Relevance Report 2020 Political Edition 2 | Relevance Report — 2020 Political Edition

Setting the Stage

Is everything political? Consumers are being inundated To navigate a hyper politicized When it comes to a US with political messaging across environment, Xandr sought to the media they consume daily. conduct research on the state Presidential Election 92,000 presidential campaign of political advertising with year, the answer might ads aired on television three main objectives in mind: just be yes. nationwide in the third week of February of this year alone. Understand voter attitudes toward politics With heightened political and political advertising. tension over the past several years, the 2016 Presidential Identify the current and 2018 Midterm Elections challenges in reaching saw political ad spend voters with an ad increase significantly. that resonates. eMarketer forecasts 2020 total ad spend to be nearly Determine the ways in 60% higher than it was in 2016. which we as brands and agencies can improve Total political ad spending (US) voters’ experience with political ads.

$6.2bn This report details insights from a high-level discussion $4.8bn with political marketers in D.C., consumer focus groups, $3.9bn conducted nationwide and $3.2bn an online survey of 1,000 voters and prospective voters.

What we found is that a political ad can be an effective tool to spur a voter to consider 2014 2016 2018 2020 a candidate. The caveat? Source: eMarketer, January 2020 It should create trust and relevancy for consumers. Methodology In January 2020, Xandr worked Questionnaire respondents with research and analytics In November 2019, Xandr firm, MarketCast, to conduct partnered with Advertiser three 90-minute focus groups 289 Self-identified Perceptions to host a select among 15 total Republican, Republicans group of senior-level political Democrat, and Independent marketing decision-makers voters across the United States for a 90-minute roundtable and between the ages of 18-54. discussion in Washington D.C.. 293 Self-identified Xandr also partnered with Democrats MarketCast on a 20-minute online survey of 1,000 current voters and prospective voters, 398 ages 18+. Independents 4 | Relevance Report — 2020 Political Edition

Understand attitudes toward politics and political advertising. Relevance Report — 2020 Political Edition | 5 6 | Relevance Report — 2020 Political Edition

The 2020 Political Landscape

‘Polarized.’ It’s the For D.C. marketing strategists, word most used by polarization has led to their “The number of people to refocus on state-level politics. respondents when target is actually shrinking With so much standoff on as politics becomes describing the current Capitol Hill, legislative battles so fractured, there are political environment. have stalled and there’s more fewer undecideds.” In fact, four in five action and money in political advertising at the state level. Marketer registered or prospective Given the extent to which the voters say that politics electorate is divided and fixed is more polarizing than to their beliefs, marketing agendas have become less ever before. The intense about moving voters and 4 in 5 opposition between more about reinforcing or voters say that politics is more political parties is challenging perceptions. polarizing than ever before. felt by marketers and The polarization acknowledged consumers alike but by voters nationwide does not necessarily translate into affects each cohort are proud negative emotions about the differently. to live in election process. 74% say they 74% the US. are proud to live in the US. Roughly three in five are thinking positively about the 2020 Election, mainly because they feel empowered by their ability to vote. Polarization 3 in 5 might be contributing, however, are thinking positively to a lack of confidence about the 2020 Election. in the current political system, with 62% reporting that they feel restricted by the two-party model. Relevance Report — 2020 Political Edition | 7

With planted positions dictating the political climate, it’s important to look at sentiment across party lines.

Top driver for those that feel positively Republicans Democrats Independents

59% of Republicans feel confident about their party leadership. 37% Feeling negative about the 2020 US 30% Presidential Election 52% 51% of Democrats say candidates are addressing the issues they care about. 63% Feeling positive about the 2020 US 70% Presidential Election 48% 51% of Independents feel empowered by their ability to vote. 85% Political advertising 78% needs to exist 74% Top driver for those that feel negatively 75% Political advertising is 62% good for voters 70% of Republicans 59% distrust the media and reporting on the Election.

67% Pay attention to 56% political ads 44% of Democrats are 49% upset by lack of bipartisanship.

