Tag: mid-term

Facebook, Google are election winners

By Todd Shields , Gerry Smith and Sarah Frier for Bloomberg

Even before ballots are counted from Tuesday’s elections, some clear winners have emerged, as Google and Facebook reap windfalls from political advertising after a season of controversy over online political speech.

Political ad spending is on course to set a record, exceeding expenditures in the 2016 presidential election year, with a total of perhaps $9 billion. Political ad buyers weren’t deterred by months of furor over election meddling by Russians using Facebook, Twitter and Alphabet’s Google and YouTube.

“This was a test year for political digital,” says Kip Cassino, who works with research firm Borrell Associates after retiring as its executive vice president. “What they wanted to see was how many ads could they put on digital without people getting really upset.”

Digital ad spending rose more than 25-fold from the last non-presidential national elections in 2014, reaching 20 percent of expected political spending this year at almost $1.8 billion, according to estimates compiled by Borrell. Kantar Media/CMAG, which omits some online activity, estimated 2018 online spending at $900 million, up from $250 million four years ago.

The figures show how digital sites, with their ability to target thin slices of the electorate, have assumed a prime place alongside traditional media such as broadcast TV, which is still prized for reaching large numbers of older voters likely to go the polls and accounts for the largest amount of political ad spending.

Kantar estimated providers such as Tegna Inc. and Sinclair Broadcast Group Inc. would see political ad revenue rise to $2.7 billion, up 30 percent compared with 2014. When local races are included, broadcast stations saw a decline in political advertising compared with 2014, to $3.5 billion, but remain the top recipient, according to Borrell’s estimates.

Local cable TV advertising sold by the likes of Comcast Corp. or Charter Communications Inc. was expected to jump 75 percent compared with four years ago, Kantar said.

“Everybody killed it this year,” said Steven Passwaiter, a vice president with Kantar, which monitors political ads.

On Tuesday, Gray Television Inc., which owns more than 100 local broadcast TV stations in smaller markets such as Augusta, Georgia and Omaha, Nebraska, said third-quarter political ad revenue was up 17 percent compared with the same quarter in 2014. That included a windfall four years ago from a hotly-contested senate race in Alaska, executives said.

“Political advertising remains quite alive and exceptionally healthy,” Gray Chief Executive Officer Hilton Howell said on an earnings call. Gray executives said political ad spending exceeded their expectations in states like Tennessee, Kansas and Florida.

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