Radio Poised To Grab A Large Chunk Of Political Advertising
June 8, 2016 at 4:56 AM (PT)
Digital media has recently been the darling of political advertising, but an article in THE STREET has good news for radio, noting, "Radio companies will enjoy a boost in 2016 largely due to local races that are expected to be hotly contested."
JAEWON KANG writes, "While radio companies haven't been top of mind when it comes to new and exciting modes of political advertising -- think FACEBOOK, TWITTER, SNAPCHAT -- they will enjoy a solid boost this year as candidates want more targeted advertising; they are expected to turn to the medium to sway voters in local races that will be hotly contested."
NOBLE MARKETS GROUP analyst MICHAEL KUPINSKI told THE STREET, "What radio is best for -- and why we think they're going to benefit -- is a call-to-action, get-out-and-vote rally."
Last week (NET NEWS 6/3), ALL ACCESS reported that In the SPRING update to its U.S. Local Advertising Forecast 2016, BIA/KELSEY forecasts the overall local media marketplace to experience consistent growth from 2015-2020, reaching approximately $172.2 billion by 2020 (CAGR: 4.2%). The report quoted, "continued strong political advertising," as a leading contributer to the growth.
THE STREET's article notes, radio tends to get a bigger piece of the pie from local races. "If the house and senate races are tight -- and we think that they will be with Democrats trying to take over the house and senate -- there will be more spending on local races," KUPINSKI said.
A BORRELL ASSOCIATES report (NET NEWS 3/24) found that radio and digital had the highest percentage increase in their updated estimates, increasing 10.8% from $827 million to $916 million and jumping up 8.2% from $1.076 billion to $1.165 billion, respectively.
"Among radio station operators," SNL KAGAN associate analyst PETER LEITZINGER told THE STREET, "iHEARTMEDIA appears particularly well-positioned to emerge as a beneficiary of the election season due to its digital presence and footprint in what have typically been seen as swing states that include OHIO, IOWA, FLORIDA, VIRGINIA, COLORADO, NEVADA and NEW HAMPSHIRE."