Trump's reality campaign takes bite out of TV political ad revenue
Donald Trump's unconventional path to the White House, which relied more on Twitter than traditional television advertising, took a bite out of political ad revenue for some major station groups. Tribune Media and E.W. Scripps both reported disappointing political ad sales in the past week, and both pointed a finger at the Republican president-elect.
During a third-quarter earnings call Wednesday, Chicago-based Tribune Media said political ad revenue totaled $37 million across its 42 TV stations, about a third less than projected. It also fell short of the 2012 presidential election, when political ad revenue was $45 million during the same quarter at the Tribune-owned or operated stations.
Tribune Media saw total revenue grow 6 percent in the third quarter to $518.1 million, driven by political ad revenue, retransmission consent, carriage fees and digital ad revenues. Net income was $145.8 million, or $1.62 per share, up from $27.9 million, or 29 cents per share, during the same quarter last year.
Tribune Media spun off its publishing division — including the Chicago Tribune, Los Angeles Times and other daily newspapers — in August 2014; that company has been renamed Tronc.
With the Trump effect extending into the fourth quarter, Tribune Media lowered full-year revenue guidance for 2016 by $100 million, to between $2.147 billion and $2.179 billion.
Asked during the earnings call if Trump's victory represents a new and less profitable paradigm for TV political advertising, Liguori said he doesn't expect future campaigns to play out in similar fashion.
"Donald Trump feels like a very unique candidate," Liguori said. "This is an enormous celebrity who had huge brand awareness, who had a political campaign unlike any other."
Liguori pointed to the closing weeks of the campaign, when a flurry of TV ads from both candidates flooded the airwaves in a last-minute pitch to sway undecided voters.
"Even Trump's camp realized at the end, that final push, they needed to come back to TV," Liguori said.