Publicis Groupe SA mentioned natural income grew 10% in 2021 in contrast with 2020 and rose 3% over the pre-pandemic yr of 2019 as entrepreneurs spent extra on companies in first-party information administration, digital media, commerce and enterprise transformation.
The Paris-based promoting holding firm, which owns companies similar to Saatchi & Saatchi, Leo Burnett and Zenith, mentioned 2021 served as a interval of rebound after its enterprise with entrepreneurs was closely impacted by the pandemic in 2020.
Publicis mentioned it expects to ship natural income progress between 4% and 5% in 2022. Natural income strips out the results of foreign money fluctuations, acquisitions and disposals.
The corporate helps entrepreneurs handle what Chief Govt Arthur Sadoun known as the 2 greatest disruptions going through them: “the shift from cookies to identification and the shift from paid to owned media.”
Alphabet Inc.’s Google plans to dam the user-tracking know-how known as third-party cookies in its Chrome browser beginning subsequent yr, driving many entrepreneurs to hunt different means to focus on clients. Social media, commerce platforms and branded content material have given manufacturers new potential paths to succeed in clients, in the meantime, as audiences decline for some paid advert channels similar to conventional TV commercials.
Publicis’s income for 2021 was €11.74 billion, equal to $13.27 billion, up 8.8% from €10.79 billion in 2020. Publicis mentioned fourth-quarter natural income grew 9.3% in comparison with the quarter a yr earlier and elevated 5% from the identical quarter in 2019.
The corporate’s outcomes come forward of earnings reviews from promoting holding firm friends like Interpublic Group of Cos. and Omnicom Group Inc.
The trade is experiencing progress accelerated by the pandemic after a interval of stagnation between 2016 and 2020 attributable to elements together with pricing stress and elevated competitors, UBS Analysis mentioned in a word final month.
“Arguably during the last 12 months, trade progress has shocked positively pushed by sturdy demand for media…and an acceleration of demand for non-communications companies similar to e-commerce, know-how, expertise, information and enterprise transformation,” the UBS word mentioned.
This story has been revealed from a wire company feed with out modifications to the textual content
Supply: Live Mint