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Digital ad demand helps Publicis hike 2021 growth outlook

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The emblem of Publicis group is seen on the excessive profile startups and excessive tech leaders gathering, Viva Tech,in Paris, France Could 16, 2019. REUTERS/Charles Platiau

  • Q3 underlying gross sales up 11.2%
  • Beats market consensus of seven.8%
  • Sees 2021 natural progress between 8.5% and 9%
  • Europe returns to pre-pandemic ranges, U.S., Asia above

Oct 14 (Reuters) – French promoting group Publicis raised its outlook for 2021 on Thursday as a worldwide shift in the direction of digital media and e-commence helped its third-quarter natural progress exceed market expectations.

Demand for digital promoting helped Publicis, which has sought to draw new prospects by promising focused campaigns primarily based on giant swimming pools of knowledge, return to natural progress this 12 months for the primary time since earlier than the coronavirus pandemic.

Publicis, residence to advert companies resembling Leo Burnett and Saatchi & Saatchi, mentioned it had additionally benefited from new enterprise wins in the course of the third quarter, together with Walmart and Planet Health .

The world’s third-largest promoting group behind Britain’s WPP and U.S.-based Omnicom now expects natural progress of 8.5% to 9% this 12 months, up from a earlier 7% forecast.

“The continued outperformance of our information and tech capabilities as soon as once more demonstrated our capability to seize a disproportionate share of the shift in consumer funding in the direction of digital media, commerce and DTC (direct-to-consumer),” Chief Govt Arthur Sadoun mentioned in a press release.

Its digital enterprise Sapient reported 20% natural progress in the US, which is Publicis’ greatest market and the supply of greater than half of its revenues, with information firm Epsilon 13% above final 12 months’s stage.

“Epsilon’s potential for improvement outdoors the U.S. may be very fascinating,” Sadoun advised reporters when requested in regards to the unit’s dependency on its residence market.

“We’ve a small base immediately (internationally), between 5 and eight% of revenues … however this base is already rising at 40% over the primary 9 months.”

Underlying gross sales in the US grew by 10.9% within the quarter, whereas Asia-Pacific posted 12.5% progress. Gross sales in Europe rose by 10% from final 12 months and regained pre-pandemic ranges.

At group stage, underlying gross sales rose by 11.2% to 2.6 billion euros ($3 billion) within the third quarter in contrast with the identical interval final 12 months, and exceeded 2019 ranges by 5%.

Analysts had anticipated natural progress of seven.8% for the quarter, a company-provided consensus forecast confirmed.

($1 = 0.8643 euros)

Reporting by Milla Nissi and Valentine Baldassari in Gdansk; Modifying by Alexander Smith

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