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Tag: Maurice Levy

  • Publicis Media restructures organisation

    Publicis Media restructures organisation

    MUMBAI   Publicis Media CEO Steve King has unveiled structure and leadership appointments for the organization. “We are driven to get to the future first,” said King. “Publicis Media is a fresh opportunity to simplify our organisation, invent more modern approaches to gain efficiency, introduce structures for greater collaboration and effectiveness, and drive new levels of scale and client value.”

    “The new Publicis Media imagined by Steve King is fully equipped to fit the future and best serve our clients,” Publicis Groupe chairman and CEO Maurice Lévy endorsed, “A leaner and simpler structure will bring more value to our clients and will further accelerate our growth.”

    Publicis Media’s structure will cover Top 20 markets, organised by three regions and led by Regional CEO for the Americas Tim Jones, Regional CEO for EMEA Iain Jacob, and Regional CEO for APAC, Gerry Boyle.

    At a global management level, Adrian Sayliss will become CFO for Publicis Media, Séverine Charbon will become the Chief Talent Officer for Publicis Media, and John Sheehy will oversee Global Clients for Publicis Media.

    Publicis Media will consolidate its six global agency brands: Starcom, Mediavest, Spark, Zenith, Optimedia and Blue 449 into four global agency brands namely Starcom, Zenith, Mediavest | Spark and Optimedia | Blue 449. Starcom and Zenith will each continue to operate as global agency brands while Mediavest | Spark will be a third large global agency brand and Optimedia | Blue 449 will be brought together to form a powerful global challenger brand.

    Each agency will be led by a Global Brand President with Lisa Donohue as Global Brand President for Starcom, Vittorio Bonori as Global Brand President for Zenith, Brian Terkelsen as Global Brand President for Mediavest | Spark, and Andras Vigh as Global Brand President for Optimedia | Blue 449. These

    Global Brand Presidents will be responsible for leading clients, driving growth and enabling best work.

    Additionally, there will be four US CEOs with Chris Boothe becoming CEO of Mediavest | Spark,

    Dave Ehlers of Optimedia | Blue 449, Lou Rossi continuing at Zenith and Lisa Donohue continuing as US CEO for Starcom until a successor is named. All US brand leadership will report into Tim Jones, CEO of Americas.

    Dave Penski will become Chief Investment Officer for Publicis Media in the U.S. overseeing all media investment and media vendor partnerships. He reports to Jones. Publicis Media’s U.S. consolidated investment power, estimated at $39 Billion and 33% market share, makes Publicis Media the largest media buying entity in the U.S., according to RECMA’s most recent Overall Activity Ranking Report.

    Powering Publicis Media will  be seven centralised ‘Global Practices’ that standardise approaches, scale quickly and deliver connectivity, consistency, that span geography, agency brands and clients.

    These Global Practices will be:

    •     Data, Technology & Innovation led by Stephan Beringer

    •     Content led by Belinda Rowe

    •     Trading & Buying led by Simon Pardon

    •     Performance led by Michael Kahn

    •     Business Development & Communications led by Lauren Hanrahan

    •     Business Transformation led by Richard Hartell

    •     Analytics, Research & Insight led by Steve Simpson

    In this new model, the agency network names of Starcom Mediavest Group and ZenithOptimedia Group are retired to better enable a flatter organisational structure. Publicis Media will deliver client value through combined scale and capabilities of our media agency brands.

    VivaKi capabilities will be fully integrated into Publicis Media’s Global Practice model. Performics will remain Publicis Media’s global performance marketing brand and scale across all agency brands.

    The reorganisation of Publicis Groupe’s media capabilities into a Publicis Media hub is part of Publicis Groupe’s transformation efforts previously announced. Publicis Groupe is organised into four Solutions hubs—Publicis Communications led by Arthur Sadoun, Publicis Media led by Steve King, Publicis.Sapient led by Alan Herrick and Publicis Health led by Nick Colucci—which are connected through a Chief Revenue Officer organization, led by Laura Desmond, which will deliver client satisfaction across Publicis Groupe’s entire range of services.

  • Publicis Media restructures organisation

    Publicis Media restructures organisation

    MUMBAI   Publicis Media CEO Steve King has unveiled structure and leadership appointments for the organization. “We are driven to get to the future first,” said King. “Publicis Media is a fresh opportunity to simplify our organisation, invent more modern approaches to gain efficiency, introduce structures for greater collaboration and effectiveness, and drive new levels of scale and client value.”

    “The new Publicis Media imagined by Steve King is fully equipped to fit the future and best serve our clients,” Publicis Groupe chairman and CEO Maurice Lévy endorsed, “A leaner and simpler structure will bring more value to our clients and will further accelerate our growth.”

