Advertising looks set to win from the busy summer

Hopes are rising of a significant advertising boom from a triple whammy of feelgood events with the Diamond Jubilee, Olympics and Euro 2012 football championship between June and August.

Analysts have moved to upgrade their forecasts on the back of strong revenue growth from many ad agency groups and some better-than-expected UK economic news.

Patrick Wellington, an analyst at Morgan Stanley, said: "There is a potential substantial boost to UK advertising in 2012, mainly in traditional media." Mr Wellington said commercial TV, outdoor and newspapers should all benefit from the Olympics. "There are 25 official Olympics sponsors and another 17 official suppliers all of whom can be expected to spend incrementally around the Games," he said. "July and August are traditionally the lowest advertising months of the year for ITV and this advertising should come as an incremental boost."

Giasone Salati, an analyst at the broker Espirito Santo, said: "In our view 2012 will be a particularly strong year across the industry." His note Going For Gold highlighted the potential of the Olympics for advertising.

Ad industry sources expect revenues to rise between 5 and 6 per cent across the second and third quarters but said they could rise further.

Optimism has also received a boost after the latest monthly Markit survey of Britain's services sector, published this week, showed its fastest growth of almost two years in March.

Pedro Avery, the managing director of the media-buying agency Arena Media, whose clients include Domino's Pizza and Eurostar, said early indications are that advertising spend will be "higher than expected" over the next three months. "Brands are prepared to support these big events," he said.

Mr Avery warned that some advertisers, particularly high street retailers, were still feeling the squeeze from consumers. "Anybody who has a good business online is doing reasonably well," he added.

Marc Mendoza, the chief executive of the media agency MPG Media Contacts, whose clients include the National Lottery and Nationwide, said: "We were expecting an uplift from the Olympics and it's happening." But he cautioned it is a mixed picture and some brands who are not official sponsors are avoiding advertising around the Games. "They're staying as far away as humanly possible," he said.

Many big global ad agencies, including London-listed WPP and Aegis, have only limited exposure to the UK as they generate the majority of their revenues from the US and emerging markets. Mr Salati at Espirito Santo said WPP should "outperform" because it is "a leading player in political advertising" in a US election year.

Ian Whittaker, at Liberum Capital, is also bullish and rates shares in WPP, Publicis, Aegis and Havas – four of the biggest global agency groups that operate in the UK – as a "Buy".

Start your day with The Independent, sign up for daily news emails
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Sales Executive / Foreign Exchange Dealer - OTE £40,000+

£16000 - £40000 per annum: Recruitment Genius: A Foreign Exchange Dealer is re...

SThree: Experienced Recruitment Consultant

£20000 - £40000 per annum + OTE + Incentives + Benefits: SThree: Established f...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40/45k + INCENTIVES + BENEFITS: SThree: The su...

Recruitment Genius: Collections Agent

£14000 - £16000 per annum: Recruitment Genius: This company was established in...

Day In a Page

Refugee crisis: David Cameron lowered the flag for the dead king of Saudi Arabia - will he do the same honour for little Aylan Kurdi?

Cameron lowered the flag for the dead king of Saudi Arabia...

But will he do the same honour for little Aylan Kurdi, asks Robert Fisk
Our leaders lack courage in this refugee crisis. We are shamed by our European neighbours

Our leaders lack courage in this refugee crisis. We are shamed by our European neighbours

Humanity must be at the heart of politics, says Jeremy Corbyn
Joe Biden's 'tease tour': Could the US Vice-President be testing the water for a presidential run?

Joe Biden's 'tease tour'

Could the US Vice-President be testing the water for a presidential run?
Britain's 24-hour culture: With the 'leisured society' a distant dream we're working longer and less regular hours than ever

Britain's 24-hour culture

With the 'leisured society' a distant dream we're working longer and less regular hours than ever
Diplomacy board game: Treachery is the way to win - which makes it just like the real thing

The addictive nature of Diplomacy

Bullying, betrayal, aggression – it may be just a board game, but the family that plays Diplomacy may never look at each other in the same way again
Lady Chatterley's Lover: Racy underwear for fans of DH Lawrence's equally racy tome

Fashion: Ooh, Lady Chatterley!

Take inspiration from DH Lawrence's racy tome with equally racy underwear
8 best children's clocks

Tick-tock: 8 best children's clocks

Whether you’re teaching them to tell the time or putting the finishing touches to a nursery, there’s a ticker for that
Charlie Austin: Queens Park Rangers striker says ‘If the move is not right, I’m not going’

Charlie Austin: ‘If the move is not right, I’m not going’

After hitting 18 goals in the Premier League last season, the QPR striker was the great non-deal of transfer deadline day. But he says he'd preferred another shot at promotion
Isis profits from destruction of antiquities by selling relics to dealers - and then blowing up the buildings they come from to conceal the evidence of looting

How Isis profits from destruction of antiquities

Robert Fisk on the terrorist group's manipulation of the market to increase the price of artefacts
Labour leadership: Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea

'If we lose touch we’ll end up with two decades of the Tories'

In an exclusive interview, Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea
Tunisia fears its Arab Spring could be reversed as the new regime becomes as intolerant of dissent as its predecessor

The Arab Spring reversed

Tunisian protesters fear that a new law will whitewash corrupt businessmen and officials, but they are finding that the new regime is becoming as intolerant of dissent as its predecessor
King Arthur: Legendary figure was real and lived most of his life in Strathclyde, academic claims

Academic claims King Arthur was real - and reveals where he lived

Dr Andrew Breeze says the legendary figure did exist – but was a general, not a king
Who is Oliver Bonas and how has he captured middle-class hearts?

Who is Oliver Bonas?

It's the first high-street store to pay its staff the living wage, and it saw out the recession in style
Earth has 'lost more than half its trees' since humans first started cutting them down

Axe-wielding Man fells half the world’s trees – leaving us just 422 each

However, the number of trees may be eight times higher than previously thought
60 years of Scalextric: Model cars are now stuffed with as much tech as real ones

60 years of Scalextric

Model cars are now stuffed with as much tech as real ones