Archive for July, 2012

NFL is Still King of Sports TV Ratings

Monday, July 30th, 2012

Despite the Summer Olympics, one of the biggest news dominating sports coverage is NFL training camps opening up.  Even with the fragmentation of the television audience to other networks and mediums, the NFL still dominates the sports television landscape.

Last season’s Super Bowl on NBC was the most watched television program in history, beating out the last two Super Bowls. In fact, eight of the top ten watched shows of all time have been Super Bowls from the past 15 years. Meanwhile, according to Nielsen research, the ratings for the past five NBA Finals on ABC are down 40% since the mid 90’s and the past five World Series on FOX are down 60% since the mid 80’s.

The nation’s appetite for the NFL is not just limited to the finale of the season, but all year round. Last season, 14 of the top 20 rated cable telecasts were ESPN Monday Night football games. Meanwhile April’s NFL draft on ESPN was the eighth highest rated show on television that week, beating out any broadcast network show that night and the NBA playoffs that week. According to Arbitron research, 27% of adults 18+ in the country are “very” interested in the NFL, compared to 15% for the MLB, 10% NBA, 5% NHL. Not surprisingly only 28% are “not at all” interested in the NFL, compared to 35% for MLB, 45% NBA, and 54% NHL.

All this attention is reflected in the value of the franchises and networks that carry the NFL. Forbes recently listed the top 50 most valuable sports franchises in the world, and all 32 NFL teams made the list, compared to just seven MLB teams, two NBA teams, and zero from the NHL. Meanwhile ESPN is the 5th highest rated network and the NFL Network almost draws in as many viewers as the MLB Network, NBA TV, and NHL Network combined.

Therefore, despite the expanding numbers of sports and entertainment options on TV, NFL is still king.

Why Money in Politics is So Important

Monday, July 30th, 2012

Our system wouldn’t be better off if we spent less.

It is a near daily complaint during election season: “There’s too much money in politics.”

Every election cycle there is more and more money spent on campaigns, with more and more groups entering the fray. In particular, the Supreme Court’s Citizens United decision is often cited as the beginning of a new free-spending era in political campaigning. Many think our political system would be measurably better if there was less money in politics.

Surprisingly, the amount spent on politics is still quite small. During the 2010 cycle, the total spending for all races was $4.6 billion, which was 8 percent higher than the 2008 cycle. Sure, $4.6 billion spent on politics sounds gigantic—until you realize there are about 314 million people in the United States. Even if you just look at the roughly 200 million people who are eligible to vote, this would amount to the average eligible voter spending $22.50 per every two-year election cycle.

That’s really not so much money. Just compare that to the size of some other industries in America. Look at the amount spent on coffee consumption, for example. A recent study says that the average American worker spends over $1,000 per year on coffee. Per week, the average amount spent is $21.

The average American spends three times as much on bottled water, four times as much on dog food,  four times as much on gym memberships, fifteen times as much on lottery tickets, and twice as much on plastic surgery.

Yes, political spending has increased markedly in recent years, but the scale of the industry is still quite small. Even though the industry is less lucrative than most realize, money is still key. If it wasn’t, then shrewd political observers wouldn’t monitor fundraising numbers like hawks and politicians wouldn’t build up war chests to scare off challengers.

Why is money so important to the political process that there will be non-stop political ads this fall?

Name recognition is the main reason. Almost everyone in America knows that Barack Obama is the current president, but beyond the presidency, the amount of people who couldn’t even name their U.S. senators or the governor of their state is alarmingly high. Even well-educated people have trouble identifying their state representatives, let alone their city council, county council, or township elected officials.

There is a small core of people who are either in the political world or political junkies, who have the news on all day. These people really do not need political advertising to tell them how to vote. They will seek out ways on their own to learn about candidates and tend to be strong partisans, who won’t be convinced by opposition advertising.

But the large majority of Americans are not like this. Most people “outsource” their political engagement to others. This is not necessarily a matter of intelligence or civic-mindedness. A small business owner, who works 60-hour weeks, can be very involved in their community but has no time to investigate candidates on their own. So he or she may rely on people they trust, like the local Chamber of Commerce, to tell them which candidates are in their best interest.

It’s not realistic in a bustling society like the United States for every voter to be an expert on every candidate that will be on the ballot. But this means that the main way politicians can influence voters is through political advertisements. For a democratic republic to survive, voters have to be engaged in the political process.

The only way the barrage of political ads will go away is for the entire electorate to be so well-educated that political advertising would be worthless. And as long as most want to live a normal lifestyle, enduring political advertisements will be one of the costs of living in a free society.

Chris Palko works as an assistant media analyst at Smart Media Group, a Republican political media buying agency in Alexandria, Va. He is a graduate of American University and George Washington University’s Graduate School of Political Management.

