According to Moody’s, in an article by The Hollywood Reporter, the entry of corporations and Super PACs into the political arena along with a close presidential race is benefitting broadcasters.
Thanks to a tight presidential race and unlimited political ad spending by corporations for the first time, political advertising on local television stations will grow by more than $500 million compared to 2010 to a total of $2.8 billion — marking the largest dollar increase in history — according to a report by Moody’s Investor Service released Thursday.
According to the report, political advertising in 2012 will count for around 9 percent of all local television revenue where normal growth is usually in the six to seven percent range. The report also said the heaviest spending is still ahead in October and November especially in so-called swing states where either candidate could win depending on the current mood of the voters.
A report in Adweek said Wells Fargo analyst Marci Ryvicker is seeing a change in the markets taking in the largest amount of money spent.
Ryvicker’s analysis also shows that there are some shifts in spending in the past month. Though Cleveland ($35.2 million), Washington, D.C. ($32.6 million), Tampa, Fla. ($29 million), Las Vegas ($28 million) and Orlando, Fla. ($23.2 million) have been the top markets in absolute dollars this year to date, Washington showed the biggest change in the past month. More than $20 million was spent in the nation’s capital from July 1 to Aug. 26.
Adweek also states that Ryvicker’s overrall estimate of $5.2 billion spent on political ads increased because spending in August went up 77 percent over July’s total.