    Publicis Media’s structure will cover Top 20 markets, organised by three regions and led by Regional CEO for the Americas Tim Jones, Regional CEO for EMEA Iain Jacob, and Regional CEO for APAC, Gerry Boyle.

    At a global management level, Adrian Sayliss will become CFO for Publicis Media, Séverine Charbon will become the Chief Talent Officer for Publicis Media, and John Sheehy will oversee Global Clients for Publicis Media.

    Publicis Media will consolidate its six global agency brands: Starcom, Mediavest, Spark, Zenith, Optimedia and Blue 449 into four global agency brands namely Starcom, Zenith, Mediavest | Spark and Optimedia | Blue 449. Starcom and Zenith will each continue to operate as global agency brands while Mediavest | Spark will be a third large global agency brand and Optimedia | Blue 449 will be brought together to form a powerful global challenger brand.

    Each agency will be led by a Global Brand President with Lisa Donohue as Global Brand President for Starcom, Vittorio Bonori as Global Brand President for Zenith, Brian Terkelsen as Global Brand President for Mediavest | Spark, and Andras Vigh as Global Brand President for Optimedia | Blue 449. These

    Global Brand Presidents will be responsible for leading clients, driving growth and enabling best work.

    Additionally, there will be four US CEOs with Chris Boothe becoming CEO of Mediavest | Spark,

    Dave Ehlers of Optimedia | Blue 449, Lou Rossi continuing at Zenith and Lisa Donohue continuing as US CEO for Starcom until a successor is named. All US brand leadership will report into Tim Jones, CEO of Americas.

    Dave Penski will become Chief Investment Officer for Publicis Media in the U.S. overseeing all media investment and media vendor partnerships. He reports to Jones. Publicis Media’s U.S. consolidated investment power, estimated at $39 Billion and 33% market share, makes Publicis Media the largest media buying entity in the U.S., according to RECMA’s most recent Overall Activity Ranking Report.

    Powering Publicis Media will  be seven centralised ‘Global Practices’ that standardise approaches, scale quickly and deliver connectivity, consistency, that span geography, agency brands and clients.

    These Global Practices will be:

    •     Data, Technology & Innovation led by Stephan Beringer

    •     Content led by Belinda Rowe

    •     Trading & Buying led by Simon Pardon

    •     Performance led by Michael Kahn

    •     Business Development & Communications led by Lauren Hanrahan

    •     Business Transformation led by Richard Hartell

    •     Analytics, Research & Insight led by Steve Simpson

    In this new model, the agency network names of Starcom Mediavest Group and ZenithOptimedia Group are retired to better enable a flatter organisational structure. Publicis Media will deliver client value through combined scale and capabilities of our media agency brands.

    VivaKi capabilities will be fully integrated into Publicis Media’s Global Practice model. Performics will remain Publicis Media’s global performance marketing brand and scale across all agency brands.

    The reorganisation of Publicis Groupe’s media capabilities into a Publicis Media hub is part of Publicis Groupe’s transformation efforts previously announced. Publicis Groupe is organised into four Solutions hubs—Publicis Communications led by Arthur Sadoun, Publicis Media led by Steve King, Publicis.Sapient led by Alan Herrick and Publicis Health led by Nick Colucci—which are connected through a Chief Revenue Officer organization, led by Laura Desmond, which will deliver client satisfaction across Publicis Groupe’s entire range of services.

  • Skip Maurice

    Skip Maurice

    MUMBAI: Recording a holiday message for his employees is a tradition for Publicis Groupe CEO Maurice Lévy. And complying with the tradition, that’s just what he did this year too… ’cept this year’s holiday greeting video from Lévy found a wider audience amongst netizens, with its witty take on skippable advertisement.

    To the television audience, advertisement breaks are an excuse to flip through channels and look for a different entertaining program. When Video On Demand (VOD) platforms gained traction amongst digital audience, the ‘Skip Ad’ feature soon became a popular one, with YouTube taking the lead.

    Being an advertising agency itself, it is ironic how the company’s CEO took to ‘Skippable Ads’ to deliver his message to employees. The idea was to bank on everyone’s habit of skipping ads to go to the content and do exactly the opposite! Confused? Don’t be… Read on…

    “Times are too tough to play around so don’t expect anything funny or any technological tricks. I’ve long suspected that only a handful of you are actually paying attention to what I have to say. Although it’s often tempting to skip the ads and get to the content, this time you should be glad to skip me and watch some ads,” says a poker faced Lévy in a YouTube video.

    However, 28 seconds into the video the humour quotient is just about to hit the roof as instead of the traditional ‘Skip Ad’ button that one is used to seeing on the video screen, there’s a… wait for it… ‘Skip Maurice’ button! However, this is “just a ploy” as Lévy continues his speech while crashing each ad spot and it must be said that for a septuagenarian, he totally rocks and how!

