Spot TV stumbles without a big election
By Brian Wheelis • October 30, 2013
Poster’s note: We’re currently in a buyer’s market due to the absence of major election dollars. Knowing this cycle occurs every two years alternating between major and minor political influxes, planning for these predictable nuances permits advertisers to take advantage of or defend against media pricing swings. These conversations should be taking place in the annual planning discussions.
During second quarter 2012, spot advertisers spent $136 million on political. During second quarter of 2013, they spent $100 million less.
This decline in spending will get sharper as the year goes on, since the largest share of political dollars are spent closer to the election, during September and October.
The huge demand for political also drives up pricing for other advertisers, who pay a premium to squeeze their messages on between the candidate and issue advertising.
And so in the off-election years advertising suffers doubly, with political advertising gone and pricing often falling for the advertisers who remain.