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How eMeg’s Spending Is Like Quantum Physics

Tuesday, April 6th, 2010

In the study of physics, the “standard quantum limit” is the point at which the precise magnitude of a physical quantity can no longer be measured.

Two months before the primary election for governor, Meg Whitman’s unprecedented campaign spending — including another cool $20 million tossed in late Monday — has hit the standard quantum limit of politics: its effect on the governor’s race has moved into unknowable territory.

To any would-be prognosticator, seer or soothsayer Calbuzz offers this verbum sapienti: Like scientists mulling data from the Large Hadron Collider, we have no idea what the effect of $100-150 million in campaign spending will do in a California statewide election, because we’ve never seen anything like it.

As the new USC/LA Times poll makes clear, billionaire political novice eMeg has thus far used a record-shattering $47 million plus to bury primary rival Insurance Commissioner Steve Poizner deep beneath a 40-point lead. Confirming earlier PPIC and Field  surveys, she’s also edged slightly ahead of Democrat Jerry Brown, the Attorney General, who’s surely contemplating the uncertainties of running against Quantum Mechanics Meg and her possible $150 million campaign fund.

As Lou Cannon wrote in Politics Daily last week:

“Given Brown’s long preoccupation with campaign finance, there is a touch of irony to his present predicament… Brown seems shaken by the magnitude of the Whitman commercials. He complained during my interview that Whitman had reduced “the public space of America to a 30-second commercial on sports and entertainment shows.” Later, again deploring Whitman’s spending, he said. “The future of our very way of government is at stake in this election.”

Some among the cognoscenti wonder if voters will, at some point, find a chalk-on-a-blackboard cognitive dissonance created by a candidate who spends with no limits  to become  governor in order to cut spending.

Others suggest that as Whitman’s spending keeps growing exponentially, it will bump up against some outer limit where cash begins to have diminishing returns, or even a negative impact, as voters find repulsive her free-spending ways amid the state’s worst recession in a generation.

If so, she sure hasn’t hit that limit yet. As USC/Times and other polls make clear:

1-For now, at least, the pro-choice Whitman has erased the gender gap that has historically benefited Democratic candidates in statewide races. In the USC/Times poll she led 44-38% among women; in the other two big independent surveys, Whitman and Brown were essentially tied: 45-43% in her favor in the Field Poll and 43-40% for Brown in PPIC.

2-She’s splitting the independents and is virtually tied among moderates, while Brown has yet to consolidate even six in 10 Democrats and just two thirds of the liberals.

3-Her as-yet-unchallenged campaign narrative — declaring business experience a crucial credential for running government – may be preposterous in the wake of the banking and derivative scandals and a worldwide recession, but it’s making some inroads among California voters: In last fall’s USC/LAT poll, voters were divided evenly on whether business or government experience was the best qualification. Now, business experience has a slight plurality – 40-35%.

As our friend Cathy Decker of the Los Angeles Times put it: “The survey demonstrated how thoroughly Whitman, the billionaire former head of eBay, has dominated the California elections thus far.”

About 65% of all voters say they’ve seen TV ads and 75% of those people have seen Whitman ads. The effect is powerful.

Jesse Contario of Greenberg Quinlan Rosner (one of the firms that did the poll) told Calbuzz that voters who have seen Whitman ads favor her 53-40% over Brown, compared to voters who have not seen ads at all, who favor Brown 40-33%. Moreover, among voters who say they’ve seen ads, but not Whitman’s (i.e., they’ve seen Poizner ads or think they’ve seen ads for Brown), Brown leads 48-36%.

Calbuzz told you back in March: eMeg’s money — now $59 million of her own invested — is moving voters. But maybe not as much as you might think.

Whitman’s favorable-to-unfavorable ratio was 17-14% in the USC/LA Times poll last fall; now it’s 30-23% — a net improvement of just 4%. That’s not a lot to show for $47 million, especially when just 8% of her support is very favorable.

Fortunately for Brown, very little of Meg’s increased favorability has come from Democrats and independents. In fact, her Democratic favorability went down from 12-19 in the fall to 21-31 now – a net decrease of 3%, while her independent favorability went from 16-14% in the fall to 25-21% now, a net improvement of just 2%.

eMeg’s big jump came among Republicans who favored her 26-8% in the fall but 47-12% now – a net pick-up of 35 percentage points.

Moreover, while Whitman is beating Brown 50-38% among white voters, she’s losing blacks 45-22% (a number that historically seems likely to move to about 90-10% by the end of the race) and 52-29% among Latinos (even before Whitman’s views on immigration and Brown’s history with Latinos have been put out there).

