According to GroupM, an estimated $16 billion in advertising is expected to be spent on political ad campaigns for the 2024 presidential election cycle.

Loop Media (LPTV) CEO Jon Niermann joins Yahoo Finance Live to discuss where the most amount of ad spend is expected to be focused on

"There will still be a lot going towards linear and cable [TV]," Niermann says. "But an increasing amount will start to go digital, primarily in streaming, which is where we are out of home."

Niermann also comments on how AI will be used to streamline political ads.

Click here to watch the full interview on the Yahoo Finance YouTube page or you can watch this full episode of Yahoo Finance Live here.

This post was written by Luke Carberry Mogan.

Video Transcript

RACHELLE AKUFFO: Given how divisive we know this election is likely to be and how we tend to see ad dollars distributed, where can advertisers put their money to work?

JON NIERMANN: It's going to be an interesting year, isn't it?

You know, it's going to be something to watch from top to bottom.

So the dollars, as you said, are going to increase, they'll still be a lot going towards linear and cable, but an increasing amount will start to go digital primarily in streaming, which is where we are out of home.

So when you're a captive audience, you're sitting at a bar or a restaurant, a hotel, something like that, it's one of the best places to get your message across, and that's where a lot of-- you'll start to see that investment ramp clearly as we go through the year.

SEANA SMITH: And Jon, what percentage of that political ad spend are we expected to see go towards streaming?

JON NIERMANN: It's going to be an estimate, same group estimate kind of around 13% to 15% of that amount.

So again, a significant increase.

And I think that that's just the normal evolution.

They're still used to spending in linear and cable, obviously, but they recognize that the more diverse audience and easier to reach, I think, in terms of different demographics is going to be on streaming.

RACHELLE AKUFFO: And, Jon, of course, we have to talk about AI.

As soon as we saw these large language models start appearing, deepfakes in commercials, advertising, things like that, how do you think that's going to affect how we see advertising going forward for the election?

JON NIERMANN: Well, I think-- we work with a company called Assembly AI by the way.

It's a great safety barrier because you always want to make sure that the message is something that, especially in a public space, is going to be palatable and appropriate for an audience.

So we do a screening just to make sure that there's nothing too odd with graphics or messaging or anything like that really to keep it safe and keep the integrity of the message.

So you'll start to see-- it's just much-- as AI continues to advance and everything that we do really, it's going to help really target for what we're talking about.