    Should you choose not to skip Maurice, he’ll continue his address from behind his desk. But if you’re the inquisitive kind (like us) then you would’ve definitely ‘skipped Maurice.’

    And therein lies all the fun! Watch him play cameo, especially in a shampoo advertisement, which adds to the comic relief of the entire concept. From spoon feeding yoghurt to a woman, washing his shirt, starring in a shampoo commercial a la L’Oreal (touché), cleaning his teeth in a toothpaste ad to appearing inside a sink for a liquid cleanser ad, Lévy enthrals the audience while also highlighting the company’s plans to enhance the power of one in the coming year. 

    In this 2:55 minute video titled ‘The Skippable Wishes,’ Lévy takes us through the agency’s benchmarks in 2015, through a series of advertisement, which he spontaneously crashes in. 

    “2015 has been a kind of bumpy ride. It’s been kind of tough for us. Nevertheless, we’ve fared pretty well in some of our operations and the most difficult part is behind us. More importantly, we have set ourselves up for a promising future,” he starts, as he talks about the company’s expectation from their Sapient acquisition, the “media palooza of which we have won more than we have lost,” the Cannes Lions wins and the highlights of the agency’s San Francisco seminar.

    It must be added here that Publicis recently lost Procter & Gamble’s media planning and buying account in North America to Omnicom as well as the L’Oréal media account in North America to WPP. Hence, for Lévy to say that 2015 has been a “bumpy ride,” would be nothing but an understatement.

    But these losses aside, Lévy goes on to say that 2016 will be a great year and that the agency has all the ingredients for it. “We will leverage the power of one across the group and our teams are excited about it. 2016 will the year of no silo, no solo, no bozo,” he says emphasising that there will be more transparency within the different departments and implementation of united effort within the company.

    “All the group’s leadership is in line and is already putting this into action. We have seen the fruit of this approach through the outstanding creative achievements and campaigns. I’m counting on you. I can’t wait to fast forward to 2016 to show our clients the potential of the transformed Publicis Group and the power of one,” he says.

    As was reported earlier by Indiantelevision.com, Publicis recently undertook a major client-centric restructuring for 2016, wherein the agency will be breaking down its disciplines into four distinct ‘solution hubs’ with each client that will be led by a chief client officer. And that’s exactly what Lévy speaks about here.

    He concludes the video by dedicating his wishes to the victims of Paris terrorist attacks on 13 November.

    At the time of filing this report, the video on Publicis’ website was almost nearing 50,000 hits. If innovation and disruption is the name of the game, then this latest salvo from the agency’s CEO himself wins it hands down.

    PS: There’s a strategically placed coffee mug on his desk, which says, “Yes I am the BOSS!”

    Well, Mr Lévy, after watching this video, we have absolutely no doubts about that!

  • Publicis Groupe’s revenue up 32% at €2.1 million in Q1 2015

    Publicis Groupe’s revenue up 32% at €2.1 million in Q1 2015

    MUMBAI: Advertising major Publicis Groupe reported a 31.7 per cent jump in first-quarter sales as a result of the positive impact of exchange rates, and partly due to its latest digital acquisition of Sapient.

     

    The agency’s first-quarter sales rose to €2.1 billion from €1.6 billion in the same period last year as the group benefited from the strong dollar and pound sterling compared with the euro.

     

    Acquisitions contributed €274 million or 17.2 per cent of revenue.

     

    Growth Forecast

     

    The company’s organic growth stood at +0.9 per cent. Though global economic growth has seen contrasting trends since the start of the year, Publicis achieved growth notably as a result of its strong presence in digital, which has become its main activity. Digital activities progressed by +4.7 per cent and now account for 50.2 per cent of total revenue. Healthcare also performed well. 

     

    North America revenue grew by 45 per cent to €1.15 billion, followed by Europe with an increase of 21.3 per cent to €575 million. BRIC (Brazil, Russia, India and China) and MISSAT (Mexico, Indonesia, Singapore, South Africa, Turkey) markets rose by 13.2 per cent to €215 million euros. India, specifically, continued on the road to recovery with growth of +5.7 per cent.

     

    The agency said that in December, revenue will grow at two per cent above the industry average each year from 2016, with digital operations rising to 60 per cent of sales in 2018. Publicis predicted that the operating margin will rise to between 17.3 and 19.3 per cent of sales in 2018, compared with 15.3 per cent in 2012.

