Sharewatch: Optimism In Ad Market Boosts Aegis

Global advertising giant Aegis notched up a share price increase yesterday, rising by 0.59% to 85p. Rivals WPP, however, dipped by 0.19% despite the latest Bellwether report revealing buoyancy in the marketing sector.

The latest figures contained in the IPA report show the steepest rise in marketing spend since the survey began, along with improved confidence amongst top marketing executives. Similarly, the Interactive Advertising Bureau and Pricewaterhouse Coopers revealed yesterday that UK online advertising in 2003 beat all records as spending reached more than £350 million (see UK Online Advertising Spend Beats All Records).

Aegis also announced the acquisition of Marketing Resources Management Group, owner of Australian digital marketing agency One Digital this morning. The company will now become part of Isobar, Aegis’s recently launched digital advertising network.

Elsewhere magazine giant Emap saw its share price stumble, losing 0.27% to close at 734˝p as it unveiled a new look for its long running men’s monthly, FHM (see Emap Unveils New Look FHM To Boost Readership Figures). The title is understood to be suffering a circulation dip due to increased competition from men’s weekly titles Nuts and Zoo (see Nuts And Zoo Hit Sales Of Monthly Lads’ Mags).

Internet operator Cable & Wireless caused nervousness amongst city traders yesterday, ahead of a trading statement this morning revealing a decline in group revenue during the first quarter of 2004. The company dipped by 1.94% yesterday to 113žp.

The FTSE 100 was upbeat yesterday, climbing by 0.4% and recovering early losses to close at 4,339.4. The FTSE 250, however, dipped by 0.3% to finish at 6,045.6

The closing prices of media company shares on Tuesday were: