NEW BIZ - Publicis
Transcription
NEW BIZ - Publicis
P U B L I C I S G R O U P E S. A. 20 00 Annual report THE CHALLENGE “ To be the very best partner of our clients....... ” …in their drive for growth and profitability summary ■THE CHANGING WORLD OF PUBLICIS 2 - Profile 4 - Editorial by Elisabeth Badinter 6 - A conversation with Maurice Lévy 10 - Corporate governance 12 - Landmarks: Key figures / Stock Market 16 - A full circle Group 18 - People in the Group ■TRENDS 19 - Dossier “All aspects of a brand” ■ON THE HORIZON 29 - Creating Value through a total relationship 30 - Publicis 2010: a total relationship ■YEAR 2000 NEWS 33 - Expertise for a brand’s value 34 - Publicis network 39 - Fallon Worldwide 40 - Saatchi & Saatchi network 42 - SAMS 43 - Nelson Communications 44 - Optimedia - Zenithmedia 45 - Burrell - Conill Advertising 46 - Publicis Dialog - Frankel 48 - Publicis Consultants 50 - Media System 52 - Publicis.Net 54 - Médias & Régies Europe 56 - The Drugstore Publicis A N N U A L R E P O R T 1 THE CHANGING WORLD OF PUBLICIS PROFILE P U B L I C I S G R O U P E S. A. A world player... • 6th largest communication group in the world • Two global networks: Publicis Worldwide and Saatchi & Saatchi Worldwide • 4th largest group for media buying in the world (Optimedia and Zenithmedia) • World’s leading network for healthcare communication (Nelson) ...listed on stockmarkets ...integrated skills serving brands • Euronext and NYSE • 139 million shares Full integration of all disciplines of communication • Market capitalization on April 30, 2001: • Advertising 5.3 billion euros • Direct marketing • Ethnic communication • Media (buying and selling of space) • Interactive communication, and more 2A N N U A L REPORT THE CHANGING WORLD OF PUBLICIS …at a glance ...A balanced and diversified portfolio of clients ….via specialized subsidiaries • 2/3 local clients • 1/3 global clients Fallon Worldwide 26 coordinated accounts in more Publicis & Hal Riney than 10 countries Frankel Publicis Dialog Publicis Consultants Media System Burrell Communications Highlights Conill Advertising Médias & Régies Europe 2000 Billings : 11.8 billion c 1999/2000 + 72.1%* 1.8 billion c 1999/2000 + 69.8% 2000 Gross margin : 334 million c 1999/2000 + 78.2% 2000 EBITDA : 128 million c 1999/2000 + 71.2% 2000 Net income (group): 20,340 staff in 102 countries and 170 offices *published accounts A N N U A L R E P O R T 3 THE CHANGING WORLD OF PUBLICIS EDITORIAL BY ELISABETH BADINTER “ Preserving our culture and roots T ” wo words–thank you–express the immense satisfaction this exceptional year has brought me. Thank you to the Management Board, to all managers and staff within the Group for having seized the opportunities of a strong market, for having given the best of themselves, for having brought Publicis well beyond our hopes. You have all contributed this year to a unique achievement: marrying strong growth and sweeping change. Elisabeth Badinter, Chairperson of the Supervisory Board This achievement shows that the driving force at Publicis springs from basic factors: the creativity that is our “raison d’être”, the quality of our people, the rigor of our management and strategic choices and the strong values embodied in each one of us, be it at headquarters or in the subsidiaries, be it within the structure or within the individual. Simple values: commitment and transparency vis-à-vis our clients, a deep respect towards our staff and independence from all forms of vested interest. When I think of the two-room office from which my father created Publicis and launched the advertising industry in France, I am proud of what we have become today: the sixth-ranking group in the world, the leading family enterprise, both French and global, in communication. We have grown without losing our spirit. Our difference, our force flow from this. Unlike other world groups, Publicis is not just a multinational, a share price. We are, above all, an enterprise of men and women in which the founder’s spirit is ever present. 4A N N U A L REPORT I am convinced that this special spirit will be maintained within the new structure that is now ours. We have doubled in size but our basic solidity has prevented any fragility. And even though we now have a global status, we remain French. No pressure or fashion can take away this French culture. Just as we have no intention of ’Frenchifying’ our subsidiaries–we respect them too much to do that–so we have no desire to change our own identity in order to adopt a way of doing things that is foreign to us. These principles are the basis of what we are going to accomplish over the coming five years. Today, we possess all the requirements to defend our place in a highly competitive marketplace. During 2001 we will work to integrate, merge and consolidate our achievements. Publicis today is a solid, well grounded group fashioned to go forward. It has achieved a fighting weight and will now develop its muscles to improve its reactions, fluency, efficacy and profitability. We cannot know what is in store for us tomorrow. However, we know that Publicis is well armed to face any economic storms with serenity, and once again take advantage of any favorable wind. To all those who have brought us this far, for their confidence and determination, I say again “Thank You”. Elisabeth Badinter A N N U A L R E P O R T 5 THE CHANGING WORLD OF PUBLICIS A CONVERSATION WITH MAURICE LÉVY “ “Year 2000 witnessed a deep and irreversible transformation at Publicis” ” Y ’ ear 2000 was a milestone in our history. Publicis experienced the kind of fundamental change known to few groups. Maurice Lévy Chairman of the Management Board Publicis Groupe S.A. You have often described 2000 as exceptional. Just how was it exceptional? Maurice Lévy - It was due, of course, in large part to the acquisition of the Saatchi & Saatchi network which confirmed the global dimension of the Group. Publicis also saw an unprecedented wave of acquisitions which saw the arrival of such marvelous agencies as Fallon, Frankel, DeWitt Media and Nelson Communications. Suddenly, the outside world took note in 2000 of all the work accomplished over five years by Publicis, the European that became global! We were able to do this because the group of Marcel Bleustein-Blanchet was solid from all points of view–on the human front, professionally, creatively and financially. It was a year also when the international financial community recognized the group's credibility, the year of our admission to the New York Stock Exchange. Not so long ago, many outside observers were asking whether Publicis' size and capital structure would enable it to exist over the long term as an independent group. The fact is that we have become a group capable of welcoming quality agencies which share our values. Allow me to underline the complete success of our acquisitions to date. 6A N N U A L REPORT THE CHANGING WORLD OF PUBLICIS I have total confidence in the ability of Publicis to once more outperform the world advertising market, despite current uncertainties about the world economy. The year has started very well for Publicis from the point of view of new business and I have no doubt about our capacity to generate satisfactory growth in earnings per share. - Publicis Group in 2000 shot up to sixth position in the world in its sector: what is your ambition now? ML - We are not engaged in any competition aimed at size or world ranking: our duty is to give the two networks sufficient size to serve our clients and to ensure a strong potential of organic growth. We have reached the respectable size we sought: now we have to proceed essentially with complementary acquisitions. I would remind you that the three drivers of our sector are globalization–we now have two world advertising networks (Publicis Worldwide and Saatchi & Saatchi) and the leading healthcare communication network in the world with Nelson Communications–the concentration of advertisers (we work for world leaders in each industry) and the integration of skills: on this point, I feel we are ahead of our competitors. Our acquisition policy has always been wise and circumscribed: with the exception of Saatchi & Saatchi, we always seek to pay for transactions in cash so as not to dilute earnings per share. Debt at the end of 2000 of one times equity gives us room to pursue an ambitious development. The year was also exceptional for new business: what do you think was the reason for this? ML - It's true that Publicis in 2000 was particularly attractive: advertisers without doubt acknowledged the dynamism, creativity and involvement of our teams. We showed we knew how to work internationally with multi-disciplinary and multicultural teams accustomed to working together: these are real teams not just collections of individuals. This characteristic was well in evidence during the competition we won for the European Central Bank's communication budget for the Euro. This has gone very smoothly. The same scenario was repeated in France during the Finance Ministry competition, which we won for the launch of the European currency. A N N U A L R E P O R T 7 THE CHANGING WORLD OF PUBLICIS A CONVERSATION WITH MAURICE LÉVY - The organic growth of Publicis over 25 years has been higher, even much higher, than the world advertising market: do you see this continuing? ML - Of course, Publicis has a major advantage: the highly satisfactory balance within our operational structure. Balance in terms of geographical spread (Europe, Asia, the Americas); balance in terms of the sectors of activity of prestigious clients; lastly, balance between international clients and local clients (working in one country). National clients, which represent nearly two-thirds of our revenues, are a source of pride and satisfaction for local agencies and help us attract the best talents. In addition, Publicis has considerable and lasting growth potential: our two networks, Publicis and Saatchi & Saatchi, are far from exhausting possibilities for collaboration with a number of big names in their countries or their worldwide sector; they have not yet exhausted the possibilities of extending the range of their services to our current big clients. And then, our leading international clients are growing stronger and we are developing with them. Then again, we now possess in Nelson Communications Worldwide the world's leading healthcare communication network: this high growth sector is only now starting to develop within Publicis. Lastly, with the launch of the Fallon network and the development of Marketing Services, we have other extremely important advantages for ensuring growth. - What are you doing in the way of training within the Group? ML - We are very attached to training because it enables the diffusion of the values in which we believe. I am particularly proud of one of our programs: Publicis Advertising Advanced Program (PAAP) which each year for the past ten years has been bringing together highly promising talent from around the world. The program participates usefully in the global spread of Publicis' work standards as well as our culture. Enterprise culture is vital but is also fragile. One cannot enforce it. It requires the adhesion of all to human and professional values. 