Credit: Amol Tyagi via Unsplash
Publicis Group, which has declared itself the largest advertising global group, has a plan to take advantage of competitor Omnicom’s takeover of IPG.
One focus is talent. In the uncertainty of a takeover, many at IPG and Omnicom will look for a move.
“If the deal goes through it will feel a bit like back to the future,” Publicis CEO Arthur Sadoun told analysts in a briefing following the announcement of full year results.
“In terms of industry dynamics, the new Omnicom will roughly match Martin Sorrell WPP in terms of size and value, meaning an industry leader with over $20 billion in revenue and in market cap.”
The deal will also push Publicis from global leader in terms of net revenue back into a challenger position which, Sadoun said, is where he likes to be.
“The key difference is that today we are stronger than ever,” he said.
"Thanks to our transformation, we now have a totally different revenue mix and assets than the new Omnicom to keep outperforming, a go-to-market that has proven its uniqueness and competitiveness and a platform organisation with a growth mindset shared by all of our people.
“This will open many opportunities for us in the future with two imminent ones in new business and in talent.”
Sadoun sees the takeover creating uncertainties for both Omnicom and IPG teams.
“Everyone there will see a choice between two radically different companies,” he said.
“On one hand, a company with three years' of hard restructuring leading to thousands of job cuts particularly in the US.
“On the other a business on the journey of growth and innovation that has repeatedly shown it will put its people first in good times and in bad with a clear ambition to stand for a Category of One in an industry that we are inventing.”
Pitching will also change.
Today more than nine out of 10 global pitches are won by the top four players in the industry.
“By moving from four to three big players, the competitive landscape will mechanically shrink by 25% as the new Omnicom will only have one seat instead of two at the global new business table, creating a landside of opportunities for us to capture thanks to our unique model,” Sadoun said.
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