Revenue ($ in millions) | 2014 | 2013 | % chg |
Worldwide | $9,625.0 | $9,232.0 | 4.3 |
U.S. | $4,630.1 | $4,386.0 | 5.6 |
Non-U.S. | $4,994.9 | $4,846.0 | 3.1 |
Ticker: EPA:PUB (EPA) |
Asterisk (*) indicates figures are Ad Age estimates.
Fast facts: Publicis Groupe in 2014 was the world's third-largest agency company.
Worldwide revenue shown is Publicis' stated U.S.-dollar revenue for the world. U.S. revenue shown is Publicis' stated U.S.-dollar revenue for North America.
Publicis reported worldwide revenue of $9.6 billion in 2014; $9.2 billion in 2013; $8.5 billion in 2012; $8.1 billion in 2011; $7.2 billion in 2010; $6.3 billion in 2009; and $6.9 billion in 2008.
Rankings:
Publicis in 2009 passed Interpublic Group of Cos. to take the No. 3 spot based on agency company worldwide revenue, behind WPP and Omnicom.
Deals and strategic moves:
Sapient Corp. acquisition:
Publicis in February 2015 acquired Sapient Corp., a global marketing and technology services company, for $3.7 billion cash.
Sapient's largest holding was SapientNitro, a digital-centric advertising and marketing-services agency network.
In announcing the deal's closing on Feb. 6, 2015, Publicis said: "The acquisition of Sapient gives birth to the Publicis.Sapient platform, encompassing the global leaders in digital -- SapientNitro, Razorfish Global, Rosetta and DigitasLBi, and the deep industry expertise of Sapient Global Markets and Sapient Government Services."
Other major acquisitions:
LBi, an Amsterdam-based digital network, purchased in January 2013 for 416 million euros ($554 million). After buying LBi, Publicis combined it with Digitas in February 2013 to form the DigitasLBi network.
Rosetta Marketing Group, a U.S.-based digital agency, acquired in July 2011 for $577 million cash.
Razorfish, a U.S.-based digital agency, acquired in October 2009 from Microsoft Corp. for $544 million ($547 million including transaction costs). Publicis paid $286.8 million cash plus 6.5 million Publicis shares for a purchase price of 369 million euros ($544 million based on currency rates when the deal closed) or 371 million euros including transaction costs ($547 million). The deal gave Microsoft a 3.3% stake in Publicis; Microsoft later sold its entire stake in Publicis.
Digitas, a U.S. digital agency, purchased in January 2007 for $1.3 billion.
Bcom3 Group, a U.S.-based agency company, acquired in 2002. Bcom3 owned Leo Burnett (ad agency); D'Arcy Masius Benton & Bowles (ad agency); Manning Selvage & Lee (public relations); Starcom MediaVest Group (media-agency network); Medicus (health-care communications); and a 49% stake in Bartle Bogle Hegarty (U.K. ad agency). Saatchi & Saatchi, a U.K.-based agency company, acquired in 2000.
Publicis in 2001 formed ZenithOptimedia, a media-agency network, by merging its Optimedia unit with Zenith Media, which had been a 50/50 of Saatchi & Saatchi and Cordiant Communications Group. Cordiant at that point ended up with a 25% stake in ZenithOptimedia. WPP in 2003 bought Cordiant and sold the 25% stake in ZenithOptimedia to Publicis.
Other acquisitions:
2015 deals included:
Epic Communications, a strategic communications agency in South Africa employing 50 consultants; rebranded as Epic MSL Group.
Expicient, a Massachusetts-based technology services firm with expertise in inventory and order management systems. Publicis folded Expicient into Rosetta.
Monkees, a digital-marketing and social-network venture in France with 25 employees. 2014 deals included:
Main 2014 acquisitions:
Nurun, a digital agency based in Montreal, acquired in September 2014 for Canadian $125 million (U.S. $115 million) from Quebecor Media. Publicis folded Nurun into the Razorfish Global and Publicis Worldwide networks.
Proximedia, a European digital-communications venture, acquired in July 2014.
Other 2014 acquisitions:
Ambito5, a social-media agency in Italy.
Applied Media Logic (AML), a media agency in South Africa. Publicis aligned it with ZenithOptimedia.
BrandsRock, a South African branding firm with 45 employees; integrated into Saatchi & Saatchi.
Crown Partners, a technology-focused venture in Dayton, Ohio, with more than 150 employees. Publicis aligned Crown with Razorfish.
Hawkeye, a digital marketing-services agency based in Dallas. Publicis on March 6, 2014, bought Hawkeye, which Publicis said employed more than 160 people at the time of the acquisition. (Publicis Hawkeye at the time of the acquisition said Publicis Hawkeye employed 225 staffers, including 160 in the Dallas headquarters and 65 in other U.S. offices.) The company rebranded Hawkeye as Publicis Hawkeye and aligned the agency with Publicis North America, part of the Publicis Worldwide network.
