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
ebooksA celebration of British elections
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

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

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Claims Administrator

£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...

Recruitment Genius: Senior SEO Executive

£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...

Recruitment Genius: Online Customer Service Administrator

£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...

Recruitment Genius: Digital Marketing Executive

£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...

Day In a Page

'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Russell Brand's interview with Ed Miliband has got everyone talking about The Trews

Everyone is talking about The Trews

Russell Brand's 'true news' videos attract millions of viewers. But today's 'Milibrand' interview introduced his resolutely amateurish style to a whole new crowd
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living
Increasing numbers of homeless people in America keep their mobile phones on the streets

Homeless people keep mobile phones

A homeless person with a smartphone is a common sight in the US. And that's creating a network where the 'hobo' community can share information - and fight stigma - like never before
'Queer saint' Peter Watson left his mark on British culture by bankrolling artworld giants

'Queer saint' who bankrolled artworld giants

British culture owes a huge debt to Peter Watson, says Michael Prodger
Pushkin Prizes: Unusual exchange programme aims to bring countries together through culture

Pushkin Prizes brings countries together

Ten Scottish schoolchildren and their Russian peers attended a creative writing workshop in the Highlands this week
14 best kids' hoodies

14 best kids' hoodies

Don't get caught out by that wind on the beach. Zip them up in a lightweight top to see them through summer to autumn
Robert Fisk in Abu Dhabi: The acceptable face of the Emirates

The acceptable face of the Emirates

Has Abu Dhabi found a way to blend petrodollars with principles, asks Robert Fisk