Terrorism didn't just disrupt broadcast and cable network ad spending on and after Sept. 11 — it also derailed what appeared to be a developing turnaround in local cable ad sales.
"We were actually building momentum before Sept. 11," said Cable One Inc. vice president of ad sales Ron Pancratz in assessing his company's third-quarter results. "We had a dynamite September."
That performance helped push the MSO's nine-month numbers "slightly" ahead of the year-ago period and "a little under budget" overall.
"We were still able to make [third-quarter] budget" even with the post-terrorism ad sales collapse, he said.
That was also the case at Cox Communications Inc. The third quarter of 2001 was "our best quarter," said vice president of ad sales Billy Farina.
September was the first month to surpass its 2000 counterpart and had been growing right up until the tragic date, Farina added.
It also dominated the third quarter for the New York Interconnect, said senior vice president and general manager Eglon Simons — though in his sales operation's case, it was "certainly behind last year."
"[It was] a grand month up to Sept. 11, what with the U.S. Open [tennis tournament on USA Network] and the VMAs [Video Music Awards on MTV]," Simons said.
Standout categories included foreign auto makers, led by Mercedes-Benz and BMW, and theme parks, led by Six Flags, Busch Gardens and Hershey Park, he added.
"September was not as bad as it could have been," said Charter Communications Inc. vice president of ad sales Wes Hart. "October looks pretty good, though we're not hitting budget [and] there's no shining star [among categories]."
With very few Charter regions "making budget," the MSO missed its overall third-quarter goals, Hart said.
"We'll probably have to be happy with reaching 91 percent of budget this year," Hart said, noting the company is looking to follow the lead of those systems that have enjoyed success.
"We're trying to spread their knowledge," he said.
September had also been shaping up well at AT&T Broadband, said AT&T Media Services senior vice president Judi Heady.
"After Sept. 11, the world changed — not just the ad world," she said. Since the attacks advertisers have been "placing business a lot later and playing things a lot closer to the vest."
But other MSO and interconnect sales executives had noticed that trend well before that terrible Tuesday.
Time Warner Cable president of ad sales Ron Sherman declined to provide specific details on the MSO's third-quarter performance. "We had a nice third quarter, notwithstanding Sept. 11," he said.
Few cable executives would offer predictions for an uncertain fourth quarter.
October was Cable One's "toughest month, with all the [order] changes, cancellations and the I'm-not-sures," Pancratz said.
Although it's too soon to call November and December, Pancratz noted, "Ad sales usually does well coming out of a recession."
Pancratz said he's confident momentum will resume in the first and second quarters of 2002.
National buyers — such as MindShare North America and Zenith Media — have expressed enthusiasm about the prospects for the Winter Olympics, which should fit the nation's more patriotic mood. Several local sales executives — who will be pitching MSNBC and CNBC coverage from Salt Lake City — agreed.
"We're hoping the surge of patriotism will help make the 2002 Winter Olympics sell much better than the last time," said Pancratz, referring to the 2000 Summer Olympics from Sydney, Australia.