8A N N U A L REPORT THE CHANGING WORLD OF PUBLICIS In most cases, we don’t need to restructure, to re-invent: we just need to invent. - Publicis' trademark is the word "difference", often mentioned in your speeches. What does this "Publicis Difference" consist of? ML - Let's remember that advertisers come to an agency to build their brands and gain market share via difference: we create that difference by establishing an emotional link with consumers, a link that allows them to go beyond the simple reasoning involved in the purchase. Brands need this to be distinctive, to last and to grow. Publicis understands this professional value because it is also ours: we are different from the other communication groups. Our difference stems first from our French origins: Publicis was born in a country which today still represents only 3.3% of the world advertising market. It makes one modest yet leads to a certain openness in outlook. In addition, as the Group grew in Europe, it was confronted by the cultural diversity of the Continent. It meant we learned a lot about helping a brand penetrate very different markets and how to establish a dialogue with consumers: one does not approach the Brazilian consumer in the same way as the Malaysian consumer. We have developed a method which answers the needs of brands and consumers: “holistic difference”. A brand is a whole with multiple aspects, while consumers throughout the world do not want to be considered only as statistics. These are men and women with their moods, passions, sentiments and desires. Paradoxically, our delay in going international has meant an advantage in our differentiation: our network is younger, less cluttered with burdens, structures, complex issues, “private territories” and hierarchical millstones. We can therefore take initiatives. And another difference is our family dimension. Publicis is governed by a resolutely entrepreneurial spirit. The scope for initiative is large, the organization is very decentralized with a very light management structure at the top. Publicis is a fluid and open agency. - How do you see Publicis in five years? My dream is of a structure of modelling clay, capable of moulding to the organization of each client. ML - I see it ahead of its competitors in terms of services to its clients: the client is constantly in our head and heart, we exist for his brand, his market share and his profitable growth. All this is not easy to achieve, more so as it is a wager to be won on a world scale. A N N U A L R E P O R T 9 THE CHANGING WORLD OF PUBLICIS CORPORATE GOVERNANCE Corporate governance serving the Group T he Management Board is a collegial Management Board body running the company, with very Maurice Lévy Chairman Kevin Roberts CEO Saatchi & Saatchi Bertrand Siguier Executive Vice President Publicis Worldwide Bruno Desbarats-Bollet CEO Médias & Régies Europe wide powers to act in the name of Publicis. It can call shareholders’ meetings and undertake, on the instructions of an extraordinary shareholders’ meetings, an increase or reduction of capital. The Board can also grant stock options to staff as well as issuing bonds if that is the decision of an ordinary general assembly. The chairman, or president, of the board represents the company vis-à-vis third parties. Publicis' Management Board meets at least once a month. The term of board members is four years and this can be renewed. T he Supervisory Board exercises permanent control over the actions of the Management Board. It receives a quarterly report from the Management Board and inspects the annual accounts. It chooses the members of the Management Board, establishes their remuneration, chooses the chairman, or president, of the board and appoints the members of committees. Publicis’ Supervisory Board meets at least once a quarter. The term of board members is six years and this can be renewed. Remuneration of the Boards R emuneration for members of the Supervisory Board and Management Board in 2000 was respectively 183,000 d and 1,502,320 d. 10A N N U A L REPORT Supervisory Board Elisabeth Badinter Chairperson Sophie Dulac Vice-Chairperson Monique Bercault Adviser to the CEO, Médias & Régies Europe Hélène Ploix Chairperson, Pechel Industries Robert Badinter Professor Emeritus, University of Paris I Simon Badinter Director, International Development, Médias & Régies Europe Committee whose task is to propose the Michel Cicurel Board chairman, Cie Financière Edmond de Rothschild members. Michel David-Weill Partner, Lazard Frères & Cie • an Audit Committee to supervise the Felix Rohatyn* Former US Ambassador, Paris organization and carrying out of the Group Robert L. Seelert Chairman, Saatchi & Saatchi Amaury-Daniel de Sèze Board member, BNP Paribas Henri-Calixte Suaudeau Director, Property Division, Publicis Groupe S.A. Gérard Worms President, Conseil des Commanditaires, Rothschild & Compagnie Banque *proposed to the Annual General Meeting, June 14, 2001 Two new committees T he Supervisory Board created two committees in 2000 to improve the quality of corporate governance within Publicis Groupe S.A. • an Appointments and Remuneration appointment and remuneration of the boards audit to ensure the correctness of the accounts, the standard of financial procedures and the respect of recommendations by external auditors. Audit Committee Chairman: Gérard Worms Appointments and Remuneration Committee Simon Badinter Jean-Paul Morin Chairperson: Elisabeth Badinter Gérard Pedraglio Henri-Calixte Suaudeau A N N U A L R E P O R T 11 THE CHANGING WORLD OF PUBLICIS LANDMARKS A record year The year 2000 saw vigorous organic growth and an exceptional series of acquisitions which transformed the Publicis group. B illings at Publicis totalled 11.8 billion h in 2000, a jump of 72.1% over 1999. This increase was fuelled largely by strong internal growth of 15%, more than double that of the world advertising market. Billings also benefited from the favorable effects of the exchange Growth of billings rates (+6%) and a high over five years volume of acquisitions In euro billions (+51%), notably that of Saatchi & Saatchi. Pro forma billings (Saatchi & 6.9 Saatchi over 12 months) 5.5 reached 14.9 billion h. 3.3 96 NEW BUSINESS Publicis has been ranked No 2 worldwide for Billings by zone new business won 11.8 Europe 45% Rest of World 13% with billings of $1.46 billion. Source: CSFB 4.0 97 98 99 North America 42% 00 Basis: Published accounts R evenues at Publicis (1.8 billion h) forged ahead by 69.8% in 2000. The most notable performances were those of the international subsidiaries of the Revenues over five Publicis network, notably in years Western Europe, North America, In euro millions 1,770 Australia and Korea. Following the purchase of Saatchi & Saatchi the five leading countries for Publicis are the United States, France, Britain, 1,042 Germany and the Netherlands. Pro 851 663 forma revenues rose to 2.2 billion h. 571 Revenues by zone Revenues by country Top 5 in 2000 In euro millions Europe 50% Rest of World 11% United States 887 France 400 United Kingdom 190 Germany 156 The Netherlands 96 97 98 99 00 North America 39% Basis: Published accounts 12A N N U A L REPORT 84 Basis: pro forma accounts including Saatchi & Saatchi over 12 months P P ublicis' EBIDTA rose 78.2% in 2000 (within the same boundaries) to reach 334 million h. It meant an EBITDA/ revenue ratio of 19%, the best of its kind anywhere in the world of advertising. When one takes into account the integration of Saatchi & Saatchi, whose profitability was lower than that of Publicis, the pro forma EBITDA/revenue ratio was 17.4% in 2000 (19.6% for Publicis alone and 12.7% for Saatchi & Saatchi by itself ). EBITDA EBIT In euro millions In euro millions 334 ublicis' EBIT in 2000 was 275 million h, an increase of 76.1% for a EBIT/revenue ratio of 15.5%. The pro forma EBIT ratio would have been 14% (16% for Publicis and 9.4% for Saatchi & 275 Saatchi). 156 187 143 91 96 115 110 69 97 98 99 00 96 87 97 98 99 00 F ully diluted earnings per share rose 37% during the year. Average growth over three years was 43%. It is important to note that the Net earnings Saatchi & Saatchi operation In euro was accretive to the tune of 4%. per share* Net profit group share In euro millions 1.15 127.5 0.84 74.4 0.56 N et profit for the Group after amortization of goodwill and exceptional items rose 71.2% in 2000. Average annual growth over five years has been 46%. 47.4 28.2 35.4 Cash Flows In euro millions 98 236 99 00 134 107 80 In euro millions 677 96 97 98 99 00 G roup cash flow reached 236 million h in 2000 (+76.5%): over five years, the annual growth rate has been 31%. 97 98 99 00 C Capital expenditures 87 96 * diluted, after goodwill 52 68 96 97 144 164 98 99 apital expenditure in 2000 were 677 million h of which 80% was devoted to external growth (Saatchi & Saatchi, acquired with Publicis shares, was the exception) particularly in the United States (Frankel, Fallon, Nelson Communications, DeWitt Media, Winner & Associates). The remainder was spent on investments in tangible assets and the re-purchase of shares. 00 A N N U A L R E P O R T 13 THE CHANGING WORLD OF PUBLICIS LANDMARKS Stock market: Publicis Groupe S.A. or “Pub” as it is known T he Saatchi & Saatchi operation led to significant changes in the ownership of Publicis shares. Ownership structure and evolution Elisabeth Badinter 9% SOMAREL 34% SOMAREL 22.9% 4% Treasury shares 5.7% Elisabeth Badinter Elisabeth Badinter* 5.6% (8.7%) 0.6% Treasury SOMAREL shares (0.0%) 22.4% (34.7%) 30.4% S & S former shareholders Putnam 3.8% 57% Other shareholders Private shareholders 14% (12.1%) 33.2% Public End 1999 Post Saatchi & Saatchi acquisition** Institutional investors 57.4% (44.5%) End 2000 % of capital (% of voting rights) *Elisabeth Badinter also holds 43.2% of Somarel equity. **The acquisition of Saatchi & Saatchi was financed by new Publicis shares, issued during a capital increase of 15.7 million d in September, 2000: the parity was 18.252 Publicis shares for 100 Saatchi & Saatchi shares. At the same time, 41,236,890 CVRs (Contingent Value Rights) were issued in September, 2000, for an 18-month period (March, 2002) in order to protect former Saatchi & Saatchi shareholders against a fall in Publicis shares against a reference price: the maximum sum to be paid would be 4.32 d per share. N Ownership structure by geographic area – End 2000* UK 17.4% Other countries 11.3% et dividend per share proposed to the Ordinary General Meeting of June 14, 2001 is ahead by 17.6%. The total amount distributed, Net dividend per share taking into account ne w shares, was multiplied by 1.7 in 2000. 27.3 16 0.20 11 0.073 US 19.2% *excluding Somarel, E. Badinter and treasury shares REPORT 0.08 6.5 0.122 France 52.1% 96 14A N N U A L 5.9 0.17 97 98 ■ Dividend per share, in euros ■ Distributed income, in euro millions 99 00 THE CHANGING WORLD OF PUBLICIS Listing Market capitalization P T ublicis is quoted in Paris (Paris Bourse, Euronext) on the Premier Marché, and on the New York Stock Exchange (NYSE) in the form of ADRs (American Depositary Receipts) with a parity of one ADR for one ordinary share. T Publicis Groupe S.A. share price / SBF 120 Index Basis 100 1000 800 600 Publicis 400 SBF 120 indexed 200 0 Jan Jan 1998 Jan 1999 he market capitalization of Publicis on April 30, 2001, was 5.3 billion d, placing the Group in 52nd position on the Paris Bourse. Publicis is part of the SBF 120 index. Jan 2000 April 2001 he Publicis share price began a fairly spectacular rise in the autumn of 1999, a rise linked to the healthy state of the world economy and Publicis’ good performance. It benefited also from the market “boom” in so called “TMT” shares (Telecommunications, Media and Technology), strongly influenced by investor infatuation for the new economy. This strong rise ended March 7, 2000. Then followed a period of decline, which can be blamed on the fall of TMT shares. In addition, the Saatchi & Saatchi transaction which had been misunderstood by the market triggered substantial flow-back of shares in the subsequent period. The situation is now stabilized. Publicis shares: fact sheet • Nominal 0.40 d per share • Share capital 55,707,003 d (03/30/2001) • Number of shares 139,267,507 (03/30/2001) • SICOVAM Code: 13057 NYSE ticker: PUB • Reuters: PUBP.PA • Bloomberg: PUB FP Market landmarks Euros Opening High Low Closing Average amount traded: 2000 2001* 37.90 36.30 69.70 38.50 29.10 30.49 35.99 38.00 21,300,000 14,504,000 Number of shares Daily volume Investor Relations Award won by Publicis Groupe S.A. category: SBF 80 companies. 