Obama's Record Fundraising Fails to Benefit TV Station Owners

Television stations are finding as political campaigns end that Sen Barack Obama's record $600 million fundraising isn't turning into an advertising bonanza. A lack of competitive big-state Senate races, falling interest-group outlays and Sen John McCain's decision to accept campaign spending limits have led to a shortfall. "We were very surprised at the lack of growth," said Kip Cassino, research director at Borrell Associates, an advertising consultant. "It puts the stations in a much worse spot than they thought they'd be in." Political ads were supposed to be the bright spot for station owners E.W. Scripps Co., Belo Corp. and Sinclair Broadcast Group Inc. in a year marred by less spending by auto dealers. Instead, campaign spending on local TV will fall to $984.3 million from 2004's $1.05 billion, Cassino said. Total ad sales for local TV will fall 8 percent this year, he said.