Read the internal memo where Publicis Groupe CEO encourages staff after a disastrous third quarter
- Publicis Groupe, the world's third-largest ad holding company, had a disastrous third quarter, with the stock price dropping 14% and organic growth in North America down 3.6%.
- These results came despite new business wins that put the company at or near the top of the industry.
- Publicis CEO Arthur Sadoun sent an internal memo to agency leaders around the world on November 12 citing victories in reviews for AXA, Nivea and Danone.
- The CEO noted that Publicis beat out rivals WPP, Omnicom, and IPG, as well as consultancy Accenture, to win these accounts.
- He also wrote that the company has to turn new business into organic growth in 2020, though.
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The world's third-largest ad holding company Publicis Groupe had a disastrous third quarter.
The stock price dropped by more than 14% in Europe last month after the business saw organic growth in North America slide 3.6% for the quarter, leading it to cut its yearly guidance.
These developments came despite a string of recent new business wins that put Publicis agencies at or near the top among global holding company rankings issued by management consultancy R3. All the major holding companies have struggled in North America, but some analysts said Publicis is particularly struggling to deliver on its $4 billion acquisition of data firm Epsilon about six months ago.
In an internal memo obtained by Business Insider, CEO Arthur Sadoun cited several recent wins and said 2020 "has to be the year where we transform [these wins] into organic growth."
Sadoun highlighted recent wins over rival holding companies and Accenture, implying that new business will translate into growth next year
The memo went to leaders at Publicis agencies around the world November 12.
Sadoun also highlighted several recent new clients including European insurance giant AXA, German personal care brand Nivea, and food conglomerate Danone, which awarded Publicis a share of its business in China.
He noted that Publicis beat out rivals WPP, Omnicom, and IPG in these reviews, as well as consultancy Accenture, which is competing hard for traditional ad agencies' business.
The Nivea win will lead to the opening of a dedicated agency called In Touch, and Sadoun wrote that it proved out Publicis' model linking "data, creativity and technology."
Publicis also recently won a large portion of Disney's global media buying business, and November 13, Align Technology, parent company of Invisalign, confirmed a Business Insider report that it chose Publicis as global agency of record for that brand.
A Publicis Groupe representative declined to comment on the memo, which went out yesterday under the subject line "New Business News" and opened with the CEO's signature "Bonjour."
Read the full memo below.
