Strong financial results from some of the world’s largest advertisers point to an improving outlook for the media and advertising sector, according to Lehman Brothers analysts.
Major advertising clients including Procter & Gamble, American Express, General Motors and L’Oreal, have all reported positive results for the full year 2003. The financial health of such companies significantly affects the degree to which they are likely to spend on advertising and marketing.
Procter & Gamble, General Motors, Renault and L’Oreal are all clients of Publicis. As each of these companies has reported positive trading statements, Lehman Brothers believes that Publicis is in a strong position going into 2004. WPP clients Pfizer, Altria, American Express and IBM were also strong, although Ford – WPP’s largest client – showed more mixed results.
Ad agencies are set to receive a further boost from the upcoming Super Bowl in US. Publicis, WPP, Interpublic and Omnicom all have a number of clients airing ads during the competition’s lucrative spots. Other event highlights this year include the Olympics, the presidential elections and the European Championships.
The combination of healthy finances at global advertisers, a range of major events and the improving economic conditions should combine to ensure that 2004 is a healthy year for the media and advertising industry.
