Political Spending Expected to Soar in 2008 Election Cycle

By: E&P Staff Political advertising is expected to soar to $4.5 billion -- an all time high -- for the 2008 election cycle, according to a new report from PQ Media. The spending represents a 43.3% increase over the 2006 campaign cycle and a 64.1% increase over the 2004 election.

The surge in spending is due to several factors including an "acrimonious political environment," record fundraising, and the number of candidates participating in races.

"A key trend driving growth is that this is the first election since 1928 without a current member of the executive branch running for office, which has resulted in an unusually high number of presidential candidates participating in the primary season, as well as a discordant political landscape on several fronts," Patrick Quinn, president and CEO of PQ Media, said in a statement.

Broadcast and cable TV, radio, newspapers, the Internet, out-of-home media, and mobile and magazines are expected to make up the bulk of spending. Projected ad spending for this group is forecasted to reach $3.03 billion, accounting for 67.2% of the total. Political marketing services including direct mail, public relations, and promotions & event marketing will reach $1.48 billion or 32.8% of the spend.

Broadcast TV will take the lion's share of political advertising, more than half of the total expected $4.5 billion. Of the nine categories followed, online political advertising revenue will jump 83.9% compared with 2006.

Presidential candidates will spend the most, 37.1% or $1.67 billion. The Senate and House races will account for 19.4% and 21.4% respectively. Local races and spending on referendums will account for 18% while gubernatorial races will account for roughly 4%.