October 14, 2021
(Reuters) – French advertising group Publicis raised its outlook for 2021 on Thursday as a global shift to digital media and e-commence exceeded market expectations for organic growth in the third quarter. rice field.
Demand for digital advertising is about to attract new customers by promising targeted campaigns based on large amounts of data, as Publicis returns to organic growth for the first time this year, for the first time before the coronavirus pandemic. It was useful.
Publicis, home of advertising agencies such as Leo Burnett and Saatchi & Saatchi, said it also benefited from the acquisition of new businesses in the third quarter, such as Wal-Mart and Planet Fitness.
The world’s third-largest ad group, after WPP in the UK and Omnicom based in the US, expects 8.5% to 9% organic growth this year, up from the previous 7% forecast.
Arthur Sadoun, CEO, said in a statement, “The ongoing outperformance of our data and technology capabilities is a failure to shift client investment in digital media, commerce, and DTC (direct sales). We have once again demonstrated our ability to gain a balanced share. ” ..
Its digital business, Sapient, reports 20% organic growth in the United States, Publicis’ largest market and source of more than half of its revenue, while data firm Epsilon is 13% above last year’s level.
“The potential for Epsilon’s development outside the United States is very interesting,” Sadun told reporters when asked about the unit’s reliance on the domestic market.
“Today (internationally) we have a small base of 5-8% of revenue … but this base has already grown at 40% in the first nine months.”
The US underlying sales increased 10.9% in the quarter, while the Asia Pacific region recorded growth of 12.5%. European sales increased 10% from last year, returning to pre-pandemic levels.
At the group level, the underlying sales for the third quarter increased 11.2% year-on-year to € 2.6 billion ($ 3 billion), 5% above 2019 levels.
Analysts expected quarterly organic growth to be 7.8%, a consensus forecast provided by the company shows.
($ 1 = 0.8643 euros)
(Report by Milla Nissi and Valentine Baldassari in Gdansk; edited by Alexander Smith)
Demand for digital advertising helps Publicis raise its growth outlook for 2021
Source link Demand for digital advertising helps Publicis raise its growth outlook for 2021