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Thursday, August 21, 2014

Radio's Competition For Political Ad Revenue Increases


More and more radio companies have been looking at political season, and the local, regional and national campaigns election day produces, to bolster flat revenue numbers. Some companies have even hired political specialists to work that business, hoping to grab as many of those dollars as possible. The arena for 2014 political dollars just became a little more crowded thanks to modern technology. DirecTV and The Dish Network are about to battle broadcasters for the a piece of what's expected to be about $3 Billion in political advertising spending later this year. The Satellite providers have been unable to attract any of that revenue in the past because they could not target local ads. That's all about to change.

Dish's senior vice president of media sales Warren Schlichting tells the Los Angeles Times says his company has built a better mousetrap. "Broadcasters have had this market to themselves because they could offer that local reach." New digital technology is helping both Satellite providers match voter registration information with subscriber homes, and are now offering political campaigns the ability to send targeted ads to select households.

Schlichting says, "If they are a satellite TV subscriber, then we can send an ad directly to their house. Just like in the past when people sent a mailer to your home. Now we are mailing a 30-second spot directly to a person's digital video recorder." The Time says, until recently, there weren't enough homes that received digital TV transmissions to make customized ads economically feasible on a large scale. Political ad spending is expected to top $3 Billion in 2014.

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