Advertising

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.

WPP cautious on 2005

26 Oct 2004

The UK ad giant s forecast of slightly slower industry growth is just another reason why ad stocks face another tough year. Even European stocks may not do well. While growth in Europe may pick up, many are exposed to the US, which could be sluggish. The UK ad giant s forecast of slightly slower industry growth is just one more reason why ad stocks face another tough year.

Havas should resist Bollore

15 Oct 2004

Just because the corporate raider owns 20% of the French advertising company doesn t mean he automatically deserves seats on the board. Havas could use some shaking up, and Bollore may be the man for the job. But he needs to convince the board this is the case.

Bollore plays a risky game with Havas

6 Oct 2004

By shopping it around, the corporate raider risks destabilising the French ad firm. Key clients and employees could defect. He is probably banking on a takeover from Publicis or WPP. Neither is straightforward.

Havas to raise E400m at narrow discount

20 Sep 2004

The advertising group has shown a classic French aversion to issuing shares at a deep discount. No wonder it has been forced to cosy up to French raider, Vincent Bollore.

Havas submits to Vincent Bollore

17 Sep 2004

It seems masochistic to welcome someone onto your board who's not only a raider but has just been rubbishing your strategy. Does the French advertising firm now ascribe to Bollore s views? Or is it just desperate for capital? Either way, it's a bit of a mess.

WPP beats Havas in the race for Grey

13 Sep 2004

The deal just about washes its face financially for WPP, and will add big clients to the UK adfirm s stellar roster. Havas shareholders should be relieved. The French advertising firm may now find itself on the receiving end of a bid.

Old raiders try new tricks

8 Sep 2004

Carl Icahn and Vincent Bollore are back in the saddle taking big blocks of stock and terrorising company managers. The difference is that now they are wearing the whitehats of the shareholder value movement. It may be a more viable longterm strategy.

How will WPP deploy its cash flow?

20 Aug 2004

Martin Sorrell still seems pretty keen on acquiring Grey, especially if he can snap up the US group at a good price. But if not, the issue of share buybacks will come to the fore. Especially since WPP is confident in ever expanding margins. But if not, the issue of share buybacks will come to the fore, especially since WPP is confident of expanding margins further.

WPP to start diligence on Grey

14 Jul 2004

A deal would add yet another network to WPP s constellation of advertising agency brands. But Grey looks expensive. WPP will need to find big cost savings to make a deal stack up.

Ad stocks lose ground

13 Jul 2004

Revenue growth is expanding but not enough to justify the amount investors bid up agency share prices. Investor sentiment is also being hurt by changes in fee structures, a possible economic slowdown in 2005 and option accounting changes

Publicis should avoid buying Grey Global

29 Jun 2004

Controlling shareholder Edward Meyer s decision to sell USbased Grey is unlikely to tempt Maurice Levy, the chairman of Publicis. The US is leading the ad sector s recovery, but Publicis already has substantial exposure there. It should expand in other business areas.

Advertising momentum starts to fizzle

11 Mar 2004

Results have dashed investor hopes that the recovery in advertising might pick up speed. Investors have been riding the ad cycle indiscriminately. They will now have to get choosy.

Havas slips further behind Publicis

14 Nov 2003

Unlike Publicis, it recorded a drop in organic revenues this quarter. Unless it smartens up its act, the smaller of France's two advertising groups will see its already chunky discount to Publicis widen.

WPP climbs further out of the bath

28 Oct 2003

WPP may be climbing out the bath in 2004, but Sir Martin Sorrell is already talking down prospects for 2005. The advertising chief executive may be right, but shareholders shouldn t take his comments too literally.

WPP climbing out of the bath

22 Aug 2003

The advertising giant believes its forecast of a "bathshaped" recession, to end next year, is turning out pretty much as expected. Skilful expectations management has allowed Sir Martin Sorrell's acquisition machine to keep rolling in the meantime and pretty boldly.

Private equity exits key to raising funds

6 Aug 2003

Many big European private equity firms are struggling to raise money. The one exception is Permira, which raised E3bn in just four months. Its success shows that investors are looking for a proven track record of strong exits before opening their wallets again.

Cordiant bonuses under fire

24 Jul 2003

On the contrary. Those bonuses were merited by very hard work but on behalf of the firm's creditors, not its shareholders. Emptyhanded shareholders in the advertising group have blasted the "rewards for failure" that executives will get after its sale.

Chaos surrounds Cordiant

14 Jul 2003

Something very funny is going on when investors buy big stakes in this insolvent company at a premium to WPP's takeitorleave it offer. It looks like blackmail is on the ordre du jour, even though the air is thick with denials. Underhand tactics do not deserve to succeed.