Ad Markets Could Get ‘Major Boost’ From Oil Price Drop: Natixis
2014-12-04 10:20:00.242 GMT
By Blanche Gatt
Dec. 4 (Bloomberg) -- Ad markets could see big rally in
2015 on recent drop in oil prices, with European TV stocks
likely to benefit most, Natixis says in note.
* Natixis says lower oil prices strengthen household spending,
which in turn strengthen advertising
* Oil price down 34.5% since start of 2014; decline is
“impressive,” very rare because it’s not linked to
drop in global growth, but is due to jump in oil output
in U.S. plus OPEC’s failure to respond to this increase,
and weaker oil demand from China
* Decline in price leads to disinflation, greater
purchasing power, which then boosts household
consumption of goods, services other than energy
* There’s close correlation between household consumption
and the ad market
* European TV stocks to gain most due to leverage effect
* Reiterates buy on TF1; lifts PT to EU14.7 vs EU14.5
* Reiterates buy on ProSiebenSat.1, PT EU41
* Reiterates buy on ProSiebenSat.1, PT EU41</li></ul>
* NOTE Dec. 2: U.K.’s TV Advertising Revenue May Withstand
Growth in Digital: Bloomberg Intelligence
For Related News and Information:
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To contact the reporter on this story:
Blanche Gatt in London at +44-20-7392-0351 or
bgatt@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
2014-12-04 10:20:00.242 GMT
By Blanche Gatt
Dec. 4 (Bloomberg) -- Ad markets could see big rally in
2015 on recent drop in oil prices, with European TV stocks
likely to benefit most, Natixis says in note.
* Natixis says lower oil prices strengthen household spending,
which in turn strengthen advertising
* Oil price down 34.5% since start of 2014; decline is
“impressive,” very rare because it’s not linked to
drop in global growth, but is due to jump in oil output
in U.S. plus OPEC’s failure to respond to this increase,
and weaker oil demand from China
* Decline in price leads to disinflation, greater
purchasing power, which then boosts household
consumption of goods, services other than energy
* There’s close correlation between household consumption
and the ad market
* European TV stocks to gain most due to leverage effect
* Reiterates buy on TF1; lifts PT to EU14.7 vs EU14.5
* Reiterates buy on ProSiebenSat.1, PT EU41
* Reiterates buy on ProSiebenSat.1, PT EU41</li></ul>
* NOTE Dec. 2: U.K.’s TV Advertising Revenue May Withstand
Growth in Digital: Bloomberg Intelligence
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Blanche Gatt in London at +44-20-7392-0351 or
bgatt@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net