State Democrats Partner with Private Firm as Key Official Becomes CEO

The Association of State Democratic Committees (ASDC) — an umbrella group for state Democratic parties — has recommended TargetSmart, a political data firm, as a centralized digital ad-buying platform for state campaigns. This decision has raised questions about potential conflicts of interest, particularly as Liz Walters, the outgoing chair of the Ohio Democratic Party, is set to become the CEO of TargetSmart.

The recommendation was made at a meeting in Little Rock, Arkansas, where the ASDC voted to encourage state races to use TargetSmart for a significant portion of their digital ad spending. TargetSmart announced on May 7 that Walters, who had previously served as treasurer of the ASDC, would take charge as its CEO this summer. Walters, who publicly announced her departure in a post on X, said she would leave the state party role by June 30. Until the week before the meeting, she was part of the ASDC’s leadership team as treasurer.

Walters recused herself from the vote, yet her continued involvement in the decision-making process has raised concerns within the party. She has praised TargetSmart’s services in previous years and continues to serve on a key board of state party leaders tied to the deal. Party insiders are worried about the perception of a conflict of interest, especially given the current political climate.

Rob Flaherty, a former deputy campaign manager for Kamala Harris’ 2024 presidential campaign, expressed skepticism about the decision, arguing that it represents a solution in search of a problem. He claimed that competition in the digital ad space leads to better pricing and that a single platform risks stifling innovation and increasing costs for campaigns.

Other Democrats have voiced concerns about the implications of the decision, calling it an “unfortunate way to enter into a relationship” with the firm. A Democratic state party chair noted that the perception of the decision is “terrible.” Meanwhile, Walters defended the move, stating that the decision to leave the Ohio Democratic Party was a “hard one” and that she had made the news public and recused herself from all matters involving the company.

Axios first reported on the existence of a deal between the ASD, and other parties. However, concerns about a conflict of interest have not been previously reported. ASDC president Jane Kleeb defended the decision as a way to save money and streamline digital ad buying for state parties. She argued that TargetSmart’s platform would provide a reliable stream of revenue and enhance digital security for voter files.

TargetSmart has worked with Democratic state parties for years to manage voter files, a valuable resource for campaigns. The ASDC stated that it asked TargetSmart to develop its digital ad-buying tool in 2023, and it was later rolled out to some trial participants, including in Ohio. State parties generate revenue when their voter file is bought and sold, as well as when their voter file data is used on TargetSmart’s ad-buying platform.

A TargetSmart spokesperson said their platform is more cost-efficient, reliable, and enables transparency in ad placements. Senior adviser Tom Bonier emphasized the company’s commitment to serving state parties by providing this cutting-edge resource. However, questions remain about the timeline of discussions between TargetSmart and Walters regarding her potential role as CEO.

Meanwhile, Walters’ resignation as treasurer of the ASDC was submitted on May 20, and the ASDC passed the resolution unanimously on May 29. Despite her recusal, many Democrats continue to question the integrity of the decision, citing the potential for undue influence and the lack of clear safeguards against conflicts of interest.