$3 Billion In Political Ad Spending Expected
September 22, 2010 at 4:20 AM (PT)
KANTAR MEDIA is forecasting political advertising will lining the pockets of broadcasters this fall. Reports MEDIAWEEK, "Three-quarters of the $3 billion expected windfall will be spent in the final seven weeks, EVAN TRACEY, President of KANTAR MEDIA’s Campaign Media Analysis Group, told broadcasters at last week’s TVB Forward conference in NEW YORK."
KANTAR had released data in MAY (NET NEWS 5/26), showing total advertising expenditures in the first quarter of 2010 rose 5.1% from a year ago and finished the period at $31.3 billion.
Now, ad spending is already $160 million above the same period in 2006. "It’s the most competitive political environment I’ve ever seen," TRACEY said.
Local TV will lead the way, with radio and cable set for big increases in spending. Digital and social media will also be on the rise, but trending behind traditional media.
Meanwhile, WELLS FARGO SECURITIES analysts MARCI RYVICKER and TIMOTHY SCHLOCK said political advertising is picking up. "Our take is that political is still strong, but expectations are high."
"Our takeaway is that core advertising is pacing better than expected for television and radio," they added. "From most of the conversations we have had, core advertising has been better than expected, driven by auto, retail, telco and financial. We asked operators and media buyers if this is merely a result of advertisers pulling budgets forward in advance of the political onslaught. For the most part, there has been no evidence that this is the case, although most admit it is hard to know for sure."