Political Advertising Heads for $10 Billion as Connected TV Becomes the New Battleground
Fyllo’s James Ramelli on why campaigns are abandoning broadcast TV for addressable platforms that can target swing district households
The 2026 US midterm elections are expected to generate $10 billion in political advertising spend, with the majority of this investment moving toward Connected TV. Key takeaway: Connected TV is now the primary focus for political ad dollars.
James Ramelli sees the shift happening. As Partner at Fyllo, a Chicago-based agency for regulated industries, he’s watching political campaigns abandon broadcast for addressable, measurable CTV platforms. These platforms target individual households in swing districts.
“CTV offers guarantees that users were engaged with the content, with viewability and fraud controls that traditional TV cannot match,” Ramelli says. In races decided by razor-thin margins, that precision matters. Key takeaway: Data shows campaigns prioritize targeted advertising to influence close races.
The numbers back him up. Political advertising on connected TV platforms grew 200% between 2020 and 2024. With control of Congress likely decided by razor-thin margins in a handful of districts, campaigns need precision targeting more than broad reach.
Why Fyllo’s Roots Made It Perfect for Political Campaigns
Fyllo’s path into political advertising started in an unlikely place: cannabis marketing.
The agency launched when US states legalized adult-use cannabis. This created a regulatory nightmare. Cannabis remains federally illegal but largely unenforced. State rules vary wildly. Platform policies often contradict actual laws. Running a compliant digital campaign requires navigating contradictions at every level.
“The skills developed in cannabis advertising translate well to other regulated industries,” Ramelli explains. That’s what Fyllo got good at: navigating fragmented regulations where the rulebook changes every few miles.
Political advertising is no different. Digital ads vanish fast. Regulations are fuzzy, enforcement uneven. Some states crack down; others look the other way. No one has a firm grip on digital channels.
That regulatory expertise now covers healthcare, financial services, and political campaigns. The common thread? Fragmented US regulations vary by state, and platform policies diverge from laws.
DirectTV’s $10 Billion Play
DirectTV just launched an AI-powered platform for political advertisers that analyzes social media donation patterns and voting behavior. It’s a direct play for the projected $10 billion political advertising market.
Ramelli calls it smart strategy. “DirectTV is leveraging their significant inventory and cutting out supply-side intermediaries, offering smart tools for executing connected content at scale.”
The platform targets a uniquely American phenomenon. European political advertising operates under stricter regulations with lower spending. The US market’s scale and fragmentation create opportunities that don’t exist elsewhere.
Sports Beats News for Political Ad Placement
Political advertisers increasingly favor sports programming over news content. The reason? Sports delivers engaged viewers without editorial risk.
“Sports content is a top target for political advertisers due to its ability to reach engaged viewers in a non-controversial environment,” Ramelli notes. “You avoid the complexity of your message appearing alongside news that contradicts your narrative.”
The strategy reflects America’s extreme partisan division. Ramelli attributes high trust in political advertising to party loyalty overriding message skepticism.
“The highly partisan and divided nature of US politics means people align more with the party than the content,” he says. “This creates different dynamics than in European markets.”
How Proteus Targets Without Violating Privacy Rules
Fyllo’s Proteus platform uses natural language processing to understand content semantics at granular levels. Web crawlers analyse pages to determine context, enabling precise targeting without relying on personal data.
The approach matters in regulated industries. Healthcare advertisers need to distinguish between users researching diabetes management versus general wellness.
Financial services campaigns target specific investment interests. Political campaigns identify voters concerned about particular issues.
“In regulated industries like healthcare, understanding whether someone is researching diabetes management versus general wellness makes all the difference,” Ramelli explains. “Proteus provides those insights while maintaining compliance with platform policies and regulations.”
The technology sits atop programmatic data ecosystems, extracting meaning rather than personal identifiers. As privacy regulations tighten, contextual targeting gains importance over behavioral tracking.
The Measurement Problem Holding Back CTV
Connected TV lacks universal measurement standards. Unlike traditional broadcast with established metrics, CTV platforms use different methodologies. Advertisers struggle to compare performance or optimize spending across platforms.
Ramelli sees progress coming. “Solutions from companies like IAS are emerging. The increasing investment in CTV will drive further standardization and better measurement.”
CTV does offer advantages that traditional broadcast can’t match. Viewability tracking confirms users actually saw ads. Fraud controls verify legitimate impressions. Addressability enables household-level targeting.
For political campaigns in tight races, those capabilities justify premium pricing despite measurement inconsistencies. A 500-vote margin in a swing district makes precision worth paying for.
What European Privacy Rules Mean for US Political Advertising
European privacy regulations are coming to America. Ramelli expects GDPR-style rules to eventually reshape US political advertising, constraining some targeting while forcing innovation.
California already leads with CCPA. Other states are following. Federal legislation remains stalled but privacy expectations are shifting regardless of laws.
The $10 billion political advertising market will adapt. Contextual targeting grows more sophisticated. First-party data becomes more valuable. Agencies develop expertise navigating compliance across jurisdictions.
Fyllo’s bet is that regulatory complexity creates competitive advantage. Brands selling cannabis, financial services, or political candidates face similar challenges: reaching specific audiences with compliant messaging where rules vary by location and platform.
Connected TV solves part of that puzzle. Addressable targeting reaches households without violating privacy rules. Measurement confirms engagement without tracking individuals. Inventory bypasses intermediaries taking cuts.
The 2026 midterms will test whether CTV delivers on its promise. If tight races swing on targeted messaging reaching movable voters in key districts, expect the $10 billion to grow significantly by 2028.
Ramelli is confident. Political campaigns need what CTV offers: precision, measurement, and scale. The platforms are ready. The technology works. The only question is how fast traditional broadcast loses share to addressable alternatives.
Given the stakes and margins in American elections, that shift is already happening.