Law & Kenneth, an ad agency in India (51% stake).
Liquorice, a digital-marketing agency in South Africa with 115 employees. Publicis aligned the agency with DigitasLBi.
Lighthouse Digital, a digital-media agency in South Africa.
Machine, a communications agency in South Africa with more than 130 employees; integrated into Publicis Worldwide and rebranded as Publicis Machine.
Net@lk, a social-media services provider in China.
OwenKessel, an ad agency in South Africa.
Qorvis Communications, a public-relations agency in Washington, D.C.; rebranded as Qorvis MSL Group.
Relevant24, a Boston-based firm focused on creating original, multimedia branded content. Relevant24 had 23 staffers at the time of its acquisition. Publicis aligned Relevant24 with Starcom MediaVest Group. Run, a New York-based data management and multichannel programmatic buying platform. Publicis aligned Run with Starcom MediaVest Group.
Salterbaxter, a U.K. sustainability strategy and communications consultancy firm with 70 employees. Publicis aligned Salterbaxter with MSL Group.
3 Share, a San Diego-based firm with more than 50 employees that offers services related to Adobe Systems products.
Turner Duckworth, a design and branding agency based in London. The agency, which had 70 employees in London and San Francisco at the time of its acquisition, kept its name and aligned with Leo Burnett.
Zweimaleins, a business-to-business agency in Germany that became Saatchi & Saatchi Pro.
2013 deals included:
Main 2013 acquisitions:
LBi (see above).
Walker Media, a U.K. media agency. Publicis in November 2013 bought a 75.1% stake in Walker Media, a U.K. media agency, from M&C Saatchi, which kept a 24.9% stake. Walker Media opened in 1998 and had more than 130 employees at the time of the acquisition. Walker Media is now part of the ZenithOptimedia network, operating as a distinct agency brand.
Engauge Marketing, a Columbus, Ohio, digital agency, acquired in August 2013. Publicis aligned Engauge with Moxie, part of ZenithOptimedia.
Other 2013 acquisitions:
Beehive Communications, an integrated-communications agency in India specializing in marketing services and advanced communication for clients in southern Asia.
Bosz Digital SA, Costa Rica, and Bosz Digital Colombia SAS, media and digital production ventures in Central America.
Convonix, a digital agency based in India. The agency was founded in 2003 and employed more than 200 people at the time of acquisition. Publicis aligned the agency with Starcom MediaVest Group.
Espalhe, a digital-marketing and public-relations agency in Brazil.
ETO, a customer-relationship-management agency in France specializing in digital marketing and data analytics.
Heartbeat Ideas, a U.S. digital health-care agency.
Interactive Solutions, a digital agency in Poland.
Jana Mobile, a Boston-based mobile technology startup; $15 million investment.
Neev, a technology services provider in India specializing in e-commerce, software as a service and cloud applications across web, social and mobile. Publicis aligned Neev with Razorfish; the deal marked the launch of the Razorfish brand in India. Neev was founded in 2005 and employed 250 people at time of acquisition. In announcing the deal, Publicis said: "Year on year, Neev has increased revenues on average 45 percent since 2007."
Poke, a digital agency in the U.K.
Synergize, a digital-marketing agency in South Africa.
TPM Communications, an agency in Canada specializing in digital, video and events.
Verilogue, a U.S. venture focused on medical data analytics and specializing in physician-patient communications.
Zenith Romania, a communications and media agency in Romania.
Publicis in 2013 also acquired majority ownership in some agencies that had long-standing partnerships with the company's major agencies.
2012 deals included:
Main 2012 acquisitions:
Publicis in July 2012 purchased the remaining 51% stake in Bartle Bogle Hegarty, a London-based agency. Publicis acquired its initial 49% stake when Publicis bought Bcom3 Group in 2002. Leo Burnett Worldwide, part of Bcom3, had acquired that 49% interest in 1997.
Publicis reported the acquisition cost of BBH at 214 million euros ($269 million), including the fair value of its previously held stake and the price paid for the additional 51% stake.
In a separate transaction in July 2012, Publicis acquired 100% of BBH's Brazilian affiliate, Neogama/BBH, purchasing 34% from BBH and 66% from the agency's founder and his partners.
Publicis reported the acquisition cost of Neogama at 111 million euros ($140 million), including the price paid for the agency as well as earn outs payable to the agency's founder and his partners.
Taterka, a Brazilian agency, additional equity stake taken in November 2012.
CNC, a German-based network of agencies in strategic consulting and communications, acquired in July 2012.
BBR Group, a communications group in Israel, acquired in June 2012.