     

    Publicis Groupe chairman and CEO Maurice Levy said, “Our revenue is up to slightly over 30 per cent, partly due to the positive impact of exchange rates, and partly to the inclusion of Sapient since completing the acquisition. As we’ll continue to see, this is one of the important milestones of the Groupe’s transformation. We expected organic growth to be slightly down this quarter, but, on the contrary, it is up almost one per cent. This isn’t yet the growth rate we expect to see out of Publicis Groupe, but is nonetheless an encouraging return to growth.”

     

    “The main event of this early part of the year has been the completion of the Sapient acquisition, an event that gives Publicis Groupe a new strategic dimension while excelling the Groupe’s transformation. The integration process is already underway and the prevailing spirit is excellent,” Levy added.

     

    With the acquisition of Sapient, Publicis Groupe has become the only global group present all along the value chain – from consulting to marketing, from communications to commerce – brought to life through an outstanding expertise in the most high-performing technologies.

     

    Levy is hopeful that the second quarter will be better than the first, albeit with modest growth. Organic growth is expected to be higher in the second half-year. The Groupe expects that its high exposure to digital activities will ensure its future growth and the continued improvement of its margins between now and 2018. 

     

    Publicis Groupe is the third largest global advertising holding company in the world after WPP and Omnicom. 

  • Publicis Groupe to acquire Sapient for $3.7 billion

    Publicis Groupe to acquire Sapient for $3.7 billion

    MUMBAI: Publicis Groupe and Sapient have announced that they have entered into a definitive agreement under which Publicis Groupe will acquire Sapient in an all-cash transaction for $3.7 billion, or $25 per share.

     

    The agreement has been approved unanimously by the management and supervisory boards of Publicis Groupe and the board of directors of Sapient.

     

    Publicis Groupe chairman and CEO Maurice Levy said, “Sapient is a ‘crown jewel,’ a one of a kind company born in the technology space with strengths in marketing, communications, consulting and omni-channel commerce, all of which are equally important to best help clients achieve their digital transformation. It will also give Publicis Groupe access to new markets and creating new revenue streams.”

     

    “This acquisition fulfills many of Publicis Groupe’s objectives: we will enhance our leadership position in digital, achieve our goal of deriving 50% of our revenues from Publicisgroupe.com 3/9 digital and technology three years ahead of our 2018 plan, and leverage technology, consulting capabilities to expand in new verticals, and offering new and exciting opportunities to our talents,” he added.

     

    The acquisition will accelerate achieving Publicis Groupe’s objective to become the leader at the convergence of communication, marketing, commerce and technology, said the press release.

     

    Through this, the company will create a platform to be named Publicis.Sapient, which will focused exclusively on digital transformation and the dynamics of an always-on world across marketing, omni-channel commerce, consulting and technology.

     

    Sapient CEO and co-Chairman Alan J Herrick will also be joining Publicis Groupe senior management team as CEO of Publicis.Sapient and Sapient co-founder and co-chairman Jerry A Greenberg will join the company’s supervisory board.

     

    Sapient president, CEO and co-chairman Alan J Herrick added, “This transaction provides substantial value to our shareholders, offers an ideal cultural match for our people and provides an opportunity to share a wealth of new capabilities with our clients.”

     

    “The Sapient team has been on a 24-year journey building a company with the objective of creating significant impact for our clients and the industries in which they operate. With Publicis Groupe, we have found a partner that accelerates the level of transformation we can drive into the marketplace,” he further stated.

     

    The combination of Publicis Groupe and Sapient is expected to drive cost savings through the integration of digital production leveraging Sapient’s substantial production infrastructure in India, real estate consolidation, G&A reductions and procurement savings, said the companies in a joint statement.

     

    “The newly created Publicis.Sapient platform will create significant opportunities for our tremendously talented people across the platform. We will also be able to deploy our capabilities on a global scale through Publicis Groupe’s significant international presence. With access to the world’s greatest creative talent and media expertise, as well as a strong global footprint, we will be better positioned to identify and pursue market opportunities all over the world,” added Herrick.

     

    In connection with the tender offer, Jerry A Greenberg, J Stuart Moore, and Alan J Herrick have entered into a tender and support agreement with Publicis Groupe pursuant to which they have agreed to tender an aggregate of approximately 18 per cent of Sapient’s outstanding shares in the offer.

     

    The completion of the tender offer is subject to certain customary terms and conditions, including the tender of at least a majority of the outstanding shares of Sapient, antitrust and other regulatory clearances in the US, and antitrust clearance in Germany. The transaction is expected to close in the first quarter of 2015.

     

    The completion of the tender offer is subject to certain customary terms and conditions, including the tender of at least a majority of the outstanding shares of Sapient, antitrust and other regulatory clearances in the US, and antitrust clearance in Germany. The transaction is expected to close in the first quarter of 2015, added the press release.

