Azlan Raj’s Post

Signals of Hope The latest results from Publicis show some signals of hope that despite the extremely challenging environment, the company has raised its guidance for performance in the coming quarters. Why? 1. It's winning new business and keeps winning 2. Data and Media offering - the combination of the two is proving irresistible to clients who are undergoing data transformations 3. AI- Publicis believes it has something unique to offer clients in this area with proprietary data, tech, and talent to help partner client transformations Creative now represents roughly 1/3td of the company's business and is reported as being stable, but highly dependent on client budgets which reading between the lines appear to be uncertain and highly dependent on economic conditions. The big picture is that Publicis has transformed itself into a media and data company, and these parts of the business are contributing to its growth. So much so, that it can now claim to have shifted from being merely a communication partner for clients to becoming their "transformation partner". What this suggests for creative agencies, and perhaps for Publicis itself, is the question of how to tie creative more closely into transformation. Does creativity always have to be about advertising? Without connecting the two, you are subject to the client's desire to spend based on the vagaries of the economy and other macro factors. https://lnkd.in/etayyTbs

Publicis Groupe was an early adopter of blowing up brands and collapsing silos into a reintegrated single P&L model. Now global growth is powering ahead of rivals – and other major holdcos are racing to similarly consolidate in a bid for end-to-end capability and de-duplicated overheads. Locally the firm has worked through the pain some of its transforming peers are now experiencing and practice chiefs – Dave Bowman (creative), Maurice Riley (data) and Imogen Hewitt (media) – are tasked with accelerating results. Their first full financial year as a triumvirate looks bumpy, given wider market sentiment, but they say economic pressure favours an integrated model as brands seek fewer partners and reduced overlap in a bid to do more with less – and means staff hone much broader capability amid a rapidly shifting environment.

2023 was an exceptional year for Publicis Groupe! So proud to be a part of this powerhouse: - Full year 2023 net revenue organic growth at +6.3% with stronger than expected Q4 at +5.7% - Industry-leading financial ratios: 18.0% operating margin rate; headline EPS up - +10% at €6.96; adjusted free cash flow at €1.7bn[1] - #1 rank in new business over the last 5 years[2]  - 2023 proposed dividend at €3.40 per share, fully paid in cash - Confident in outperforming in 2024, despite macroeconomic challenges: - Organic growth expected at +4% to +5% - Operating margin rate at 18% - Free cash flow between €1.8 and €1.9b Read the full press release here:

Reflecting on 2023, it's evident that the media landscape is evolving rapidly. I've seen how last year's performance disparities among the "big six" have profound implications for the talent they employ, the driving force behind these companies. Resilience and adaptability emerged as key themes, especially as WPP, Dentsu, and Interpublic navigated significant hurdles. In contrast, companies like Publicis Groupe, Omnicom, and Havas not only met but exceeded their growth targets, demonstrating the power of strategic foresight. At the heart of these lessons is Publicis Groupe, which embarked on its transformation journey ahead of the curve. Their early commitment to digital transformation and AI set a benchmark for the industry, showcasing the tangible benefits of forward-thinking and investment in innovation. The strategic adjustments across the board, from WPP's consolidation and tech investments to Dentsu's focused restructuring, underscore the importance of agility. These strategies are not just about immediate recovery but about redefining our growth trajectory for the long term. As we enter 2024, the focus on AI and digital transformation presents unparalleled opportunities for talent within the industry. The push towards these technologies, especially by pioneers like Publicis Groupe, highlights the evolving skill sets required to stay relevant and competitive. Publicis Groupe's journey and success serve as a testament to the transformative power of early and strategic adaptation, but is this setting a path for all of us in the industry to follow? #media #mediainsights #mediaagency

Omnicom Hits an All-Time High! Big news in marketing: Omnicom Group's share price has soared to a record $104, reflecting a 33% growth over the past five years and pushing its market cap to $20BN. That’s an impressive 14x multiple on LTM profits! Key Factors Behind Omnicom’s Surge: Strategic Acquisitions ✅ Commerce & Retail Media: The $835M acquisition of Flywheel has empowered Omnicom to tap into retail media, connecting advertisers with consumers at key shopping moments. ✅ Creative & Content Strength: Acquisitions like Coffee & TV and Grabarz & Partners have enhanced their ability to support brands engage with their consumers in effective ways. Effective Organizational Design ✅ Omnicom has consolidated its creative assets under Omnicom Advertising Group while preserving individual brand identities. ✅ This model supports agency cultures and attracts top talent, while enabling synergies through centralised functions like data & analytics, and shared sales resources. Parallel to Publicis Groupe's Success - just off all-time highs. ✅ Strategic acquisitions like Sapient and Epsilon, positioning them as leaders in digital transformation and data-driven experiences with recent additions like Yieldify (martech), CitrusAd (adtech), and Influential (AI-powered influencer marketing) further strengthen their portfolio. ✅ Publicis’ "Power of One" structure has driven similar growth and efficiency. Notably, not all marketing groups are experiencing the same success. Companies like Stagwell, S4 Capital, Cheil Worldwide, WPP, and IPG are still below their all-time highs. Some considerably so. #Omnicom #Marketing #RetailMedia #MergersAndAcquisitions #Publicis #MilestoneAdvisory #Growth

