Where does all that campaign cash actually go?

As we have documented in prior posts, there are now billions of dollars washing through the Presidential campaign.  With the election still some 17 months away, let's take a closer look at where those billions go.  While there may be slight differences in some candidates spending, the models, over time, are amazingly similar, as political operatives/consultants have become more prevalent and follow the same playbook.

A few caveats prior to digging in:

Volunteers are not free:

• There are a myriad of costs associated with volunteers, mostly around recruiting and training.  Thus, this cost will be folded under payroll and consultants.
• Media spend includes all forms of media, from television, print, blogs, radio, etc.
• It costs money to get more money.  As we will see, the fundraising cycle doesn't end until election day, and it costs a lot of cash to make more cash.
• These statistics are averages from the 2008 and 2012 campaigns.

Now, onto the actual percentages:

• Media accounts for approximately 57% of the pie, and growing.  Media buys are targeted into early primary states, and then nationally for general election.
• Fundraising accounts for 17% of the pie, and also growing.  This include mail, phones and time. 
• Overhead accounts for 13%, and the trend here is shrinking.  This includes rent for campaign staff, insurance, equipment, etc.
• Travel/events account for 6%.  While some travel is by bus/van, most are chartered flights (no coach seats for them)!
• Finally, payroll chews up 6%.  This figure is mostly for consultants, and the volunteers as noted above.

As campaigns become more social media aware, the trends are pointing towards more on line ads, as they experiment with non traditional (TV, radio, etc.).  This is not your grandparents, and even parents campaigns!