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SNL Kagan: Broadcasters Will Benefit from 2010 Political Spending
Monterey, CA - Sep 22, 2010 - Midterm political races could spell big advertising revenue gains for broadcasters, according to a new study from SNL Kagan. The study, "Broadcasting Guide to the 2010 Elections," analyzes the footprint of TV and radio station owners in the states where highly competitive races are expected, taking into account the number of stations in exposed markets.
SNL Kagan forecasts TV station political revenues in 2010 have the potential to grow at least 25 percent above 2006, to $2.5 billion, with political revenues for publicly-traded TV pureplays expected to exceed $300 million. And while TV stations will receive the lion's share of ad dollars, SNL Kagan indicates that radio will also benefit as political campaigns tighten TV inventory in the fourth quarter. Radio political ad revenue is expected to reach approximately $560 million.
Among radio pureplays, SNL Kagan's analysis reveals Cumulus Media has the largest footprint in toss-up states, with a total of 114 stations. Despite the immense exposure of pureplays to highly competitive races, CBS Radio is likely to receive one of the largest windfalls in political advertising in 2010. The company owns 78 stations in 53 markets; including 50 stations, or 64 percent of the total, in California, Florida, Illinois and Ohio.
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