Publicis Groupe CEO Arthur Sadoun on Network's 'Full Recovery' From Covid-19 Impact

Within a year, Publicis Groupe’s financial performance has not only recovered from the pandemic but has overtaken its first-half performance during 2019. Organic growth is up on 2020 levels by over 17% for the second quarter of 2020 and almost 10% for the full first six months. Reporting net revenue for Q2 at $2,944 million (2,539 million Euros) growing by 17.1% and $5,815 million (4,931 million Euros) growing 3.3% for H1 of 2021, the network, which owns agency brands such as Publicis Sapient, Leo Burnett and Saatchi & Saatchi, saw the performance overtake 2019 levels by 2% for the quarter. In Q2 of 2019, the business reported a net revenue sum of $2,635 million (2,234 million Euros) and for the first half of the year $5,132 million (4,352 million Euros). 2021 has so far recorded organic growth of 9.7% for the six months. “What we have achieved is actually to deliver value on top of absorbing the crisis. Not only we are fully recovered, but we are creating some additional value,” states chief executive and chairman Arthur Sadoun, speaking to Adweek. Business and regional performance He also highlights the performance of data/digital businesses Epsilon and Sapient in the U.S. as key drivers of growth and a territory where the network's country model was “advanced." He states that organic growth for the second quarter was recorded as 15.2% (7% ahead of 2019), with Epsilon up by almost a third (31.1%) and Sapient by 27%. Meanwhile, Europe saw the second quarter grow by 23% following the lifting of lockdown restrictions, with the U.K. up by 10%, France by 30.6% and Germany by 9.6%. Asia Pacific organic growth was up by 13.6%, growth of 7% on 2019 numbers, with China up by 8% and India by 35.4%. Incoming new business saw global media contracts picked up with Stellantis, Humana and Vinted, global creative contracts with Infiniti and Linkedin, U.S. shopper marketing with Unilever, U.S. media with Inspire and Samsung and data agency of record in the U.S. for AB Inbev among others. Much of the new business has centered on media and data as clients aim to grow their first-party data ownerships in a period where digital advertising’s complexity is once again growing. But Sadoun is keen to underline that Publicis Network is still a creative company foremost. “Data is an engine that is transforming our relationship with many of our clients,” Sadoun clarifies on the continued focus of the business despite the success of its data division, acquired just two years ago. “It's not only a growth driver, but also an engine that is transforming our relationship with many of our clients,” he adds. The complexities of digital Sadoun admits that the extra complexities clients currently face is to understand how their advertising is being distributed through digital channels. The on/off death of the cookie and Apple’s identifier cull alongside growing data regulation has driven further demand for support. Publicis has aimed to help clients navigate the issues as the walled gardens prepare to grow even higher in the data they possess, while saving them from in-housing specific services as they aim to accelerate their digital transformation strategies. “It's by bringing technology and creativity together, that you get some things that no one else can bring,” he continues before highlighting the company’s offer involving 18,000 data and tech engineers and several thousand creatives as a reason why the company shouldn’t fear clients potentially in-housing services, too. Publicis Groupe Beats Organic Growth Expectations for Q1 Results The importance of talent retention That belief, however, underlines the importance of talent retention during the last year and it has been a vital element of Sadoun’s focus to keep Publicis on a growth trajectory. He states that the hybrid model of working is here to stay and that staff will continue to be recognized for their endeavors even if they are not working from a company office. He outlines being able to do that through company-wide virtual events, which included one that saw all staff invited daily over a week last year to hear different interviews with prominent business figures and about projects from across the Publicis network. He also highlights the importance of retaining “the veterans” in the company as the job market explodes and people look around, are lured away by competitors or, in some cases, are leaving the ad industry altogether. Sadoun is realistic that there is a battle to retain key people—an issue his counterparts are also experiencing. “I believe that you retain people on the project,” he states. "You retain people because they like the vision you have for the company… We are trying our best to give a direction on what we do.” He cites the return of Britt Nolan to Leo Burnett Chicago as president and CCO from DDB as one such hire two years after his departure, to fill the void left by Liz Taylor who is Ogilvy-bound, as one measure of success while continuing to seek new talent hires as well. Sadoun also mentions the work being done to protect its 18,000 staff in India, a country that has been overwhelmed by the ramifications of the pandemic. He reveals, when pushed, that the network has aimed to support staff in India, alongside their families, by offering them access to vaccines through 'a task force'. That group worked with healthcare providers to give Publicis staff access to healthcare facilities across India to receive vaccinations when their age class was due to receive them. The costs for staff and their families were entirely covered by the Groupe. Another area of importance is the acquisition strategy. Sadoun singles out the recently announced shopper tool CitrusAd deal as another example of being client-centric but also in “making sure we have the right products.” “We need to continue to invest where the growth of our clients will be tomorrow and where our clients will be able to grow," he says. "When you know that by 2025, consumer package goods clients in the U.S. will spend more money on retail media, the online activity, we need to be there for them.” What’s the ‘New Normal’ for New Business Pitches?

Earnings Reports

Publicis Groupe CEO Arthur Sadoun on Network's 'Full Recovery' From Covid-19 Impact

The executive outlines the 2% growth on 2019 H1 report and other business priorities

Stephen Lepitak

Agencies

Petition Urges Cannes Lions to Boost Anti-Harassment Efforts, Despite New Safety Measures

DEI Fades From the Spotlight in Cannes as Marketers Grow Cautious

A Tale of Two Cannes: AI Optimism Masks Ad Industry’s ‘Existential Crisis’

A Postcard from Cannes Lions: Power Struggles, Winners, and AI

FTC Clears Omnicom-IPG Deal, Bans Politically Motivated Ad Boycotts

CNN Brasil Filed Formal Complaint Over DM9’s Cannes-Winning Campaign

Beth Ann Kaminkow on Why Dentsu Is 'Right-Sized for the Moment'

Gut Named Havaianas’ First Global Agency of Record

WPP Retains Creative Company of the Year Title at Cannes Lions 2025

Subscribe today!

$20

DIGITAL MONTHLY

$17

ANNUAL DIGITAL

$21

ANNUAL DIGITAL & PRINT