2019 Annual financial report

Chapter 1. Presentation of the group

1.3.5 Main markets

Global advertising expenditures are listed in regular reports by various forecasting agencies, such as Zenith (Publicis Groupe), GroupM (WPP), Magna (Interpublic) and Nielsen. The forecast data published by these agencies reflect clients’ media buying intentions. These estimates are expressed in billings (client purchases) and do not as such represent advertising agencies’ potential revenue. A quarterly review of these reports offers insight on trends in the advertising market, even though the figures do not factor in a whole facet of advertising agencies’ business activities (public relations, direct marketing, CRM, e-commerce and e-mobile, etc.), of Publicis Sapient (digital business transformation, consumer experience, etc.) and of Epsilon (data and technology).

/ The global advertising market by geographic region

Global advertising market (2019)Advertising spend 2019
(in USD millions)(1)(2)
% of global advertising spend 2019(1)(2) % of Publicis Groupe’s net revenue 2019
North America

North America

Advertising spend 2019

(in USD millions)

(1)(2)

253,555

North America

% of global advertising spend 2019(1)(2) 

41%

North America

% of Publicis Groupe’s net revenue 2019

57%

Europe

Europe

Advertising spend 2019

(in USD millions)

(1)(2)

131,492

Europe

% of global advertising spend 2019(1)(2) 

21%

Europe

% of Publicis Groupe’s net revenue 2019

27%

Asia Pacific

Asia Pacific

Advertising spend 2019

(in USD millions)

(1)(2)

201,551

Asia Pacific

% of global advertising spend 2019(1)(2) 

32%

Asia Pacific

% of Publicis Groupe’s net revenue 2019

10%

Latin America

Latin America

Advertising spend 2019

(in USD millions)

(1)(2)

29,558

Latin America

% of global advertising spend 2019(1)(2) 

5%

Latin America

% of Publicis Groupe’s net revenue 2019

3%

Africa & Middle East

Africa & Middle East

Advertising spend 2019

(in USD millions)

(1)(2)

7,756

Africa & Middle East

% of global advertising spend 2019(1)(2) 

1%

Africa & Middle East

% of Publicis Groupe’s net revenue 2019

3%

TotalTotalAdvertising spend 2019

(in USD millions)

(1)(2)
623,912
Total% of global advertising spend 2019(1)(2) 100%Total% of Publicis Groupe’s net revenue 2019100%

(1) In current prices and at 2019 average exchange rates 

(2) Zenith forecasts for Publicis Groupe markets.

/ Geographical breakdown of Publicis Groupe’s net revenue

(in millions of euros)

(in millions of euros)2018As a%
2019
As a%
Amérique du Nord

Amérique du Nord

2018

4,795

Amérique du Nord

As a%

54%

Amérique du Nord

2019

5,516

Amérique du Nord

As a%

57%

Europe

Europe

2018

2,622

Europe

As a%

29%

Europe

2019

2,630

Europe

As a%

27%

Asie Pacifique

Asie Pacifique

2018

924

Asie Pacifique

As a%

10%

Asie Pacifique

2019

1,006

Asie Pacifique

As a%

10%

Amérique Latine

Amérique Latine

2018

347

Amérique Latine

As a%

4%

Amérique Latine

2019

326

Amérique Latine

As a%

3%

Afrique - Moyen-Orient

Afrique - Moyen-Orient

2018

281

Afrique - Moyen-Orient

As a%

3%

Afrique - Moyen-Orient

2019

322

Afrique - Moyen-Orient

As a%

3%

TotalTotal

2018

8,969
Total

As a%

100%
Total
2019
9,800
Total
As a%
100%


1.3.6 Seasonality

Clients’ advertising and communications expenditure fluctuates, often in response to actual or expected changes in consumer spending. Because consumer spending in many of the Group’s markets is typically lower at the beginning of the year, following holidays, and in July and August, the most popular vacation months in Europe and North America, advertising and communication expenditures are lower during these periods as well. As a result, advertising and communication expenditure is not as high during these periods. Historically, the Group’s revenue is often higher in the second and fourth quarters of the year than in the first and third quarters.

1.3.7 Competition

Since 2009, the Group has been ranked in third place in the global ranking of communications groups (by revenue, source: companies’ annual reports).