242,358 412,688 *April 30, 2001 A N N U A L R E P O R T 15 THE CHANGING WORLD OF PUBLICIS GLOBAL PRESENCE A full circle Group Publicis with its 20,340 strong workforce in 102 countries and 170 offices across five continents is the sixth largest communications group in the world. P ublicis is made up of two world networks, Publicis Worldwide and Saatchi & Saatchi Worldwide. The Group also operates the world's leading network for healthcare communication, Nelson Communications Worldwide. Increasing internationalization of specialized activities enable clients around the world to benefit from the Group's expertise. Publicis Groupe S.A. operates essentially in the ($ billions) US Japan Germany UK France Italy Brazil North America Europe Asia/Pacific Latin America WORLD TOTAL field of classic advertising (two-thirds of revenues) but also in media consulting and buying, in selling of media space, marketing services and specialized agencies (public relations, direct marketing, ethnic communication...). REPORT France 3,411 Rest of World 4,482 Advertising expenditure (2000) Growth rate (2000) Advertising expenditure per capita (1999) ($) Advertising expenditure/ GDP (%) (2000e) 147 37 21 17 11 8 6 152 88 66 24 338 +11.3% -0.6% +6.4% +10.3% + 10.9% + 13.4% + 9.5% + 11.1% + 8.9% + 5.9% + 9.0% + 9.3% 476 294 239 262 165 130 35 444 179 21 51 67 1.40% 0.84% 0.94% 1.09% 0.71% 0.68% 1.07% 1.36% 0.91% 0.82% 1.24% 1.05% Source: Zenithmedia, December 2000 / Revised April 2001 16A N N U A L Number of employees by geographic area Rest of Europe 5,493 North America 6,954 Employees by geographic area North America 39% Rest of World 11% Europe 50% THE CHANGING WORLD OF PUBLICIS 2 2 2 2 2 8 4 2 8 2 2 2 3 2 6 6 3 13 2 23 2 7 21 2 2 6 2 2 2 3 5 2 2 2 2 3 3 5 3 2 6 2 2 2 2 6 24 23 10 2 17 3 2 2 2 2 2 2 2 3 2 3 2 4 3 6 6 2 2 2 3 3 2 22 2 2 2 2 3 2 2 8 2 4 5 2 3 5 2 4 6 4 4 3 3 Advertising Media buying Marketing services / Specialized agencies Media sales Retail A N N U A L R E P O R T 17 THE CHANGING WORLD OF PUBLICIS PEOPLE IN THE GROUP Working intensely and passionately. « Happy people are talented » (Marcel Bleustein-Blanchet) Talent, innovation and creativity do not exist without people or humanism. A truth not always recognized. It's a conviction central to the “Difference” proposed by Publicis. Total group staff : 20,340 A ll our main objectives depend on competence, a lively imagination, motivation and the professionalism of the teams. These objectives are: - the quality of service given to clients, - the growth and results of the Group, - the requirement to be creative, - a rigorous mental approach. A human and innovative management of resources At Publicis, professional satisfaction comes as much from an ethical approach as a desire to perform. This preoccupation is written into the Group's ethical charter. We see it daily in the management of human resources. Human potential is part of the Group's overall capital. The Group has chosen to grow and to create 18A N N U A L REPORT value by listening to and re-assessing each member of the staff. Publicis has developed original solutions so that staff can reconcile demands for profitability with evolving legislation. Some examples: The 35-hour week agreement In France, Publicis has signed with staff 35-hour "win-win" agreements, stressing for social negotiations the really innovative aspects of the new law. Training Publicis has launched a determined training policy for staff which seeks to bring them to the forefront of professionalism, providing them skills in new technologies, a major area of communication in the future. An updated system of compensation and benefits The system is being re-examined in order to serve our clients, shareholders and staff even better. The Human Resources Department is also studying new forms of organizing work. From tele-work to international mobility, wherever the job makes this possible, we are trying both to achieve a better balance between private and professional life as well as a more personalized approach to relations with clients. We are also looking to greater awareness of the specific nature of clients issues about global scale (in both the French and Anglo-Saxon sense of this term). Publicis is developing a network spirit, notably via international seminars, among its more than 20,000 staff in 102 countries and 170 offices. We are pleased to be a cultural mix, a real "united melting pot". Working for us is to work intensely, happily and with passion. TRENDS DOSSIER B The rand means value and a relationship The value of the brand. We live in a world of brands. Coca-Cola, Nestlé, Nike, Sony, Adidas, L’Oréal, Renault, Nissan, Vivendi, HP, Toyota, Pampers and Thomson are part of the daily scene. Brands should have that certain “difference" that gives them value. What value is achieved by brands? How much are consumers willing to pay for them? Are they a new religion? Why do we celebrate them? What are the sources of their value? How can we increase this value so that the brand is both a major asset for its company as well as acting as a motor of growth and a catalyst of performance? The brand’s value is the financial outcome of an equation integrating econo- “The brand” mic activity and the emotional and psychological attachment of people to the symbolic form of the brand. A N N U A L R E P O R T 19 TRENDS DOSSIER Is the brand just a name? Since the beginning of time, naming has been synonymous with existing. Knowing a name confers power over it. In Rome, a name was an omen. In China, great importance was attached to naming, because order in the world depended on it. In Egypt, names were evocative and the removal of a Pharaoh’s name from a temple wall meant oblivion, a fate worse than death. Because his name was no longer among the living, he was thus absent from people’s memory. Today, names are attached to firms, brands, signs, consumer objects. To brand is to name, to state a personality, to describe a specificity. It is a way of proclaiming difference. A brand’s name reveals its character – rational or emotional, descriptive or dreamlike – informing us whether it belongs to the old or new economy with their different styles. The name frees the service from the generic character of the market, bestowing a unique identity: not just an undefined coffee, but “a” Nescafé. By its name, the brand endorses a product, the one considered worthy of carrying its colors and emblems, of meeting its demands, logo, codes and values. The name invites us to treat the brand as a person with whom we can establish a relationship. It invites us to call its customer service, to visit its site, to request help from its hot line. To be faithful to it, help it win new customers. 20A N N U A L REPORT Through its name, it aspires to be different, to distinguish itself from its environment, to be noted for an exclusive character. There’s no brand without a difference. There’s no brand without tangible evidence of this difference. There’s no brand without a patient and coherent expression of this difference or the will to be different. A brand is always a difference of vision, a specific point of view about its market. For what is a brand if it is not a Difference in spirit leading to a Preference in buying habits for products and services? Without this Difference, how can the intangible and impalpable assets that are brands embody economic, financial and symbolic value? Their value attracts the attention and interest of the largest firms. It is the highest form of visiting card, The Brand all its sides one enabling firms to generate margins and obtain preference in distribution. A brand should be managed like capital for it represents a financial value for shareholders, an attractive quality for consumers, a mark of confidence for citizens and a sense of belonging for staff. This real and potential value, the positive attraction of the brand, its ability to stimulate preferential purchasing are elements of goodwill; the difference between the brand's book value and the price people are willing to pay. Brands have become yardsticks of our society, standing at the intersection of the worlds of finance, production, distribution and consumption. They are a marker in a perpetually changing world. Their value can be measured as the symbolic image becomes financial capital The financial market endorses the brand value produced by communication and marketing. A brand has undoubted value for its performance affects its share price. A brand should be managed like capital for it represents financial value for shareholders, an attractive quality for consumers, a mark of confidence for citizens and a sense of belonging for staff. Real and potential value is created to draw people positively towards the brand and its ability to generate preferential buying. A N N U A L R E P O R T 21 TRENDS DOSSIER The brand, an image named desire… If a brand were merely a product or a service, it would be reduced to the value of the product or service without “added imaginative value”. Production, incarnating a difference, plus an image representing desire, gives it a far greater financial value. When the world’s biggest stars state: “I’m worth it”, they state that L’Oréal’s share is also really worth it. Value stems from combining strategy, the search for a successful product, marketing achievements, pertinent communication and the affectionate link it creates. Brands leave an emotional “print”. The consumers adopts a personal, almost intimate feeling towards the brand, a sentiment of being attached to it. “It’s my brand”, the consumer says. “I feel part of its world, I believe in its values and I don’t want to change the brand for another”. The consumer’s attitude is: “I feel close to those who love this brand... it is part of life around me”. Therefore, brands can provoke feelings of belonging and of appropriation. The brand is spoken of as if it were a person. Some writers have made their favorite brands into characters, exhibited with pride or complicity, according to whether their identity is prestigious or original. 22A N N U A L REPORT Only this emotional relationship can explain the belonging which gives a brand its full meaning: it is not only a defense against competition, but a guarantee of preference, fidelity, exclusiveness. Today, the brand is so decisive that it applies also to firms, institutions, retailers. Brands are not only branded products in the forefront of the current scene. Firms, groups and other commercial names behave like brands as they compete in the commercial, financial and media marketplaces. Corporations use the force of their corporate brand to back their brand products. Only a group with a strong reputation can fulfil this “parental” role of guarantee and support the launch of a derivative brand or a major product. This lowers the entrance ticket to the market for corporate offspring. Later, however, success depends on the intrinsic capacities and quality of the products. The Brand all its sides When Nestlé gave its name to mineral waters, it assumed not only the paternity of the move, but positioned itself at the center of a future strategic market. The symbolic reputation of the brand has a direct impact on the new category: the Nestlé brand acts as a catalyst of growth. A brand’s value becomes a hot subject when a merger involves choosing the name that will have priority... especially if one is announcing “a merger of equals”. There is always a winner–he whose signature comes first. How to identify value of a brand? One sees this in American evaluations, made either on the basis of investments already undertaken or investments required to launch a similar product. For instance, Dim interested Sara Lee because it was a strong, unique and unified brand, creating preference amongst consumers. Brands spark feelings of attachment, belonging and appropriation… Their preference over competitors has to be constantly won for there is the permanent threat of competitors’ innovations. For clients, the brand fulfils several determining functions; a landmark in the ocean of offers, a guarantee of quality, a maker’s mark, a distributor’s support... personalization and ethical practices. Value can be developed via the good management of a brand portfolio, which, in turn, means winning preferences and market share. Unilever dared to kill off 1,200 brands in order to boost the value of 400 others. Rising value also flows from the interest in the brand shown by the distribution sector. Here, the brand can negotiate to be selected by the distribution sector and have a voice in the fixing of margins. Valuable brands thus have more chance of selection. Ultimate value comes from consumers preference for the brand – purchase, loyalty, confidence and judgement, all of these factors being the best of ambassadors. A N N U A L R E P O R T 23 TRENDS DOSSIER The brand: a demanding system Can a product or enterprise become a brand merely by having a name? Just getting a name does not confer brand value. A brand does not just spring up. It is not just ordered into being, but developed as a demanding system. The brand becomes a demanding system when the privileges accompanying its value are the counterpart of a duty to embody creativity. Again, difference leading to preference. The creation, development and maintenance of a brand begins with: minded attitude, stretching across frontiers, one based on shared values, humor and conviviality. A universal quality. - Defining a different vision The role of every brand is to give meaning, to give clients reasons for buying, shareholders for investing, future collaborators for joining up and staff for mobilizing their efforts. And to give everyone concerned a sense of pride. The brand should help people understand and feel its difference, created from conception, to commercial development, to communication. A brand should have a vision – not an opportunistic or arbitrary cause or a simple description of its objective – but an expression of its character. Nescafé is not the kingdom of coffee only. It encapsulates a vision of coffee that is immediately accessible and available everywhere. What distinguishes Nescafé from its competitors is its ability to encourage an open- 24A N N U A L REPORT Nescafé’s “Open Up” is not a classically targeted marketing strategy, but one involving an attitude which enables