Consulting Giant Profits From Wave of Pro-Biden and Pro-Trump Campaign Spending

No matter who prevails in the 2024 election cycle, this consulting group is positioned to reap a financial windfall from the $12 billion in political spending.

American elections are infamous for extraordinary levels of political money. Yet even for an industry known for cynical hired guns, Mark Penn has elevated the mercenary business of campaign consulting to new heights.

“If anything, you can be sure this is going to be an all out slugfest of the highest possible dimensions,” remarked Penn, speaking eagerly to investors earlier this year. He noted, the closer the election, the more candidates spend to compete to persuade an increasingly divided electorate.

“That very last vote determines the fate of the nation,” said Penn. “So I think all indications are that it's going to be the strongest political cycle.”

Most voters may be less than enthused about the prospect of nonstop negative advertising and the onslaught of fundraising appeals appearing by email and text message. For the Stagwell Group, the marketing and advertising conglomerate founded by Penn nearly a decade ago, the rancor of the presidential election and soaring political spending is viewed only positively. 

The company is poised to profit from both sides of the election. 

SKDKnickerbocker, a subsidiary of the Stagwell Group, is one of the most prominent Democratic Party firms in the country, boasting a client list that includes Super PACs and various Democratic-aligned advocacy groups. The 'D' in SKD represents Anita Dunn, a co-founder of the firm and the main strategist who guided Joe Biden’s 2020 campaign. Dunn is expected to take a leading role again for Biden’s reelection, with her firm recently announcing its involvement in mobilizing Latino voters for the Biden campaign and other Democrats this year.

The Stagwell Group also controls several GOP firms that are currently consulting for Republicans and conservative groups active in the presidential election. TMA Direct, one Stagwell Group-backed data and analytics firm, is paid by the Republican National Committee and PACs backing Donald Trump. Target Victory, another Stagwell Group campaign company, manages the online fundraising efforts for a variety of congressional Republicans, including much of the House Republican leadership.

Targeted Victory and TMA Direct, however, worked for interest groups backing Ron DeSantis and Nikki Haley, relationships that may dampen their ability to work directly for the Trump campaign or pro-Trump Super PACs this year.

Stagwell and SKDKnickerbocker did not respond to a request for comment. Targeted Victory declined an opportunity to provide a comment.

Stagwell Group also counts several marketing and advertising technology firms similarly poised to grab a slice of the expected $12 billion in political spending for the 2024 cycle. 

Penn, the chief strategist to Hillary Clinton’s 2008 campaign and former chief strategy officer of Microsoft, referenced his company’s strategic ability to benefit from either side of the partisan divide during a recent chat with investment bankers at the San Francisco Palace Hotel.

“We have diverse exposure to the political marketplace,” said Penn, according to a recording of his remarks. He pointed to his portfolio of companies “running campaigns” and conducting political fundraising. “And we expect this to be the biggest political year in history, and we believe that we’re well positioned to provide good service in those areas.”

The private meeting was organized through Morgan Stanley for an annual conference for publicly traded companies involved in communications, technology and media. 

Penn told the assembled investors that revenue has followed a seasonal pattern with campaign cycles bringing in new growth. While 2020 was a “very strong year,” he said, he expected twenty percent growth this current presidential cycle compared to the last. His firm projects as much as $12 billion on political ad spending during the 2024 cycle, with as much as $3 billion on the presidential race.

In his chat with investors, Penn noted that Stagwell’s political work “leads to a lot of public affairs” that is “outside the campaign season” – a reference to his company’s work helping guide corporate clients through political controversy. 

The campaign consultants employed by Penn double as corporate advisers. Stagwell currently markets a bipartisan reputation management business for corporate clients, offering leading Republican and Democratic campaign consultants to help business interests navigate the political process.

That high-stakes work runs in parallel to its election advocacy services. SKDKnickerbocker is reportedly advising TikTok, the social media platform facing pressure from lawmakers seeking to force China relinquish ownership of the company. 

Not long ago, Stagwell played the other side of the debate. In 2022, leaked emails revealed that Facebook, TikTok’s closest U.S. competitor, hired Targeted Victory to orchestrate an anti-TikTok campaign. Targeted Victory helped plant a newspaper letter to the editor warning that “many people even suspect China is deliberately collecting behavioral data on our kids.”

In many respects, campaign consultants are the most valued corporate advisers. When a candidate is elected, those most responsible for the winning campaign are best positioned to shape policies and advise interest groups seeking political influence.  SKDKnickberbocker has worked closely with Pfizer, American Airlines, and AT&T – corporations that rely heavily on government influence.

After successfully helping to elect Biden in 2020, at least nine SKDKnickerbocker officials, including Dunn, won high-level appointments in the Biden administration, at times overseeing issues that overlap with previous corporate clients. 

But Stagwell’s campaign consulting is lucrative as a standalone enterprise. 

Federal Election Commission records show that campaigns paid Targeted Victory at least $423,657,649 since the last presidential election. SKDKnickerbocker collected about $117,154,986. Stagwell purchased a controlling stake in TMA Direct in 2022. Since then, the firm has received over $3.5 million in campaign-related fees for federal elections. 

In many cases, records show, Penn-owned consulting firms have cashed in on both sides of election contests. SKDKnickerbocker produced the digital advertising for Rep. Tom Suozzi, the Democratic candidate running last month for the special election to fill the seat left vacant after Rep. George Santos’ ouster. The NRCC, the House Republican campaign group backing Mazi Pilip, Suozzi’s GOP opponent in the election, retained Targeted Victory.

Stagwell has not only benefited from opposing presidential campaigns, but also hot button issues. Targeted Victory has worked closely with the National Rifle Association in the past while SKDKnickerbocker advised Gabby Giffords, a national figure advocating for gun control.