Following years of political and economic turmoil, many brands have become more accustomed to continuing advertising through global crises. Agency CEOs generally give a nod to current events in their quarterly earnings, acknowledging the potential for future earnings to be hit, but nowadays they’re less likely to forecast severe hits to their earnings as a result of macroeconomic shocks. Despite the outbreak of war between the US and Iran, neither Publicis nor Havas adjusted their full-year guidance in their financial results last week.
The issue isn’t always just advertiser confidence, though. Some geopolitical or economic events much more directly disrupt brands’ campaign plans, as indeed is the case with the US/Iran war. UK agency M+C Saatchi, which reported its full-year earnings for 2025 this morning, warned that the conflict is likely to “significantly impact [its] sport and entertainment and consumer-facing business”, as several large-scale Middle East-based sports events have been shelved as a result of the conflict.
Perhaps the most high profile cancellations so far have been the Bahrain and Saudi Arabia Formula One Grand Prix races, which were both set for earlier this month. The Esports Olympics, which was originally due to launch in Riyadh next year, will be relocated, while other tournaments covering tennis, athletics, and football, among other sports, have been cancelled or postponed. Depending on how the war develops, further cancellations could come later down the line.
Sports are a big focus for advertisers, thanks in part to how they combine simultaneous mass-reach with personality-led content generated by and with major sports stars. And they’ve also been a big focus of investment for Middle Eastern rulers and businesses, who have put significant sums into foreign teams and leagues while also spending big to host major events domestically. As a result, agencies whose clients had been aligning themselves with events based in affected Middle Eastern countries are likely to see a financial hit this year.
Hopes for growth despite sports pause
M+C Saatchi’s wider forecast for the year ahead, however, was more positive. While net revenues and operating profit both fell in 2025, both like-for-like and on a statutory basis, the marketing group is predicting a return to growth this year.
New executive chair Dame Heather Rabbatts said the company’s focus will be simplifying the business and refining its go-to-market offer. “With a unique market position, a deep understanding of our clients’ business, broad expertise across both government and commercial sectors and specialised data-driven systems, the board believes that the company is well-positioned to create value for shareholders,” she said.
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