As brands remain wary of attaching themselves to political parties or social causes, BP America has taken a firm stance with iHeartMedia, requesting that their ads not be placed on podcasts that channel ad revenues into political contributions.
This decision directly relates to the recent news of how iHeartMedia paid $630,850 of ad revenue from Texas Senator Ted Cruz’s Verdict podcast to the Truth and Courage Political Action Committee, which is dedicated to Cruz’s reelection. All payments have been made since January, according to FEC filings.
An iHeart spokesperson has stated that the contributions were directly related to the podcast’s ad sales and are not politically motivated contributions. iHeartPodcasts has distributed Verdict since 2022 after Cruz started the thrice-weekly show in 2020.
Even with the details laid out, BP America wants to draw a hard line against campaign contributions, even through advertising. The petroleum company’s Head of US Media Affairs & External Communications Ross Parman told The Hill, “We purchase advertising on iHeart based on the potential audience, and do not specify by podcasts. We were never informed that media spend was going directly to a super PAC and have instructed iHeart to remove our messages from any podcasts that direct advertising revenue to campaigns, PACs or political parties.”
The landscape of corporate involvement in political and social issues has undergone a significant transformation from an era of active engagement to a shift back to neutrality, with brands wanting to avoid a situation like Bud Light’s Dylan Mulvaney ads caused at all cost.
This comes on both sides of the political aisle. A 2020 Harvard Business Review study involving 168 managers and advanced MBA students found that Democrats reacted more negatively to companies engaging in conservative political activity, while Republicans’ opinions remained unchanged regardless of the company’s political leaning. Additionally, the research indicated that age and gender could influence reactions to political advocacy, with older participants and women showing particular sensitivities.
