This Washington Post notes that "despite their fundraising success, Democrats simply did not spend their money as effectively as Bush."
In a $2.2 billion election, two relatively small expenditures by Bush and his allies stand out for their impact: the $546,000 ad buy by Swift Boat Veterans for Truth and the Bush campaign’s $3.25 million contract with the firm TargetPoint Consulting. The first portrayed Kerry in unrelentingly negative terms, permanently damaging him, while the second produced dramatic innovations in direct mail and voter technology, enabling Bush to identify and target potential voters with pinpoint precision.
Those tactical successes were part of the overall advantage the Bush campaign maintained over Kerry in terms of planning, decision making and strategy. The Kerry campaign, in addition to being outspent at key times, was outorganized and outthought, as Democratic professionals grudgingly admit
Outorginazed and outthought? Yup, that’s what they say. Now it’s official. The whole long piece is worth reading.