Moody's Sees Record-Breaking Political Ad Spending In 2012
June 23, 2011 at 6:01 AM (PT)
A new report from MOODY'S INVESTORS SERVICE sees political advertising "all but certain" to break records. The paper, "U.S. Broadcasters Get Ready for Record-Breaking Political Ad Spending in 2012," calls for political ad revenue to grow between 9 and 18% in 2012 over 2010 levels.
THE HOLLYWOOD REPORTER reports, "Broadcasters benefited from a Jan. 2010 Supreme Court decision that effectively ended spending caps for political ads, so, unlike in 2004 and 2008, the presidential election in next year will happen without limits on campaign spending by corporations or unions ... Next year is once again expected to feature several competitive local races in addition to President BARACK OBAMA's attempt to win a second term.
"The boost in revenues in 2012 will not, by itself, shift our stable. outlook for the pure play U.S. broadcast television sector, as political advertising will account for less than 7% of all television broadcast advertising revenues for these operators over the course of the two-year political cycle," wrote MOODY'S VP/Sr. Analyst CARL SALAS.