Nescafé to cross country and mental boundaries. Open yourself to others and share with them, so that the physical pleasure of consuming becomes a psychological pleasure. Defining a point of view is not easy. It consists largely of moving from the product being sold to the whole service being offered. The quest is find the essence, sense and direction of the enterprise. Above all, what it wants to be in the eyes of consumers. This means passing from a product-oriented vision to a service-oriented vision, moving from just selling a product to total service. The future consists of giving the brand values which go beyond the physical and rational characteristics of the product. The Brand all its sides The duty to embody a Difference that provokes a Preference. How can advertising be creative without the creativity of the product itself? The brand will be more convincing with the reality of the means of distribution, the quality of staff, the launch of a site, the design of products. - Proving the Difference via action The brand’s Point of View would remain theoretical if it did not embrace tangible evidence. The new Vel Satis model at Renault is already something that speaks by itself. By its design and innovation, its expresses Renault’s strategic aims. Its audacious and anti-conformist character at the top of the range under lines Renault’s central Point of View: “We create cars”. Renault’s creativity with Vel Satis distinguishes it from makers of conventional upper ranges. - Making known the brand’s difference How does one express the brand’s difference to various clienteles? Obviously, the role of communication here is both decisive and modest. It is decisive because it is through communication that the brand is in contact with users. It is also modest because the major task of convincing has been expressed through design and innovation. The brand Difference does not relate to the previous generation of the brand, but to market standards. Consumers only perceive a real difference when the brand is capable, both materially and with imagination, to go beyond what is the standard being offered in the marketplace. They only perceive the difference between the duty of the brand and its “plus”. A brand’s value is a co-production A brand image is not only a matter of communication. It’s the result of both material and immaterial assets, encompassing R&D, products and services, design, distribution choices, pricing policy, merchandising, internet policy, messages... Brand image is always the offspring of a company that conceives and carries out a project and the communication group which transforms this into a concept and then takes it public. A N N U A L R E P O R T 25 TRENDS DOSSIER Expertise overcoming risk Using communication to boost value is not easy. No risk, no return. However, the higher the risk, the greater the possible return. However, communications cannot play around with a company’s core values, hence the need to limit risks and maximize potential by calling on experts. The risk for the brand exists of becoming lost in an ocean of offers, and of not standing out within the media chorus. The brand risks Removing risk and having a fuzzy image. Of diluting maximizing potential by calling brand capital and becoming a soulupon real experts. less entity. One can dress up an image, but the risks are several. The risk for the brand that its difference in communication does not echo its difference in product and service. The risk for the brand of a disparity of images around the world. Or between its external image and internal identity. The risk of dwelling on the roots of the brand, repeating its original story, instead of focusing on what will stretch the line between the brand’s origins and its future role. Failure to communicate means the brand will disappear from people’s minds. It amounts to admitting that it does not have advantages, that it renounces any right to be considered preferential. But, the risk that is greatest is that of not communicating. Brand communication is the catalyst of growth. 26A N N U A L REPORT The Brand all its sides Communication as a catalyst of growth A brand’s value is activated by the incomparable asset of communication, capable of lifting a firm, boosting growth, injecting vitality. It’s not something physical that can be isolated, but a real catalyst nurturing a brand’s components. It is capable of lifting a firm’s activity, charging its growth and injecting vitality. Let’s look: Brands communication, first of all, is a catalyst for awareness... and image among different internal, external, commercial and financial audiences. Vivendi’s first move was to launch a major campaign to announce its creation and explain its vision of the future and the key elements of its policy. Brands communication is also a catalyst for sales. These follow the investment curve for there is a close link between share of voice and market share; any fall in share of voice by a firm immediately benefits its competitor. A N N U A L R E P O R T 27 TRENDS DOSSIER Communication as an accelerator of new behavior. The Euro is a brand when its communication aims at modifying attitudes and behavior so that the broad public adopts it in the same manner as institutions and companies. Brands take strength from: ■ the pertinence of the idea ■ the precision of conception in the media ■ the performance of space buying ■ the power of the network ■ the proximity; geographical and emotional Brand communication as an internal message is a catalyst of commitment and quality. “We try harder”, Avis said in its day. Today, most brands offer commitment charters which are very much guides of new attitudes on the inside and therefore an improvement of service to the client. When General Electric expresses its values, “We bring the good things to life”, it gives a commitment to honoring promises and so raises the overall value of the brand. When Microsoft promises each client a quick reply to any question on education, its communication confers “attachment” to the brand, providing a lever for internal mobilization as much as service for clients. In this way, it lays out the duties and rights of the brand. It also catalyses the relationship between the brand and its audiences. It can be fun, serious, informative, educational or iconoclast and says much as to how it represents its clients: does it speak like a mother to children, a teacher to pupils, a boyfriend to his girl, an engineer to colleagues, an expert to the ignorant? Over the Internet, this is even clearer.... 28A N N U A L REPORT Beyond its messages, brand value comes from the media it uses and the events it organizes. “Holistic Difference” is a way of being accurate and increasing value. Globalization’s economic models can lead to rejection. Consumers, drowned in a sea of information, seek to regain their individuality. The future lies undoubtedly in total and holistic consuming, adopting all aspects of a brand and its display and which reaches out to people in all their dimensions not just that of consumer. People expect not only service from a brand, but also a relationship. This is more true than ever during difficult economic times. HORIZON Creating value via a total relationship When creating difference, unity should not be confused with uniformity. Global companies confront a paradox: reconciling the necessary unity of a brand with a diversity of cultures, techniques and various publics, be they shareholders, staff, clients, future collaborators. T he brand is a whole and indivisible. All its messages and means of expression should make its Difference apparent. The challenge is to ensure that R&D choices, new products and services, development and Internet strategies plus product design all point to a goal, guided by a communications policy targeted to financial, commercial or media partners. The challenge also is to ensure that the brand's diverse means of expression –from the President's policy statement to direct marketing, from customer services to advertising and sponsorship– converge for the desired image. How does one guarantee to the company that the consistency and uniqueness of the brand do not diverge given the diversity of techniques and medias. This is the challenge and the superiority of Publicis 2010. A N N U A L R E P O R T 29 HORIZON Publicis 2010 is a project centered entirely upon brand Publicis 2010 is the new action project for Publicis. Publicis 2010 is creating a holistic relationship to support the brand's difference, identifiable by: Publicis 2010, focused completely upon the brand, is at the heart of value creation. agencies around the world, the with a new vision: what are people's aspirations when it comes to holienvisage its role in the matter? Publicis 2010 brings “Holistic Difference” to life. It treats the brand as a whole. Communication developed via “Holistic Difference” addresses holistic individuals recognizing that they do not want to be treated merely as consumers. This radically new method of communicating goes far beyond what has been sought in the past. Responding to the manners and rhythms of contemporary life, Club Med redefined its Point of View and adopted the concept: regeneration. Abundance, certainly, but, above all, moments for all forms of expression, moments of anti-stress, self discovery, sharing strong emotions with others. Drawing breath. Holidays as a pause. A period for renewing Client/ brand ting eration. Rediscovery. A return to basics. Rebirth. Vi an su Consu l t a and nt Br y ntit ide sign al De d Intera ctiv e strength, for renaissance and regen- Pr relati ess ons Elaborated by different Publicis days? Above all, how does Club Med Direct ma rketing in Pr model when it comes to holidays. ts en Ev t ■ believable and tangible in its proofs promise of the message is associated days, pioneering their democratizabrand, the new reference, the new The advantage of totally integrated communication. Sale s promo tio n Consult an and r B Club Med is the paragon of holi- ■ clear and legitimate in its intentions ■ visible and transparent in its expression Publicis 2010 organizes the flow of skills and techniques, guaranteeing for the brand a clear and coherent Point of View in all matters. v Ad An example tion and benefits. Club Med is the Publicis 2010 ensures a total relationship between the brand and its partners through a new organization and structure of communication teams. ising ert Trident The promise of regeneration is global and is on offer in 35 countries. It's an across-the-board promise for the activities of the brand; the holiday villages, Club Med cruises, 30A N N U A L REPORT Annual Report Recruitment Ads of integrated communication The Point of View of Club Med Club Med Découverte holidays, Club Communication vis-à-vis the Med Affairs for businessmen, Club network of Club Med agencies in Med World, the new city center con- France. cept, Club Med Villas. The promise is expressed in a brand campaign around the words renewal and happiness and is contained in product and tactical campaigns. It responds both to values and a form of expression which create synergies for all the brand's messages. Corporate and financial com- Regeneration highlights the final and common benefit of all Club Med's moves and messages. There is the same logic throughout, answering the specific needs of each activity at Club Med. Corporate Ad Integrated communication at Club Med links this new central message with all the different global activities and offerings. munication for investors: the annual report is the embodiment of these values and the positioning of both the brand and the institution itself. Product catalogues: the Trident catalogue for Club Med Villages, Club Med Cruises, Club Med Affairs, Club Med Découverte and brochures Campaign for Club Med in North America for fitness and honeymoons. On-line Communication. Graphics for packaging and products under license (Club Med World). Communication for the recruitment of staff which adopts the same style. Web site promotion A N N U A L R E P O R T 31 HORIZON Creating a brand with impact and one which produces value. Publicis 2010 marks a “new economy” within communications – fuller, quicker, smarter and more solid. One which provides superior services at a lower cost. Publicis 2010 is not a cold organization: the project links the talents of an orchestral conductor (brand consultant), the emotions of the musical score (the Point of View), the skills of musicians (the marshalling of creative value), a concert's tempo (the choice of rhythm in media, street, events, the net and one to one meetings)... to underline the trace of a brand. The orchestral metaphor is not by chance: it arouses emotion, moves everyone in the