During Its Investor Day, Publicis Groupe Announces New Ad Agency Model and Ambitious Five-Year Targets

  During Its Investor Day, Publicis Groupe Announces New Ad Agency Model and
  Ambitious Five-Year Targets

By 2018: new services, digital at the core, commerce +, 75% of revenue from
digital operations and high-growth countries. Margins improvement by +200 to
+400 basis points vs. 2012.

Business Wire

LONDON -- April 23, 2013

Regulatory News:

Publicis Groupe (Paris:PUB) hosted an Investor Day gathering 25 of its top
executives, from all over the world, who laid out their new ad agency model.
They also confirmed ambitious five-year targets for growth and margin
improvement driven by further strategic emphasis on digital and fast-growing
countries operations.

The global ad market has undergone enormous systemic changes in the past
decade, executives pointed out, with a rapidly moving digital ecosystem
transforming every aspect of communication and massive geographic shifts to
promising fast-track economies. These unprecedented changes have included
profound shifts in consumer behavior both of consumption and relations to
media, deploying different devices and different formats in different
situations. The proliferation of content channels, devices, marketing
technologies and the complexity of managing paid/earned/owned exacerbate the
challenges that today’s marketers face to reach consumers effectively and

Publicis Groupe anticipated these system-wide changes early on and has
engineered a successful strategic shift to digital operations and high-growth
countries. From 2006 to 2012, major acquisitions have included Digitas,
Razorfish, Rosetta, Big Fuel, and most recently LBi, enabling Publicis to
build a new and sharply innovative profile. It is not only about digital
investments, but mostly on marketing, sales and advertising innovation. It is
about social, e-commerce and new consumers’ behaviors and trends.

At the London Investor Day, Publicis Groupe’s top executives showcased
market-defining tools that have been developed at the convergence of
technological, media and creative strategies, to enable the Groupe’s clients
to communicate optimally with their consumers in an era of rapid change and
build loyalty to the brands and sales.

The Groupe deploys key proprietary technologies for agile, data-driven
communication. It boosts business value by delivering not only on the Groupe’s
core skill – creative and media – but also by developing branded experiences
that respond to consumers’ individual needs across a range of media and
devices. The “new ad agency model” delivers products that are driven by
innovative, creative content and services through a totally different approach
that is taking progressively shape in Publicis Groupe. Clients will benefit
from state of the art innovation, products, services and a totally new
organization pooling all resources around clients.

Other Investor Day presentations highlighted the geographical expansion that
has brought the Groupe’s economies of scale and cutting-edge skills to the
world’s most distant zones of growth at a time when “traditional” economies
have flagged. Over the past six years, Publicis Groupe has focused on ramping
up its operations in some of the world’s most promising and fast-growing
countries such as Brazil and China.

A sustained program of acquisitions in fast-growing geographies over recent
years has been facilitated by the Groupe’s successful integration of newly
acquired companies.

As the Groupe prepares for its next five-year phase of operations, its
continuing transformation in digital and fast-growing country operations will
be leveraged into growth that will consistently outpace the global ad market

Publicis Groupe aims to generate 75% of its revenue in digital and
fast-growing countries by 2018, with an operating margin improvement of 200 to
400 basis points compared to 2012.

The margin improvement program will also be addressed. Driven by rising
digital margins coming into play: after a period of massive investment,
digital margins should reasonably outperform the Groupe's average, especially
due to rollout of new products with significant economies of scale like those
presented on Investor Day. Further improvements are foreseen thanks to strong
revenue growth and good cost control engendered by centralized management and
tools deployed.

“We have, during this Investor Day, shown the depth of our talents covering
all segments of our business and organisations,” said Maurice Lévy, Chairman
and CEO Publicis Groupe. “Our partnerships with key players in the innovative
digital industry (Google, Microsoft, Facebook, IBM, Adobe…) keep us on top of
the game and help us identifying future trends. We aim high and I believe our
organisation, our talents, our management teams are up to the task and poised
to innovate, grow and deliver. We have a culture of ambition and a strong
track record in delivering our objectives. We have great pride on delivering
our clients as well as company’s goal and all stakeholders expectations. We
have strategic edges and advantages: we are the place where technology,
innovation, strategy and creativity converge. IT+IQ+EQ is the sweet spot of
the marketing economy: this is Publicis Groupe.”

About Publicis Groupe

Publicis Groupe [Euronext Paris FR0000130577, CAC 40] is one of the world’s
leading communications groups. We offer the full range of services and skills:
digital (DigitasLBi, Razorfish, Rosetta, VivaKi), creative services (BBH, Leo
Burnett, Publicis Worldwide, Saatchi & Saatchi), public affairs, corporate
communications and events (MSLGROUP), media strategy, planning and buying
(Starcom MediaVest Group and ZenithOptimedia) and healthcare communications,
with Publicis Healthcare Communications Group (PHCG). Present in 108
countries, the Groupe employs 58,000 professionals.

www.publicisgroupe.com | Twitter:@PublicisGroupe | Facebook:

Viva la Difference !


Publicis Groupe
Peggy Nahmany, + 33 (0)1 44 43 72 83
Communication corporate
Martine Hue, + 33 (0)1 44 43 65 00
Investor Relations
Stéphanie Atellian, + 33 (0)1 44 43 74 44
Investor Relations
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