The 2008 Tools Campaign: Advertise Online

Impressed by the reach and unprecedented science of online advertising, the private sector is flocking to online ads. Advertising online should exceed $20 billion this year in the United States. That’s roughly 8% of all U.S. advertising and up more than 25% from ’06. Corporate America is convinced of online’s efficacy: banners perform 40-80% better than TV, magazines, and newspapers in brand recall and in generating interest in a brand. At the average effective cost per thousand impressions of $3.50, banners are 80% cheaper than TV and newspaper. And with search, advertisers can hit specific info-seekers for as little as 10 cents per lead, connecting at exactly the moment when each individual is primed for action.

Online advertising should be a no-brainer for politicians and causes, right? After all, during the ’06 election, an estimated 60 million voters – better educated, affluent and more active than the average Americans- went online for political information, and 22 million of them said the Internet was their primary source of political information.

But political online advertising still lags significantly. Candidates’ spending online accounts for between zero and five percent of their total ad spends. When candidates do advertise online, they focus on the metrics – like trackable Return On Investment (ROI) for fundraising - where online most obviously trounces offline. Thus, pursuasion, politicos’ real goal and the rationale for the bulk of traditional advertising, is ignored.

Despite strong evidence that online advertising can deliver significant messaging and branding benefits for politicians, most political online advertising focuses on list-building and money raising. For example, Presidential campaigns raised $22 million online in Q1, but spent only $1.7 million on online advertising, with the bulk of this devoted to list-building and cash raising rather than pursuasion. To the great frustration of online advocates, money raised online almost inevitably goes to pursuasion TV ads rather than being spent online.

The political “net lag,” both in spending and lack of focus on persuasion, presents a historic opportunity for Progressive causes and candidates. By building a knowledge base now, Progressives can grab an early lead and build a lasting edge. What should Progressives do?