, describing it as the new industrial revolution. S4 already uses the technology to help create text and images for adverts, improve media planning and buying and increase productivity. Analysts at Peel Hunt said: 'S4 is making good progress on AI-driven work; however, the tilt towards the tech sector, which historically was a strength has now for the near term become a weakness.' Dowgate Capital, S4's broker, said the update was 'clearly disappointing', but that it expected S4 to rebound when the market improves.){kind=link}
Analysts view company’s exposure to the tech sector as a weakness in the short-term
Sir Martin Sorrell’s advertising group S4 Capital has come under renewed pressure as a downturn in the tech sector hammers advertising spending.
S4, which counts Facebook and Google among its biggest clients, on Monday sounded the alarm over lower-than-expected revenues in the second quarter, especially in May and June.
It blamed the decline on “challenging macroeconomic conditions and clients, especially those in the technology sector, remaining cautious and very focussed on the short term”.
S4 cut its forecasts for full-year revenue to between 2pc and 4pc, a sharp decrease from previous expectations of between 6pc and 10pc.