audience, unites experts from different backgrounds, demands respect for technical precision and ensemble playing: harmonies, local or world melodies, according to the moment. What other metaphor allows one to feel, not merely understand, what “integrated” communication and fluid organization can bring in the way of added value? Only an orchestral organization can perform the score of each brand, bringing together violin and piano, not necessarily playing the same notes but performing the same rhapsody, cantata, opera or rap. For each brand, a different form brings together experts in a tight and harmonious team. Only an organization similar to an orchestra can play the part of each brand, assemble the instruments without playing the same notes, rhapsody, cantata, opera or rap. 32A N N U A L REPORT NEWS 2000 Using different skills to increase a brand’s value Brands do not perform on the same playing field. Each playing area has its language, rules and style. Sometimes, situations demand the use of one of the following forms of language... The commercial language of advertising communication creates “The Brand” - “HR Communications, Design Creative, Media, Internet, CRM, Advertising” demand with a style that these days is humorous or dreamlike: advertising with The mobilizing language for internal communia smile. cation seeks to share a company’s vision, showing the direction to follow in addition to the pride of The civic language of communication for citizens belonging. appeals to people’s conscience using a style employing a sense of responsibility. One sees this The seductive language in the communication for in campaigns for safety, security and health. jobs is designed to attract the very best in future staff. The strategic language of corporate and financial communication for shareholders concerns the The community language of ethnic communicastrategic vision and value of the brand. tion appeals to the sense of belonging. A N N U A L R E P O R T 33 NEWS 2000 ADVERTISING When Difference shows its worth: the Publicis network Benefiting from a very favorable world market, the Publicis network won market share on the five continents and in most of the 76 countries where it is present. Everywhere, the network was noted for the creativity of its agencies. LANDMARKS Main worldwide clients of Publicis network Nestlé, Hewlett Packard, L’Oréal, Renault, Coca Cola, Ericsson, Siemens, Whirlpool, UBS, British Airways and Club Med. Revenues 1,329 Me 13,005 people Highlights 2000 Acquisition in Germany of the Boebel Adam agency in Frankfurt which has the accounts of BfG Bank, Deutsche Börse and NUR. Publicis Canada bought two design agencies, Goodhue & Associates in Montreal and Ove Design & Communications in Toronto. Acquisition of Publicistas Asociados, Peru’s leading agency, as well as Fergo, a leading Panamanian agency. Publicis set up in Trinidad and Tobago. Acquisition of the Indian agency Maadhyam in New Delhi. 34A N N U A L REPORT FRANCE In the birthplace of Publicis, 23 7 Publicis Conseil brought together 21 3 Publicis Conseil, Publicis Étoile, Publicis Constellation, Publicis Régions and most of the Group’s French agencies in France. NEW BIZ: France Fifth TV channel, Cristalleries d’Arques/Luminarc, Cityvox.com, OK Assurance, Vizzavi, Comdirect, Club Internet, Helena Rubinstein, Façonnable, Finance Ministry (Euro) Publicis Conseil also strengthened its ties with major clients, such as Renault, L’Oréal and Nestlé. EUROPE 2 2 2 2 8 4 2 8 2 7 21 3 3 2 2 6 6 3 13 2 6 3 2 2 3 2 23 2 The French advertising market saw 10% growth in 2000. Revenue of Publicis Conseil reached 190 million o, an increase of 7.4%; net profit rose strongly. The best performances were reported by Publicis Conseil, Media System and Publicis Dialog. 2 2 2 2 2 5 2 2 2 2 5 6 3 2 2 2 2 It was a highly satisfactory year in the U n i t e d K i n g d o m where advertising spending, stimulated by economic growth of close to 3%, rose 10.3% …A brand in touch with trends in creation… speaks the language of the day… cinema, video, special effects, Internet… The Group took advantage of this climate to develop significantly new business. Its 87 million o of revenues hoisted it into fourth place in the British market. The Group also shone by the quality of its creations: campaigns for Ericsson, Renault (Clio and Scenic) and Müller, the dairy products group, stood out. The S w e d i s h advertising market remained stagnant despite strong ecoUnited Kingdom: nomic growth, but chello Broadband, Publicis.Welinder Fish4.co.uk, Syngenta, moved into the Citizen watches, top ten, which Wilcon Homes. will make it more Norway: promotion visible and in of Norwegian salmon. greater demand Finland: Aurinkomatkat during pitches. (travel agency). NEW BIZ: Northern Europe The local agency in Norway turned around a difficult financial situation. FOCUS How does one make known the existence of a new product or brand if it is not done initially by advertising? Publicity (or advertising), as its name indicates, makes things public: it puts into the public marketplace that which previously was confidential or local. But the language of advertising is never neutral, there’s always an intention of targeting a selected audience. Western Europe Germany ’s favorable economic climate, marked by growth in GDP of more than 3%, helped the expansion of advertising spending. In an advertising market up by more than 6%, Publicis’ 2000 revenues of 136 million o were ahead by 14%, excluding acquisitions. Today, Publicis is the third ranking communications group in Germany. In Austria , another favorable climate (GDP growth of 2.8%) enabled Publicis’ revenue to register impressive growth. Advertising needs to know and understand trends within society: how does one reach individuals without understanding their desires, motivation, hopes and fears? How does one convince people to change their behavior without turning to human and social sciences? The real skill of advertising in an information society is to arouse sufficient interest and impact in the midst of an ocean of visual, verbal and sonorous appeals, thus catching people’s attention and modifying their behavior. It must act in conjunction with creative currents. The idea is not to imitate these, but to speak the language of the day, to follow the signposts. Advertising is thus a partial reflection of the consumer society: the reflection of relationships between products, brands and individuals. It is a witness to society’s belief in a market economy, something that does not exist without competition. Otherwise, there is one-way propaganda. Basically, advertising reflects the world of brands, of imaginary partners. With advertising, the brand becomes author, writer, painter, deploying its own universe. Its role among the different means of communication is to reach the greatest number of people. Its not like “one-to-one” communication, but rather “one-to-many”. Advertising is a special industry mixing artists and economists, sociologists and sales people, statisticians and Internet fans in one common endeavor. A N N U A L R E P O R T 35 NEWS 2000 ADVERTISING The Publicis network NEW BIZ: Western Europe Germany: Wal Mart, Maggi Kochstudio (Nestlé), Fidelity Investments, Berlin Wasser, Wasa, Finance Ministry for launch of Euro, Daihatsu. Austria: Tele.ring, mobile phone operator, Powerade, ORF Digital, Toys R Us, Coke Light, Fidelity Investments. Netherlands: Finance Ministry for launch of Euro, Central tax office for campaign for electronic tax returns, NCM, Adinformatie Online. The Group became No 2 in the Netherlands advertising market in 2000. Revenues reached more than 48 million o, a strong rise over 1999. At the end of the year, Publicis absorbed the FCA! agency. ing market which expanded by 12.1%. In all, revenues of the two agencies in 2000 reached nearly 40 million o, a strong increase. In this rich market, the agencies won a large number of pitches and expanded the services on offer for local clients. Belgium ’s GDP rose 3.9% and the advertising market by 8.2%. Publicis, No 11 in the market, consolidated its position and considerably increased its revenue. Italy also had a good year given the rise in GDP of nearly 3%. The advertising market literally took off moving ahead by 13.4%. The Italian activities of Publicis evolved in a satisfactory manner and revenues r e a c h e d 31 million o. Publicis is the No 2 player in the S w i s s Belgium: market and revenue National Lottery, there continued to grow. Mees Pierson bank, extensions Sud Presse. Publicis Zurich was named the most creative agency in Switzerland and received a host of local and foreign awards. Southern Europe Publicis in Spain is represented by two agencies, Publicis España in Madrid and Publicis Casadevall Pedreño & PRG in Barcelona. Their development during the year was underpinned by a strong economy (GDP +4.1%) and an advertis36A N N U A L REPORT NEW BIZ: Southern Europe Spain : Carrefour, National Lottery, Tax Office, Quiero TV, Dewar’s White Label, Gerblé (Novartis), Nabisco Spain, Daewoo Spain, BBVA bank, Renfe. Italy : Cariplo bank, Saeco coffee machines, National Statistics Institute, Radio Italia Network, Carrier, RAS assurance. Portugal : El Corte Ingles stores, Banco Sottomayor. Greece : Whirlpool, Nestlé, Hewlett Packard. Portugal had a mixed year economically and this without doubt stabilized the market. Greek growth reached 3.7% in 2000 and the advertising market, fairly limited until now rose spectacularly by 20%. In both these two countries, Publicis quickened its growth and won several new assignments of international clients. Eastern Europe Poland, the Czech Republic and Hungary are the three main centers; Publicis is also present in Slovakia and Croatia. In Poland, the winning of local accounts and the increase in advertising expenditure by international clients led to a good increase in Group revenue. In the Czech Republic, which had experienced a recession since 1998, advertising fell off notably in 2000, resulting in a decline in the revenues of the local agency. On the other hand, H u n g a r y ’s GDP increased by 5.6%, and the advertising was also up (+9% in constant Hungary: Vivendi Telecom Hungary, terms). Strong demand Villeroy&Boch Alföldi boosted the activity of the Publicis agency Poland: which had a record Pekao Bank, TPSA, year for revenue and the national net profit. NEW BIZ: Eastern Europe telecom company MIDDLE EAST AND AFRICA The Middle East advertising market is essentially in the Arabian peninsula, rising 5% to 10% according to the country, while falling off in Egypt and the Levant. A new office has been opened in Doha, Qatar. 3 2 2 2 2 2 3 2 3 2 4 In Israel , Publicis.Ariely consolidated its position. The Group was involved in several dynamic developments, along with Super Push and AB Data, marketing specialists, and Saudi Arabia: Al Azizia Panda this enabled (retailer) revenue in the South Africa: region to leap Ericsson 25%. NEW BIZ: Middle East & Africa The South African scene has been very difficult for some years and this has weighed on the Group’s results there. USA CANADA Publicis Canada The US advertising market in 2000 saw very 10 23 24 17 vigorous growth with total advertising spending reaching $147 billion, an increase of 11.3%. However, this rate slowed towards the end of the year, reflecting some concern about the state of the economy. 6 2 2 The Canadian economy is very influenced by that of the United States and saw strong growth in 2000, falling away in the fourth quarter. Revenues in Canada were 36 million o. Strong growth in Canada came mainly from ne w accounts and the increased advertising activity by existing clients. Publicis Canada was voted “Canadian Agency of the Year” by the industry. The Group knew how to benefit from this growth: revenues rose significantly in 2000 to reach 225 million o. Several campaigns created by Publicis agencies stood out. Among them: CellularOne, USA: Whirlpool, Subway (restauHewlett Packard rants) spots, interpreted by (global account), Jerd Fogle and the L’Oréal/ Siemens (global corporate account), Garnier campaign with Sarah insurance company Jessica Parker as its star. NEW BIZ: USA Canada Publicis & Hal Riney Principal Financial Group, Syngenta, OfficeMax, Fuji Photo Film USA, Citizen Watch Co. of America, Hoover’s Online, Nestlé “Powerbar”. The celebrated Californian agency of the Group has had satisfactory results, Canada: CIBC and L’Oréal despite the cut back of the advertising budget of the First Union Bank. This setback was compensated by the dynamics of large traditional clients, such as Sprint PCS and Saturn. A N N U A L R E P O R T 37 NEWS 2000 ADVERTISING The Publicis network LATIN AMERICA 2 2 2 2 2 5 2 3 2 Publicis Groupe S.A. is present in Argentina, Brazil, Chile, Colombia, Peru, Venezuela and Mexico. 