Broadcasting Intern

Broadcast TV stocks capture 48% of $11.6B political ad spend in 2025-26 cycle. 2026-10-21 07:45:18 Key takeaways. * Broadcast television companies are forecast to capture $5.6 billion, or 48%, of the $11.6 billion in total political advertising spending predicted for the 2025-26 election cycle. * Nexstar Media Group reported $75 million of political advertising revenue in fiscal second quarter, while E.W. Scripps and Sinclair also reported strong political ad revenue growth. * Connected TV represents the fastest-growing category of political advertising spend, predicted to capture $2.7 billion or 23% of the 2025-26 cycle's total ad spending. Broadcast television companies are forecast to capture the greatest portion of political advertising spending ahead of the midterm elections, according to advertising intelligence company AdImpact. The 2025-26 election cycle is predicted to be the most expensive on record, with $11.6 billion in total spending - higher than the $11.2 billion spent during the 2024 presidential cycle and $8.9 billion during the 2022 midterms. An estimated $5.6 billion, or 48%, of advertising spend is expected to go to broadcast companies. Analysts attribute broadcast's continued strength to its ability to reach voters in local counties and its appeal to politically active demographics. This occurs as advertising dollars increasingly shift toward streaming and digital platforms, where broadcast accounts for just 7.7% of the more than $470 billion in general advertising spend forecast for this year in the United States, according to Magna data published by S&P Global in July. Broadcast delivers reach and trusted audiences for political campaigns. Terry Nelson, founding partner of Plus Communications and national political director for former President George W. Bush's 2004 reelection campaign, told CNBC that broadcast spots allow political strategists to reach large numbers of voters "as efficiently as we can from a cost perspective." Broadcast remains free and broadly accessible despite cord-cutting trends. The category accounted for 19.5% of television use in July, while cable captured 18.7%, according to Nielsen's monthly streaming report, The Gauge. Streaming led television use at 49%. Brad Seitter, CEO of TVB, a trade organization representing the local broadcast industry, stated that broadcast's strength during election cycles comes down to "trust, reach and because it works." Seitter told CNBC that television's perceived reliability is of utmost importance for political campaigns. "Gaining the trust of a voter equals a vote for your candidate or issue," Seitter said. He added that viewers trust their local broadcast TV news, making them more likely to believe the content of political ads on a platform with long-standing rules and regulations. According to a study conducted by TVB, 42% of Democrats and 49% of Republicans said broadcast or cable television was the most important form of advertising media in influencing how they cast their vote. StoneX Equity Research Analyst Daniel Kurnos told CNBC that broadcast audiences are generally more politically active: "You cater to the demos that vote. You cater to the votes that matter." Industry debate: strategic advantage or consultant habit. Erik Brydges, head of performance and political demand at sell-side ad company Magnite, told CNBC that broadcast's perceived influence is tied to the long history of the platform. "There are multiple studies out there that show a correlation between the number of points you buy on TV in relation to moving poll numbers, because the medium's been around for like 70 years," he said. Brydges also stated he believes broadcasting's strength is due, in part, to muscle memory. "A lot of campaigns and a lot of the consultants who work on the campaigns have just been really used to buying TV," Brydges said. "There's an old adage out there that no political consultant is ever going to get fired for suggesting buying more TV." TVB's Seitter said political campaigns continue to place advertisements on traditional TV because there is clear evidence they are influential on voting behavior. "Nothing moves the needle in polling like running an ad on broadcast TV," Seitter said. Broadcast companies report elevated political ad revenue in recent quarters. Publicly traded broadcasters, including Nexstar Media Group, Gray Media, Sinclair and E.W. Scripps, each reported high political advertising revenue in their most recent fiscal quarters and forecast continued growth through the fall. StoneX's Kurnos told CNBC that broadcasting companies rely on the low-lift revenue from political advertising to help manage their debt. Nexstar, which owns or operates at least 265 stations, reported its highest quarterly revenue in the company's history. Net