Advertising Will Come Back, CBS says

It is difficult to measure the advertising losses sustained by the major TV networks since the terrorist attacks last week, although by one estimate is there were $40 million in losses every day last week for broadcast and cable and $20 million for local stations.

Gil Schwartz, executive VP of communications for the CBS network, loathes such projections. "I don't see what purpose these wild guesstimates serve in the marketplace," he says. "They create damage because so much of the economy is built on trust and belief."

Schwartz notes that much advertising stopped after the attacks occurred but it's coming back now. "As we rebuild there is a need for broadcast and advertising," he says.

Advertising will come back because TV viewing remains strong. "Viewership grew during the time period," he says. "People watch TV and want to be informed about events."

It will also come back "as confidence grows," he says. "The nation doesn't want to throw in the white flag and part of the desire to express our determination is by buying new cars and investing in things we believe in."

The new season, which was scheduled to start this week, "has completely changed," he says. It was pushed up until next week, but Schwartz says it may be postponed again, "given breaking news."

CBS launched a few of its new shows this week, which he says did quite well, in part because people want to be entertained at home during these times.

Schwartz was defiant about the loss in ad revenue, claiming the issue isn't even important in the context of the times and that network tv remains strong. "Never has the role of btoadcasting been more important. There's a lot of pride in our business," he says.

Next story loading loading..