Pixelpark, a digital-communications group in Germany (now part of the Publicis Worldwide network), acquired following a February 2012 tender offer.
Other 2012 acquisitions:
Mediagong, a digital agency in France.
Creative Factory, a Moscow-based marketing, digital and production firm (now part of the Saatchi & Saatchi network).
U-Link Business Solutions Co., a health-care agency in China, as well as King Harvests and Luminous, specialized marketing agencies in China and Singapore.
Flip Media, a network of digital agencies in the Middle East.
Indigo Consulting, a full-service agency based in Mumbai, India; it became part of the Leo Burnett network.
Longtuo, a Beijing-based digital marketing company (rebranded as Razorfish Longtuo China).
Zoom Advertising, a subsidiary of Ramallah-based Massar Group, giving Publicis a 20% stake in a Palestine-based communications venture. (Rebranded as Publicis Zoom, part of the Publicis Worldwide network.)
Resultrix, an India-based digital services agency.
Arachnid, a digital agency in Malaysia.
AR New York, a luxury-market agency in New York; it became part of the Publicis Worldwide network.
iStrat, an integrated digital services agency in India, and Market Gate, a marketing and strategy consultancy in India.
Outside Line, a U.K.-based social-media and experiential-marketing agency.
Monterosa, a mobile-marketing agency in Sweden; it became part of the BBH network.
Rokkan, a New York-based digital agency.
2011 deals included:
Big Fuel, a New York-based social-media agency.
Talent Group, a major independent agency firm in Brazil. Publicis in April 2011 raised its interest to 60%. Publicis bought its initial 49% stake in Talent in 2010.
DPZ, an ad agency based in Sao Paulo, Brazil. Publicis in July 2011 bought 70% of DPZ. At the time of the acquisition, Publicis said it could increase its ownership to 100% over the following two or three years. DPZ kept its name and operated within Publicis Groupe on a stand-alone basis. Founded in 1968, DPZ had about 230 employees at time of acquisition. Publicis said the agency had seen double-digit organic growth over the past three years prior to acquisition, with 2011 revenue expected to reach 40 million euros.
GP7, a Sao Paulo-based ad agency, acquired in April 2011. The agency had 40 employees at the time of acquisition. The agency was founded in 2004. Publicis renamed the agency Publicis Red Lion, aligning it with the Publicis Worldwide network.
Tailor Made, a Brazilian independent advertising agency; Publicis acquired a minority stake in April 2011 with the option to increase its holding to 100% by 2013. Publicis integrated the agency into Leo Burnett Brazil, which was renamed Leo Burnett Tailor Made. (Publicis in August 2010 bought another Brazilian agency, digital shop AG2.)
Genedigi Group, a public-relations and marketing-communications agency in China, acquired in June 2011. Publicis aligned Genedigi with MSL Group. Founded in 1997, Genedigi Group as of June 2011 employed 400 communications professionals across PR, event marketing, digital marketing and an in-house market research center.
Investments and minority stakes include:
Burrell Communications Group (U.S. African-American agency, 49.0%).
Dentsu Razorfish (Japanese digital agency, 19.35%).
Jana Mobile (mobile technology startup, 23.62%).
Matomy Media Group, a performance-based digital-marketing firm based in Israel, 24.9% stake acquired in October 2014 and November 2014. Publicis in April 2011 sold its 56% stake in U.K. PR firm Freud Communications back to Chairman Matthew Freud.
Interpublic investment:
Publicis sold its 1.13% stake in Interpublic Group of Cos. between Dec. 9 and Dec. 23, 2013. Publicis' historic carrying price for Interpublic shares was $3.87 a share. The average listed share price between Dec. 9 and Dec. 23, 2013, was $16.74. Publicis scored a capital gain of 47 million euros ($64.52 million) on the sale. The Interpublic stock was a holdover from an investment Publicis made in Foote, Cone & Belding Communications in 1988 as part of a later-aborted global alliance with FCB; Interpublic bought True North Communications (parent of FCB) in 2001.
Termination of Publicis Omnicom Group merger:
Paris-based Publicis and New York-based Omnicom Group in July 2013 announced plans to merge into the world's biggest agency firm, Publicis Omnicom Group. Publicis at the time ranked No. 3 among agency companies based on worldwide revenue; Omnicom ranked No. 2.
Publicis' registration document for year ended December 2013 said: “This merger of equals, which is scheduled to be completed in 2014, will create the world leader in communications, advertising, marketing and digital services."
The companies on May 8, 2014, terminated the deal, citing "difficulties in completing the transaction within a reasonable timeframe."
Publicis and Omnicom originally expected to complete the merger in fourth-quarter 2013 or first-quarter 2014, but the deal as of May 2014 still needed regulatory approval in China and agreement on tax issues in France, the U.K. and the Netherlands. The companies also disagreed on how to fill top management posts in what had been billed as a "merger of equals."