“Her $47 million has grown her name ID but hasn’t cemented any strong feelings for her candidacy,” said Brown campaign manager Steve Glazer.

Still, for Brown, the political standard quantum limit factor poses a dilemma.

Although his campaign fund of $15 million might seem impressive in any other year, in 2010 it suggests that in the end he will be able to afford 12 to 15 weeks of advertising.

For Brown, the question is when he goes on the air.

Conventional wisdom holds that he should save his resources until the fall, when voters are paying more attention and he can close the argument. But the quantum physics of Whitman’s spending have blown out all the theories of conventional wisdom.

Brown can expect to be battered on a daily basis by Whitman starting with the day after the primary – or even before – and he needs to think about stopping the bleeding before she has totally defined him and herself and he’s in a Poizner-like hole too deep to escape.

But if he goes on the air now and tries to knock Meg down a peg, he’ll burn through resources he’ll desperately need when he’s facing down the barrel of a huge cannon this fall.

Democratic Gov. Gray Davis had to make a decision in the winter of 2001, when former LA Mayor Dick Riordan, the favorite to become the Republican candidate against him, started gaining popularity among Democrats and independents.

In order to keep him from making further inroads into Davis’s base, Davis went on the air and attacked Riordan from the left on abortion. Little did they know that the attack would also weaken Riordan among Republicans, causing his candidacy to collapse.

Brown, it appears from the USC/LA Times poll anyway, does not yet have a similar problem. Whitman’s favorability among Democrats and independents has not grown and Brown still has an edge among self-described moderates, 44-41%. This helps explain why Brown’s campaign brain trust feels confident in holding fire while Meg continues to spend millions.

At the same time, if Brown was counting on Poizner to take a bite out of eMeg, he’s likely to be disappointed.

The embarrassing spectacle of Poizner being booed and picketed by hundreds of high school students, teachers and administrators from Mt. Pleasant High last week, after hoping to boost his chances by writing a feel-good book about them, is just the latest misstep in a campaign that has been full of them.

As eMeg henchman Mike Murphy tweeted last week: @stevepoizner gives a master class in how to turn a campaign puffery book into an utter disaster. Typical TV newsclip: http://bit.ly/dirAyU.

Ouch.

New Secret Offshore Deal, AB32 Rollback Brawl

Thursday, February 11th, 2010

In the latest twist in the Tranquillon Ridge saga, Calbuzz has learned that PXP oil company and its environmental allies have submitted a new proposed agreement to the State Lands Commission aimed at authorizing expanded drilling off the coast of Santa Barbara.

Our efforts to learn how the new proposal differs from an earlier version, which the commission rejected last year, were unsuccessful, however, because neither the parties nor the commission would release a copy, saying the document is a draft, and the deal is still under review. (Our all-you-need-to-know primer on T-Ridge is here).

“We signed a confidentiality agreement,” Paul Thayer, Executive Officer of the Lands Commission, told us. “They want to get our reaction to it. It’s being reviewed at a staff level, and we’ve also asked the (Attorney General’s) office to look at it.”

The previous PXP-EDC agreement, reached in 2008, was kept secret until Calbuzz obtained a copy and published the document. At a time when controversy is still simmering over elements of the first agreement, key opponents of the project are unhappy with the news that an amended version of the proposed deal is, at least for now, being kept confidential.

“I’m disappointed that PXP and EDC are going down the same failed road,” said Democratic Assemblyman Pedro Nava, whose district adjoins the proposed new drilling. “Whatever the new agreement says, apparently both PXP and EDC believe it can’t stand public scrutiny and so they are hiding it.”

“PXP likes to claim some kind of oil company executive privilege,” he added.

As a political matter, the secrecy of the first agreement played a key role, both in its defeat before the commission, and in the widespread opposition to the T-Ridge deal generated among other environmental groups.

When Calbuzz disclosed the text of that agreement, representatives of both PXP and the Santa Barbara-based Environmental Defense Center told us they were working on a second version, aimed at addressing various concerns that commissioners expressed in voting against the plan last year. Both organizations said that the amended agreement would be made public.

“No, it is not final yet,” Linda Krop, chief counsel for the EDC, emailed us when we asked for a copy of the new agreement.

“We have nothing to hide,” said Scott Winters, a spokesman for PXP. “Once the agreement is final, we will release to the public.”