3 ASIA PACIFIC The Publicis network across the Asia Pacific region achieved total revenues in 2000 of 91 million o. With the exception of Japan, where the Group has a weak presence and where the economy has been in a difficult shape, the countries in the region enjoyed a very favorable economic climate with two digit growth in advertising markets. 2 8 2 4 3 6 6 2 3 3 2 22 2 2 2 2 3 4 5 6 NEW BIZ: Latin America The whole zone: Hewlett Packard, UBS, Ericsson. Argentina: Whirlpool Brazil: Firestone, the Ministry of Communication, Polo Ralph Lauren. Chile: L’Oréal. Mexico: Whirlpool, Sanofi-Synthélabo. Peru: L’Oréal, Inca Cola (Coca Cola). Venezuela: Nestlé. 38A N N U A L REPORT With the exception of Argentina, suffering from a strong economic recession, and Colombia, beset with serious political problems, the Continent as a whole had a fairly good year: GDP in various countries rose 2.5% or more. Pu b l i c i s’ t o t a l revenue in the region reached 34 million o in 2000. In each country, Publicis has performed well both commercially and creatively. Publicis.Welcomm is recognized locally and internationally as the most creative agency in Korea and 2000 saw a spectacular rise in its revenues and net profit. 4 3 Publicis is spread over 17 countries, notably Australia, Korea, Philippines, China and Singapore and is now the 11th agency in the area. Publicis agencies are in the “top five” in the Philippines, Korea, Australia and New Zealand. After two years of strong external growth, the Group concentrated on consolidating and restructuring its agencies in 2000: in the Philippines, Publicis.AMA merged with Publicis Philippines while in Singapore FCA! was folded into Publicis.Eureka. Publicis’ revenues in Australia grew 25%. This was largely attributable to growth in revenues from international clients of the Group. Prakit.Publicis continued to make breakthroughs in Thailand benefiting from a favorable economic situation. This particular agency serves as “hub” for three countries in the Indo-Chinese peninsula: Vietnam grew well, largely due to the Nestlé account. Prakit.Publicis also won the account of Smart Telecom, one of the biggest in Cambodia. NEW BIZ: Asia Pacific Regional Accounts: Sampoerna (“kretek” cigarettes, ST Dupont Paris), Renault Asia-Pacific, Delifrance, restaurant chain, Schneider. Japan: Renault, Amora-Maille, Fauchon. Korea: Renault, Samsung, Korea Telecom Philippines: Siemens, Scotch Brite. The Philippine advertising market stood still due to the economic situation and political uncertainty. Publicis had a relatively stable year. A network within the network Fallon Worldwide Fallon McElligott agency, one of the most brilliant in the United States, became part of the Publicis Group at the beginning of 2000. Renamed Fallon Worldwide, it will now build the Group’s third network. It will be a network of a new kind. M NEW BIZ: Lion for the famous inneapolis Principal new accounts in 2000, “Herding Cats” (Minnesota)-based beginning of 2001: campaign for EDS Fallon Worldwide PBS (public TV), Archipelago and for United has branches in New York (electronic communications Airlines. and London, the latter parnetwork), Citibank and United Airlines (Minneapolis), ticularly well developed. Its MTV (New York), BBC, Umbro A network like reputation for creativity is (sports goods) and Budweiser none other worldwide. From the begin(London). ning, it has sought excelThe Group’s lence and has set very demanding levels aim is to turn Fallon Worldwide into a of quality and approach. third world advertising network, different from the others in its role, organization Its principal clients are Holiday Inn and method of working. There will be Hotels, EDS, BMW of America, Citibank, some ten offices, acting as regional “hubs” United Airlines, Nordstrom, Conseco, serving neighboring countries. Starbucks and Ralston Purina. Year of the Lion In 2000, Fallon raised revenues to 107 million o, a 10% increase over the 1999 figure. The London office, in particular, enjoyed a brilliant year. Fallon’s creativity won many national and global awards. Among the best known: the Gold Medal at the EFFIE Awards for Holiday Inn’s “Mark” campaign, a Golden Lion at Cannes for MTV, Fox and Sports Illustrated, a Silver Another original feature will be Fallon’s total digitalization, a network integrated across the world through Internet. In order to build up Fallon, the Group will favor the creation of start-up agencies. Aside from talent, the creator will need a strong entrepreneurial spirit to guarantee performance and a long life of his agency. Two new agencies are set to open in 2001 in São Paulo in Brazil and in Singapore. A multi-disciplinary offer The network plans to develop a very rich offering coupled with a high level of creative competence, including design (with Duffy Design) and interactive communication (Fallon Interactive). Later, it could well bring other disciplines on board. LANDMARKS Revenues 107 Me 724 people Highlights 2000 Launch of the Fallon Worldwide network A N N U A L R E P O R T 39 NEWS 2000 ADVERTISING The ideas company: the Saatchi & Saatchi Worldwide network Saatchi & Saatchi, present in 92 countries via 152 offices, became Publicis Group’s second network in 2000: a truly global network, one that has won major clients – and kept their loyalty – it has justified its reputation as a strong creative agency wherever it goes. Network’s leading clients Revenues 720 Me 5,517 people Highlights 2000 Worldwide success for campaigns conducted for Toyota, P&G... Elected “Agency of the year” in the Philippines and New Zealand. Chosen by Media and Marketing Magazine, Hong Kong, as “Agency of the year” in Asia. 40A N N U A L REPORT G rowth in the communiGamble, General Mills, cations Johnson & Johnson, DuPont, market was strong, Sony Consumer Electronics, but the market also American Home Products, Pharmacia & Upjohn, Astra suffered from the Zeneca, Eastman Kodak whiplash of the and Visa. crisis within the New Economy, notably within the dot.com sector. The network’s balanced spread of accounts in the USA enabled it to resist this crisis. There were outstanding success stories in terms of new business and creativity. Toyota/Lexus, Procter & LANDMARKS United States NEW BIZ: USA Transitions Optical, Guidant Corp., Rubio’s Baja Grill The New York agency, main pillar of the Group in the USA, succeeded in limiting the fall in dot.coms business by winning new accounts in more traditional sectors. The agency also benefited from the extension of the partnerships with General Mills, Kodak and Johnson & Johnson. The agency’s creativity was recognized on a number of occasions in 2000, notably the campaigns for Glaxo Wellcome, General Mills and Procter & Gamble. For its part, the Los Angeles agency enjoyed a record year, thanks to winning new business, but also because of reinforced collaboration with Toyota which resulted in excellent creative success for the agency. Campaigns for three models were rewarded several times. The success also of the Lexus line helped the development of TeamOne agency. Europe The “Old Continent” was the scene of the agency’s most notable advances: greatest growth came in France, Italy, Austria and Spain. A new agency was opened in Barcelona following France: Gemplus. Saatchi & Italy and several European countries: Saatchi’s takeTiscali. over of the local Poland: Carrefour. activities United Kingdom: o f FCA!BMZ. Telewest, Monster.com, NEW BIZ: Europe Festival Cruises and RHM Mr Kipling cakes. Saatchi & Saatchi won numerous prizes for strong creativity. Saatchi & Saatchi UK and Saatchi & Saatchi Germany consolidated their positions. Once again, Saatchi & Saatchi London stood out, winning seven Lions in Cannes for campaigns for the British Army, Club 18-30, Johnson & Johnson, Livostin eyedrops and WWF. Middle East Saatchi & Saatchi had an excellent year in 2000 in the Middle East. Latin America Saatchi & Saatchi benefited from greater advertising investment by Procter & Gamble in the Mercosur free trade zone and an initial move into Cuba. The strong growth in billings was accompanied by a significant improvement in the zone’s profitability. “Creativity” The Australian market was boosted strongly by the 2000 Olympic Games in Sydney and enabled Saatchi & Saatchi to achieve an excellent year, marrying commercial and creative performances. The agency was rewarded for its campaigns for Toyota and Buy.com. Billings and profits both rose sharply. Asia Pacific In Asia (outside Japan) the favorable environment helped the network’s activities and resulted in a good rise in revenues and profits. Saatchi & Saatchi was voted “Agency of the year” in the Philippines, while its campaign for P&G/Head & Shoulders was named “the best creation in Asia”. Awards came also for Asia (regional accounts): the Vitasoy campaign Development Bank of in Hong Kong, Singapore (DBS), Guinness Discovery Channel in Extra Stout. Australia: launch Singapore, UNICEF of Toyota’s Avalon, Buy.com and Netease in China. NEW BIZ: Asia Pacific and David Jones stores. New Zealand: Fletcher Building, Qantas NZ, eVentures/eLoans. NEW BIZ: Latin America Argentina: Parmalat and Sudamerica. Puerto Rico: Grande Supermercados. The New Zealand market was less dynamic, but the agency maintained its position and aggressively developed new business. Saatchi & Saatchi was named “Agency of the year” by “Campaign Brief Magazine” and received several prizes for campaigns. A N N U A L R E P O R T 41 NEWS 2000 SPECIALIZED AGENCIES AND MARKETING SERVICES They examine labels and compare companies social policy and values. The “SAMS” Reinforcing a brand’s value by means of personalization. New technologies and a much more demanding public have combined to force brands into rethinking their commercial approach, their place in the market, their organization... and to think differently when it comes to communications strategy. Consumers are changing their purchasing habits following recent food, ecological and social scares. They scrutinize labels, follow a company’s social policy and values. People looking for meaning in their existence and in their buying no longer regard the brand as a product or a marker… but as something involving responsibility. Brands find themselves in a new environment characterized by a wide diversity of expectations and questions amongst a public which is consumer, client, wage earner, shareholder, voter and citizen all in one. Brands must be able to address this public personally, even intimately: blending information on consuming and people’s main interests, refining the choice of media, dialoguing with the consumer via Internet, staying alert in real time. 42A N N U A L REPORT “The brand” The credibility and long life of a brand these days depend on the quality of this dialogue between the brand and its public: a real “four handed” task, involving the company and its savoir-faire and the individual as consumer and shareholder. HEALTHCARE COMMUNICATION A world leader in good health : Nelson SAMS Nelson Communications, the leading independent healthcare communications group in the USA, joined Publicis in 2000. The Group has become the leading worldwide network in this sector. H ealthcare communications is Publicis + Saatchi + Nelson a sector experiencing very = No 1 strong growth. It enables the A new healthcare group integrating pharmaceutical industry to establish and the skills of Nelson Communications, strengthen ties with all those who prePublicis Wellcare, Saatchi & Saatchi scribe, distributors in the sector and the Healthcare and Healthcare Resources patients. It’s a specialty calling upon a Group (Klemtner Advertising) is the large number of disciplines: traditional leading network in the world specializadvertising, inter-active communication ing in healthcare communications. within the medical profession, medical education for doctors and medical The Group can now offer its internapersonnel, public relations, consulting tional clients in the pharmaceutical services on communications strategy industry the same standards of service (particularly conversion throughout the world and strategies from prescripto the clients of Nelson in tion-to-over-the-counter), the USA an immediate geoConvaTec the management of patient graphical extension towards (Ostomy Skin Care) data bases (in the USA), Europe, Asia and Latin Daiichi (Floxin Otic) sales promotion, outTri Path (tests) America. sourcing of the sales force Wallace Labs (Astelin) for a specific product or brand plus telephone sales targeted at doctors, nurses and chemists. NEW BIZ: 2,000 people on 4 continents This network has been baptized Nelson Communications Worldwide. As