Say political ads are a 60% 51% of Independents valuable resource for 51% how they make their distrust the media and voting decisions 43% reporting on the Election. 8 | Relevance Report — 2020 Political Edition

Rules of Ad Engagement

While opinions of the news media differ across parties, there is a general trend in 74% 73% television news viewing that 68% speaks to a slight preference 61% 60% 60% 56% for reporting over analysis 54% 52% and punditry. At least three in five eligible voters are tuning in to local and network Democrats news programming weekly. are more likely Not quite as many are cable news switching on cable news. viewers than Democrats, the most trusting Republicans or of the news media, are more Independents. likely cable news viewers than Network News Local News Cable News Republicans or Independents. 58% 59% 69% When they are watching television, whether news or Watch political ads on TV weekly other programming, most voters will engage with political 50%56%61% ads that appear, meaning they will watch the ads all the Read or watch political ads on news websites weekly way through. While television is the platform most likely to 49% 59% 62% capture their attention, voters are generally receptive to Listen to political ads on the radio political advertising across platforms. For Republicans 48% 58%60% and Democrats, there is over a 50% chance that on a Read or watch political ads on Facebook weekly basis they will watch, read, or listen to political ads Independents Republicans Democrats appearing on a platform with which they engage regularly1.

1 Engage regularly = at least monthly engagement. While Democrats are most It is not impossible to reach likely to engage with political an independent voter and get 60% advertising, the majority of them to pay attention to an Republicans also see the value ad. Driving engagement is key say they have read more about of and pay attention to political because voters of all parties the candidate or read more ads. Independent voters, will act on political ads that about the cause after being however, present the greatest they watch, read, or listen to. exposed to a political ad. challenge for marketers — they are not aligned with either party, skew negative toward “I try to educate myself ~1 in 3 the 2020 Election, and are least based on issues that likely to engage with political I’m passionate about. voters have talked to their ads. While difficult to connect Instead of looking along friends and family about what with, Independents are most the two‑party lines, they’ve seen in a political ad. likely to feel positively because I’ll look at sources I trust… they are empowered by their I’m more issue-based ability to vote, which indicates rather than party-based.” the influence of this group. They cannot be overlooked. Independent Voter 10 | Relevance Report — 2020 Political Edition Relevance Report — 2020 Political Edition | 11

The Through Line Across Party Lines “Ads help steer the direction of my There is a sentiment that research because unites the electorate and that’s sometimes you a thirst for knowledge. Across “Ads are just don’t know how parties, the overwhelming one of the tools you should start.” majority looks for opportunities of the whole to get informed. campaign…I do my Republican Voter own research after.” Through education, voters are actively looking to ‘cross Democratic the aisle’ and alleviate the Voter sense of being overwhelmed “At the end of the by polarization. Voters shared day, I will be doing an openness to hearing my own research to from opposing parties make my decision.” and various viewpoints. Independent Voter Conversations with registered and prospective voters also indicate that their Election decisions are reliant on their own independent research about candidates and causes, which presents are eager 64% the leading opportunity for to learn marketers — ads can act as more about like spending their time the catalyst for inspiring the 75% different researching different political research that voters conduct. political views. candidates and issues.

Today’s voters are empowered to use the resources available to them — news archives, campaign websites, social 70% platforms, televised debates and town halls — to make agree that they need to learn more about informed decisions about 2020 Presidential candidates. choosing their political leaders. Ads are often the engine behind their decision-making journey. 12 | Relevance Report — 2020 Political Edition

Identify the current challenges in reaching voters with an ad that resonates.

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Barriers to Ad Engagement

A negative ad After a negative ad experience... experience can refl ect badly on the candidate. 48% 10% There are several will like the will like the contributing factors to candidate less. party less. a negative ad experience. Relevance Report — 2020 Political Edition | 15

Intrusiveness

Last year, through a nationwide online survey, 71% 79% Xandr discovered that consumers are not necessarily anti‑advertising, they’re pro‑content. Consumers prefer ad-supported experiences so dislike when ads/political ads obstruct long as the ads do not intrude the content with which they’re engaging. on or obstruct the media with which they’re interacting. 63% 72% This holds true for political ads.

say advertising/political advertising “Whenever I am watching makes media consumption less enjoyable. TV, I am usually watching fantasy and I don’t want it to be interrupted by political ads.”

