The impact of major events on ad costs: elections, Olympics, and more

The advertising world is a dynamic ecosystem. With channels and tactics always evolving, it’s important to stay on your toes and keep up to date with the latest news. But there’s one thing you can always count on to impact advertising on a regular basis: major events. From elections heating up the political sphere, to the Olympics captivating the world every two years, to the holiday season, it’s important to plan ahead. Here’s what you need to know about the impact of major events on ad costs, and how you can make sure to be prepared.

The impact of major events on ad costs & inventory

Whether it’s politicians vying for votes or retailers looking to capitalize on the holiday rush, major events attract a major audience. When demand surges, naturally, so do prices – while inventory may plummet.

Let’s take a look at the Olympics. While it’s an absolutely huge event, it’s also over quickly, lasting only two weeks or so. That means that any inventory on advertising channels that broadcast the Games is going to be in extremely high demand and come at a premium. On the flip side, audiences on other channels may dip as your audience’s viewing habits temporarily shift. So, when it comes to advertising during the Olympics, consider: is it worth putting your campaigns on pause during the Games? Conversely, is it worth taking advantage of non-Olympic channel spots that may come at a lower cost? Or is the Olympic audience a great fit for your brand? These aren’t questions with one-size-fits-all answers. As always, it’s best to have a trusted media-neutral partner to help you navigate.

Since elections last much longer than the Olympics, there isn’t quite the same rush that happens during the Olympics – but they come with their own challenges. It’s estimated that political ad spending will hit $12 billion this year! So clearly, ad inventory and pricing will reflect that in some way. You’re most likely to run into reduced inventory and higher pricing during contested primary seasons, in battleground or flip states, and of course, in the direct leadup to the election itself.

Those are the basics of what happens to ad rates during huge events. So, what should you do about it?

Plan ahead.

Throughout the life of your business, there will always been unexpected events you can’t plan for. (Who, in 2019, predicted the world shutting down?) But there are plenty of events you can! In even years, you can count on both American elections and the Olympics, and of course every November, the world gears up for the holiday spending rush. As you’re making your marketing plan for the year, make sure to account for the fact that there will be times when advertising inventory is more expensive and/or scarce. Savvy advertisers book their spots well in advance, especially for highly sought-after placements like prime time TV slots during the Olympics. Early planning helps secure better rates before prices skyrocket.

Understand the relevance of your brand.

Not all events impact all industries. A political election might see a rise in political ad spending, while holiday seasons benefit retailers and travel companies. However, even if you’re not in an industry surging with ads in a given season, you may still be affected by decreased inventory or increased prices. Understanding the event’s relevance to your brand allows you to tailor your advertising strategy and potentially avoid the most inflated rates.

Embrace creativity.

Sometimes, the most impactful campaigns emerge during these high-demand times. Think outside the box! A clever ad campaign that capitalizes on the event’s buzz can generate significant organic reach and brand awareness, even with a smaller budget.

Take advantage of alternative strategies.

Just because ad rates rise doesn’t mean you have to disappear. You can think of large events as an opportunity to try out channels and strategies you may not have thought to try previously. Consider alternative channels like social media marketing or influencer partnerships, which might offer better value during peak periods.

So, the next time a major event rolls around, be prepared! Understanding the impact of major events on ad costs empowers you to adjust your strategy, find creative solutions, and ensure your brand’s voice is heard even amidst the advertising frenzy.