Election Sparks Surge in Political Ad Spending

Australia’s upcoming federal election is expected to spark a wave of advertising spending worth up to $200 million, as political parties, lobby groups and unions ramp up efforts to win voters in what’s shaping up to be a closely contested race. While the push aims to sway public opinion and drive votes, it may also tighten media inventory and raise advertising costs across key channels.

Over the next few months leading up to the May 3 election, political advertisers are poised to significantly outspend their 2022 counterparts. Back then, around $165 million was spent across five months. This year, insiders expect that figure to be topped easily, with the rise driven by a more fragmented field of candidates and the growing importance of reaching younger, online-savvy voters.

According to data from Guideline SMI, political and government ad spending has already leaped. Advertising from these groups surged by $10 million in March compared to the previous month. Meanwhile, government ad spending in January and February rose 46% from the same period last year, with television ad investment more than doubling year on year - especially across both regional and metropolitan areas.

Digital platforms and traditional TV are the key winners so far, but radio also saw a 59% jump in expenditure, digital channels climbed 36%, out-of-home ads grew 30%, and even print media saw a 17% increase. One political player alone is planning a $50 million spend, but that's still less than the $121 million they invested during the 2022 campaign.

This intensified advertising environment looks likely to stretch the available space across multiple platforms and drive up costs. Industry observers expect an overall spending uplift of around 20% for this cycle. Media buyers also note that podcasting and influencer-led campaigns are emerging as major tools for connecting with younger demographics - particularly with Millennials and Gen Z now surpassing Boomers at the ballot box for the first time.

In fact, social platforms are seeing unprecedented levels of political content, and podcasts have become a prime space for both paid promotion and candidate appearances. Influencer marketing, which once sat on the political sidelines, is now seen as central to engaging modern voters - especially as this election signals a shift from traditional campaigning to more conversational and digital-first strategies.

Source: The Australian, Ad News, MEA