A version of this post was also published on Campaign and Election’s blog, Campaign Insider.

Summer 2012 Olympics: A Golden Advertising Opportunity

Monday, July 23rd, 2012

With the Olympic Opening Ceremonies only a few days away, viewers across the country and the two presidential campaigns are gearing up for the non-stop television coverage.  President Obama’s ad team has already placed $6.5 million on an Olympic package on the national NBC networks, while Romney’s Restore Our Future PAC booked $7.2 million on local NBC affiliates in 11 battleground states according to Politico. Here in the Washington DC market, the various Pro-Romney PACs placed $665k, more than half their budget, on the NBC affiliate during the Olympics.  These campaigns are well aware of the golden opportunity the Summer Olympics presents.

Historically, viewers are glued to the screen for the two week athletic spectacle and are a great platform for political advertisements. According to Nielsen research, 87% of Americans and 70% of the world’s population watched the Beijing 2008 Games. Viewing habits even change, as 76% of viewers “stay up later than usual” and 48% “change their routine” because of the Olympics, according to a Keleman and Associates Survey.  The message of the ad lasts longer as well, since Nielsen reports a 78% increase in brand recall and 68% jump in message recall during the Olympics.  Meanwhile the NBC affiliates enjoy a 306% increase in ratings while cable offers 554 hours of live coverage over four networks.  These increased viewers are also the coveted targets for the campaigns. According to Arbitron research, individuals who watch Olympics are 79% more likely to contribute to a political campaign, 13% more likely to vote in a presidential election, and 9% more likely to be registered to vote.

Even with all the money and attention shown to the two week event, it is still an efficient way to reach viewers. In the DC market, it costs $1000 for a primetime spot on the NBC sports cable networks during the Olympics for a 1.0 rating, compared to $1400 for a .7 rating on Fox News, and $1540 for a .4 on CNN during the same time. Meanwhile on broadcast, a spot on the late local news immediately following the Olympics gets a 7.4 rating for $5000, compared to reruns of the Office for a 2.7 rating for $8000 during the rest of the summer.  While the campaigns are spending millions, they are reaching millions of potential voters in return.

In addition to audience and cost efficiency opportunities, the Olympics provide unique messaging possibilities for the campaigns as well. Viewers tuning in to root for American athletes will be turned off by negative ads that have become the staple of political advertising. Therefore, the Olympics offer a reprieve as the campaigns turn to patriotic optimistic messaging with plenty of red white and blue in the background. In particular, the Romney campaign will most likely focus on his positive role in the 2002 Salt Lake City Winter Games, while Michelle Obama will lead the U.S. delegation to the opening ceremonies.

Both campaigns realize this golden advertising opportunity and hope to be standing on top of a podium in victory as well come November.

Twitter: The Digital Megaphone?

Thursday, July 12th, 2012

How social & online media are changing the personality of social activism

Gone are the days of going door to door to share a petition, making phone calls to get people to attend a rally, or standing on street corners shouting out in the name of your cause. In this day and age, people who support your campaign or cause are more easily accessible in masses through that wonderful tool we call the Internet.

In many ways Twitter (and other forms of social media) has become the megaphone of the digital space.

Because the Internet has few limits on how many people it can reach in a day, and because we aren’t relying on individuals walking miles knocking on doors, word can spread quicker and spread among people who actually care. You don’t get to choose how or when people will come to your home and try to convince you to sign a petition, donate to a cause or support a particular candidate. But with the Internet, the choice is all yours when it comes to who to follow, when to comment, what to share and when. The power rests in the hands of supporters, and in the landscape of social media big things happen.

Uber, an app designed as an alternative to taxis that dispatches professional drivers within minutes of a user’s request, just successfully mounted a counter to a proposed effort by the D.C. city council to increase minimum fairs. A councilmember from D.C.’s Ward 3 submitted an amendment to the legislation designed to modernize the District’s taxi fleet that would have set Uber’s minimum starting rate to $15—five times the price of getting into an ordinary D.C. cab.

When Uber’s marketers caught wind of the amendment, they took to email and Twitter—rallying users against the proposed amendment. In their email to customers, Uber listed the names and Twitter handles of all the city council members who would be voting on the legislation. Twitter transformed into a digital bullhorn as thousands of tweets and emails poured into city council (one from me as well) in a united front forcing them to back down.

One supporter, Utah Rep. Jason Chaffetz (@jasoninthehouse), tweeted, “uber.com for a better, smarter way to hire a car. Hard to believe but D.C. Council may vote to keep your fares high. #UberDCLove”. With the outcry from D.C. Uber fans, the city council decided not to move forward on the proposed fare hikes. So for now, Uber fares are safe thanks to the influence and support Twitter and email were able to harness.