     

    BofA Merrill Lynch and Rothschild acted as financial advisors and Wachtell, Lipton, Rosen & Katz is serving as legal advisor to Publicis Groupe while Goldman, Sachs & Co. and Blackstone Advisory Partners L.P. acted as financial advisors and Cravath, Swaine & Moore LLP acted as legal advisor to Sapient.

  • Adobe and Publicis Groupe team up to deliver a global marketing platform

    Adobe and Publicis Groupe team up to deliver a global marketing platform

    MUMBAI: Publicis Groupe and Adobe have announced a strategic partnership to deliver the Publicis Groupe Always-On Platform, the first end-to-end marketing management platform from Publicis Groupe that automates and connects all components of a client’s marketing efforts.

     

    The platform will standardise on Adobe Marketing Cloud, and all agencies across Publicis Groupe will be able to create engaging content, access marketing intelligence, identify and build audience segments, deliver campaigns, and track and measure marketing performance through a unified technology and data structure.

     

    It will be anchored in VivaKi as an open framework so that every agency can deploy and brand it uniquely for use.  Agencies currently slated to access the system include BBH, DigitasLBi, Leo Burnett, MSLGROUP, Publicis Worldwide, Razorfish, Rosetta, Saatchi & Saatchi, Starcom MediaVest Group, VivaKi and ZenithOptimedia.

     

    The collaboration is expected to drive growth across the two companies, and accelerate Publicis Groupe’s goal to make combined digital and emerging market revenue 75 per cent of its multi-billion dollar business by 2018.

     

    “Adobe and Publicis Groupe are a powerful combination and we have been delivering marketing innovation together for more than two decades,” said Adobe president and CEO Shantanu Narayen. “The massive scale of agency services across the Publicis networks, coupled with Adobe’s unique leadership in digital marketing solutions, will enable Publicis clients to develop best-in-class digital marketing capabilities that drive growth.”

     

    “By embarking on this journey with Adobe, a powerhouse in creative and marketing solutions, Publicis Groupe will be the first agency holding company to offer clients an integrated set of digital marketing solutions across all key marketing and creative agencies” said Publicis Groupe chairman and CEO Maurice Levy. “We are solving a core marketing dilemma for our Clients by enabling them to more personally interact with their customers and tell relevant, powerful stories at scale, while successfully navigating the complex digital landscape.”

     

    “We are essentially creating a new operating model stitching together multi-agency services, technologies and workflows to the benefit of our clients,” said VivaKi’s chief growth officer Stephan Beringer.  “By converging the forces of marketing technology, data, creativity and strategy, we eliminate silos, optimize delivery and maximize the investments made in ad budgets, talent and consumer engagement.”

     

     The platform is scheduled to provide Publicis Groupe agencies and their clients with four solutions to solve current marketing challenges:

     

    1.      Multi-touch Attribution. The Always-On platform will move the market beyond “last click” attribution by providing options for a multi-touch model that identifies and assigns true value to specific marketing components – online and off line – that help spur customer action. Publicis Groupe agencies will be able to enhance their attribution and planning solutions with Adobe’s Master Marketing Profile and Media Mix Modeling, as well as Adobe Analytics, to measure the most effective touch-points across channels and model investments.

     

    2.      Unparalleled Audience Understanding. Always-On encompasses a data management platform (DMP) which will produce a robust set of customer profiles, segmentations and vertical insights.  VivaKi will also develop a data co-op where clients, and ultimately publishers, can opt in and contribute data in exchange for even richer customer profiles, vertical insights and customer intelligence.  Adobe Audience Manager and Adobe Media Optimizer will drive optimal targeting and cross-channel campaign performance.

     

    3.      Campaign/Marketing Automation.  As screens and devices proliferate, Always-On is expected to automate marketing effort across multiple channels. With the goal of integrating Adobe Campaign with analytics and segmentation tools, the platform will empower Publicis Groupe agencies to drive campaign efficiency and engagement across the full customer journey to reach audiences that matter at the highest moments of receptivity. The automated integration will allow all marketing functions to coordinate efforts by acting on the same data. This includes an agreement across the agencies for cross channel campaign management for search and social buy side optimization through Adobe Media Optimizer.

     

    4.      Content and Experience Management. The digital asset management capability within Adobe Experience Manager is expected to enable teams, wherever they sit inside the network, to easily and effectively create, manage, and control valuable digital assets. From the moment an asset is created to the point of delivery, the platform will enable workgroups to create and manage assets through the entire lifecycle of global branding and multichannel distribution with a single, easily accessible digital repository.

     

     Both Adobe and Publicis Groupe will invest in joint sales and marketing, including retaining a dedicated team of strategists and business development specialists to innovate and bring the platform to market.