Thank you Fast Company Executive Board for including me in, "14 methods to boost business-client engagement in the digital age." https://lnkd.in/g2299jhR As the e-commerce system continues to evolve, brand leaders can no longer afford to sit on the sidelines if they want to see their companies thrive. //// NURTURE ONE-ON-ONE RELATIONSHIPS ////  Digital community engagement builds one-on-one relationships, fosters loyalty, and drives customer retention. A connected community is a treasure trove of insights, innovation, product development, and customer service improvements. Some of the world’s most beloved brands have the most connected communities via online groups, social, and “IRL” events fueling community connection, fandom, and business growth. – Val Vacante, dentsu Excellent perspective included from industry leaders Whynde Kuehn, Nina Ojeda, Solomon ☔️ Thimothy, Kristin M., Stephanie Harris, Matt Tengwall, Barry Lowenthal, Chad Engelgau, Frederik Bussler, Maria A. Zain Jaffer, Christena Garduno, Dan S. 📖 Check out the full article >> https://lnkd.in/g2299jhR dentsu dentsu X Merkle Carat USA iProspect Dentsu Creative Tag #InnovatingToImpact #CustomerEngagement #DigitalMarketing #BusinessGrowth #IntelligentMessaging

𝗠𝘆 𝗧𝗮𝗸𝗲 𝗼𝗻 𝘁𝗵𝗲 𝗣𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝗢𝗺𝗻𝗶𝗰𝗼𝗺-𝗜𝗣𝗚 𝗠𝗲𝗿𝗴𝗲𝗿 The last time Omnicom attempted a major merger (with Publicis in 2013-14), we lived in a world where "data-first" and AI were still on the horizon. That deal surprised many—not just for its financial implications, but for the reasons it ultimately failed: personality clashes, leadership struggles, and cultural differences. Fast forward to 2024, and we’re in a completely different era. Data, tech, and AI now dominate advertising, marketing, and media. So, when news of this potential merger broke, most of us in the industry collectively went… “Well, this wasn’t on our bingo cards.” If this deal goes through, it has the potential to reshape the advertising landscape. For clients, it brings both opportunities and challenges. Here’s my take: 𝗧𝗵𝗲 𝗚𝗼𝗼𝗱: 𝗗𝗮𝘁𝗮 & 𝗦𝗰𝗮𝗹𝗲: The combined entity could unlock unmatched data integration and insights, driving precision targeting and more effective campaigns. 𝗙𝘂𝗹𝗹-𝗦𝘁𝗮𝗰𝗸 𝗦𝗼𝗹𝘂𝘁𝗶𝗼𝗻𝘀: Merging creative, media, and analytics under one roof could streamline workflows and deliver better results. 𝗧𝗵𝗲 𝗕𝗮𝗱: 𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗶𝗼𝗻 𝗛𝘂𝗿𝗱𝗹𝗲𝘀: Combining technologies, cultures, and operations on this scale is no small feat. It could take years to iron out the wrinkles. 𝗖𝗹𝗶𝗲𝗻𝘁 𝗖𝗼𝗻𝗳𝗹𝗶𝗰𝘁𝘀: Overlapping accounts will inevitably cause friction. 𝗧𝗵𝗲 𝗨𝗴𝗹𝘆 Headcount Optimization: Layoffs are a certainty, as redundancies are almost always part of these deals. 𝗣𝘂𝗯𝗹𝗶𝗰𝗶𝘀 𝗙𝗧𝗪: While Omnicom and IPG navigate the chaos of integration, Publicis is positioned to pounce. Their pitch is simple: “Why be part of an experiment when you can come to us? We’re already firing on all cylinders—data, AI, and tech included.” This isn’t just a reshuffling of the deck; it’s an opportunity for Publicis to deal the winning hand...if they play this smartly. #Omnicom #IPG #M&A #Media #Advertising #Publicis #Marketing #AdTech #MarTech #Data #AI #Programmatic #CMO 

“As is true with France, all roads run through Paris”... With retaining a core focus for its communication origins but placing big bets on technology (via Publicis Sapient) and data led modelling (Epsilon), Publicis Groupe has separated from the pack and is now leading the way across the marketing landscape. A very interesting read. #transformation #proud #gamechanging #leadership #communication #digital #media #publicisgroupe #digitaltransformation #loyalty #data #shareprice #businesstransformation #businessperformance

Ok. Omnicom + IPG acquisition. My thoughts: (1) Networks will continue to commoditize. In the grand scheme it's not going to make much difference. The management consultancies are still going to continue to erode revenue from networks as they have for over a decade now and networks will continue to act shy of the C-Suite and allow themselves to continue commoditizing their services. (2) Boutiques will not boom. Those looking for specialized services, who prefer the vibe of a boutique or have personal connections at one will continue to use boutiques. A major bank or telco is still going to go with a scale agency who can field a large team immediately vs taking a risk with the scale-up promises of a smaller shop. No one is going to risk a career over that. (3) Noise. There's going to be a lot of noise. Omnicom will talk about efficiencies, scale, investment. They'll launch some branded tech-driven HR efficiency play, similar to what Publicis did the last time Omnicom failed to make a similar play happen. Independents will wave the freak flag a little higher. Memes will be created. (4) New acronyms. If you thought VMLY&R was ridiculous, wait until the FCBBDODDB press release makes its way to your inbox.

Great news: Forrester scored Omnicom Media Group highest in their Forrester Wave report due to our tech strategy, use of data, integration of media and content, and audience-first marketing. According to them, our bespoke platform Omni is at the core of our success, combining tools for media planning, AI-assistants, data and end-to-end marketing, ensuring better cooperation between media, content and commerce. Marketing Report also shared the story, please see the link below. Want to know more about our capabilities on that front? Let us know! https://lnkd.in/eCiSQRKM #data #tech #analytics #Omni #marketing