[opendtv] News: Broadcasters are big election winners

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
  • Date: Tue, 7 Nov 2006 10:05:37 -0400

It's pay-back season, when broadcasters rake in the profits from "the Election Channel." Amazingly, more money is being spent on political advertising in this mid-term election than in the 2004 campaign which included a presidential race. According to B&C, broadcasters will take in 50.2% of the $3.14 billion pie. Cable is projected to be up 300%, but will take in only 4.6% of the total. Unfortunately the story that follows does not provide numbers for political ads on radio, However, I suspect that it is second only to the amount spent on Broadcast TV.

I wonder how much of that $3.14 billion winds up in the hands of the candidates and their families? Sadly, it looks like running for office is now one of the biggest economic perks enjoyed by the candidates for state and national political offices.

And then there is another sad reality. heard on talk radio yesterday:

Host: "At least all those damn ads will be over tomorrow."
Washington DC political reporter: "Yeah, but the 2008 Presidential Campaign begins Wednesday."



CBS, Fox, NBC To Be Big Election Winners
By John Eggerton -- Broadcasting & Cable, 11/6/2006 5:57:00 AM

CBS, Fox and NBC are all predicted to be among the big winners this election season.

According to a report from research firm PQ Media, those three will see the largest gains in political ad spending in the markets where they own stations, while Scripps, the New York Times and Sinclair will see the biggest percentage growth.

That status is a combination of having stations in big-spending top markets like New York and L.A. and having ones in markets where there are hotly contested races.

Broadcast TV will grab the largest share of the $3.14 billion full-year 2006 election ad pie (or maybe that should be Pi), but that its total of 50.2% of the pie will be down from the 52.8% share it claimed in 2004, thanks in part to the growth of Internet advertising, up 726% from 2004, though its primary campaign function remains fundraising, according to PQ. Cable is projected to be up over 300%, but still accounts for only 4.6% of the total.

It will be the first time that spending in a midterm outpaced the presidential election that preceded it, according to PQ.

PQ expects some 90% of the 210 media markets will see increases over 2004 spending. Not surprisingly, companies with media outlets in the top markets like New York and L.A. will see the highest gains. Those include CBS, Gannett, Clear Channel, Scripps, Cumulus and NextMedia.

PQ clients include Warner Bros., News Corp., Turner, and Zenith Optimedia.

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