  • Publicis Groupe’s H1 profit drops down 17 per cent, exchange rates impact numbers

    Publicis Groupe’s H1 profit drops down 17 per cent, exchange rates impact numbers

    MUMBAI: With the slowdown of global economic activity since the start of the year and economic uncertainties prevailing in several regions of the world, Publicis Groupe has announced that its second-quarter performance was well below that of the first quarter. The company saw a 16.9 per cent fall in first-half net profit to Euro 260 million as compared to the Euro 313 million in the corresponding half of the previous calendar year-2013.

     

    Due to the substantial impact of the strong Euro (Euro 81 million negative impact in Q2 alone), the Group’s reported consolidated revenue for Q2 2014 was Euro 1,761 million, down 1.5 per cent as compared to the Euro 1788 million in H1 Q2 2013.

     

    The group says that organic growth of just 0.5 per cent was largely due to unfavourable comparable (+5.0 per cent in Q2 2013), but also to the persistent weakness of certain markets and investments on the part of a number of clients who substantially downsized their budgets.

     

    In a statement published on the group’s official website, Publicis Groupe chairman and CEO Maurice Lévy said, “The first half-year was heavily impacted by exchange rates which had an adverse effect on revenue of Euro 148 million. At constant exchange rate, revenue would have increased by close to 5 per cent during the period.

     

    As we predicted last fall, growth stalled in the second quarter. However, it should be underscored that weakness was stronger than expected mostly due to the cancellation or postponement of campaigns and lagging economies in Europe and in emerging countries. Our organic growth was +1.8 per cent for the first half-year. Our margin remained strong, though fractionally down, as a result of accounting treatments and lagging growth.”  

     

    Lévy conceded, “These figures are not satisfactory by our standards. They are not consistent with what our operations can achieve. As can be seen from our digital growth (+8.8 per cent) or the numerous awards from various juries (Gunn Report, Gartner and an impressive haul of awards at the Cannes International Festival), our strategy is spot-on and our networks are at the cutting edge of the industry. For the second part of the year, we can confirm that we are already on track for higher growth, and this should be evident as of the third quarter.”

     

    “Given the situation in Europe and the slow pick-up in the emerging economies, we prefer to be extremely cautious on growth prospects and prioritize cost control in order to achieve a margin closer to our goal for the full year.

     

    Although 2014 will be a difficult year, it does not undermine our mid-term prospects. Our business plan between now and 2018, as announced on 23 April 2013, is currently being revised to factor in market developments and the investments required reaching our transformation goals ahead of schedule. The strong feedback from our entities leaves us very confident about achieving all our goals,” he concluded. 

     

    It was in May 2014 when Publicis Groupe and Omnicom Group have called off their $35 billion merger. Levy then in a statement mentioned, “The decision to discontinue the process was neither pleasant nor an easy one to make, but it was a necessary one.” Experts believe the deal failed majorly because of tax issues.

     

    Four regions contribute to Publicis Groupe’s revenue- Europe excluding Russia and Turkey, North America, BRIC + MISSAT (Mexico, Indonesia, Singapore, South Africa and Turkey), and the rest of the world.

     

    The group says that Europe (excl. Russia and Turkey) remained negative overall (-0.3per cent), while all the other regions reported growth in the first half-year. North America recorded growth of +2.8 per cent, and continues to show resilience.

     

    The BRIC and MISSAT countries achieved growth of +0.4 per cent though the good performances of Russia (+5.9 per cent), Mexico (+10.3 per cent), Turkey (+2.5 per cent) and Singapore (+7.2 per cent) were overshadowed by the Greater China region’s slower-than-expected return to high growth (+1.4 per cent) and by negative growth in Brazil (-0.6 per cent). India’s -14.7 per cent adversely affected the BRIC group. The economic slowdown observed since mid-2013 in emerging countries has had a significant impact on advertising investments. The rest of the world, which includes Australia and Japan, reported growth of +5.6 per cent.

     

    On 30 January 2014, Publicis Groupe acquired a major stake in Indian based advertising agency Law & Kenneth. In an unprecedented move, Law & Kenneth took over the Indian operations of Saatchi & Saatchi and now is called L& K Saatchi & Saatchi. During the first half of the year, the holding company’s BBH India won the creative mandate of Viber (India) and Piaggio Vehicles’ Vespa (India), while Leo Burnett India added MAA TV to its kitty.

     

    Click here to read the financial report

  • Publicis-Omnicom’s $35 billion merger terminated

    Publicis-Omnicom’s $35 billion merger terminated

    MUMBAI: Paris based Publicis Groupe and New York based Omnicom Group have decided to part ways. The duo through a press statement has jointly announced that they have terminated their proposed merger of equals by mutual agreement, in view of difficulties in completing the transaction within a reasonable timeframe. With this announcement the proposed $35 billion merger has come to an end.

