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Democracy Manifest.
American election ads are driving up the prices for everyone, forcing brands to search for better deals.
by Tod Maffin and Steph Gunn
Today's News
Please note that due to tomorrow's U.S. election (a slow news day for marketing), we won't be publishing a newsletter issue or podcast episode. We'll return to our regular programming on Wednesday, November 6th.
Brands Pivot as Election Ad Spend Surges
When political dollars flood the ad market, brands pay the price—literally.
With final votes in the U.S. election being cast tomorrow, a spike in political ad spend has caused CPMs on major channels like TV, Facebook, and Instagram to soar, forcing advertisers to seek alternatives.
Brands Find New Strategies
Ad prices for some brands on Facebook and Instagram tripled in the election's final weeks as candidates poured in millions to reach voters.
TV ad costs also surged in swing states, pushing some brands to target areas with less political competition.
To dodge rising prices, some advertisers shifted budgets to Amazon, which they say is a more stable option when costs get too high elsewhere.
Others, such as a home fitness brand that mainly advertises on connected TV, remained on competitive ad channels but adjusted their messaging to break through the political noise.
As the election winds down, spending is likely to return to Instagram, Facebook, and other ad channels affected by the campaign ad surge due to their proven results and, in the case of Meta’s platforms, unparalleled reach.
Threads’ Hits 275M Users, Rivaling X
Although their 'cage match' may never have happened, Mark Zuckerberg may soon metaphorically take down Elon Musk in the battle of social media platforms.
Zuckerberg recently announced that Threads, Meta's challenger to X, now has almost 275 million monthly active users.
From 0 to 275M
Launched just nine months ago, Threads started strong, attracting around 8.3 million new users each month. Recently, however, its growth has exploded, adding 100 million users in just three months—more than tripling its growth rate.
This surge comes at a time when user engagement is waning on X.
Controversial decisions from X’s leadership – such as dismantling the platform’s former moderation team and relying heavily on crowdsourced “Community Notes” for content control – have sparked concerns about the spread of misinformation, particularly political falsehoods.
In contrast, Meta appears to be strategically steering Threads away from politics—driven by user feedback indicating that political divisions contribute significantly to declining Facebook usage.
This divergence in approach positions Threads as an attractive alternative for users disillusioned with X’s current trajectory.
With a daily growth rate of 1 million new sign-ups, Threads could potentially surpass X’s monthly active user count by next June if the momentum continues.
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