A lot is riding on the outcome of what happens on Election Day, and one of the potential impacts will be the advertising market. A survey of local advertisers by Borrell Associates finds that nearly one in four (23%) of small and medium-sized businesses say their advertising and marketing spending will be impacted depending on whether Kamala Harris or Donald Trump wins in November. Another 30% say they aren’t sure, while 47% say they don’t expect ad spending to shift much regardless of the election outcome.
Borrell data shows supporters of former President Trump are more likely to alter their spending plans based on the winner. Among Trump supporters, nearly a third (31%) of local businesses say their advertising plans will be modified if their candidate returns to office. That compares to 38% who say it won’t impact their advertising.
However, local business owners who support Vice President Harris are less likely to be influenced. Borrell says only 14% of those in the Harris camp say they will change their marketing plans based on whether she is the winner, while a majority 56% say her victory or loss will make no difference to their ad spending plans.
“So why is all this important? Working with a small, medium business, you probably have a good relationship with them, and you probably know what camp they fall into,” says Corey Elliott, Borrell’s Executive VP of Local Market Intelligence. “If you know that, you've got some clues as to what's important to them, regardless of who wins.”
The findings, part of a special survey conducted by Borrell among its panel of small and medium-sized businesses, gauged the overall political leanings of this critical block of local advertising spenders ahead of the 2024 election. On a recent episode of Elliott’s Local Marketing Minute video series, he says when asked which presidential candidate they think would be better for their businesses, the race is close. The results show 53% say Trump, while 47% say Harris. That doesn’t mean that is how those SMB panelists plan to vote, Elliott notes, only which person they thought would be better for their business.
The survey finds more than half (56%) think the outcome of this year’s election will have an impact on the local business climate. “And just in case you didn't think there was a lot of political tension in the air, nobody said it would have less of an impact,” Elliott explained. Trump supporters are more likely to say the election would affect things. Seven in ten in the Trump camp say it will change the business climate, compared to four in ten Harris’ backers who think the same. “This suggests that those who think Trump will be better for small and medium businesses think this is a pretty important election,” Elliott says.
The top three issues facing small businesses, according to Borrell’s survey, are the cost of labor, mentioned by 40% of those surveyed, followed by the cost of technology (39%), hiring and attracting new employees (31%), taxes (28%), and keeping up with technology (18%). Digging deeper into the survey results, Elliott says the Trump camp is more concerned about costs, and while that is also a big issue for Harris supporters, they are also more likely to be focused on the challenge of keeping up with technology.
The data also shows that partisan feelings impact which candidate the business thinks will make it easier for them to grow their bottom line. Borrell says 80% of Trump supporters think he will make it easier for businesses to grow, while 47% of Harris supporters say the same.
“What this insinuates is if you think Trump is better for small businesses, there is a good likelihood you think his administration will make it easier for you to grow your business and he will tackle those money problems,” Elliott says. “Meanwhile, if you believe Harris will be better for small businesses, your concerns start to skew more towards keeping up with technology and keeping the cost of technology down.”
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