​An analysis of the value of political ad profits at TV stations in swing-states helps explain the reasoning behind recent massive local deals, including Gannett’s $1.5 billion purchase of 20 stations last month and Tribune Company’s $2.7 billion purchase of 19 stations last week.

And more local consolidation is on the way, in part because of political spending. Allbritton, the owner of Politico, put its seven stations up for sale in the spring, including WJLA, which, in part due to its profits from political advertising, could bring in $300 million dollars all by itself.

Even in today’s rapidly changing TV landscape, 30-second commercials remain one of political campaigns’ and action committees’ best weapons, and they continue to funnel major dollars into local TV stations to air them. Washington, DC-based ABC affiliate WJLA, for instance, made $33 million in election-related advertising in 2012, while $20 million of Columbus, Ohio’s WBNS’ $50 million ad haul last year also came from political spending. The more political drama there is in the vicinity of a station, the better it does, as opposing parties jostle to one-up each other on-air.

While retransmission fees are on the rise, advertising will remain local stations’ largest source of revenue for at least the next five years, according to research firm SNL Kagan, which means political ad spending will remain a lifeline. During last year’s presidential election, some stations, including WJLA, even added on extra half-hours of news to make room for more political ads.

Read more about it at The New York Times.

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