Radio Can Expect $250M In Political Spending
October 22, 2009 at 4:15 AM (PT)
Political advertising will increase 11%, and hit $3.3 billion in 2010, says a WELLS FARGO SECURITIES report, which was released YESTERDAY (10/21). Sr. Analyst MARCI RYVICKER forecasts more than 60% of the spending will go to local TV -- "fueled by the election of 37 governors, 38 senators, every member of the House of Representatives and issue advertising (which could approach $1 billion) on hot-button issues such as health care," reports MEDIAWEEK.
"2010 political spending will most closely resemble 2006, as it was the last time a large number of governor races were held, and congressional elections faced similar conditions (i.e. declining presidential and congressional approval ratings and contentious issues)," wrote RYVICKER.
Radio can expect 8% of the spending to come its way, for a total around $250 million. The radio groups expected to benefit from this political spending include DISNEY, BEASLEY, REGENT and CBS, as they own stations in hotly contested races.
"Any incremental ad dollars will contribute significantly to [radio’s] year-over-year top-line growth, especially given the easy comparisons of 2009," RYVICKER wrote.