Political Advertising and Consumer Sentiment

Abstract

We find that political advertisements during Presidential election cycles have a significant impact on consumer sentiment. In particular, a higher intensity of positive political advertisements with an economic theme makes consumers more optimistic about their own current and future financial positions and the future state of the economy. Our findings also suggest that political ads impact sentiment through an emotional appeal rather than by providing information to viewers about economic fundamentals.

Keywords: Consumer Sentiment, Political Advertising, Inflation Expectations

JEL Classification: E30; D72; E70