Republican Voter

71% dislike when ads obstruct The solution for reducing intrusive the content with which ads comes down to meeting a voter they’re engaging whilst 79% dislike when political ads at the right moment in time. do the same. 63% say advertising makes media consumption less enjoyable compared to 72% for political advertising. 16 | Relevance Report — 2020 Political Edition

Frequency Solving for frequency is about sending the right message 75% In the 2019 survey, consumers at the right time and not the made clear they do not want same message all the time. to see the same ad all the time. Eliminating intrusive Given the nature of Election 87% ads and minimizing ad seasons, it is difficult to frequency were the two leading overcome perceptions say advertising/political advertising methods for improving a of frequency completely. has become more frequent lately. consumer’s ad experience. Marketers noted the challenge of cyclical ad budgets being dependent on major voting “I watch the first time years. One voter shared the to see what they are opinion that political ads 84% talking about, but if appear so frequently before a 73% it’s repetitive I wouldn’t Midterm or Presidential Election watch it anymore.” but will disappear entirely after the votes are in, and this Democratic Voter calls the ads’ authenticity into question. This observation plays into voters’ lack of trust, the For political advertising, leading challenge to delivering frequency is even more a positive ad experience. dislike seeing the same of a pain point. 75% say ads/political ads over advertising has become more and over again. frequent lately with 87% of people saying the same for political advertising. 73% dislike seeing the same ads over and over again compared to 84% for political ads. Relevance Report — 2020 Political Edition | 17

Distrust Earning voters’ trust in a political and therefore more truthful ad can be accomplished. Voters message whereas social media 83% of voters say they find it trust ads that utilize unbiased is more tailored to the user. difficult to trust what they see reporting of data and statistics. D.C. media strategists said that in political ads. Three in four they are being vigilant about say most political ads include hypertargeting this year after fraudulent or fake information. “Ads are just one of the 2016 Presidential Election One silver lining to this is that the tools of the whole saw an overreliance on exact after seeing an ad, some voters campaign. I don’t trust targeting that largely missed investigate the candidate or what they’re saying in undecideds and lapsed voters. cause with the express purpose 30 seconds…I do my of fact checking that ad. own research after that.” Still, one in four voters will trust ads that address topics When it comes to the sources Democratic Voter important to his or her local they do trust for learning community, which suggests about political candidates, the need for some degree subscription news websites According to the survey, voters of personalization. Voters and live appearances of also trust ads that appear will consider these ads the candidate in debates, on television. One voter said more relevant and there is interviews and town halls, television could be trusted a strong correlation between are considered the most because it’s a mass medium trust and relevance. accurate by 70% of voters. that presents a general

Leading elements of a trusted ad I am able to trust political ads more on...

It is unbiased — 41% 77% It includes data/statistics — 36% 69% It reinforces beliefs — 27% 66% It addresses topics important — 24% 61% to my local community

39%

Trust % Trust 34% 31% 3 in 4 83% 23% say most political ads included fraudulent or fake information. find it difficult to trust what TV vs TV vs TV vs TV vs they see in political ads. Facebook Instagram Snapchat YouTube 18 | Relevance Report — 2020 Political Edition

Determine the ways in which we can improve voters’ experience with political ads. Relevance Report — 2020 Political Edition | 19 20 | Relevance Report — 2020 Political Edition

Following the Recipe for Relevance

Voters offered actionable insights for delivering on relevance, which is key to political ad effectiveness. When an ad is relevant, it is more trusted and also more likely to get a voter to do research on the campaign or cause advertised.

Relevance =

Evoke Meet a Meet a an Emotion + Consumer Need + Moment in Time

Evokes an Emotion — 34% 1. Has a positive tone.

Meet a Consumer Need — 34% Teaches me more about a candidate or issue. 2. “When it’s constantly Meet a Moment in Time — 33% bashing the other 3. Addresses timely topics in society. candidate, there’s no value. I don’t think there’s any benefit of that.”

Republican Voter Relevance Report — 2020 Political Edition | 21

Step 1: Evoke a Emotions felt after engaging with a political ad Total Positive Emotion 27% Frustrated 31% 30% 55% of voters feel angry, 32% frustrated, worried, 37% overwhelmed or stressed after Hopeful 26% 29% engaging with a political ad. 25% Feelings toward ads vary across 27% political parties with Democrats Motivated 22% 23% the most hopeful but also the 21% most worried. Republicans 25% and Independents feel Worried 14% 20% frustrated. Varying emotions 20% speak to the polarization 20% felt this Election year. Overwhelmed 15% 19% 22% Proving the power of positivity, 18% 31% rated removing political Stressed 17% 19% ads that are negative in tone 20% or “attack-based” as the most 22% effective method for improving Inspired 24% 18% political advertising. The 12% second best method, with 19% 11% rating it so, was reducing ad Angry 24% 18% frequency. Furthermore, an 20% ad that feels negative in tone 14% is more likely than a negative Empowered 15% 14% ad experience (an experience 13% that interrupts or is repetitive) 8% to contribute to a voter’s Relieved 11% 8% liking the candidate less. 5%

Republicans Democrats Independents 22 | Relevance Report — 2020 Political Edition

Step 2: Teach Something New

One in three voters considers an ad relevant if it teaches them more about a candidate or issue. And if an ad educates about politics, 30% of voters will consider it relevant and do more research on the candidate or caused advertised.

Across party lines, voters want to know more about 2020 Presidential Election candidates. 79% Democrats 61% Republicans 72% Independents

Including data and statistics in ad creative is a best practice. Not only are voters more likely to trust the ad but nearly two in five will do more research after seeing data about a candidate or cause. An ad’s ability to educate is vital to its success since voters often regard an ad as an invitation to explore a candidate or cause further. There is a strong correlation between ads that are relevant and ads that drive the voter to do more research. Relevance Report — 2020 Political Edition | 23

Step 3: Meet a Democrats Moment in Time 40% 42% Nearly a third of voters will 35% 28% do more research after 25% seeing a relevant ad that addresses current political 11% conversations. Some voters shared disdain for ads that delve into the past and explore >1 year Pre-Debates During before General (Jan-Aug) Debates/Election the history of a candidate. Election (Sept-Nov) Presenting a message that is Begin getting informed about candidates timely is key to delivering on Make voting decision relevance, and driving voters’ independent research. Republicans

Another factor to meeting 44% voters at the right time is 40% understanding where they 29% are in their decision-making 27% 27% journey. The window of 17% opportunity to connect with voters and infl uence their decision is lengthy given that 71% of voters start their >1 year Pre-Debates During before General (Jan-Aug) Debates/Election education on Presidential Election (Sept-Nov) candidates prior to the party Begin getting informed about candidates Make voting decision conventions. This varies across political affi liations, however. Independents 53% Over half of Independent voters make their Election decision in the two months leading 37% 32% up to the General Election 31% but they’re getting informed on candidates throughout 18% the year. For party-aligned Democrats and Republicans, 6% they’re starting their education >1 year Pre-Debates During and making their Election before General (Jan-Aug) Debates/Election decisions more quickly. Election (Sept-Nov) Begin getting informed about candidates Make voting decision 24 | Relevance Report — 2020 Political Edition

CONCLUSION

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Planning an Ad Campaign Victory

To win over the voter, Step 1 a political ad campaign strategy should adopt a Lean in as the bridge between parties by generating three-pronged approach positive emotions. for driving research, trust, and relevance. › Remember that Independent voters are the least likely to engage with political ads.

Step 2

Utilize television advertising with messaging that is timely and focused to the local community.

› Be aware of trust issues around social platforms. › Avoid intrusiveness and frequency.

Step 3

Educate the voter by providing valuable, timely information that can contribute to or launch their decision-making journey.

› Data and statistics are key. Relevance Report — 2020 Political Edition | 27

To provide voters with the knowledge they crave is the most crucial element for informing their decision-making well before the ballots are counted. © 2020 Xandr Inc. XandrSM, the Kite logo, AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.