     

    A statement released by Publicis Groupe and Omnicom Group states, “The parties have released each other from all obligations with respect to the proposed transaction, and no termination fees will be payable by either party.”

     

    This decision was unanimously approved by the Management Board and the Supervisory Board of Publicis Groupe and the Board of Directors of Omnicom. In a joint statement, Publicis Groupe chairman and CEO Maurice Lévy and Omnicom Group president and CEO John Wren stated, “The challenges that still remained to be overcome, in addition to the slow pace of progress, created a level of uncertainty detrimental to the interests of both groups and their employees, clients and shareholders. We have thus jointly decided to proceed along our independent paths. We, of course, remain competitors, but maintain a great respect for one another.”

     

    The announcement comes after the meeting of the Supervisory Board of Publicis Groupe, chaired by Madame Elisabeth Badinter which was held on 8 May in order to decide on the action to be taken regarding the proposed merger of equals with Omnicom Group.

     

    The Supervisory Board examined the recommendation of the Management Board, which has unanimously voted to terminate the proposed merger of equals between Publicis Groupe and Omnicom Group.

     

    Lévy in an earlier statement said, “The two groups each have a brilliant track record. This merger was always one of opportunity, not necessity. The teams at Publicis Groupe worked diligently to complete the merger, but, in view of the obstacles encountered, the execution risk continued to increase. The decision to discontinue the process was neither pleasant nor an easy one to make, but it was a necessary one. Prolonging the situation could have led to the diversion of the Group’s management from its principle function: to best serve our clients. Our paths diverge today with mutual respect. Publicis Groupe will continue to pursue and accelerate the implementation of its ambitious strategic plan for 2018. I am very confident in our ability to successfully see this through and to achieve all our goals.”

     

    The deal which came in the limelight in July, if worked out, would have created the world’s largest advertising holding company, impacting mostly the Chicago advertising market. The planned merger had called for a 50-50 ownership split of the equity in the new company, Publicis Omnicom Group, with Wren and Levy serving as co-CEOs for 30 months from the closing.

     

    According to an Ad Age report, the proposed Publicis-Omnicom merger would have created a company with a combined market cap of $37 billion and joint 2013 revenues of nearly $24 billion. Combined, the duo could have leapfrogged London-based WPP as the world’s largest advertising holding company.
     

    With the merger being called off, WPP Group CEO Martin Sorrell can have a good laugh. Sorrell while talking to CNBC from China said, “I think this deal was driven by ego issues and emotional issues, I think both CEOs wanted to try and dislodge WPP from its number one perch and so it was emotional and egotistical. It was also a case of eyes being bigger than your tummy.”
     

  • Pubilicis acquires 51% of Law & Kenneth

    Pubilicis acquires 51% of Law & Kenneth

    MUMBAI: In December last year, when Publicis Groupe CEO Maurice Levy visited India, he was very clear about India being a strategic market for the company.

     

    Staying true to his words, the world’s third-largest advertising network has acquired 51 per cent of Law & Kenneth, a New Delhi-based independent agency led by adman Praveen Kenneth. 

     

    The acquired entity will merge with the group’s Saatchi & Saatchi in India and will be re-branded as L&K Saatchi & Saatchi (Law & Kenneth Saatchi & Saatchi), which will strongly reinforce the agency’s presence in India between its offices in Mumbai, Delhi, Chennai and Kolkata. Kenneth will take over as the chairman and managing director of the combined unit. He will join the Saatchi & Saatchi Asia-Pacific board and will work directly into Saatchi & Saatchi Asia-Pacific Chairman and CEO Chris Foster. Kenneth was also the CEO of Publicis India from 1999-2003.

     

    The senior management team of Law & Kenneth including, Anil S. Nair (CEO and Managing Partner), Sandhya Srinivasan (Chief Strategy Officer and Managing Partner) and Anil K. Nair (CEO Digital and Managing Partner) will continue their respective roles in the new entity. Law & Kenneth’s CFO Vijay Agarwal will report to Saatchi & Saatchi Asia-Pacific Regional CFO Johann Xavier.

     

    “We are excited to be adding the breadth and depth of talent and resources of Law & Kenneth to the Saatchi & Saatchi network in India, a growing and important market for Publicis Groupe as a whole. Praveen has built an impressive network throughout the country, one that will provide a heightened added value and a mutually beneficial relationship for both existing and future clients. We are glad to be welcoming him back into the Publicis Groupe family,” said Levy in a release. 

