The accelerated adoption of artificial intelligence, in parallel with the extensive use of cloud solutions and outsourced IT infrastructures, is significantly expanding the Groupe’s potential attack surface. This development raises increased challenges in terms of securing data and tools, increasing the complexity of protecting these systems against intrusions and threats.
In addition, vulnerability to internal risks, caused by untrained or poorly informed personnel, can lead to the unintentional disclosure of sensitive information. Internal malicious acts, although rare, can also seriously damage the Groupe's reputation.
Risk management
In response to these risks, the Groupe is implementing remediation and resilience strategies, including rigorous security policies, ongoing employee training, regular security audits and well‑established incident response plans. Compliance with evolving regulations is also a top priority to minimize non‑compliance risks and potential fines.
The adoption of regular maintenance practices and systematic application of security updates are crucial to prevent vulnerabilities. In addition, remote working requires special attention to the security of domestic networks and secure remote access to the Groupe’s information systems.
The Groupe also assesses and mitigates supply chain risks, ensuring that suppliers and partners comply with strict security standards to prevent cross‑functional attacks.
Faced with an increase in phishing and social engineering attacks, the Groupe is implementing proactive strategies to safeguard its reputation and ensure internal security, sensitizing our teams on best practices in vigilance and digital security.
These measures aim to minimize the potential impacts of cybercrime and systemic failures, remediation costs, revenue losses and damage to the Groupe’s reputation.
4. Risks associated with client portfolios
Description of the risk
Contracts may be challenged easily: clients are free to terminate their contracts after a relatively short notice period. In addition, unfavorable economic conditions could lead to more frequent contract renegotiations.
Moreover, competitive bids for advertising and media contracts with the Groupe's clients may occur at shorter intervals.
There is also a trend towards operating on a project‑by‑project basis, a gradual reduction in the number of agencies working with a client, and to a certain extent, the concentration of advertising budgets among a few leading agencies. The internalization of some activities may impact our ability to retain clients. These factors heighten the risk that a single event affecting a key client could have substantial repercussions.
A significant percentage of the Groupe’s revenue is derived from its major clients. In 2023, the Groupe’s top 5, 10, 30 and 100 clients accounted respectively for 12%, 20%, 37% and 58% of the Groupe’s consolidated revenue (see also Section 6.6 “Notes to the consolidated financial statements,” Note 30 “Risk management”).
One or several large clients may decide either to switch advertising and communication agencies, or to curtail their spending on advertising, or even suspend it, at any time, with relatively short notice, and without having to justify it.
A substantial decline in the advertising and communication spending of the largest clients, or the loss of any of these accounts, could have a negative impact on the Groupe.
Risk management
The Groupe adapts its offering and strives to anticipate and meet the marketing and digital transformation needs of its clients. In terms of offering, in addition to its historical activities in creativity, production and media, the Groupe has invested in digital activities, digital transformation and data. The Groupe has also adapted its internal organization and has moved from a holding company to a platform. Publicis has also realigned its operations according to a country‑based organization system with shared services for better process and cost optimization. Clients, via Groupe Client Leaders, can thus benefit from all of the Groupe’s expertise, and in particular the “Power of One,” which has enabled us to strengthen the collaboration of talent to better meet their needs.
The Groupe’s client portfolio is diversified and representative of the global economy. A large proportion of the Groupe’s revenue comes from loyal clients, which demonstrates the Groupe’s ability to support them over time.
In addition, the Groupe retains a leading position in the New Business ranking.