Archive for January 21st, 2010

SCOTUS clears way for corporate political ads

Thursday, January 21st, 2010

The Supreme Court’s decision to remove limits on corporate political spending potentially opens the “floodgates for additional political ad spending by corporations, unions and special interest groups,” Advertising Age said in a report shortly after Thursday’s 5-4 ruling.

“I think it takes an already bulked up [election season] and puts it on steroids,” said Evan Tracey, president of TNS Media Intelligence’s Competitive Media Analysis Group, which tracks campaign finance spending.

“A flood of corporate and union money for ads in federal campaigns is expected as early as this fall’s midterm campaigns,” The Washington Post said.

In the Ad Age report, Tracey “suggested the decision’s biggest impact could be on last-minute spending in major races.”

In a 57-page opinion for the majority, Justice Anthony Kennedy said, “The government may regulate corporate political speech through disclaimer and disclosure requirements, but it may not suppress that speech altogether,” according to the Wall Street Journal.

President Barack Obama condemned the ruling and said he intended to work with Congress to pass legislation that would effectively reverse the Court’s decision.

McClatchy accepts $6M to delay land deal

Thursday, January 21st, 2010

The McClatchy Co.  is pocketing $6 million this week by allowing a suitor to delay closing on a deal to buy land adjacent to the company’s Miami Herald, the Sacramento Business Journal said Wednesday.

Citisquare Group LLC previously paid a $10 million non-refundable deposit and, under the new agreement, if it fails to close the purchase by January 31, 2011, will have to pony up another $7 million.

Citisquare had until December 31, 2009, to close the transaction on 10 acres next to the newspaper plant.

The publisher will release a new look at the land’s value in its 4th quarter earnings report January 27, the Business Journal said.

Garden State media look forward to pot revenues

Thursday, January 21st, 2010

New Jersey’s legalization of medical marijuana should translate into new advertising revenue for traditional media outlets as well as ad agencies, Advertising Age says.

The first six dispensaries have to be nonprofits, which is expected to keep prices down, but then commercial concerns can get in on the trade. ” I can very well envision commercials, much like for Levitra or Claritin, on the airways,” said State Assemblyman Reed Gusciora (D-Princeton), who co-sponsored the bill to legalize medical marijuana.

“Lou Stancampiano, VP at The Jersey Journal, said there is potential for newspaper revenue from the category ‘if it moves into distribution of traditional promoters, like chain pharmacies, people who have a tendency to promote.'” Stancampiano added that hospitals are trdaitionally big newspaper advertisers, and specifically named Jersey City Medical Center as a potential medical marijuana distributor.

Said Jim Rothenberg, executive VP-creative director for D&R Advertising in Fort Lee, “What media they’ll get into, I’m not sure, but I am sure there will be some wonderful creative done.”