Political advertising is finally coming to a close in most markets and you can hear the collective sigh of relief from nearly everyone. Everyone that is except for local TV stations who have been raking in the dough as candidates have spent a reported record $3 BILLION! Most of that money has been going to local TV buys and for most local stations the revenue has been just what they’ve needed to counter the hard-hitting recession. Besides major sporting events, e.g. Olympic games, Superbowls, World Series and college sporting events, political ads are a regular boost to TV stations’ budgets. But these are not always a sure deal. Just ask Fox who had the rights to the World Series this year. The short series left a lot of advertising revenue on the table.
There are several reasons why so much money has changed hands. First, there were a lot of hotly contested races between Republican, Tea Party, Democratic and Independent candidates. Second, there was an influx of money from outside organizations such as labor unions and corporations. Just this past Spring a Supreme Court ruling (Citizen’s United v FEC) opened the door to more spending from outside interest groups. And third, there seem to be more and more candidates who self-finance their races. Meg Whitman, former CEO of eBay, spent a reported $142 M of her own money.
In the end it all adds up to a big paycheck for TV stations around the country…including Colorado where the Senate race between Bennet and Buck is too close to call. So when you turn on the TV tomorrow, just think of all the TV station owners and managers who may be shedding a tear or two that the political spots are gone…at least for the next 18 months or so.