by Paul Kiser
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Paul Kiser

Article first published as
Sandoval/Reid Campaign Money Not a Stimulus for Nevada
on Technorati

We endured relentless political ads on television and radio, but Nevada didn’t hit the jackpot in campaign dollars flowing into the State from the Governor’s race. Despite the fact that almost $3.8 million dollars was spent by the Sandoval for Governor Campaign in the months leading up to the election, 80% of the money was payable to recipients outside the State. Rory Reid’s campaign also spent a significant portion of its money to out-of-state firms with MSR Media Strategies, LLC in Fairfax, Virginia netting almost $2.8 million from the Reid campaign.

Sandoval Campaign Expenses
(Spreadsheet listing all campaign expenses through October 21, 2010)

In a detailed review of Governor-Elect Sandoval’s campaign reports, 63% ($2.4 million) of campaign expenses were made payable to Strategic Media Services, inc. in Washington, D.C. for advertising. While some may argue that money spent for advertising comes back to the State in the form of purchased television and radio air time and newspaper ads, one Nevada media consultant pointed out that most media outlets in Nevada are owned by out-of-state media corporations, so political ads that ran on many local stations were payable to non-Nevada interests. The one exception is the Intermountain West Communications Company that owns several television stations including in the western United States including KSNV-Las Vegas, KRNV-Reno, and KENV-Elko. 

David Neal, President of Strategic Media Services, inc. (Sandoval’s leading campaign expenditure) and Kyle Osterhout, Partner of MSR Media Strategies, LLC (Rory Reid’s leading campaign expenditure) were not immediately available; however, two media experts with campaign related experience said that the standard fee for media agencies is 15% of the advertising purchase. In some cases a campaign may negotiate rebates from the media agency based on volume of business; however services such as the production of the ad are typically not included in the 15% fee.

The Las Vegas area did benefit from 19% (over $720,000) of the campaign funds with over $400,000 paid to political and media consultants.  Almost half a million dollars went to the three Las Vegas firms of October, Inc., Autumn Productions, and Autumn EMedia. The latter two are subsidiaries of November, Inc.

The Reno, Lake Tahoe, and Carson Valley garnered only 1 percent (less than $30,000) from the Governor-Elect’s campaign and rural Nevada received less than $10,000.

NEXT:  Where the money came from in Sandoval’s campaign

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