Oil & Politics Don’t Mix – Or Do they?
August 15th, 2008 by Brian Donahue
With more evidence to show that gas prices are trickling down throughout the economy, broadcast TV advertising has taken a hit.
With less cars being purchased, car companies have pulled back on some of their advertising. This has generated a net decrease in broadcast TV ad revenue of 4.8%. AdAge’s Brian Steinberg observed last week:
Network TV ad revenue was down 4.8% in the quarter, and local broadcast ad revenue fell 9.1%, while syndicated TV ad revenue was up 9.1%, the TVB said, citing statistics culled from TNS Media Intelligence. For the first half of 2008, network TV ad revenue fell 1.5%, local broadcast ad revenue fell 3.8% and syndicated TV was up 10.2%, the industry organization said.Â
The figures come as media buyers have said that third-quarter scatter advertising, or ad time purchased closer to the time it airs, has been sluggish, and also as advertisers have dithered over whether or not to trim some of the dollars they committed to network TV in the upfront. Media buyers say clients and networks have seemed nervous about whether all the money put down by advertisers during upfront negotiations will remain available as marketers try to navigate their way through a tougher-than-expected economic time.Â
As the political market heats up, media buyers have seen a sharp increase in third-quarter scatter advertising, airtime that is purchased close to the air date. This type of buying is very typical in the political media purchasing world.
Political media consultants are gearing up to make very large purchases on behalf of candidate committees, IEs, IAs, PACs, Coordinated Expenditures and any other type of committee I may have forgotten.  These buys will sharply change the amount purchased and the inventory available across all platforms – broadcast networks, spot cable, national cable, Direct TV, Dish Network, radio broadcast, and XM/Sirius radio.
As reported last week, the RNC and McCain have almost $96 million on hand. Much of that money needs to be spent before McCain takes public financing after he accepts the nomination at the beginning of next month. Obama and the DNC have yet to publicly report their figures.Â
It will be interesting to see the change in ad revenue from this election cycle alone. $1.6 billion was spent on political TV in 2004, far surpassing the $771 million spent in 2000.
The full article is available here.
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