Publicis return to growth in Q1 – CEO Sadoun
Against the odds, Publicis Groupe has posted a return to growth for the first quarter of 2021, with organic revenues getting a boost of 2.8% ending a streak of declines.
The upward trend was bolstered by growth in the US and APAC regions, as well as a “disproportionate” shift towards digital services, including e-commerce and direct-to-consumer marketing campaigns which are becoming an ever-crucial part of the Groupe’s offering to clients.
Publicis Groupe’s total net revenue, which strips out pass-through costs, noted a year-on-year decline in the first quarter to $2.86bn (€2.39bn.) Last March the same figure sat at $2.97bn (€2.48bn) just as the pandemic began to take hold. However, the Groupe has now cushioned the blow of the Covid-19 crisis thanks to organic growth in North America, Asia Pacific, Europe and Latin America, exceeding analyst expectations.
Organic revenue rose 4.7% in North America, including a 5.1% increase in the U.S.; 5.7% in the Asia Pacific region; and 7.7% in Latin America, the company said. It declined 1.8% in Europe (where heavy restrictions are still in place across some markets) and 11% in the Middle East and Africa.
According to chief executive publicis, Arthur Sadoun says: ‘Power of One’ model, coupled with its digital pro has played a key role in helping the business return to recovery, after growth decreased by as much as 13% during the worst of 2020.
A shift in investment towards digital channels, e-commerce and DTC, saw Publicis’ online media revenues enjoy a “double-digit boost” in Q1. This was buoyed, said Sadoun, by the acceleration of Publicis Sapient’s growth in the US which sat at 11.2%. Epsilon, the data business acquired by Publicis last year for $4.5bn, also played its part – posting 4.7% growth for the second quarter in a row.
Sadoun said: “Its double-digital growth is very unexpected, there’s an increased appetite from clients to go direct-to-consumer, build their own ecosystems and deliver commerce. So we’re benefiting from capturing a disproportionate part of these investments.”
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