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SALES OFFICE BY STEVE LANZANO

It's A Whole New Political Ad Ballgame

By Steve Lanzano
TVNewsCheck, Feb 5 2010, 6:56 AM ET

Rarely has the political landscape changed so dramatically virtually overnight. The twin events of the takeover of Ted Kennedy's Senate seat by Republican Scott Brown and the Citizens United ruling by the Supreme Court have not just entranced Washington, but also Madison Avenue. Analysts of all persuasions, including TVB, are anticipating a cascade of political dollars during 2010. How should broadcasters be telling advertisers of all kinds to prepare for it?

First, let's look at the changed political landscape. The Brown win has energized the Republican Party. It will be a great boost for fundraising and for fielding more competitive candidates. It is clear there will now be a record number of tight races in the House this fall — as many as 70 — as well as hot gubernatorial and Senate races.

Story continues after the ad

But the news that has the media community most excited is the 5-4 Supreme Court ruling overturning key elements of the McCain-Feingold Act. The ruling allows corporations, unions, trade associations, interest groups and individuals to advertise directly for or against the election of specific candidates. And there is no blackout period. Groups had previously been barred from advertising 60 days prior to Election Day.

So what's our take-away?

Clearly both the Brown victory and the new unrestricted class of candidate advertiser are going to put upward pressure on 2010 campaign spending. How much? Nobody knows. But estimates of plus $300 million to $500 million, reported in the press, seem to be appropriate.

The fact is a lot of the issue-money spenders were already active. The ruling provides another channel and a longer window for them to operate within. TVB is forecasting about $1.8 billion in local market TV spending; any significant increase will tighten access to fall inventory. Therefore, the most important implication for campaigns and other advertisers is to buy earlier. This is particularly true in states that allow early balloting.

While other local media options are licking their chops over the prospect of a sold-out local TV marketplace, only television stations can deliver the voters that the campaigns covet.

For example, while cable's pitch is that it can target voters via the choice of cable channel, broadcast stations can target via program type and time period. But only broadcasters can deliver commercials to all the market's voters.

Due to high satellite penetration, local commercial insertion in cable programming is unseen by large swaths of the viewing public. The typical cable advertisement reaches an average of 61% of voters in a given market, sometimes far less. And that's potential, not actual viewing (which is lesser still). In any event, we expect that the rising tide will lift all boats in competitive markets and that all local media will be tight in late September and October.

Some considerations for political planners and general market advertisers:

To political advertisers:

  • Keep dollars on local broadcast stations. Those ads are the most cost-effective. While Barack Obama is credited with a masterful digital strategy in his 2008 presidential campaign, most of his advertising budget was spent on local broadcast TV.
  • Consider moving more of the media spend into earlier stages of the campaign, say, late summer. It will allow the candidates to define themselves on their own terms before any other advertising does. This tactic will also take advantage of more abundant TV station inventory. Obviously, the last three weeks of the campaign (when some candidates spend up to 65% of their budgets) are still vital, but an early jump could make more strategic sense now than ever before.
  • Remember that local stations reach every voter in every voting district.
  • Stay informed. TVB has created Political Databank 2010 to assist consultants, planners and buyers with their local media choices. Among other things, it contains key election dates, market profiles, spending histories and viewing preferences by political persuasion. It can found at www.tvb.org.

To non-political advertisers:

  • Stay close to your reps, stations and TVB for market intelligence. As always, there will be huge differences in inventory pressure on a DMA-by-DMA basis. Avails in markets with tight Senate, gubernatorial and House races will be particularly tough to find in October. But many markets will be only slightly or totally not impacted. If 2008 is any indicator, the inventory squeeze was manageable. Even for the few severely impacted markets, inventory was a problem for only a very short window, just prior to Election Day.

If there's an avalanche that's coming, there are only two words that apply: plan ahead.

Steve Lanzano is the president of the Television Bureau of Advertising. He can be reached at steve@tvb.org.

Comments (5) - Post a comment

RustbeltAlumnus2 Nicknameposted 39 days, 7 hours, 28 minutes ago
John Kerry has proposed a constitutional amendment to reverse the Supreme Court's ruling, Ironically, the original law banning corporations from contributing came from a Democrat named Tillman (South Carolina) who was irritated that Republican corporations were helping black people get their political rights. To this day, many Democrats, especially blacks, also conveniently forget that the Civil Rights movement of the 1960s was successful with the cooperation of key Republicans, against the opposition of Southern Democrats (like former KKK member Robert Byrd [D-Virginia] who is the oldest senator today).
PSIPthing Nicknameposted 39 days, 1 hour, 59 minutes ago
Kerry is always good for a laugh, like Rep. Markey. So, let's see, this has to pass the House, the Senate, be signed by the president and then passed by 38 state legislatures. In whose lifetime?
T Dog posted 39 days, 5 hours, 42 minutes ago
...where I lived, there was a 29-member voting majority in the City Council in the 1980's who blocked the policies of the city's first black mayor, in what we called the "Council Wars" era... Who were those 29? Mostly white Democrats.
TV Research Guy posted 38 days, 20 hours, 35 minutes ago
This is why nearly all the media were silent on reporting it. The so-called 4th Estate stands to make millions off of paid "free speech." This should not be about Democrats and Republicans but about Americans and their right to free speech in the face of gigantic corporations, many foreign owned or controlled, able to insert themselves into our sacred (albeit messy) political process. Unions are down to 7% of the workforce and non-profits are mostly broke. The poor, the destitute and the disenfranchised have no money and therefore they now have no voice. Money is commerce and political speech should be free. The last presidential election cost close to $1 billion dollars. Add in the 33 Senate seats at between $15-20 million each, then all 435 Representatives' seats at around $3 - $5 milion each, and it all adds up to LESS that 10% of the PROFIT that Exxon-Mobil made last year. There is no equality in this and our great democracy is at risk of becoming one big corporatocracy. This should unite Republicans and Democrats to rid the American political system of all the monied influences. Frankly, Kerry's consitutional amendment, while correct, from a procedural point of view, cannot work, as the corporations will have all their candidates in by then to kill it. What needs to happen immediately is the following:

1. Allow no money from any corporate treasury that takes in foreign money to participate,
2. Allow no corporation who receives money from the Federal Government to participate (they are using our tax dollars, and many of us do not want our tax dollars spent in this way)
3. Before any corporation can make these contributions they should be compelled to have a vote approving it by all shareholders.

This keeps it American and democratic. Anything else is anti American and fascist.
adam arm posted 38 days, 5 hours, 5 minutes ago
Steve, welcome aboard! This is a great way to start your role at TVB.
All of us wish you great success. -Adam Armbruster
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