“Substantial amendments have been added to clarify the enforceability concerns raised by the State Lands Commission (SLC) staff and members of the environmental community,” Winters added in email responses to our questions.

Thayer said the Commission’s review of the proposal was conditioned on keeping its contents confidential.

Nava said the Commission’s willingness to enter into a confidentiality agreement with an applicant “certainly piques my interest.”

“I’ll be inquiring into the terms and conditions under which (SLC) entered into such an agreement.”

Weed whacker alert: PXP’s Winters said that release of the new agreement depended entirely on when the lands commission scheduled another hearing on the project.

“As of right now, the SLC has not calendared this matter for a re-hearing. PXP’s hope is that the SLC will move expeditiously to hold a re-hearing,” he said. “The sooner the SLC schedules a hearing, the sooner the public will have another chance to consider the benefits offered by the project to discuss whether approval is in fact in the best interest of the state.”

We asked Thayer when PXP might get a new hearing in front of the commission. He said it depended on whether they filed a new application for the project, or requested a rehearing on their previous application. A new application would require staff to review it within 30 days, and commissioners to act in 180 or fewer days, he said. But PXP has asked for a faster method to gain approval, such as a rehearing. “We’ve never done one,” Thayer said, adding that the staff is investigating the possibility of such a procedure.

Jerry Blasted on AB32: The folks behind the movement to suspend AB32, California’s historic climate-change legislation, are furious at Attorney General Jerry Brown for the ballot title he has assigned to what they were hoping to sell as the “California Jobs Initiative.”

Crusty’s title:

Suspends air pollution control laws requiring major polluters to report and reduce greenhouse gas emissions that cause global warming until unemployment drops below specified level for full year.

(Which is a little like titling the initiative to legalize marijuana as follows: Ushers in an era of human kindness and peace on earth through availability of non-toxic and eco-friendly natural substances).

The anti-AB32 initiative is backed by Assemblyman Dan Logue of Chico and U.S. Rep. Tom McClintock,  Ted Costa and others who argue the legislation is a job killer – as Meg Whitman and Steve Poizner also contend.

Score round one for Californians for Clean Energy and Jobs, who has hired our old pal Steve Maviglio to manage the opposition.

As a political matter, Brown has hardly been neutral about AB32. In fact, when he was on KGO Radio last week he referred to people opposing the measure as “Neanderthals . . . who want to turn the clock backwards.”

Here’s the dilemma for business interests who’d like to chip in to kill AB32:

1) this is likely the only legacy achievement Gov. Schwarzmuscle has going for him and he’s not going to be happy with people who try to kill it and 2) with a ballot summary like that, who’s going to vote to give a break to “major polluters”?

You never know. Maybe eMeg or the Commish will toss in a few million to the effort and campaign for it. Of course, we think it will backfire in a general election, but hey, stranger things have happened in California politics.

GOP ratfuck update: As close readers will recall, an online firefight broke out last December between Chip Hanlon, proprietor of the Red County web sites, and Aaron Park (formerly known as Sgt. York),  who was one of his bloggers. When Hanlon fired Park/York for secretly being on Steve Poizner’s payroll, we gave Hanlon a hat tip for “canning Sgt. York and disclosing the matter to his readers.”

Given what we knew then, it made sense to note that, “At a time when ethical blogging is too often an oxymoron, it’s nice to see somebody step up to defend his credibility.”

Since then, we’ve learned more, which colors our HT just a bit: It seems that buried deep in eMeg’s campaign finance report is a $20,000 disbursement to Green Faucet LLC, which is an investment firm owned by Chip Hanlon and also the parent company of his Red County web sites. The payment was made about a week after Hanlon fired Park, the erstwhile, paid Poizner sock puppet.

Hanlon tells us this was a straight-up business exchange: eMeg bought advertising on his web sites. And sure enough, her ads are there. But we spoke with another advertiser on Red County who’s paying about $300 a month – closer to the going rate for small political sites – for equivalent exposure on Red County sites. Which suggests the $20K from eMeg could be a big, fat subsidy to Hanlon – not much different than the $2,500 a month Park was getting from Poizner (and which, he says, eMeg’s people tried to match).

All of which raises questions about the use of web site commentary by MSM media, like when the Mercury News recently called on Matt Cunningham, a featured Red County blogger, to comment on Poizner’s charge that eMeg’s consultant had tried to bribe him out of the governor’s race. If you really want to get into the internecine Orange County GOP rat-fucking, you can catch up to the action here and here and here.

(Memo to eMeg Marketing Dept: Our New York-based, commission-paid advertising staff would be well pleased to get $20K for ads on Calbuzz. Hell, they’d even take $300 a month like Poizner is paying for his ad on the page. Plenty of free parking.)

Calbuzz New Deal: World Domination Looms

Saturday, August 29th, 2009

calbuzz_adSpaceAnd now a word from our (self) sponsors: Okay,  okay we admit that as branding slogans go, “Shooting the Wounded Since March 2009” doesn’t quite rank up there with “Just Do It,” “The Ultimate Driving Machine,” or “Plop, plop, fizz, fizz, oh what a relief it is.” But we’re working on it, eye’ite?

That said, our Department of Weights, Measures and Worldwide Marketing is pleased to announce the launch of another big project: the Calbuzz New Deal.

Starting today, we’re offering a limited number of home page advertising positions for companies, campaigns and candidates working in the wacky world of California politics. (They’ll run as 120 x 90 pixel spot ads on the right side of the cover page, as in the example here, and on the jump pages.) We’re looking for a small number of preferred clients who want to get their messages in front of the eyeballs of our cognoscenti audience of decision makers, movers and shakers, insiders, flacks and other hacks.

At the risk of sounding earnest for a moment, we’ve been completely surprised by the response Calbuzz has received since we launched what we thought would be an occasionally updated, grumpy old guy blog back in March. From our first post -– a much-discussed analysis of why Dianne Feinstein won’t run for governor -– we’ve been extremely gratified by the interest, support and (mostly) positive feedback we’ve gotten from readers .

calbuzzartIn the months that have followed, Calbuzz has offered a steady stream of original reporting, analysis and commentaries –- ours, along with those of star political players — not to mention snarky cheap shots and the blinding insights of our staff psychiatrist, Dr. P.J. Hackenflack. Along the way, our stuff has been cited everywhere from the New York Times to NBC’s “First Read,” and we became the only non-partisan site selected by “The Fix,” the Washington Post’s influential insider’s blog, for its short list of top-rank, go-to online sources in California.

What began as a labor of love has become a passionate avocation, and the time has come for us to find ways to build and sustain the enterprise into the future. The Calbuzz New Deal offers a limited number of display ads on the right hand column of our home page, with preferred placement for those who sign up first.

Okay, that’s it –- no high pressure pitch (although we do know where you live). If you’re interested, please contact Anna Roberts, our advertising director, in our New York office in way cool TriBeCa (where she reports “you can see the Statute of Liberty if you hang out the window”). You can reach her by email at annacamiller@gmail.com or at (805)680-3029.

Thanks for listening. We now resume our regularly scheduled programming.

shootinfoot

Circular firing squad alert: For decades, Democrats were mocked by Republicans for  their self-destructive zest for internecine warfare. Now, it appears, California’s GOP has finally been turned on to the appeal of the  intramural sport.

Over at Flashreport, our friend Jon Fleischman is leading a crusade to ban independents from voting in Republican primaries, a proposal that will come up for a vote at the state central committee meeting in a few weeks. Given that independents are the fastest-growing group of voters in California, while the GOP is fast becoming an endangered species, the move would seem, uh, a bit counter-intuitive, despite Fleischman’s characteristically vigorous argument in its favor.

Strictly observing our non-interventionist policy with sovereign states, Calbuzz takes no official stance on this partisan issue, but finds veteran wise man Tony Quinn’s thoughtful essay quite persuasive on the politics of the matter.

ramosMore bad news for Gavin: It seems appropriate that a Republican site is the first to call attention to the elephant in the room regarding Newsom’s bid for the Democratic nomination for governor.

While Newsom’s famous “whether you like it or not” comment about gay marriage, and all it implies about his character, is most often viewed as his key weakness, the aforementioned Jon Fleischman today surfaces the case of “Newsom’s Willie Horton,” the Edwin Ramos case.

Ramos is an illegal immigrant who shot and killed an innocent father and two sons on a San Francisco street. Before the tragic episode , Ramos  committed several other violent crimes, but was shielded from deportation by the city’s liberal Sanctuary policy for immigrants. Newsom offered little more than a pro forma expression of sympathy to the men’s family, which sued the city.

Odd that Fleischman would sluice this out there now, unless his thinking is that Newsom poses a greater threat to a GOP candidate than does Jerry Brown. This is the kind of move you’d make now only if you want to knock the guy out of his primary (see South vs. Riodran, 1998 2002).