Have you ever donated to a political campaign and wondered where the money went?
In reality, some of those donor funds go toward TV ads … but most don’t, Derek Newton, founder of political ad buying platform AdStorm and ex-campaign solicitor, tells me. Prior to founding AdStorm, Newton worked in government for nearly 20 years along with stints at the ACLU and The Century Foundation, a liberal think tank.
What donors don’t know, Newton says, is how much of their money actually goes toward campaign expenses like bills, rent, staff wages, signage, etcetera. And being left in the dark is a big problem for campaign donors.
“This frustrated me for years,” Newton says, “[because] there wasn’t a way for anybody in the country to support candidates and causes by buying TV ads directly.”
TV ad buying is complicated, but the concept of knowing exactly what you’re paying for is simple and relatable.
Which is the whole idea behind AdStorm, which launched in January with the goal of creating a platform for donors to fund campaigns by assigning money directly to working media. AdStorm, a left-leaning company, launched this platform in August to help individuals back Democratic ads in particular.
AdStorm also takes a 15% commission on every ad it places (so it’s not all bleeding hearts). That take rate helps ensure more campaign dollars go toward working media compared to the more traditional method of email-based solicitation, Newton says.
Buying on AdStorm
Naturally, the idea of individuals placing their own ads on TV – especially political ads – raises eyebrows due to all the legal crosshairs on political advertising.
For that reason, AdStorm clients are only able to choose from an array of already-existing TV ads from political action committees (PACs) , such as Progress Action Fund and Future Progress. AdStorm uses ads from PACs rather than from actual presidential campaigns because presidential candidates have government-enforced spending caps, which are difficult to enforce when just about any individual can be placing an ad at any moment. You can’t “unplay” someone’s ad if campaign donations via AdStorm exceed those spend caps, Newton says.
Today, buyers can pay to place spend behind any of six ads available on AdStorm’s platform. These six ads include two anti-Trump ads running in Pennsylvania, a pro-Harris spot running in Pennsylvania, and three ads related to abortion (two in Pennsylvania, one in Arizona, both swing states).
AdExchanger Daily
Get our editors’ roundup delivered to your inbox every weekday.
Daily Roundup
AdStorm is adding more video ads soon that span other states, including an ad promoting Texan Senate nominee Colin Allred.
Once a donor selects a video ad they want to support, the donor can then decide where and when to run the commercial. The donor can choose to place their ads on cable networks such as Fox, ESPN or HBO during different time brackets throughout the day, including prime time. A donor, for example, could run an ad of their choice on Fox Sports in Georgia during run of show (between 9am and 4pm) on a weekday for roughly $80.
Or, there are more specific placements on broadcast stations based on show title and air time. For example, a donor could run an ad during a rerun of the TV show “Friends” on NBC at 11:30pm for about $65.
For now, AdStorm is focusing on linear TV rather than streaming, because political buyers are most focused on programming that’s most likely to resonate with their target viewers. Plus, Newton says, AdStorm wants to make ad buying as easy as possible, which means avoiding making people spend an hour answering 20-odd questions about audience targeting.
AdStorm’s main goal, Newton says, is to give donors more control of how their donations are used. All donors like knowing where their money is going, and political advertisers are thirsty for any way to boost campaigns they know will reach a set of target voters.
What I’m wondering is: Will campaign donors be open to trying something new? Or will they stick to the old-fashioned way of donating?
Are you enjoying this newsletter? Let me know what you think. Hit me up at alyssa@adexchanger.com.
