Madison Avenue Gets a Big Shock, Delivered From Paris
Publicis has blamed its loss of consumer goods business on the U.S. economic environment. Its U.S. rivals will show whether this stacks up next week.
Publicis was meant to be doing this whole digital ad thing right. So what does it mean if it's struggling too?
Photographer: Michael Ochs Archives/Michael Ochs ArchivesThe digital revolution in the advertising industry, and the emergence of a new type of tech-savvy competitor, has left the mega-agencies like Publicis Groupe SA and WPP Plc looking like a bucket that’s sprung a leak. They have to keep topping it up with new clients to replace the ones they’re losing.
Publicis has been managing this better than most. It has examined consulting firms like Deloitte LLP and PricewaterhouseCoopers LLP, who’ve been stealing so much ad business by offering a “full-service” model (doing everything from product development to branding and e-commerce), and it’s copied them. By some measures, Publicis added more new business last year than any of its traditional Madison Avenue peers.