Publicis Omnicom Group N.V., a newly formed Dutch holding company, would have had its "official seat" in Amsterdam and "operational headquarters located in Paris, France, and New York," according to Omnicom regulatory filings, though the company's “principal place of business" would be in the U.K., under terms of the merger. The merged company would have "exclusive tax residency in the United Kingdom," according to an Omnicom regulatory filing in April 2014.
Michael O'Brien, Omnicom senior VP-general counsel, said on Omnicom's April 2014 earnings call: "The new company is to be incorporated in the Netherlands. The agreements require that Publicis Omnicom's principal place of business be in the United Kingdom. ... Our agreements with Publicis require that the new company be a tax resident of the United Kingdom."
Management and employees:
Publicis at year end employed 63,621 people worldwide (22,030 in North America) in 2014; 62,533 people worldwide (20,834 in North America) in 2013; 57,500 people worldwide (18,711 in U.S. and 19,548 in North America) in 2012; 53,807 people worldwide (17,965 in the U.S. and 18,797 in North America) in 2011; 48,531 (17,306 in North America) in 2010; and 45,402 (14,215 in North America) in 2009.
The company at year end employed 44,727 people worldwide in 2008 and 43,808 in 2007.
Stock:
Publicis listed on the Paris stock exchange in June 1970.
The company added a listing on the New York Stock Exchange in September 2000. Publicis ended its New York Stock Exchange listing in 2007.
Biggest shareholder:
Publicis Groupe's biggest shareholder is Elizabeth Badinter, daughter of the company's founder, Marcel Bleustein-Blanchet.
Badinter and her family owned a 7.58% equity stake and had 13.88% of voting rights as of March 2015. The family had held an equity stake of 8.67% and voting rights of 15.87% before a March 2015 stock buyback by Publicis.
Badinter's equity stake has fallen in recent years. Publicis in February 2012 said Badinter held 10.99% of the shares and 19.92% of the voting rights of Publicis.
Dentsu relationship:
Publicis on Feb. 17, 2012, bought back 18 million Publicis shares owned by Dentsu Inc. for 644.4 million euros ($840.3 million) or 35.80 euros ($46.68 million) a share. The buyback, which had been expected, ended a strategic alliance in place since 2002 (when Publicis bought Dentsu-backed Bcom3 Group, the then-parent of Leo Burnett and Starcom MediaVest).
In a statement at that time, Dentsu Inc. said the sale of its big Publicis stake marked the end of three agreements: a shareholders' pact with Publicis; a strategic alliance with Publicis; and a shareholders' agreement with Elisabeth Badinter. “As a result of this termination, Dentsu and Ms. Badinter will no longer act in concert," the statement said.
In announcing that buyback, Publicis said: “The friendly relationship and collaboration between the two groups will continue. Firstly, Dentsu holds 2.12% of the shares of Publicis Groupe S.A. (following the share cancellation). Secondly, the two joint ventures between Dentsu and Publicis Groupe will continue in the same form and with the same shareholdings as previously (Beacon Communications and Dentsu Razorfish owned respectively 66% and 19.35% by Publicis Groupe). Moreover, partnerships related to specific clients that the two groups have in common will continue, in the clients' interests."
Publicis on Feb. 15, 2013, bought back Dentsu Inc.'s remaining approximately 3.9 million Publicis shares for 181.4 million euros ($242.9 million).
Publicis said in its announcement of that share buyback: “The two groups will continue to consider all opportunities for collaboration and to maintain cooperative relations, and the two [Japan-based] joint ventures between Dentsu and Publicis Groupe (Beacon Communications and Dentsu Razorfish) are expected to continue without change."
In its February 2013 announcement of the Publicis share sale, Dentsu Inc. said: “Dentsu and Publicis will continue to proactively consider all opportunities for future collaboration on their individual merits. Moreover, there will be no changes to the management structure or the management policies of the two companies established jointly by Dentsu and Publicis: Beacon Communications (Head Office: Tokyo; established in January 2001) and Dentsu Razorfish (Head Office: Tokyo; established in April 2001)."
History:
Publicis Groupe was founded in 1926 by Marcel Bleustein-Blanchet. Bleustein-Blanchet died April 11, 1996. He was chairman of the supervisory board at the time of his death.
The company's name comes from the combination of “Publ" (for “Publicité," which is “advertising" in French) and “six" (for 1926).
Top executive: Maurice Levy, chairman and CEO; Jean-Michel Etienne, executive VP and CFO
Headquarters: Publicis Groupe/133 Ave. des Champs-Elysees, Paris, 75008/Phone: 331-4443-7000
Facebook: https://www.facebook.com/publicisgroupe
Twitter: @PublicisGroupe
http://publicisgroupe.com/#/en