Recent polling suggests that the presidential race has tightened, the station group says. "Nevertheless, there can be no assurance that increased spending will materialize given the very unusual nature of this year’s late presidential campaign season."
Gray Voids Political Ad Guidance For 3Q, 4Q
Citing “limited visibility” on political advertising this fall, Gray Television Tuesday evening withdrew its guidance on how much it would net from the ad category in the third and fourth quarters.
In reporting its second quarter results in August, Gray projected that third quarter political revenue would fall between $40 million and $46 million, up from $24.5 million in the third quarter of 2012.
The Gray announcement followed news Tuesday morning from Sinclair saying it was cutting its guidance on political in the third quarter from between $58 million and $68 million to just $46 million.
The Sinclair news sent TV station stocks tumbling. Gray closed Tuesday at $10, down 9.42% for the day.
In Tuesday evening’s statement, Gray said the political spending is still significant, but coming in later than usual.
“The Trump campaign and/or allied PACs have purchased advertising time in some Gray markets, and it has expressed interest in placing advertising in up to nine states involving up to 17 Gray markets,” the statement says. “At this time, however, the campaign’s future spending is currently impossible to predict.
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“The Clinton campaign and allied PAC’s are currently active and/or are expressing interest in placing advertising in up to six states involving up to seven Gray markets.
“Recent polling between Clinton and Trump appear to have tightened and could lead to increased ad spending by the respective campaigns and related PACs.
“Nevertheless, there can be no assurance that increased spending will materialize given the very unusual nature of this year’s late presidential campaign season.”
Statewide races in Missouri, Indiana and North Carolina are more competitive than anticipated, the statement says, but Senate races in Ohio and Colorado have not “led to robust advertising spending” as once thought.
“Furthermore,” the statement adds, “some historically large political advertisers have very recently indicated that they may direct funds to organizing voters and other campaign activities rather than advertising.”
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