The takeaway here is that in many ways protesting online against a law that you believe is unjust can be just as effective as live protests and marches. The big difference is that taking it online helps your message to spread farther, faster. So if you have something important to say, arm your marketing teams with Twitter and take advantage of the online amplifier to spread the word.

Money and the Air War

Thursday, July 12th, 2012

A Romney fundraising advantage could rewrite the electoral map.

News that Mitt Romney outraised Barack Obama by $35 million in June now makes it two months in a row that he has outraised the president. At the moment, Obama still has an advantage when it comes to cash on hand, but the president’s campaign also has a much higher burn rate.

If Romney continues to outraise Obama, at some point he will take the cash-on-hand lead, and that could make this contest look very different than the past few presidential elections.

For a long time, Republicans, as the party of big business, were able to outraise Democrats in national political contests. While some wealthy Democrats could outspend Republicans, in most 20th century elections Republican candidates were better funded. However, this dominance was broken by Bill Clinton. As a more business-friendly Democrat, he made inroads with corporate dollars and the finance industry and benefitted from the increased fundraising importance of Hollywood and Silicon Valley.

Democrats have had the financial advantage in every presidential election for the past 20 years. Clinton amassed such a war chest that Bob Dole never really had a chance in 1996. In 2004, Democratic forces were actually able to outspend President George W. Bush by more than $100 million. Four years ago, Obama outspent John McCain by a 2-to-1 margin.

That the Republican Party hasn’t earned 51 percent of the popular vote since 1988 has a lot to do with this fundraising disadvantage. You could even say that the Republican Party has been damaged by not even contesting most of the highest populated states north of the Mason-Dixon line, which weakens its ability to build a consensus for its policies even when it wins. George W. Bush was elected twice over the wishes of the voters in the biggest metro areas outside of the Sun Belt, and not receiving buy-in from whole regions of the country limited his political effectiveness.

Money in politics is much like stockpiles of nuclear weapons; the actual number isn’t important, what’s important is having more than the competition. During the Cold War, superiority in nuclear weapons meant that the US or the USSR could add new regions to their sphere of influence. In a similar way, having more money means a candidate can tilt the electoral map more in their favor.

In 2008, Obama took advantage of his outsized money advantage and decided to play in states that had gone Republican for as long as most could remember. He didn’t just contest Republican-leaning swing states like Virginia or Ohio but also “reaches” like North Carolina, Indiana, Montana, North Dakota, Georgia, and Nebraska’s 1st Congressional District.

This reaped two different advantages for Obama. The first was that some of the gambles paid off. North Carolina went Democratic for the first time since 1976, and he won Indiana—a state that Bush had won by 20 points four years earlier. But the other upside was that, even when he didn’t win a reach state, he pushed McCain further back on the defensive—forcing him to defend more of the map. Obama didn’t win in Montana, but that spending checked efforts from McCain to invest more in a state like Michigan.

Though Romney will not have as significant an advantage as Obama had in 2008, he can use whatever edge he has to reenact the same strategy in reverse. Republican presidential strategy has been narrow and fragile for a generation. There have been very few alternate paths to reaching 270 electoral votes so that, if Florida or Ohio falls to Democrats, there’s almost no way a Republican can win.

But this “blue wall” that Democrats have assembled has been defended with more-than-sufficient money. If Romney is the first Republican presidential candidate since 1988 with a money advantage, then Republicans can be active in states they haven’t won since then. And that could produce a different winning coalition than Republicans have had in some time.

Chris Palko works as an assistant media analyst at Smart Media Group, a Republican political media buying agency in Alexandria, Va. He is a graduate of American University and George Washington University’s Graduate School of Political Management.

A version of this post was also published on Campaign and Election’s blog, Campaign Insider.

Backing Labor Force Participation Could Help Romney

Thursday, July 12th, 2012

Incessant attack ads and the design of a political distraction in the form of a tax-cut are like a Serena Williams serve at Wimbledon last week, and the ball is now in Romney’s court.  If the race to the White House were a tennis match, the score would be Obama 40 – Romney 30.  It now depends on how Romney returns the serve.  If Romney shines light on the current employment situation we are facing, Obama could lose his point and the score returns to deuce.   One thing is certain; there is no love in this game.

By proposing the extension of the tax cuts to families that earn less than $250K a year, it seems Obama’s campaign is attempting to set a trap for Romney. The question is not will raising taxes on the wealthy stimulate the economy? It is will raising taxes on the wealthy put Romney’s campaign in a corner he cannot afford to be in?  Obama knows his opponent still faces the challenge of being viewed as out of touch with Americans.  When Romney responded to the proposed extension by labeling it a “massive tax increase”, it validated many liberal’s view of him as a privileged rich guy.  Those that aren’t swayed by this ploy may agree with President Reagan who said that “those who do work are denied a fair return for their labor by a tax system that penalizes achievement.” The opposing views of both parties on taxes, jobs, and disability may be set with no room for outside thinking but recent numbers released pertaining to these issues should at least raise some eyebrows.