of now, it has more than 2,000 staff, operating in eight cities in the USA as well as in Europe, Asia and Latin America. The network had total revenues of 300 million o in 2000. NCW has 200 clients, including 19 of the top 20 pharmaceutical companies in the world. Among the most important are Johnson & Johnson, GlaxoSmithKline, Astra Zeneca, Bayer and Bristol Myers Squibb. LANDMARKS Revenues 157 Me 1,447 people Highlights 2000 In the United States, the healthcare communications market represent 1.4 billion b in revenues. In France, this figure is 375 million b, in Germany 350 million b and in the United Kingdom 320 million b. A N N U A L R E P O R T 43 NEWS 2000 MEDIA BUYING Space, a territory for expression: Optimedia and Zenithmedia In a context of growth, companies want to express themselves and they have the means to do so. Optimedia and Zenithmedia, both in dynamic form, pursued their conquest of market share throughout the world. New business everywhere in the world Optimedia may have lost the contract for media buying for Renault, but 2000 saw numerous national and international successes, among them new business for PinaultPrintemps-Redoute and the Euro for the edia buying and consultancy clearly Finance Ministry in France, Bauer Verlag in benefited in 2000 from the strong Germany, CIBC, Hasbro and Purolator in growth of advertising throughout Canada, State of Victoria Government and the world (estimated by Zenithmedia at 9.3%). Telstra in Australia, ReckittBenckiser and Lego This year, the trend for distinct in Germany, Austria and advertising agencies and specialSwitzerland, Nabisco and ized media agencies has been Tabacalera (Altadis) in Spain, confirmed. Internet continued Siemens in Belgium. Optimedia’s Hewlett Packard its impressive growth amongst efficacy across the world won it and Syngenta advertisers and is today an undeseveral prizes. on a world scale, niable advertising space. The Siemens mobile Group owns 100% of Optimedia phone in several ZENITHMEDIA countries. and 50% of Zenithmedia (the Zenithmedia, where Publicis other 50% is held by Britain’s has 50% of the capital, operates 68 branches Cordiant Communications Group) and has in 38 countries and is ranked ninth in the become the fourth world force in consultancy world. Most of its activity is in the US, and buying of advertising space. United Kingdom and Spain. Its principal clients are Verizon, Kingfisher, Mars, Toyota/Lexus, OPTIMEDIA BT, Astra Zeneca and Lloyds TSB. Optimedia is established in 32 countries via 48 offices and is now the 11th ranking player in the world in the sector. Its principal clients are L’Oréal, Nestlé, BMW, Telstra, British Airways, Allied Domecq, Alcatel, Whirlpool, Qantas, Coca Cola, Vizzavi and Hewlett Packard. M LANDMARKS Revenues 212 Me 1,818 people Optimedia and Zenithmedia accumulated figures Highlights 2000 The Optimedia brand was launched in several countries during 2000: Malaysia, Philippines, India, Pakistan, Slovakia. Acquisition of DeWitt Media in the USA which enabled the launch of an Optimedia network in eight cities. The acquisition of MI Media Independent strengthened Optimedia in the Netherlands. 44A N N U A L REPORT NEW BIZ: international The spirit of the times: Ethnic communication SAMS Within less than a year, Publicis has become one of the leaders in the field of ethnic communication in the US. The Group is now an indispensable partner for major brands anxious to reach specific consumer segments, audiences which are difficult to reach by way of standard messages. Departing from tradiPublicis broke into this tional advertising, which seeks m a rk e t i n 1 9 9 9 w h e n Burrell: Adidas, to establish a close-up relai t a c q u i r e d t h e No 1 American Legacy tionship between a brand communications agency for Foundation, Verizon and its consumers, a certain Afro-Americans: Burrell Conill Advertising: number of agencies in the Communications. The Group Viamericas US have made ethnic differcontinued down this path in entiation their communications focus 2000-2001 when it integrated several and their specificity. The focus is on other ethnic agencies: Conill Advertising, three leading ethnic communities: Afro- member of the Saatchi & Saatchi Americans, Hispanics and Asians. network, Sanchez & Levitan in Miami and two agencies of the Siboney network An essentially North (Dallas, Los Angeles). NEW BIZ: American market At the beginning of 2001, the latest census in the US came up with ten million Americans of Asian origin, 36 million of Hispanic origin and 35 million AfroAmericans. The increasing weight of the ethnic minorities among the overall population explains the expansion of this specific form of communication. Burrell Burrell had an exceptional year in 2000, with intensive commercial activity and revenues 30% higher than in 1999. These reached 23 million o. With the Verizon campaign, Burrell showed itself to be a generalist and creative agency. The winning of the Adidas account emphasized the so called “street knowledge” of Burrell which proved indispensable for the launch of the Mad Handle brand. Burrell in 2000 also created “Yurban” (youth and urban), a department specialized in the research on habits of urban youth. Conill Advertising Conill won many awards during the year and for the second year running was named Hispanic agency of the Year by the John O’Toole jury. Conill works also with P&G, Beck’s Beer, Toyota and Verizon. Publicis Sanchez & Levitan Under this famous name, Publicis regrouped the two entities acquired at the beginning of 2001 — Sanchez & Levitan and the two agencies in the Siboney group. This new structure works with prestigious clients, including Coca Cola, Nestlé, BellSouth, Denny’s, ADT Security Systems and United Distillers & Vintners. New offices are set to open soon in New York and Chicago. LANDMARKS 250 people Highlights 2000 Acquisition of Conill Advertising (via Saatchi & Saatchi). Acquisition of Publicis Sanchez & Levitan. A N N U A L R E P O R T 45 NEWS 2000 DIRECT MARKETING The brand and the individual… Publicis Dialog and Frankel Marketing services seek to create and maintain strong individual ties between the brand and the consumer. These techniques fall naturally into the global offer that Publicis wishes to offer clients. They are expanding rapidly and form a major part of the Group’s strategy and development. LANDMARKS A winning year PUBLICIS DIALOG 1,870 people F Highlights 2000 Faster international expansion Launch of the Publicis Dialog network in Brazil, Malaysia, Singapore and the Philippines, meaning this network now covers 22 countries across the world. Acquisition in the US of the Frankel agency, leading independent agency in the field of marketing services. Acquisition of Geltzer & Company, public relations specialists, a move sig- rench marketing services expanded 12.7% enabling Publicis Dialog’s revenues and net profit to move ahead strongly. The Group won numerous new accounts, including Comdirect, Chronopost, Lancôme, Club Internet and Boursin. The year 2000 was notable for the merger of Publicis Dialog and Global Event System, the leading events company in the Group which has managed the World Economic Forum in Davos, Switzerland, for many years. Several new conventions and events were won in 2000: Alcatel, André, Aéroports de Paris, Renault and IBM France. nificantly reinforcing Publicis Dialog New York. Publicis Dialog now has nine offices in the US offering a complete range of services. Acquisition in the Philippines of three direct marketing agencies, including Spark, merchandising specialists for mass consumption products throughout the archipelago. 46A N N U A L REPORT Publicis Dialog in Germany had very strong growth and won businesses such as Quelle and the campaign for the launch of the Euro. In the Netherlands, the billings of Dialog KHY also progressed well. This unit began collaborating with Hoya, British Airways and Heineken. Publicis Dialog UK had an excellent performance and reinforced its ties with Renault, Lancôme, ASDA, Woolwich and Ericsson. The agency secured the accounts of Wilcon Homes, Business Week and studychoice.com. Publicis Dialog also launched a consumer watch service: Dataworks. A selection of NEW BIZ: Publicis Dialog: The Euro, Lancôme, British Airways, Renault, Ericsson... Frankel: AT&T Wireless, Del Monte, Safeway. In Israel, the business of Super Push, No 2 in the sales promotion market and AB Data, leader in direct marketing, enjoyed significant progress. FOCUS Marketing directly FRANKEL Chicago-based Frankel has two offices in California. Prestigious brands have chosen to be its clients: McDonald’s, United Airlines, Visa, Nestlé, Frito Lay, Target and USPS (US Postal Services). Frankel’s offer covers a wide range of services, notably direct marketing, sales promotion tools, merchandising, product launches, promotional contests and games, loyalty programs and events. SAMS How does a brand treats its audience? As consumers or people? Should it offer an overall service or simply sell a product to people? Should it maintain contact or make much more of the link? Direct marketing establishes a give-and-take balance and mutual advantages between brand and purchaser: loyalty to the brand, specific services and information for the client. It’s like the art of conversation... banning imbalance, forgiving errors if they are picked up, banishing mediocrity. Sellers know that everyone can make mistakes, but that well-intentioned and genuine excuses guarantee future loyalty. Use with moderation. During 2000 Frankel won the business of AT&T Wireless, Del Monte and Safeway. The agency won several awards for its promotional activities, notably for Frito Lay. Frankel’s revenues during the year were 106 million o. Direct marketing: benefits of a give-and-take balance between the brand and its audience. A N N U A L R E P O R T 47 NEWS 2000 CORPORATE COMMUNICATIONS Successful branding is a job for specialists: Publicis Consultants Experts are needed to help a company manage change and assess how this is regarded in the environmental, economic and social contexts. Publicis Consultants has developed this skill on an international level with multi-disciplinary teams and “that extra something” of Publicis. LANDMARKS 290 people Highlights 2000 Acquisition of Winner & Associates (USA), highly skilled Saatchi & Saatchi enabled the Group to welcome Rowland Communications Worldwide, based in New York and operating outside the US via hubs in London, Geneva and Brussels. C ommunication magnifies a company’s merits and faults and is the reflection of its strategy. The adding of value to a company’s image involves not only control of communications downstream, but also intervening upstream in strategy and its various manifestations. In short, it has become crucial to link a company’s strategy and its communications policy in one endeavor and to achieve close coordination between strategic and communications advice. This is the Difference supplied by Publicis Consultants. Acquisition of Ekonos and Carré Noir in France and integration of the teams of Publicis Design. Carré Noir works for Bon Marché department store, Hollywood chewing gum, Lafarge, Michelin and Inès de la Fressange. 