Credit Crunch Not Affecting Ad Spending

Advertising spending has not been affected by the current credit squeeze in the US. Europe and the UK may just be able to stay ahead of the entire problem. David Kershaw a chief executive of one of the advertising groups has not seen a decrease in spending anywhere in Europe. M&C has only seen a reduction in spending by the US. They moved offices from New York to Los Angeles and their revenue was only diminished in the fourth quarter by soft trading.

M&C believes that they will have a rather flat year in the US market. This is due to the retail and financial sectors that are still suffering from the credit crunch as well as the recession the US is supposed to be in at the moment. The US consumers are definitely pulling out with their advertising budget. M&C says that this pulling out of US consumers has meant their clients are not able to afford the advertising. The operating profits in the last year were below the expectations. The expectations of loss were actually greater than the 600,000 pounds the company actually lost. This is still double of what the company lost the previous year.

The great thing about M&C for them is that only 5 percent of their business is done in the US. The rest of their income is generated through the UK and Europe. They are still being very cautious in their outlook for profits in this year. In fact they are taking it a month by month look rather than through the whole year. They are showing strong results that there will be no issue in the second quarter for their business as it seems the advertising costs are not going to be reduced.

Since the previous year was very encouraging for M&C in the UK Ladbrokes, Findus, and McClean are showing about 19 percent in revenue boosts. This 52.8 million pound revenue boost is a good way to start any year. The growth in the UK has also been created through an acquisition. The company acquired Clear a brand consultancy. It was initially grabbed for in July for 18.4 million pounds. The building of stock in Walker Media has also been a hit for revenue. They are gaining benefits for the iWalker digital advertising campaign.

Digital advertising is one of the main areas the company has been able to boost sales. It is a very definite and measurable payback for their clients to see. The thing is that digital advertising will keep growing and this means their clients will continue to spend more.

M&C believes that the last two years of getting their European side up and running has finally come to pay off. They are seeing revenue at 6.1 million pounds that originally started at 2.3 million pounds in 2006. This is an even increase over the last two years making the company stronger. Asia and Australia have been a little bit of a problem in the past, but there is now stability that can be seen.

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