an Election Year
In today’s rapidly changing digital landscape, businesses are facing increasing challenges, especially with Black Friday 2024 around the corner and the rising cost of digital advertising. This year, we’re in the midst of an election, which adds an extra layer of complexity. Let’s dive right in and explore how to best prepare.
Why Is Digital Inflation on the Rise?
Just as we see economic inflation in various parts of the world, digital inflation is becoming a significant factor for advertisers. When the value of the dollar increases, the cost of advertising follows suit. This phenomenon, much like economic inflation, means businesses will need to spend more to reach the same audience.
Two main factors contribute to this:
- Currency Inflation: As the dollar inflates, so do advertising costs.
- Increased Competition: More advertisers are entering the market, all vying for the same digital space.
The Impact of Political and Olympic Ads
Every four years, political campaigns flood the advertising space, but this year also includes ads for the Olympics. Typically, political ads start gaining momentum in August and spike in October. However, this year, the surge started as early as June.
In 2024, political ad spending is projected to increase by 30% compared to 2020, totaling over $12 billion. Out of that, $4 billion will be spent on digital ads—a 156% increase from the last election cycle. If you’ve noticed a spike in your cost-per-click (CPC), this is likely one of the reasons. Digital inflation affects all advertisers, regardless of industry.
Strategies for Staying Competitive
With economic uncertainties and a flooded ad market, how can businesses navigate this period without overspending?
- Focus on Profitability, Not Vanity Metrics: In this tough period, prioritize profitability over high-revenue numbers. Efficiency is key—don’t chase empty metrics just for the sake of growth.
- Weather the Storm: The next few months might be difficult, but the key is endurance. Once the election is over, the market will likely rebound in time for Black Friday.
- Prepare for Black Friday: While the current situation seems bleak, Black Friday offers a major opportunity. Consumers are expected to make significant purchases as soon as the political ads die down, so be ready to capitalize on this.
Creative Strategies to Stand Out
Black Friday is a competitive space, so how do you ensure your business stands out? Here are a few tips:
- Diversify Your Creatives: With so many ads running at once, unique and eye-catching creative assets are more important than ever. Experiment with different formats and styles to capture attention.
- Emphasize Your Value: Make sure your messaging highlights the value of your product or service, especially in tough economic times.
- Target Smartly: With rising costs, it’s crucial to target the right audience to maximize your return on investment.
Ready to Take on Black Friday 2024?
Navigating the challenges of digital inflation and a crowded ad space can be daunting, but with the right strategies and a focus on efficiency, you’ll be well-prepared to make the most of the upcoming shopping season. Remember, the effort you put in now will set you up for success once the election ads fade and Black Friday 2024 arrives.
For more insights and expert advice, tune into our NoLimit Unleashed: Episode 3 podcast, where our Founder and CEO, Jeff, and Nick Raschke, Co-Founder and COO of Doe Media, delve into these topics and more! They share valuable tips and strategies to help your business thrive during these challenging times.
Stay ahead of the curve and make this Black Friday 2024 your best yet!
