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How Elections Impact B2B & B2C Businesses: What You Need to Know for 2024

   By: Hayden Jarman


With the 2024 election approaching, businesses in both B2B and B2C sectors face significant challenges that could affect everything from advertising costs to consumer behavior.

In a year where political advertising is expected to hit $15.9 billion, it's vital to understand how these shifts will impact your business and what you can do to stay ahead.

The stakes are high, with ad costs set to soar and competition for ad space intensifying across platforms.

Let’s break down what this means for businesses and how you can adapt to the 2024 election environment with actionable strategies to remain agile and competitive.

 

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Table of Contents:


Why the 2024 Election Is a Game-Changer for Businesses


A Surge in Political Ad Spending

Political ad spending in 2024 is expected to increase by 31% compared to 2020, driving competition for ad space, especially on platforms like Meta (Facebook) and Connected TV (CTV).


Non-political businesses will face steep competition and higher costs to advertise.

  • B2B marketers will need to act quickly to secure ad inventory, as availability will become more limited, especially in Q3 and Q4.
  • B2C companies will need to budget more for ad campaigns or pivot to organic strategies such as consistent SEO strategies to maintain visibility without breaking the bank.


Pro Tip: For more detailed tips on keeping your SEO efforts on track during this period, check out this comprehensive guide to SEO strategy in 2024.
 

The Impact on B2B Businesses: What to Expect


1. Regulatory and Policy Uncertainty

Election cycles often bring regulatory uncertainty, which can lead to delays in decision-making for industries like healthcare, energy, and finance.


Companies may hold off on major investments or new projects until they know the election’s outcome and how it will affect their industry.

  • Historical data shows that investment expenditures in B2B sectors drop by 4.8% during election years.
  • The slower closing of contracts and delayed projects during this period often create operational bottlenecks.


To navigate these hurdles, you can optimize your SEO strategies for both paid and organic channels.

Start by analyzing how your competitors are adapting to the current environment with a comprehensive competitor analysis guide.
 

2. Increased Ad Spend & Competition

Political campaigns are expected to dominate ad platforms like Meta, which means higher CPC (cost per click) and CPM (cost per impression) for B2B advertisers.


To stay competitive, B2B companies must lock in ad inventory early or pivot to organic content marketing.

  • Consider shifting your SEO strategy to the first half of 2024, as competition will become much more intense during the latter half of the year.


You can also read about how to manage SEO for businesses across multiple locations.
 

3. Slower Decision-Making

Economic uncertainty often delays purchasing decisions.

For B2B companies, this means that decision-makers in sectors like manufacturing and technology may take longer to finalize contracts.

To counter this, B2B marketers can leverage content marketing and rich text SEO strategies.

Learn more about rich text and its impact on search rankings in our guide on SEO rich text.
 

The Impact on B2C Businesses: Changing Consumer Behavior


1. Consumer Confidence & Spending

The 2024 election could significantly alter consumer spending patterns.

According to recent studies, 74% of consumers are worried about rising costs, and 44% plan to cut back on spending. This could heavily impact industries like retail, automotive, and healthcare.

To maintain visibility during this period, B2C companies can rely on SEO tactics such as optimizing image sizes for faster load times.

Dive into our image optimization guide to maximize performance across your site.
 

2. Ad Competition in B2C

Political ad spending is expected to dominate digital platforms such as YouTube and Connected TV (CTV).

This will make it challenging for B2C companies to secure prime ad space without paying a premium.

To avoid inflated ad costs, pivot your marketing strategies toward organic growth channels like SEO.

Consistency is key in ensuring that your brand remains visible, regardless of the advertising landscape.

Check out why having a consistent SEO strategy is critical for your business during election periods.
 

3. Shifts in Consumer Priorities

Election years often come with proposed policy changes such as tax reforms and environmental regulations, which can directly influence consumer decisions.

For example, sectors like automotive and energy may see shifts in purchasing habits as consumers focus more on sustainability.

Stay ahead of these shifts by implementing SEO techniques that increase user engagement and search visibility.

