$500 million in ad spending breaks the record for elections.

CANDIDATES and political groups have purchased more than $500 million worth of advertising in California during this election season, shattering the previous spending record of $250 million set during last year's special election.

For local TV newscasts and radio news-talk stations, the first choice for political operatives, that's money in the bank.

"November has been huge," said Mary Beth Garber, president of the Southern California Broadcasters Association. "For TV and radio, it has been enormous, and I imagine it would good for direct mail too." Political ad spending on radio statewide was running 42 percent ahead of last year in September, with the busiest months still to come.

"This year a record amount is being spent because you have 13 propositions out there and the majority are spending money," said Garber.

By law, candidates get the lowest ad rates possible. They also get first shot when spots come on the market. But initiatives get no scheduling preference and backers have to pay whatever the market demands, and with deep-pocketed backers on both sides of the issues--especially Propositions 86 and 87--that's plenty. A candidate can buy a 30-second spot on a newscast for about $2,200, for example; initiative backers would have to pony up 10 times that figure for a similar spot.

Historically, October is a good revenue month for broadcasters, thanks to a convergence of new-year car models, the fall TV season and pre-Christmas advertising blitzes. Add political commercials to the mix and it makes good times even better for media outlets, if sometimes stultifying for viewers and listeners.

In a normal market, broadcasters try to give advertisers "competitive separation," meaning that ads don't run too close to a competitor's. But with so many candidates and ballot measures jockeying for limited time slots, commercial breaks have become a jumble of political messages.

"It has made it impossible to watch local newscasts, and extremely difficult to buy local news as an advertiser," according to Garber.

The combination of high demand and a fixed supply of 30-second spots "ends up squeezing the TV availables," said Garber. "And the campaigns have used more radio than earlier in the year, putting a tremendous demand on radio availables."

Not surprisingly, groups debating the tobacco and gasoline taxes rank as the biggest spenders. Ironically, one initiative that has failed to attract much money is Proposition 89, which would limit spending on political advertising.

USN Profits

USN Corp., the holding company for the Ultimate Shopping Network, predicts it will earn a profit this year for the first time since it started in 2003. But profitability comes with a price: The Los Angeles-based cable channel essentially sold its airtime to one customer.

The beneficiary of this massive infomercial is Aanshi Gems Inc., a New York-based jewelry wholesaler. Under the agreement, Aanshi will lease 20 hours of airtime per day from USN and will provide programming for that time. Also, Aanshi will receive options to buy USN's common stock.

In return, USN has received an advance payment of $1.6 million against the administrative and selling fees the channel regularly charges customers. USN will retain the revenues from its Web site and the remaining four hours per day. In addition, when people order Aanshi merchandise, USN can earn money by "up-selling" in the call center.

USN started with the thesis that shoppers would buy luxury items on TV. Products on the channel sell for $100 to $100,000 each. Now those numbers might have to change, given Aanshi's announced plans to sell quality jewelry at a discount on USN.

The channel is available in more than 30 million U.S. households, and it has doubled its revenues two years in a row. However, according USN's latest financial filings with the Securities and Exchange Commission, the company has assets of less than $3.3 million and liabilities of $20.6 million. The company's stock trades over the counter.

The Aanshi arrangement "eliminates the overhead associated with running a 24/7 broadcasting network and moves the company into immediate profitability," said USN Chief Executive Mark Miller. Despite the fact it might limit the channel's product selection and strategic options in the future, investors seem to like the deal. Between Oct. 18 and Oct. 30, USN's stock price more than tripled, albeit from 18 cents to 55 cents per share.

La Vibra Expands

Homegrown newspaper supplement La Vibra will expand to five other metro markets, thanks to parent corporation ImpreMedia LLC. The Spanish-language weekend entertainment roundup will have a national circulation of 530,000 copies.

La Vibra targets urban Latinos in the 18-34-year-old age range. It has published every Thursday in the L.A. Spanish-language paper La Opinion since 2000. But in 2004, La Opinion's owners joined forces with El Diario/La Prensa in New York and then bought La Raza in Chicago to form ImpreMedia. The company later bought newspapers in Tampa and Orlando, Fla., and San Francisco. Starting Oct. 26, La Vibra ships as a supplement in all ImpreMedia papers.

Advertisers can buy national or regional space in La Vibra. The editorial content includes national celebrity interviews, reviews and gossip combined with local entertainment news, club and concert details. The goal, according to ImpreMedia Chief Executive Monica Lozano, is to deliver "entertainment aficionados a wide array of entertainment choices in their back yard."

Agencies & Accounts

L.A. public relations agency and political consulting firm Celrell Associates Inc. will expand its ownership team to include seven equal shareholders. Until now, the 40-year-old shop has been 100-percent owned by Lee and Joe Cerrell. Going forward, Joe Cerrell will continue as chief executive. The new owners range from President Hal Dash, who has 29 years with the company, to Executive Vice-president Kristen Lonner, who has worked there barely a year. ... New York-based Porter Novelli has formed a strategic alliance with Los Angeles-based Rose Group to create Porter Novelli Entertainment, a unit that will specialize in connecting brands to the entertainment business. Wendy Watson will direct the local operation for Porter Novelli in conjunction with the Rose Group's Jeff Rose. Porter Novelli already has expertise in celebrity PR, including experience as a founding partner of the DBI, an index that determines a celebrity's ability to influence consumer purchases.... The LOs Angeles Times has selected Round2 Communications as its media-buying agency for a new readership campaign. The ads will run through December to promote the newspaper's redesign and its shift toward entertainment news.

Staff reporter Joel Russell can be reached at [e-mail]., or [phone], ext. 237.