2020 Candidates ‘Flush With Cash’ Bode Well for Local TV Owners
2020 Candidates ‘Flush With Cash’ Bode Well for Local TV Owners
(Bloomberg) -- With a wide field of deep-pocketed candidates vying for the presidency in 2020, political advertising is poised to reach record levels.
“All signs point to another record political cycle in 2020 with total political advertising” reaching at least $10 billion dollars, wrote Guggenheim Securities analyst Curry Baker in a note, citing updated forecasts from several ad planning agencies. That figure is up about 15% from the 2018 midterms and more than 60% from the 2016 election.
Nexstar Media Group and Gray Television Inc., according to Baker, are among the local television station owners best positioned to benefit from the copious influx of money. The two own a number of stations within competitive political markets. Sinclair Broadcasting Group is also likely to benefit, although Baker views it less favorably.
Even with the media sector’s pivot to streaming, data firm Magna Global said local TV broadcasters are expected to rake in approximately $3.5 billion of incremental revenues from the 2020 political ad market.
According to Guggenheim’s Baker, President Donald Trump has raised $166 million through the third quarter, which could boost political advertising spend, although the campaign spent a limited amount during the 2016 election. The Democratic primary “is also very competitive, expected to be drawn out, and flush with cash,” he added.
Since announcing his candidacy last month, former New York City Mayor Michael Bloomberg has spent more than $100 million in political advertising, according to research firm Advertising Analytics. The billionaire and founder of Bloomberg LP also plans to donate $10 million to help protect House Democrats targeted for their support of impeachment proceedings against President Trump.
To contact the reporter on this story: Kamaron Leach in New York at kleach6@bloomberg.net
To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Jennifer Bissell-Linsk, Courtney Dentch
©2019 Bloomberg L.P.