Slump Socks Ad Industry's Small End

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The global recession is roughing up smaller advertising companies even more than their bigger rivals, a lesson being learned by two companies partially owned by French industrialist Vincent Bolloré.
Mr. Bolloré holds about 30% of media buyer Aegis Group PLC, which on Monday reported that first-quarter revenue fell 12%, excluding the effects of acquisitions, divestments and currency shifts.
Late Friday, Havas SA, where Mr. Bolloré holds a 32.9% stake and is also chairman, reported an 8.4% drop in first-quarter revenue, by the same measure.
At both companies, the problem is the same. Along with the rest of the industry, each has taken a hit as the recession has savaged corporate ad spending. At Aegis and Havas, however, the pain has been compounded by losses of key accounts and the heavy reliance of each on a single business in an industry led by more-diversified global giants.

"Small players get hit harder because they're more committed to a smaller number of clients," said RBS analyst Justin Diddams.