• by Wayne Friedman , August 7, 2006

TV and radio stations could get a major--and much-needed--revenue boost in political ad revenues if the feds relax specific advertising rules. The commission plans to address the matter on Aug. 29, and could vote that day.

Last Thursday, the Federal Election Commission circulated a proposal that would allow certain political advertising to run closer to an election. At present, TV and radio spots from corporate or union backers must end one month before a primary and two months before a general election.

The FEC says more than 200 individuals and organizations complained that the law curtails their ability to lobby Congress on important issues.

But no one is celebrating yet. "It may be the same amount of dollars, but for a different time period," says Gary Belis, vice president of communications for the Television Bureau of Advertising, the trade ad group for broadcast TV stations.

Even-numbered years, such as 2006, are typically strong in political advertising revenue for stations. This year, key Senate and House seats are up for grabs, and various governmental issues are up for vote. Currently, the TVB estimates that political advertising will be rise 16 percent to 18 percent for the third quarter versus the same period in 2005.

But while political advertising pays high returns for most stations, other advertising categories--such as automotive--are lower. The "core advertising," non-political advertisers, will only give stations a 2 percent to 3 percent boost, according to the TVB.

For 2006 overall, TVB estimates that local-station ad sales will be 6.1 percent to 7.9 percent higher than 2005.