     
    Kenneth remarked: “Law & Kenneth was born out of passion and has always focused on adding value to client brands and to the lives of people we touch every day. This has helped us become the largest independent agency in India in just over 10 years. Our story is an example of the Saatchi & Saatchi spirit of Nothing Is Impossible. The combination of Law & Kenneth’s stability, size proven success and experience in India’s dynamic market place, together with Saatchi & Saatchi’s iconic status and mystique, results in a creative powerhouse that is L&K Saatchi & Saatchi. Success for us will be to use the philosophy of Lovemarks to win the hearts of Indian consumers and grow our clients’ brands and reputations.” 

     

    Years ago, Kenneth along with Andy Law and investment support from Bodyshop’s Anita Roddick took over St Luke’s India operations to form Law and Kenneth. With this newly formed agency, he had wished to create an agency that gives creative freedom. Over the years, the agency only grew and presently counts over 285 professionals and boasts of clients that include Renault, Dabur, TATA AIG Insurance, Godrej, ITC, Reliance, Idea and Hero MotoCorp among others. 

     

    However, lately, the agency witnssed a number of exists including that of CEO Matt Seddon, besides Ramanuj Shastry, Kamal Basu, Nisha Singhania, Sourabh Mishra among others.

     

    This acquisition follows those of Beehive into Publicis Worldwide in October 2013 and Neev into Razorfish earlier in 2013.

  • Publicis’ Levy gets bullish on India

    Publicis’ Levy gets bullish on India

    MUMBAI: If the chairman and CEO of a multinational advertising and public relations company comes to India, then canards are definitely going to gain currency.

    And that CEO happens to be Publicis Groupe’s Maurice Levy, who signed the deal with the Omnicom Group to create a $35 billion mega-agency, journos would not be faulted for wondering why. To everyone’s dismay, Levy told a select group of the media that his current trip to India falls in the category of a “regular visit”.

    “I was here last in 2011 and thought it’s high time I visited again. I have always said that India is a major market for us and we want to build the group here,” said Levy.

    Industry has been speculating whether that “building” includes possibly picking up equity in the fiercely independent Sam Balsara run Madison World who has recently stated that his agency is open to collaborations. Levy very intelligently deflected this question by saying that that the group has made investments in the country and will continue to do so as there is a cesspool of talent here.”

    Among the agencies Publicis runs in India include: Publicis India, Leo Burnett, Saatchi & Saatchi, Starcom, ZenithOptimedia, Razorfish and Digitas.

    Levy further elaborated that “according to the World Bank, India will have the largest number of middle class income group members by 2030, surpassing even China. Hence, we have to strategically make moves. India is a very strategic country for us.”

    He believes that since the country has a great deal of knowledge in IT and digital, it should take advantage of that skillset rather than just become an ‘outsourcing’ nation.

    When asked about the importance of digital media today and in the future, Levy quipped, “Publicis was the first group to invest in the sector. In 2006, we had said how digital is going to be one of the most important pillars of the emerging markets and started investing in it.”

    He pointed out that a large share of Publicis’ revenue comes courtesy the digital space and that the firm is heavily invested in it already. “In 2011, there were 100 people working in the digital sector in India and now there are around 1500 people. Globally, there are over 20,000 people devoted to the sector.”

    He also highlighted that “emerging markets contributed roughly 25 per cent” to the group’s turnover and his aim is to bring it to “35 per cent by 2017.”

    As everyone waits for the Publicis-Ominicom merger to get the official nod from the EU, the US and China, Levy too has big dreams and expectations from it. Without revealing too much on how progress the fusion process has made and who will head the combined entity in India, Levy said that it will only benefit the clients of both the companies.

    “The law doesn’t allow me to speak about it unless and until all procedures are done. And till then we will work as competitors but the future will be all about offering a wide range of platforms to the client. For me, it has always been how can I make it more valuable for the client. And it will continue to be so.”

    When asked if there have been any ‘disagreements’ with Ominicoms’s president and CEO John Wren, Levy laughingly responded by saying, “Yes of course. He’s American and I’m French.”

    He further added, “A French poet has written that boredom comes from uniformity and it will be true for me as well. Over and again, I have always said that collaborations is the way forward though they can be challenging. When we acquired Saatchi & Saatchi, all we had to do was cross the channel but it turned out to be a major challenge because of our differences. Such things are bound to happen but there is no fun if there aren’t such challenges.”

    However, the group’s number one competitor WPP CEO Sir Martin Sorrell has been very vocal about the merger and even gone on to call it the merger of ‘unequals’ and that it won’t last a long time. On it Levy responded that he only comments on what he knows best and that’s his company and work. “From the way he (Sorrell) has been speaking about it, it seems like it has become a part of his job!” he added wittily.