Surge in midterm election campaign spending a boon for TV broadcasters

The 2014 midterms, with control of the US Senate up for grabs, are turning out to be another bonanza for the owners of local television stations in closely divided states.

Driven in part by unprecedented advertising by super PACs and other groups that aren't allowed to coordinate with candidates, total spending in the midterm races is now projected to top $4 billion nationwide, making it the most expensive midterm election in history. The surge in political spending is cyclical and can be fickle, but it has become an important part of the revenue stream for broadcast companies -- as much as a 30% increase in election years -- and it's affecting how they operate. Even though more political advertising is landing on cable channels and online sites, well more than half of the spending is still flowing to local stations, analysts said.