Many working Americans in both parties believe that it is their duty to help those Americans that are in need, but these numbers reveal a surprising twist to the current unemployment problem.  The surprise is that the number of people on disability has climbed 19% faster than the number of jobs taken.  This should raise concern that workers may be leaving their jobs to conveniently get paid by American taxpayers.  According to this USA Today Article, in 2007 there were 8.9 million people on disability.  Today, there are 10.7 million people on disability, a 20% jump from 2007.  Since 2009, 2.6 million jobs have been created while 3.1 million people have gone on disability.  According to an article on Townhall.com, the Bureau of Labor Statistics disclosed that 80,000 jobs were created in June and the Social Security Administration disclosed that 85,000 workers left the workforce to enroll in the disability insurance program. 

The results from a White House study show that this movement stems from an abundance of people who had lost their jobs and received unemployment for as long as they were allowed, and then applied to and qualified for disability.  This discovery could irritate many taxpayers who have their own struggles and make sacrifices but are still happy to  contribute to a program that is created to support people whose condition renders them unable to work, unable to adjust to their work, or has a condition that is expected to last at least a year or be terminal. 

The problem Romney should identify is that this volume of recipients is unsustainable and those who desperately need disability may lose it by 2018.  The disability fund, financed by a 0.9% tax on employees and employers, has been running on an annual deficit for the last seven years and is expected to exhaust its reserves in six years.  It would be a benefit to Romney’s campaign to shine light on this situation and to propose reforms that make it harder to qualify for disability, forcing those who are unemployed but can physically and mentally work to find jobs.  Right now, the “labor force participation rate”, or participation in finding and keeping employment, is the lowest it has been in 30 years. 

The Temperature is Not the Only Thing That’s HOT!

Monday, July 9th, 2012

Presidential Race Heats Up Online After Supreme Court’s Latest Decision

When the Supreme Court voted to uphold Obamacare, it’s no surprise that this became an immediate game-changer in the 2012 race to the White House.  In terms of support and fund-raising both campaigns can report successes.  Also not surprising was the instantaneous response that came from both sides of the political spectrum online.  As soon as the Supreme Court decision was public both Romney and Obama’s campaigns got to work revising online messaging on their websites and social media pages, implementing fundraising online and using their already established email and cell phone databases to infiltrate their supporters immediately with relevant messaging about the decision. 

 Because of the impact (positive or negative depending on whether you sit on the left or the right) that is set to take place with the decision of the health care law; it’s now become one of the most important points of contention in this already heated race to the White House. Both campaigns have leveraged this to bring in fundraising dollars following the decision. CNN reported that Mitt Romney’s camp had raised $4.6 million online alone by the Friday morning following the decision.  Likewise, Obama’s operation, while not revealing specific numbers, said they had surpassed Team Romney’s announced total.  Through traditional methods of fundraising neither side would have been able to raise that amount of money in that short a period of time. While most online donations are smaller on average the scale of reach of online allows for campaigns to connect with more supporters, more quickly.

 Beyond scale of reach, the internet allows for quick adjustment of messaging which helps to keep things relevant and timely. Both campaigns were able to promptly change messaging on their websites and social media pages so that the minute a supporter heard of the decision they could unite with their party through their candidate online. Romney’s campaign changed the homepage of their website to reflect the court’s decision, writing “Obamacare Upheld: Elections have consequences,” underneath was a large red “donate” button. More than a week later, Romney is still riding the wave of the decision to uphold Obamacare. Check out his website here. http://www.mittromney.com/forms/real-reform. In addition both campaigns utilized Facebook to garner support following the decision, again Romney still pushing the need for reform in this space as well (http://www.facebook.com/mittromney).

 Emails and text messages, now a part of everyday life in America, were leveraged as well in an effort to take advantage of this game-changing Supreme Court decision.  Romney’s campaign emailed and sent text messages to supporters asking for campaign contributions with language addressing the recent decision. They said, “The stakes couldn’t be higher. Donate $10 or more to put a stop to the policies of Barack Obama and the liberal Democrats.” Obama’s campaign manager fought back on the online space sending an email to supporters with the subject line “Let’s win the damn election.”  The email drove home their point as to why it’s necessary to keep Obama in office.

Because both campaigns were able to quickly adjust their campaign messaging and effectively reach millions of supporters within minutes of the Supreme Court decision the end was result was increased support and increased fundraising dollars.  When we have the technology of the internet at our fingertips we are not limited to positive results it can achieve for any campaign.