revenue hit $1.99 billion, and advertising revenue was $862 million, according to the August earnings report. Even discounting additional revenue from the Tegna merger, which Nexstar officially acquired in March, the company reported fiscal second-quarter growth at legacy Nexstar that was primarily driven by $75 million of political advertising revenue. Gray Media's stations operate in several markets with the most competitive races: the company has exposure in 12 competitive Senate races and all 11 competitive gubernatorial races, according to Kurnos. "Gray has always been the most efficient political generator of the broadcast group," he said. Sinclair and Scripps also reported political ad revenue as a bright spot in their earnings reports for the most recent fiscal quarter. E.W. Scripps said political ad revenue hit the highest second-quarter level ever, while Sinclair said political ad revenue had grown 9% from the second quarter of 2022 during the last midterms season. Connected TV captures growing share of political advertising spend. Connected TV represents the fastest-growing category of political advertising spend, according to AdImpact. The category encompasses internet-connected devices like Apple TV or Roku. It's predicted to capture 23%, or $2.7 billion, of this cycle's ad spending, AdImpact found. Magnite's Brydges said the complicated and rapidly changing nature of connected TV and free, ad-supported streaming channels has prevented some advertisers thus far from taking advantage of high viewership numbers. "If you look at some of the FAST streaming services - some of your Plutos, your Tubis - a campaign or a consultant might not understand what those are," Brydges said. "Therefore, they might just be like, 'Well, if I don't understand what it is, then it's probably not worth investment.'" However, he stated he believes political consultants are becoming more attuned to the benefits that these platforms provide. SKDK's Pia Carusone, who manages the firm's political advertising department, told CNBC that she sees value in streaming's specific audience targeting features. "If you're buying NBC in New York City, for example, you're buying the whole market," she said of traditional advertising strategy. "Increasingly, now with the streaming and CTV platforms, they're able to really offer a lot more nuance in their targeting. So we're able to sort of deliver against those audiences more directly." Carusone stated that political advertising strategy relies on maintaining a diverse portfolio: "You can't just do digital. You can't just do linear. Good buyers today are buying across the spectrum." Faq. What portion of political advertising spending are broadcast TV companies forecast to capture in the 2025-26 election cycle? Broadcast television companies are forecast to capture $5.6 billion, or 48%, of the $11.6 billion in total political advertising spending predicted for the 2025-26 election cycle, according to advertising intelligence company AdImpact. Why do political campaigns continue to spend heavily on broadcast television advertising? Political campaigns continue to spend on broadcast TV because it reaches large numbers of voters efficiently in local counties, appeals to politically active demographics, and is perceived as a trusted platform. According to a TVB study, 42% of Democrats and 49% of Republicans said broadcast or cable television was the most important form of advertising media in influencing how they cast their vote. Which broadcast companies reported high political ad revenue in their most recent fiscal quarters? Nexstar Media Group, Gray Media, Sinclair and E.W. Scripps each reported high political advertising revenue in their most recent fiscal quarters. Nexstar reported $75 million of political advertising revenue in its fiscal second quarter, E.W. Scripps reported its highest second-quarter political ad revenue ever, and Sinclair reported political ad revenue growth of 9% from the second quarter of 2022. Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. 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Broadcast TV is set to capture 48% of political ad spending, or $5.6 billion, ahead of the midterm elections, according to AdImpact. The 2025-26 cycle is forecast to be the most expensive on record, with $11.6 billion in total spending. Broadcasters account for just 7.7% of general US ad spend, making politics one of their last strongholds. Analysts say local TV reaches the voters who matter most, though one executive says habit also plays a part. Publicly traded broadcasters, including Nexstar, Gray Media, Sinclair, and E.W. Scripps, reported high political ad revenue last quarter. Nexstar's legacy business saw $75 million of it. Connected TV is the fastest-growing category, expected to take 23%, or $2.7 billion.