Advertising

Advertising gloom points to economic misery

7 Nov 2008

Few media groups have dared look into the future, but News Corp s forecast of a sharp profit decline next year confirms bleak times ahead. The speed and severity of the slowdown across all mediums continues to shock. Ad agency valuations suggest the economy is in real trouble.

Why isn’t TNS biting off WPP’s hand?

3 Jul 2008

With media valuations tumbling, a conditional offer worth 260p a share looks superficially attractive. TNS's own nilpremium merger with GfK isn't worth nearly as much. Maybe brinkmanship can force WPP's Sorrell to pay extra. But if not, TNS could look silly.

Google’s online video ad scheme threatens broadcasters

21 Feb 2008

Americans watched over 300m videos on Google s YouTube site in December. The division s sales remain negligible. But if Google can start squeezing ad revenues from this market, broadcasters could find themselves in a bind similar to newspaper publishers.

Watch Super Bowl commercials, not the game

31 Jan 2008

Super Bowl Sunday is the most important day of the year for American football fans and for advertisers. This year's matchup between the Patriots and Giants may draw a record audience. But investors should pay more attention to the commercials.

Bike success doesn’t change JCDecaux’s model

13 Sep 2007

The French outdoor advertising agency is sailing strong by selling ads in cities and airports. Its Velib system in Paris is a hit. But offering bicycles to major cities is a way of booking contracts and mostly a marketing expense. Not a profit booster. The French outdoor advertising agency has caused a global sensation with the success of its Velib urban bike rental system in Paris. But this doesn't mean it's about to tear up its business model. Offering bikes to big cities is a lossleader that helps win ad contracts.

Bollore’s record at Havas won’t tempt Aegis

29 Aug 2007

The chairman of the French ad group Havas has vowed to continue his fight for board seats at its UK rival. He s upped his stake to 29.86%. Besides the obvious conflicts of interest, Bollore s claims are undermined by the underperformance of Havas shares since he took over.

Google stiffs Microsoft with DoubleClick deal

16 Apr 2007

The internet giant's willingness to fork out $3.1bn for the ad firm shows it will pay dearly to keep Microsoft from getting traction online. In greasing these deals it helps that the targets want to be part of Google and fear being devoured by Microsoft.

Who will next face Google’s wrath?

27 Dec 2006

Its superiority in search and online ads left a trail of destruction this year Yahoo bore much of the brunt. That may continue, but with Google brokering video and radio ads in 2007, Madison Avenue may have most to fear.

JC Decaux could triple in size with Clear Channel deal

8 Nov 2006

The deal would catapult the outdoor advertising company from a midcap French company to a global media musthave. But financing the deal would be a real stretch. And the Decaux family may have to give up control of the company.

Bollore needs to sort out Havas

29 Sep 2006

The entrepreneur effectively took control without paying a premium. That was smart. But Bollore hasn't subsequently delivered the goods. One reason may be that Bollore has spent too much time trying to push Havas together with Aegis. He should focus on sorting out Havas first.

Yahoo loses credibility

19 Sep 2006

Just two months after surprising investors with a bombshell. Yahoo's management has done it again. Furthermore, sales may decline this quarter. It looks like no one has a clear idea of what's going on.

Valassis highlights weakness with $1.3bn deal

14 Jul 2006

Its $1.3bn cash offer for bigger rival Advo smacks of desperation about declines in Valassis' core business. The offer came just days after a profit warning and the planned synergies barely cover half of the premium paid.

Hybrids allow capital-light capitalism

10 Jan 2006

Take Lottomatica. The Italian lottery operator, is engaging in a heavily leveraged $4.8bn buyout of its American competitor Gtech. Yet the deal's structure allows Lottomatica to assume control while retaining an investment grade rating and without diluting its parent.

Bollore raises stakes in Aegis auction

4 Oct 2005

The French corporate raider has built a substantial holding in the UK media buyer, now being stalked by ad group WPP as well as Publicis. Maybe he wants to make a turn on any deal. But as the top shareholder in Havas, he may also want to prevent Aegis falling into rival hands.

Aegis soars on £1.6bn approach

21 Sep 2005

It s not clear who the mystery bidder for the UK advertising agency is, but chances are it s either Omnicom or Publicis. Either way, the offer price at more than a 25% premium to the sector will certainly get the company s attention.

WPP bullish on 2005

26 Aug 2005

This was supposed to be a tough year for advertisers. But the UK advertising giant s results point to an even better year than 2004. So good, in fact, that WPP has upped its margin targets. Given the resilience of corporate earnings, it shouldn't be difficult to deliver.

Bollore becomes Havas chairman

13 Jul 2005

The French financier has crowned himself king and slotted in what appears to be a lameduck chief executive. Ironically, this probably makes it less likely that he is in the advertising group for the longhaul.

Worst fears of UK ad slowdown are misplaced

12 May 2005

Some believe the slump in UK radio, TV and newspaper ads is a sign that the ad market and by extension the whole economy is slowing. That is overegging it. Ad revenues continue to rise for some media firms especially cable and internet players.

Fraud may slow the growth of internet search

8 Apr 2005

About half of Google s growth comes from outsourcing advertising to other web sites. This model invites fraud. Search companies may have to cut back on an area that has provided supercharged growth.

Havas produces its quasi-defence

4 Nov 2004

The besieged French ad group has produced decent Q3 results while stressing the value of its team spirit . That seems designed to keep the corporate raiders, Bollore and Frere, at bay. But the defences aren't impregnable.