Spend Less on Consultants, Study Warns Democrats

Are consultants too expensive?

Sometimes alarmingly so, says a private study now circulating as a warning among Democrats.

The study, which analyzes spending in Lt. Gov. Leo T. McCarthy’s 1988 unsuccessful Senate race, concludes that candidates can spend so much on consultants that they will not have enough money left over to wage an effective television advertising campaign.

The 1988 California Senate race was won by Pete Wilson, who is now a candidate for the GOP nomination for governor. As Democrats prepare to face Wilson again, they are sifting through the rubble of McCarthy’s campaigns for lessons. “What his campaign tells us is that a Democrat cannot win unless we change the formula,” says the Democratic author of the computer study. The author insisted on not being identified by name.

The “formula” described in the report is standard contemporary political fare: Hire pollsters, a campaign manager, press aides, an advertising and strategy team. They will devise a “message” and a plan for communicating it. Then, the object is to raise a lot of money and plaster the message all over television.

Each expert has a formula for how much of a total campaign budget in a high-profile statewide race should go into television advertising. Virtually everyone believes it should be at least half of the money. Many experts say two-thirds should be deployed on TV.

McCarthy raised about $8.7 million. But only $3.5 million ended up in television advertising, or barely 40%. “Not very efficient, I admit,” says McCarthy deputy Roy Behr.

Among consulting costs identified by the analysis were $500,000 for McCarthy’s advertising and strategy consultants, $116,000 for his management consultant, $232,000 to pollsters, approximately $1 million for press, research and other staff and consulting costs--plus all their expenses. By contrast, Wilson not only raised more money, $16 million, but managed to get a greater percentage, just over half, on television advertising, according to his campaign.

“Democrats have three choices,” says the author of the report. “They can raise more money, spend less on this kind of stuff (consultants and staff)--or they can lose.”

McCarthy has declined to discuss his defeat or blame others. But he says he has some general advice for Democrats. “Raise a lot of money and don’t spend it until just before the election . . . (consultants) need a limited, defined role.”