DIGITAL advertising will account for 50 per cent of Aegis Media revenues within just two years, Robert Lerwill, the chief executive of Aegis, told The Times yesterday. He said that social networking websites on mobile phones would help to boost growth.
Mr Lerwill said that in the six months to June 30, 2006, digital revenues, which include internet, mobile and interactive outdoor advertising, accounted for 19 per cent of Aegis Media revenues, up from 13 per cent in the first half of 2005.
Aegis, a media buying, market research and digital media group, is split into two businesses — Aegis Media and Synovate. While Aegis Media had revenues of £280 million in the first half of this year, Synovate accounted for £182 million.
Mr Lerwill said that Aegis was working with mobile phone operators, such as 3, to develop the success of social networking websites, such as MySpace and YouTube, on mobile phones.
“The next big thing in digital is going to be mobile — 2.5G and 3G have yet to be fully exploited,” he said, suggesting that mass use of advertising on mobiles could be round the corner.
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Aegis said that contract wins from Adidas-Reebok, Gap and Abbey National had helped it to report a record amount of new business in the first half of the year. Underlying profit before tax rose 8.9 per cent to £38 million.
Mr Lerwill said that, while the UK market had been challenging, it was not the group’s worst-performing country. He refused to say which had been the worst market.
Aegis said that it was trading in line with expectations and was set to make the most of its profit in the second half owing to the increasingly seasonal nature of its business.
The group raised its half-year dividend by 11.5 per cent to 0.72p per share. Its shares closed up 1p at 130¼p.