The fight for the 58th quadrennial U.S. presidential election between Democrat ex-Secretary of State, Hillary Rodham Clinton, and Republican Donald Trump has captured international attention. With the elections round the corner in a month’s time, the media industry is busy gearing up to capitalize on political advertising revenues which escalate during the election.
One such company which stands to gain from the political advertising spending is CBS Corporation (CBS - Free Report) . Earlier the company had also said that it expects increased political advertising in the latter half of the year which in turn will favorably impact its performance. It has also said that TV stations are pacing to be up high single digits, buoyed by political advertising, and radio is also gearing up for third-quarter 2016.
During the first of the three presidential debates between the candidates, CBS Corporation’s leading network averaged 12.1 million viewers for the coverage of the debate.
During such a high-octane face-off, the ad rates are generally very high during pre and post-debate analysis. As per sources, for a 30-second advertisement during its post-debate coverage, CBS charged between $200,000 to $225,000. The next two debates will be held on Oct 9 and Oct 19. Now, it is to be seen the number of viewers the company can attract during the next two debates.
However, the company faces stiff competition from other broadcast radio and television stations as well as cable television networks as it was seen during the first debate wherein CBS fell behind Comcast Corporation’s (CMCSA - Free Report) NBC and The Walt Disney Company’s (DIS - Free Report) ABC. Nevertheless, CBS edged past other cable-TV networks like Twenty-First Century Fox, Inc.’s (FOXA - Free Report) Fox News Channel and Time Warner Inc.’s (TWX - Free Report) CNN.
CBS currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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