“What is your inventory worth?” That is the question Ted Cannon, south Palm Beach, Fla., area sales manager for Adelphia Communications, said he and other cable sales executives are constantly asked.
Despite pitches about the quality of its products and the ability to generate revenue for advertisers, “Far too often we would bleed a rate card and sign off on an order that deep down we knew was too many spots for too few dollars.”
With annuals canceling before the year was up and an overall cable churn rate of 35-plus percent, Mr. Cannon needed a better answer. He thinks he has it now: interconnects.
With interconnects, “At the end of the day, you see dramatic increases in spot cost on high-demand shows and networks, along with an increase in advertisers on your second- and third-tier shows,” he said.
Tinley Advertising President Jim Flanagan, who has clients using Adelphia, said spot cable is a great branding tool for client Florida Keys and Key West Tourism. “We are utilizing spot market support by going after the short-drive market, but we didn’t give up our national campaign,” he said.
“The ability for both national and regional clients to buy cable in a manner more accustomed to their needs has positioned spot cable on the front burner of many high-level buyers,” Mr. Cannon said. “Combine the ease of the buy along with strong programming that captures mass audiences, and you have success.”
Cable is in 86 percent of homes in the West Palm Beach-Fort Pierce area, up from 84 percent in 2000, and total TV revenues for the area are projected at $116 million, according to BIA Financial Network.