Campaign advertising on the rise

By Yvonne Teems

Dayton radio and television stations expect to rake in the dough this fall as political campaigns heat up before November elections.

Falling in line with national expectations, local stations anticipate campaign spending this year to exceed spending in 2002 and potentially rival spending in 2004, the presidential election year.

But experts say the price of advertising will rise as more buyers vie for space, possibly shouldering the non-political advertisers out of the market.

Dayton television stations predict the total campaign spending to range between $5 million and $12 million, while radio stations expect political advertisers to spend between $1.25 million to $1.5 million, according to a poll of local stations.

“Ohio has become a real battleground,” said Dean Ditmer, general manager of WKEF-TV Channel 22 and WRGT-TV Channel 45.  “Everyone knows that.  And obviously, the broadcasters benefit.”

In a year in which advertising spending is sluggish, campaign spending is welcome, said Rob Riggsbee, president of Inside Media, a media buyer in Cincinnati.  Without the campaigns, the Dayton area may have seen advertising revenue slide 1 percent compared with last year, he said.

But because of the campaigns, radio advertising revenue likely will rise 2.1 percent this year over last year and television revenue 4.3 percent, he said.

WHIO-TV Channel 7 ropes in between 50 percent and 55 percent of campaign advertising dollars, said James Cosby, general sales manager.

WDTN-TV Channel 2 typically snags 25 percent, said Lisa Barhorst, president and general manager.

Ohio is counted among the top states for campaign advertising spending this year, according to a study by Campaign Media Analysis Group released late August.  Ohio is expected to have tightly contested races, and much of the national ad spending comes from the battle for one-party control of both houses of Congress.

The Buckeye State is among the top 12 states in terms of expensive U.S. Senate races, based on advertising spending.  Combined, the 12 states’ races have spent more than $44 million from July 2005 to August.

Ohio also may have one of the most expensive gubernational elections.  It ranked as one of seven states that could see up to $100 million in television advertising spending in this year’s campaign, according to the survey.

WDTN-TV’s Barhorst said she’s seen campaign dollars concentrated in the gubernational and senatorial races thus far.

Closely watched races this fall include the governor’s race between U.S. Rep. Ted Strickland, D-Marietta and Ohio Secretary of State Kenneth Blackwell as well as the U.S. Senate race between U.S. Sen Mike DeWine, R-Ohio and U.S. Rep. Sherrod Brown, D-Lorain.

Politicians aren’t the only ones spending money on the November elections.  Supporters for and against various issues, namely gambling and the statewide smoking ban, also are shelling out large sums on advertising.

But election spending may leave traditional advertisers in the dust.  By law, political advertisements take precedent over commonplace ads, meaning a local restaurant’s traditional Sunday night spot during a newscast may be unavailable during campaign season.

Stations try to make up for the slight by offering a different commercial spot with the same ratings, but viewership might not necessarily be the same.

“It’s tough for a consistent advertiser to recreate their marketing wheel by temporarily leaving one medium to find another medium in which they have no track record or history,” Riggsbee said.

Riggsbee said another problem with campaign season is that prices for advertising slots can jump two or three times their normal rates because demand for space skyrockets.  As of Sept. 6, Dayton 30-second commercial prices range from $150 to $325 during an 8 a.m. to 9 a.m. newscast, $350 to $1,500 during a 6 p.m. to 6:30 p.m. newscast and $425 to $1,900 during an 11 p.m. to 11:30 p.m. newscast, Riggsbee said.  These prices are between 50 percent to 100 percent higher than they were the same time last year, showing the discrepancy between a political and non-political season.

All contents of this site © American City Business Journals Inc.  All rights reserved.