Mitt Romney is on a losing streak. In spite of his earlier wins in New Hampshire and Florida the candidate has lost favor (once again) with the Republican base and is struggling to stay relevant against a surging Rick Santorum. How bad is it for Mittens? His campaign raised only $6.4 million in January but spent a whopping $18.7 just to win two states.
Romney’s fundraising and burn rate should both be causes for concern for his campaign. While small donors accounted for 18 percent of his January total, the highest percentage during his entire campaign so far, he is still relying heavily on donors who are maxing out their contributions. Fifty percent of his January contributions came from donors giving $2,500 or more.
With a long road ahead in the Republican primary race and thousands of donors already maxing out, Romney will need to expand his fundraising base — otherwise he will be forced to dip into his personal fortune, as he did in 2008. The fact that Romney has faced the same problem during both his presidential campaigns suggests that his record has made him unpopular with grassroots conservative donors.
The biggest cause of the campaign’s high burn rate was television advertising. The campaign spent $8.4 million on ads in January, the majority of which it spent in Florida, where Romney was able to come from behind in the polls to pull off a victory.