TV stations will reap $750 million from political ads in 2002, Bear Stearns & Co.'s Victor Miller predicted in a report being released Monday.
About one-half of that money will be spent by candidates and the other half by
advocacy groups on issue ads.
That would make political the third-largest national advertising category for
TV stations in 2002, behind automotive and retail.
It also should bump up TV stations' revenue by 6 percent and help to cover expected
losses of 2 percent to 4 percent in traditional advertising.
Although radio and cable get a tiny bit of political dollars, about 99 percent of
all political ad money went to local TV stations in 2000, the last election
year. In 2000, politicians spent a record $606 million on local and network TV
ads, according to the Television Bureau of Advertising. Some estimates put the
spending at $850 million or higher, Miller said.