Marketing is one of the first items that companies cut in a downturn (Simon Duke writes). So when the world went into hibernation in March, it was no surprise to see executives slash advertising spending even more drastically than they had after the Lehman Brothers’ collapse.
Not that you would know any of this from S4 Capital’s share price chart. Shares in Sir Martin Sorrell’s advertising group have risen by more than 40 per cent since January.
Its performance reflects the scarcity value enjoyed by companies weathering the storm. While more established advertising groups have wilted in recent months, S4 Capital has flourished.
In the first four months of the year, like-for-like revenues increased by 11 per cent and May is likely to have been
