PQ Media

Exclusive PQ Media Data: Media Companies to Come Out Winners As 2006 Political Media Spending Heads for Record Books

Stamford, Conn., Nov. 2, 2006 – The 2006 election campaign will generate the highest political media spending ever, despite the absence of a presidential election, according to exclusive research released today by PQ Media, the world's leading custom media research firm. Driven by record spending in gubernatorial, Senate and House races, major public media companies are expected to realize significant increases in advertising and marketing spending, particularly in those markets featuring hotly contested elections, states the PQ Media Political Media Buying 2006 report.

The 2006 campaign marks the first time in a non-presidential election year that political media spending outpaced the previous presidential election. Total spending on political advertising and marketing communications is projected to reach $3.14 billion for full-year 2006, a 14.5% increase over the 2004 campaign. While broadcast television will again command the largest share of political media spend, this is down from 52.8% in 2004. Of all nine advertising and marketing media segments, including broadcast and cable TV, broadcast radio, newspapers, Internet, magazines, direct mail, public relations/promotions, and mobile spending, Internet advertising has seen the fastest growth since 2002, up an estimated 726.3%.

PQ Media estimates that political media spend on gubernatorial elections will break $1 billion for the first time in 2006, while Senate and House races will exceed $700 million each. Continued record-breaking fundraising by Senate and House candidates is resulting in an extremely high number of "hot races" in the Senate (16 of 33), House (65 of 435), and gubernatorial (31 of 36) campaigns.

"Political media buying increases are expected in almost 90% of the 210 designated market areas (DMAs), up from less than half in 2004," said Patrick Quinn, President of PQ Media. "This is great news for many public media companies, especially those in the hot DMAs."

For the first time, PQ Media isolated 41 public media companies, including many with operations in two or more media, including television, radio, newspapers and out-of-home. Media companies with operations in larger DMAs, such as Los Angeles, New York and San Francisco, are projected to exhibit the highest gains in political media spending. Meanwhile, media corporations in DMAs expected to generate the largest increases are those in hotly contested DMAs, such as Cedar Rapids, IA; Lansing, MI; and Ottumwa, IA. It is important to note, however, that PQ Media has not taken a position or made any recommendations as to whether the stock of a given company will rise or fall based on this analysis. Among public media companies that will see the big gains this year are CBS, Gannett, Clear Channel, EW Scripps, Cumulus and NextMedia.

The full list of Top DMAs and media companies likely to benefit can be found in the PQ Media Political Media Buying 2006, which also includes exclusive historical and forecast data for the 2002, 2004, and 2006 election periods. The report is more than 60 pages, including 33 tables and 13 charts, with data, analysis and forecasts covering 32 TV group owners, 14 newspaper owners, nine radio group owners and four out-of-home media companies. The full report will be released online Monday, Nov. 6 at www.pqmedia.com.

PQ Media is the world's leading media research consultancy specializing in alternative and traditional media spending and usage. PQ Media is located at Two Stamford Landing, Suite 100, Stamford, CT 06902 and can be reached by phone: 203-921-0368; fax: 203-921-0367.