Local TV Political Ad Revenue Exceeds Expectations; Likely to Surpass 2020 Total

An analysis by SampampP Global Market Intelligence39s Kagan unit shows that six broadcast TV groups reported political ad revenue of 5253 million up 811 from the 2901 million reported in the third quarter of 2018 the last midterm election yearFor broadcast TV political advertising started earlier in the election season over the last few election cycles This year39s political ad cycle started well before the primary elections leading to an increase in yeartodate political ad revenue to 9214 million for all TV stations up 1085 from the same period in 2018 and a 39 increase from the presidential election year 2020Many broadcasters are expected to bring in the largest share of political ad revenue in the fourth quarter as the weeks leading up to Election Day usually have the heaviest dose of TV political advertising Some very hotly discussed issues were on ballots that led to a surge in political ad revenue outside of the swingstate regions These topics included abortion rights inflation gambling and sports bettingCalifornia traditionally a Democratic state is a case in point It saw a record amount of advertising due to ballot initiatives The largest spend was for ads focused on legalizing sports betting Native American tribes went up against online gambling companies including DraftKings Inc and FanDuel Inc over the issue Campaigns for and against the measure raised some 570 million according to The Sacramento BeeIn addition to unforeseen ballot and issue advertising the Georgia Senate runoff between Sen Raphael Warnock and former NFL player Herschel Walker kept a heavy dose of advertising flowing into DecemberKantarCMAG Senior Adviser Steve Passwaiter estimates that the 2020 Georgia runoff added about 525 million in additional political ads and an additional 125 million could be spent in the 2022 runoff election in that state A new law mandating runoff elections to be held within four weeks of the primary or general election date means the vote will take place Dec 6 limiting the number of days for candidates and their political action committees to target the state with adsLarge TV station groups with Big Four TV stations in Georgia stand a lot to gain from the runoff Among them Gray Television has the most stations six Sinclair Broadcast Group has four Nexstar Media Group has three and TEGNA has twoOf the broadcasters in Kagan39s election adspend analysis Gray TV has been the largest beneficiary The company brought in 260 million through the first three quarters of 2022 a 405 increase from the 185 million reported during the same period in 2020 During the Gray TV thirdquarter earnings call on Nov 4 CEO Hilton Howell estimated fullyear 2022 political ad revenue to be about 500 million and he referenced the early spending trend quot2022 now appears to be the first election cycle in at least 20 years in which the fourth quarter of the year does not produce more than half of our political advertising revenue for the full yearquot he saidNexstar also expects to reach the halfbillion mark in political advertising in 2022 During its thirdquarter earnings call Founder and CEO Perry Sook reported total net political ad revenue for the fourth quarter of 260 million which would put the company at the 500 million mark in political ad revenue for the year quot2022 has not only been a record midterm election year for our political advertising but it is nearing an overall record for our political advertising including presidential election yearsquot Sook saidPolitical ad revenue guidance for Sinclair remained in the 335 million to 340 million range according to the company39s thirdquarter earnings call Political ad revenue outpaced 2018 pro forma results by 28 in the third quarter and yeartodate was down only 2 over pro forma results in the 2020 presidential election yearWith political spending coming in higher than expected this year and fundraising for this midterm election exceeding expectations the 2024 presidential election is likely to be contentious with ad dollars starting to come into TV early in the election cycle Voters39 angst about the economy and inflation may stagnate through to the next election day which could mean another heavy wave of advertising for broadcast TVThis article was written by Peter Leitzinger Research Analyst Media ampamp Communications for SampampP Global Market Intelligence39s Kagan division He can be reached at peterleitzingerspglobalcomClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillagecomMyersBizNet

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Local TV Political Ad Revenue Exceeds Expectations; Likely to Surpass 2020 Total

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