Sinclair: Political To Come ‘Hand Over Fist’ In 2020

Quote from Steven Marks — EVP @ Sinclair Broadcast Group:“Every other day there is somebody joining the race. It really bodes well for local broadcasters. There is going to be quite a robust fourth quarter [this year] and in 2020 we are not going to be able to get out of the way of the money. It’s going to be literally hand over fist.”

Sinclair ad revenue from political:
1) 2014 — $155M
2) 2016 — $206M
3) 2018 — $255M
4) 2020P — ?

Political ad spend by year according to Kantar CMAG:
1) 2014 — $3.0B
2) 2016 — $4.4B
3) 2018 — $5.3B

Compound annual growth rate between 2014–18:
1) Political advertising — 15.50%
2) All advertising — 6.25%

What if I told you: There was an advertising vertical that is growing at 2.5X the rate of national advertising and has received virtually $0 in venture capital funding…

2018 ad spend share (% of total):
1) Local broadcast — $3.1B (59%)
2) Local cable — $1.2B (23%)
3) Digital (all types) — $1.0B (18%)

Share of spend for digital in politics by cycle:
1) 2014–8%
2) 2016–15%
3) 2018–18%

Big shift: Major groups like Priorities USA are moving away from a “TV first” strategy and installing strategists with a digital background to oversee all video.

Flashback: Ad spending for the 2018 midterms reaches nearly $3 billion

More #1: Nexstar Revenues Soar 22% On Higher Political, Core Ads

More #2: OTT & Political Advertising: Lessons From The 2018 Midterms

More #3: Your phone and TV are tracking you, and political campaigns are listening in

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