High ✓ Medium Low
The advertising and communication sectors are particularly sensitive to changes in the activity of advertisers. Economic downturns can have a more severe impact on the advertising, communications and consulting industries than on other sectors, in particular because many companies respond to a slowdown in economic activity by reducing their communications and consulting budgets, which could have an adverse effect on the Groupe.
High ✓ Medium Low
The advertising and communications industry is very competitive and is expected to remain so. The Groupe’s competitors are of all sizes and types, and range from large multinational companies, including Internet giants capturing an ever-increasing share of the advertising market, to smaller agencies that operate in local or regional markets. New players such as systems integrators, database design and management specialists, telemarketing and web-based companies now have access to technical solutions that respond to clients’ specific marketing and communications needs. Such players have the potential to up-end the competitive landscape in the advertising and communications industry more sharply and quickly than in many other industries. The Groupe must compete with these companies and agencies in order to maintain existing client relationships and to win new clients and accounts. Increased competition could have a negative impact on the Groupe’s revenue and earnings.
High ✓ Medium Low
Changes to regulations and market practices on the management of personal data may disrupt the advertising industry, in particular with the end of third-party cookies. The expansion of programmatic buying, digital media and Internet giants could lead to the disintermediation of part of the Groupe’s activities. Finally, the disruption of some of the Groupe’s major clients impacts their needs and therefore the services that the Groupe provides to them. If the Groupe is unable to provide its clients with the best possible scale-up service in a timely manner, its financial position and results could be affected.
High ✓ Medium Low
The health and well-being of employees is at the heart of the Groupe’s concerns. The Groupe’s talent face health and psychosocial risks related to the Covid-19 epidemic. They may also be exposed to other risks that may affect them physically or morally.
The advertising and communications industry is known for high mobility among its management and talent. In addition, the Groupe’s new competitors, particularly technology and Internet companies, may attract profiles that the Groupe would like to recruit or retain. The loss of some of them could hurt the Groupe. The Groupe’s success very largely depends on the talent and expertise of its teams as well as on the strength of its relationships with clients.
In an environment in which digital expertise is central to organization transformation, the Groupe’s businesses are seeing significant staff turnover, something that may represent a risk if not sufficiently anticipated.
In 2020, societal issues related to diversity, equality and inclusion have become a priority in the advertising and communications sector. The Groupe has drawn up ambitious action plans, particularly in the United States. The risk of non-execution of these plans within the allotted time could lead to the departure of certain talent and harm the Groupe’s image as an employer.
If the Groupe were no longer able to actively attract and retain and motivate valuable managers or employees, its prospects, business, financial position and results could be very adversely affected.
