Political Ad Spend to Soar

The economy is still shaky, but that won't stop politicians from spending a record amount this year on advertising to sway mid-term election results.

And the political advertising floodgates will open right after Labor Day spewing messages -- and an inordinate amount of mud, according to analysts -- right up to Election Day on Nov. 2. According to Borrell Associates, political ad spending will reach $4.2 billion this year, double the $2.1 billion the firm estimated was spent in 2008. And Campaign Media Analysis Group (CMAG), a unit of WPP's Kantar, also expects a record total, with up to $2.8 billion being spent by candidates and various special interest groups, vs. the $2.6 billion it said was spent two years ago.

Political spending this year is eye opening given that general market advertisers aren't expected to return to pre-recession spending levels until at least 2013, according to PricewaterhouseCoopers. It's also striking given that 2010 is a mid-term election, when spending usually dips below the previous presidential campaign cycle. But not this year: "It's become an endless campaign, that's really what we're seeing," said Kip Cassino, vp research at Borrell.

Evan Tracey, president of CMAG, notes that this mid-term cycle has an unusual amount of highly competitive races, including close to 100 congressional elections, vs. the normal 35 to 40. In addition more than half of all the gubernatorial and senate seats are up for grabs. "I can't remember that much turnover before and they all feel like they're in the cross-hairs of voters," he said of the candidates. "And that competitiveness drives the spending."