Terrorist Attacks Cost TV Groups $300m in Lost Ad Revenue

02 October 2001

Research firm CMR has estimated at $300 million the total ad revenue lost by America’s TV groups in the wake of the terrorist attacks last month, $85m of it on September 11 itself.

Advertising stopped for four days after the attack, as broadcasters switched to round-the-clock coverage of the tragedy and its aftermath.

Around $188m - around 49% of weekly ad revenue – was lost by national TV groups in the week commencing September 9. Local television firms in America’s seventy-five biggest markets suffered a shortfall of $93m (30% of weekly revenue), while cable TV escaped relatively lightly with losses of $31.6m (16%).

CMR warned the attacks would depress the TV ad market further. “Spending on all television advertising was already showing declines of two to four per cent for this year,” commented the research group’s president/chief executive David Peeler. “Now, we’re looking at revenues that could be down in the range of six to eight per cent for 2001.”

News source: Financial Times