Take a look at how Airbnb uses SEO tricks to stay competitive in a crowded marketplace.
 


1. Linear TV vs. Digital Media

Traditional linear TV is still expected to capture 44% of political ad spend, while digital platforms, including Connected TV (CTV), will account for 28%.

This increased focus on digital media will crowd the ad space, driving up costs for businesses across all sectors.
 

2. Political Ad Bans & Their Effects

Platforms like Google, LinkedIn, and Amazon have banned political ads, forcing political campaigns to shift their budgets toward other platforms like Meta and X (formerly Twitter).

This reshuffling of political ad spend will further increase competition on these platforms, driving up ad costs for businesses.

To maintain visibility without overspending, consider focusing on content marketing and organic search.

Sitemaps can play a crucial role in helping search engines find and index your content, so make sure you understand the importance of a sitemap for SEO.
 

3. Ad Strategy for 2024

Businesses should secure Q3 and Q4 ad inventory early before political campaigns take over.

You should also shift some marketing efforts to Q1 and Q2 to avoid competing for expensive ad space during the peak of the election.

ad strategy for election year



Pro Tip: Combine your paid advertising efforts with strong SEO to maintain a balanced and cost-effective marketing approach. For recommendations on SEO tools that can help, check out the best SEO tools for small businesses.
 

Staying Agile During the Election Cycle: Key Strategies


1. Scenario Planning

Create flexible business strategies based on potential election outcomes.

This includes multiple financial forecasts to account for changes in tax policies or regulations.


2. Ad Inventory Management

Secure your ad inventory early for Q3 and Q4.

If costs become prohibitive, consider shifting your SEO focus to early 2024 when competition is lower.
 

3. Focus on Organic Growth

Election years are the perfect time to double down on content marketing and SEO.

By creating valuable, relevant content, your business can stay top-of-mind without overspending on ads. For inspiration, see our SEO case study on the Veteran Business Collective.
 

4. Diversify Revenue Streams

Election years can create unpredictable business environments.

Consider diversifying your revenue streams and expanding your product or service offerings to reduce dependency on any single market or customer segment.
 

5. Stay Informed

It’s essential to stay on top of political news and understand how new policies may affect your industry.

Subscribe to industry publications and maintain open communication with stakeholders to stay agile.
 

Conclusion: Take Action Now to Prepare for 2024

The 2024 election will present significant challenges for both B2B and B2C businesses, particularly when it comes to advertising costs, consumer behavior, and regulatory uncertainty.

By securing ad inventory early, focusing on organic growth strategies, and preparing for multiple election outcomes, you can position your business to navigate the challenges ahead.

If you’re looking for more ways to optimize your business during this period, check out our latest updates on Google SEO for 2024.
 

Additional Resources

For more in-depth insights on the impact of the 2024 election cycle on business and advertising, check out the following resources:

  1. Political Ad Spend Will Hit $15.9 Billion in 2024
    This article from AdExchanger highlights the record-breaking projections for political ad spending in 2024, offering insights on how businesses can prepare for the competition in ad space.
  2. Corporate Investment During Election Cycles
    An academic paper from the Journal of Finance that explores how political uncertainty, particularly during elections, affects corporate investment decisions.
  3. 2024 Will Be a Record Year for Ad Spending
    Forbes offers predictions on the factors driving record ad spending in 2024, including the U.S. presidential election and major global events.
  4. How to Prepare Your Business for the 2024 Election Cycle
    This post from Forbes Business Council gives practical advice for businesses looking to navigate the uncertainties of the 2024 election cycle.
  5. J.P. Morgan Analysis on the 2024 U.S. Election
    J.P. Morgan’s research delves into the economic and market implications of the upcoming election, providing valuable context for businesses looking to anticipate market shifts.
  6. Political Ad Spending in 2024
    MediaPost discusses the projected $12.3 billion in political ad spending across various media channels, with a detailed analysis of how it will affect the broader advertising landscape.


Need help navigating the advertising and market shifts in 2024?


Reach out to BlueTone Media to get expert guidance on how to adjust your strategy during this critical election year.
 


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