Building a Future-Ready Political Business

In an ever-evolving landscape, building a disruptive business within the political sector requires a blend of innovation, foresight, and adaptability. Michael Beach, CEO of Cross-Screen Media, provides valuable insights into how political businesses can thrive by embracing change and leveraging cutting-edge technology.

The Role of Connected TV in Political Advertising

Connected TV (CTV) has emerged as a transformative force in political advertising. In 2015-2016, digital video advertising accounted for only 12% of total video spending in politics. However, the rapid rise of streaming platforms is shifting this balance. Campaigns now see streaming as the future of video advertising. Beach notes that streaming offers:

1. Broad Reach: Streaming has surpassed cable TV in reach and time spent by audiences.
2. Targeted Engagement: Platforms allow precise targeting, making ad dollars more effective.
3. Growth Opportunities: While streaming currently accounts for only 16% of ad dollars in politics, it is poised for exponential growth.

The Challenges of Early Adoption

Launching Cross-Screen Media in 2017 required navigating an unproven market. Early challenges included:

• Educating Customers: Many buyers were unfamiliar with CTV and its benefits.
• Balancing Risk: The company needed to invest in technology and talent without guaranteed revenue.
• Adoption Barriers: Transitioning traditional media buyers to digital platforms required extensive support and training.

By focusing on product excellence, customer service, and positive economics, Cross-Screen Media carved out a niche in this growing field.

Disruption Through Specialization

Specialization has been central to Cross-Screen Media’s success. Rather than offering a broad range of services, the company focused exclusively on video advertising optimization. This allowed them to:

• Develop a best-in-class product tailored to political campaigns.
• Build deep expertise in TV and digital video integration.
• Avoid diluting their efforts across unrelated services.

Beach emphasizes that specialization enables businesses to offer superior solutions while maintaining a clear competitive edge.

Bridging the Digital and Traditional Divide

One of the most significant hurdles in political advertising is the divide between traditional TV and digital platforms. Cross-Screen Media’s approach bridges this gap by:

• Educating Buyers: Helping traditional TV buyers understand digital platforms and vice versa.
• Offering Integrated Solutions: Combining planning, buying, and measurement into a unified product.
• Emphasizing Collaboration: Ensuring all stakeholders see value in shifting budgets to streaming.

This strategy has made Cross-Screen Media a leader in modernizing political advertising.

Sustaining a Disruptive Business Model

Disruption isn’t just about innovation; it’s about sustainability. Cross-Screen Media achieved this by:

• Building for the Long Term: Investing in technology and personnel to ensure consistent growth.
• Providing Value: Offering solutions that enhance clients’ businesses rather than simply competing on price.
• Adapting to Market Dynamics: Continuously refining their approach to align with industry trends.

Lessons for Aspiring Entrepreneurs

Beach’s journey offers valuable lessons for anyone looking to build a political business:

1. Start Small, Think Big: Begin with a focused product but plan for scalability.
2. Invest in People: Retaining and developing long-term employees creates stability and institutional knowledge.
3. Learn from Competitors: Observe successful firms and adopt best practices while avoiding common pitfalls.

The Future of Political Advertising

The shift from traditional TV to digital platforms is accelerating. Projections indicate that streaming will overtake cable TV in ad spending within the next few election cycles. This transition brings opportunities and challenges:

• Decreasing Ad Impressions: As streaming grows, the overall number of ad impressions will decline, driving up costs.
• Innovative Formats: New ad formats, such as video game and podcast advertising, are emerging.
• Evolving Strategies: Campaigns must balance reach and frequency across multiple platforms to maximize impact.

Final Thoughts

Building a disruptive political business requires vision, resilience, and a commitment to innovation. By focusing on specialization, bridging traditional and digital divides, and investing in long-term growth, businesses can thrive in this competitive space. As the industry continues to evolve, those willing to adapt and innovate will lead the way.

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