2019 Annual financial report

Chapter 1. Presentation of the group

In 2019, Epsilon became our sole data-tech platform. To offer personalization at scale , the Publicis PeopleCloud platform and related businesses and services were folded into Epsilon. The Group will tap into the data-marketing giant’s know-how in gathering, enriching and leveraging raw first-party data, as well as its suite of vertical expertise, putting Epsilon at the heart of the Group’s business.

All our data expertise is brought together under the one umbrella to provide insights for all the Group’s business.

Technology/Digital business transformation

Publicis Sapientis Publicis Groupe’s technological, digital and consulting platform, enabling our clients to accelerate their digital transformation drawing on the expertise of a 20,000-strong team.

Since 2018, Publicis Sapient is organized on the basis of “Industry verticals” to bring together sector expertise and provide insight into the challenges and opportunities to grow and transform, and offer our clients the know-how that will ensure their success. The eight Industry Verticals are automotive, consumer products, energy and raw materials, retail, financial services, healthcare, media-telecoms, and travel & hospitality.

In the second half of 2019, Publicis Groupe reorganized Publicis Sapient’s North American business to focus on digital business transformation,its highest growth segment. It combined the digital marketing services offered by its creative brand names under the Razorfish brand name.

Dedicated expertise in healthcare

Publicis Groupe moved very quickly to establish a specialised businessin healthcare, with several flagship brands, including Digitas Health (DH) and Publicis Health Media (PHM). These brands, specializing in media for the healthcare and well-being sector, created a holistic model by combining their expertise with the Group’s media networks, and In-sync Consumer Insight, which brings in-depth knowledge of patients, healthcare professionals and payer organizations, providing strong differentiation. Publicis Health covers all of its customer needs, from product launch to its change to a generic product, by offering digital and marketing solutions

Healthcare communications is concerned with the pharmaceutical industry, institutes, hospitals and insurance companies, as well as companies producing consumer goods aimed at health and well-being. It impacts healthcare professionals, public authorities and the general public. Healthcare communications encompass a whole series of actions from design up to product maturity: advice prior to launching a product onto the market, communications tools (publicity, direct marketing, digital, prospection calling, etc.), medical training, scientific communications, public relations and events.

We therefore reshaped our organization and structure in line with client challenges in a client-centered model. The Group serves its clients through a unified and fluid organization that not only catalyzes emulation of best practice, but also helps to generate synergies across all our specialist fields in a bid to optimize the client journey and deliver the best possible results in all our key markets.

Group organization

Group country organization

To provide a single offering in each country combining all the Group’s areas of expertise, Publicis has defined 10 key markets: the United States, United Kingdom, France, DACH (Germany, Austria and Switzerland), Asia-Pacific & Africa-Middle East, Northern and Central Europe, Southern Europe, Canada, Latin America ex-Brazil, and Brazil. This country-based organizational structure breaks down silos so we can provide our clients with an integrated solution that is seamless and innovative, born out of the alchemy between creativity, media, data and technology. These 10 countries or regions are each run or supervised by a single person and overseen day-to-day by a single Executive Committee. They span multiple solutions, have shared support functions and are geared up to offer our clients a broad-based solution that meets their needs

Because of its scale and its outsize contribution to net revenue (almost 60%), a specific organization is in place in the United States. As announced in July 2019, we have a new Executive Committee in the US, chaired by Arthur Sadoun and with a team that brings together the Group’s four core services: creative, media, data and technology. This body is tasked with overseeing governance in the United States, accelerating implementation of Group strategy through the power of all our expertise combined into a single offering, and ramping up revenue synergies through cross-fertilization of our brands.

Groupe Client Leaders

Clients have always been central to the Publicis Groupe strategy. To make sure they get the very best we have to offer, in 2016 the Group reshaped its organization around Client Leaders, dedicated to specific clients. Major clients that use Publicis Groupe services on more than one market or across a range of expert areas are each assigned a Group Client Leader (GCL). Major clients that use Publicis Groupe services in only one country or region are assigned a Country Leader.

This structure translates into an uncomplicated client relationship, managed by a single point of contact. But it is also the ideal organization to increase cross-fertilization and offer the entire array of solutions to its clients horizontally: Creative, Strategic communications and influence, Production, Media buying and strategy, Data, Commerce, Performance, Digital marketing, Digital business transformation , and Healthcare. All the services offered to a client are consolidated in a single income statement, managed by the Group Client Leader.

The GCL’s role is a key one: establish closer, lasting relations between the Group and its clients, across all our services and wherever they are in the world. They also orchestrate access to the diverse range of talent and expertise on offer in Publicis to simplify how client relations are organized.