Jay Pattisall, a principal analyst at Forrester Research expected Publicis would report “mid-to-high single digit organic growth,” in the third quarter. He also predicted Publicis.Sapient and Publicis Media would perform well relative to the creative business. “Creative will likely remain the challenge for Publicis and its holding company peers,” the analyst told Adweek.
Media did outperform creative, achieving high single-digit growth on the year. This because the holding company’s Epsilon asset and data offering are compelling to media clients, Sadoun told Adweek. And, he said, because there are more high-budget media accounts up for grabs than there are creative accounts in review.
The year in review
Last year was a good new business year for Publicis. It secured significant billings from Mondelēz, McDonalds, Nestlé and Crocs. In 2022, the holding company grew a whopping 10.3% in the third quarter and generated $3.15 billion. Last November, it paid out a week’s extra wages to 45,000 employees.
The group also set aside between $450 and $680 million to execute more mergers and acquisitions, namely technology companies with e-commerce expertise.
Sadoun’s outlook remained rosy eight months ago, when Publicis reported its 2022 year-end results. Then, he told Adweek that hiring would continue in 2023, even after he’d already hired 10,000 in 2022.
By now, he’s somewhat more cautious, acknowledging as many as five global economic squeezes in a five-year period. Now that organic growth is more consistent with pre-pandemic levels, Sadoun told Adweek that regardless of the economic circumstances, he still intends to out-perform competitors next year.
Back to the office
The CEO intends three in-person working days will accomplish two greater goals: Strengthen client relationships–especially in cases where brand teams have also returned to the office; Create a more fair workplace, since certain production or client-facing roles that require in-person interaction do not currently enjoy the same benefits remote work provides others.
Most Publicis employees, according to the leader, are already commuting to the office about three days a week. Current office space would allow employees to work in-person four days a week without overcrowding, according to the leader. He considers the RTO policy flexible, acknowledging employees might choose to spend Monday in the office, and two other days with a client.
“Of course, we will adapt and and we will make sure that we make that flexible enough for everyone,” Sadoun said. “But the more people that can be [at a Publicis office] on Monday, the better. For sure.” he added.
