You're watching...
Wells Fargo Securities Managing Director Marci Ryvicker on how investors can gain from political candidates’ advertisement spending.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- spending tens of millions of dollars on their campaigns and political advertisements -- We're still right -- have well as the election cycle heats up it's never been like this our next guest says there is a way for investors to make money.
Our political spending Marcy you arrive occur is the managing director of Wells Fargo securities and she joins us now -- great to see it things from the 86 billion scholars is the total.
If it sounds like a lot that's because it is a -- how much more.
Are far these politicians spending this year than in 2008.
You know it's interesting they're not spending more at this point and they did in 2008 I think our estimate is conservative so.
You really can only spend what she rates and so the six billion dollars is the fundraising amount including super -- -- an old why we're saying about 80% of that should go to advertising support point nine billion.
-- what we're asked me for total advertising that's across all media with the bulk going to broadcast TV the now broad.
This is the way that the investor out there can actually possibly profit by investing in the companies that will beat the recipients of this.
Let's talk about the biggest names out there that get the big political money.
It's all about location it's CBS.
It's News Corp.
it's Sinclair and it's below there's enough for companies that are likely to get the biggest boon.
From the selection why is that it's because of where they're located Florida Ohio Michigan Pennsylvania Boston.
That's for the bulk of the money's going to be spent and of course News Corp.
gets because we have these these news channels I mean maple and a lot of revenue and that's where the politicians like to focus -- money.
Yes I think is actually interesting this year fox tends to get about 25% of advertising.
In the general market and only 16%.
A political advertising.
-- this year could be different because of the swing states the swing voters and young demographic therefore think the presidential.
Candidates are going to be targeting some of the younger demographics which.
If -- -- fox stations well there's a limit -- to the amount of that space that's out there.
Console -- that we've reached a saturation point now and what tends to happen is most of the money's gonna coming Q3 and Q4.
-- this year and at that point in time we're gonna push the traditional advertisers offered TV signal for other -- advertising can be cable TV it could be radio -- could be out of home.
That and the sky -- Let's talk about Internet because Internet is is has yet to really be utilized as it could be by advertise still such a small.
-- -- but people see it booming might be this -- the year when that really begins to happen.
I don't know that it's gonna be all that they it was 1% in 2004 -- -- enough dollars about 6%.
In 2010 could be an 88% and it's -- really small relative to broadcast TV six.
You're saying that the it'll be back -- -- Q3 Q4 so if an investor were to get in on the Sinclair below News Corp.
parent of this network CBS those names.
That would be the -- so not a dispute that owns ABC.
While Disney -- ABC -- have missed the fewest number of TV stations play local TV station -- that's important part OK so what's the smaller individual markets in those states Ohio to keynote battleground states yes.
Marcy river Kerr from Wells Fargo thank you very much for being here in March -- having great to see -- you.
