Aegis warns of 'flat' ad year

THE advertising market may recover in the third or fourth quarter but will decline or be merely flat for the full year, according to the leading media buyer Aegis.

That follows a year which it described as 'the deepest advertising recession in living memory'. It also warned that the Argentinian economic crisis would force it to write off £10m from 2001's profits.

Aegis is the last major independent media buyer after WPP's recent reluctant takeover of rival Tempus. It said its revenues for the 11 months to the end of November rose by 10%. New business opportunities were showing a modest increase. Overall, Aegis said it expected to increase its market share and to improve margins as a result of costcutting measures taken last year.