Arthur Sadoun.
Advertising industry market leader Publicis Groupe is more interested in enhancing its data and AI capabilities than acquiring new business, according to comments made by CEO Arthur Sadoun.
He told a Bank of America investment day that Publicis was only interested in buying capabilities in data, technology and AI that will “enable us to continue to outperform the market” and deliver value to clients.
"We are not interested in consolidating more of the same for the sake of efficiencies," the head of the France-based group said in response to questions.
“Our transformation allows us to deliver AI-powered marketing to our clients and 100% of our investment is focused on accelerating even further in that direction."
Dentsu has hired investment banks Mitsubishi UFJ Morgan Stanley and Nomura Securities to look at what to do, including a possible sale, with its underperforming international advertising business. No decisions have been made.
The Japan-based part of dentsu's business, making up 42% of net revenue, is doing well, posting 5.3% organic growth in the half year to June.
But the international component, including a -8.9% slide in Asia-Pacific, dragged the company down to negative 0.2%.
Publics Groupe is at the top of the global advertising league, in July lifting its outlook for the full year after posting stronger than expected 10% growth with organic revenue at 5.4% in the June quarter.
Sadoun also told the Bank of America conference that Publicis had a good northern summer.
“The marketing cuts that we have discussed in Q2 did not appear,” he said
At last report, Publicis shares were up 1.6% to 82.50 Euros.
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