48A N N U A L REPORT manner in which they will structure the new unit. Corporate communication aims also to place a market value on achievements, so that these are reflected in the share price: financial communication aims to give the best possible financial image to the market. in lobbying and crisis management. corporate level in order to explain the The matter of reputation The balance sheet is not all. The company must also have a positive reputation. That’s the role of press relations and of public relations covering more extensively the institutional area and those touching the general public, marketing and events. Special skills for the luxury and fashion fields are supplied by the Pietri agency. Image and reputation can be badly shaken during crises brought on by unexpected events. Via a special com- Power of corporate brands When companies adopt their main brand name as their own it is important that they should link institutional and brand messages. Concentrations and mergers oblige companies to speak out at munications structure and a trained staff, Publicis Consultants offers special advice to senior managers, notably on regulations and industrial restructuring. FOCUS Consulting experts nourish a brand’s value Nourishing a brand’s value involves intervening in the value chain. The image of a brand is the result of the actions and messages of a company so consulting experts must combine the company’s strategy and communications strategy. This know-how means creating and translating the messages given out by a company. These reflect a coherent whole no matter the subject, the moment, the event: Brand Strategy, choice of Language and Design, institutional, financial, even crisis, communication, press and public relations. Acting in this way, the company and its corporate communications agency can adopt a position based on a genuine difference of approach; one that is both specific and credible due to communications flowing straight from the company’s strategy. Combining all company messages SAMS Reinforcing identity The first step is formulating a “Brand Positioning Statement” as the basis and reference point for actions and messages. One must also manage the structure and worth of brands so as to answer simultaneously strategic necessities and operational requirements and ensure the transparency of communication... by the choice of names, logos and signs of belonging and recognition. Skills in the matter of “language and design” concentrate on the visual and verbal languages of institutions, enterprises The firm and its agency establish the central position of the brand. When it comes to rallying within a group, several elements are the domain of institutional communications. Here, Publicis intervenes in creating communications strategies for the values, concepts and events which determine a company’s image. This leads to campaigns aimed at sensitization and action programs adapted for institutional needs. “Firm, Brand, Agency” and brands, the commercial packaging and overall “architecture”. In France, Publicis Consultants is the main link in a chain which progressively has become international: first came offices in Belgium, Portugal, Switzerland, the Netherlands and Germany, then in 2000 Publicis put down significant roots in these fields in the US, following the purchase of Winner & Associates. The year 2000 saw Publicis Consultants improve revenues which reached 37 million o . NEW BIZ : Institutional and crisis communication: Unilog, JC Decaux ● Financial communication: Air Liquide/BOC, TotalFinaElf, Sovabail, Immobail ● Public relations, Press relations: Launch of the Euro in France ● Language and Design: Vivendi Universal ● Rowland: DuPont Teflon and Tyvek, Crowley Maritime ● A N N U A L R E P O R T 49 NEWS 2000 HUMAN RESOURCES COMMUNICATIONS As long as there are men of talent: Media System The development of Media System has made Publicis the French leader in human resources communication. This was one of the most dynamic segments of the communications market in 2000. T he French market in human resources communication has been helped in recent years by a skills shortage which has led companies to approach candidates as if they were customers. LANDMARKS This has been one of the main changes in the sector in 2000. 265 people Highlights 2000 The French recruiting middle market executives managers for and showed strong growth. Some 188,000 managers were recruited in 2000, a jump of 27%. 50A N N U A L REPORT Increasingly, firms act in terms of image (the image of the employer), confidence and permanent dialogue. The phenomenon has been more noticeable with the arrival of Internet as a support tool for staff recruitment. Relationship with the candidate: a multidisciplinary undertaking As a specialist in relations with candidates, the human resources communications agency must know how to build and diffuse an image of the company which is both convincing and seductive. In order to do this, it calls upon all the competencies and tools of communication which it directs and articulates in accordance with the company’s objectives. Human resources communication embraces the institutional communication of the employer, recruitment communication and internal and social communication. It relies upon all kinds of existing methods: institutional advertising in the press, recruitment advertisements, consultancy in media buying, written support material, direct marketing, call centers, staging of events, video production, multimedia, including web sites dedicated to jobs. Excellent outlook for Media System The Media System group benefited in 2000 from an extremely favorable market environment: the French market for the recruitment of executives and middle managers has been growing strongly since SAMS the second half of 1999 (188,000 managers recruited in 2000) and this growth was some 27% in 2000. Demographic trends over the next few years suggest the current tension in the market over skills is unlikely to disappear: of course, the effects on the growth in human resources communication will also be linked to economic growth. Media System already has 35 international clients in more than four countries. These companies, such as Cisco and Eutelsat, have international recruiting strategies, which, although limited for the moment, constitute significant growth potential for Media System. NEW BIZ : Publicis group aims to create in this field a really integrated network covering some 18 countries. Communication for human resources: a specialist in the relationship with the candidate. Cap Gemini Ernst & Young, Mitsubishi Electric France, Cegetel, NetGem, Web sites for the human resources departments of Société Générale, Bosch and Vizzavi. Media System in 2000 undertook major institutional campaigns involving “image” (Cap Gemini Ernst & Young, SNCF, NetGem and Danone) and strongly developed its multimedia activity to answer the growing need of human resources departments (sites for Société Générale, Bosch, Vizzavi...). Total revenues from this activity was close to 22 million o. Internationalization of recruitment strategies Media System became more international: the agency has participated since 1997 in a network of 12 European and American agencies called Recruitment Advertising Network. A N N U A L R E P O R T 51 NEWS 2000 INTERACTIVE COMMUNICATION When generations meet: Publicis.Net Publicis was one of the first to bracket the development of interactive products and services. Internet units of the Group were reorganized in 2000 so that benefits from leadership in this field could be passed on to clients. P ublicis rode the strong “net acceleration” wave of 1998/1999, redeploying its Internet strategy with the creation at the beginning of 2000 of Publicis.Net. This holding company brings together the Group’s different stakes in web agencies that have been bought or created from scratch. LANDMARKS Revenues 65 Me 700 people Purchase of five web agencies during the year and early TNI Ikonos and Institutional Design in France regrouped under the name Publicis NetWorks; Welcome 2000 in Italy, Web Image in Israel and Fallon Interactive in the US acquired via Fallon. 52A N N U A L REPORT In support of its web agencies, the Group has acquired or created five units offering communications solutions based on Internet technology: Net.Intelligenz in France specializes in “competition watch” on the web, while Publicis e-brand is a communications A t t h e s a m e t i m e , Pu b l i c i s agency turned towards net firms; in Technology, which is based in Paris and Israel, e-deologic specialized in advertising San Francisco, is developing ways to banners; the US has two agencies, Siren Technologies and ensure a complete IT offer Brand Guard, created internally and to clients. by Frankel. Siren, created originally for McDonald’s Renault in four additional In addition, Publicis poscountries; United is a remote control sesses integrated, interactive Biscuits/Jaffa cakes site; digital display system. resources within several Nestlé’s human resources BrandGuard is an and financial information adver tising agencies in sites; Ericsson/WAP camadvanced system for G e r m a n y, t h e Un i t e d paign; European Central decentralized commuKingdom, Portugal, Finland, Bank; Fidelity Investments; nication of a brand Canada, US, Brazil, Peru and Hewlett Packard and while safeguarding rules Whirlpool. Australia. and values. NEW BIZ: international Highlights 2000 2001: Betting on technological innovation SAMS More service, more interactivity Interactive services continue to grow: the IDC research institute sees 40% annual world growth between now and 2004. The boom is a response to major changes in the demand and expectations of clients and is in the throes of revolutionizing, once and for all, the world of communication. FOCUS Old style brands and the new economy Publicis wants to be a leading player as the sector takes off. The priority is to help traditional clients build and develop an interactive offering using Internet to the full. The Group has had limited exposure to dot.com clients and has generally avoided the effects of the new economy cutbacks which marked the second half of 2000. Internet has revolutionized the old “client is king” concept. Clients now have extra-power – to reply, to group together, to “zap”. Do brands have different management styles in the real and virtual worlds? For brands in the old economy, Internet has been a revolution changing the “client is king” philosophy to one where the client remains a similar figure but one conscious of his power to reply, to associate with others or simply to “zap”, or switch off. Internet encourages more egalitarian and personalized relationships. It leads to a more effective client focus, a constant challenge, a hot line quality and a charter of services. Internet serves to boost marketing and as a catalyst, pushing firms to become really client-oriented. It is also a test for dot.com companies. If advertising should intrude on private lives, then it is for them to take the initiative to back off on the net. People should want the service. Dot.coms should communicate and make themselves known. Dot.coms need “real” communication to make known their virtual side. Old economy brands, for their part, often need virtual communications to help their real side. A N N U A L R E P O R T 53 NEWS 2000 MEDIA SELLING The art and technique of filling space: Médias et Régies Europe The Médias et Régies group, specialized in media selling, is the only independent, international and multimedia company in the world. Operating since 1937, it has been the partner of the written press, radio, cinema, outdoor advertising and, more recently, Internet. LANDMARKS Revenues 135 Me 828 people Highlights 2000 Cinema : creation of Mediavision subsidiaries in Switzerland and Brazil. Street furniture: creation of Omnimedia in Cleveland, Ohio. Transport: Metrobus (France) posted billings over one billion francs (153 million e). Internet: partnership with Weborama in Internet profiling. 54A N N U A L REPORT New contracts and extensions of others ● Written press: Le Nouvel Economiste, News Bourse, Le Monde 2, Consumer Media ● Cinema : Pathé in the Netherlands ● Public transport: Paris Metro new billboard formats ● Interactive agencies: Le Monde and Le Monde Interactif (l-regie.com), Allo Ciné, Libération Web, JobUniverse (recruitment sites) T he space seller, intermediary between publishers and advertisers, markets advertising space for the written press, outdoor advertising, cinema, street furniture, radio and Internet. These are “territories of expression” for brands and Médias et Régies Europe brings strong added value for those who place their confidence in the Group and profit for those who invest. The Group stresses a resolutely up-front and strategic approach to solving the problems of clients, both publishers and advertisers. Big names Médias et Régies Europe is made up of well-known names at the service of prestigious brands: Le Monde Publicité for Le Monde newspaper, Espaces Libération for another daily, Libération, Régie 1 for Europe 1 radio station, Metrobus for RATP (Paris urban transport), RTM for transport in Marseilles, Médiavision for the Pathé and Gaumont cinema chains, Régiscope for the Pariscope What’s On guide, Médias et Régies (Presse) for Télé Z, a leading TV weekly, Le Nouvel Economiste, Marianne, Le Monde Informatique and many other titles. Médias et Régies is the only French group with such a large and multidisciplinary view of the market, the only group to offer clients marketing tools and aid in decision-making taking in the whole of the advertising market. SAMS Permanent quest for new space Led by Médiavision and others subsidiaries specialized in outdoor advertising, Médias et Régies Europe is now established in France, Portugal, Spain, Italy, the Netherlands, Poland and Switzerland. At the beginning of 2000, the group crossed the Atlantic and created a street furniture specialist, Cleveland Omnimedia, in Cleveland, Ohio. It also opened a branch of Médiavision in Brazil. Médias et Régies also set up in the virtual world. The group sees Internet as a path of growth and one which will lead to a new reputation amongst publishers and advertisers. Four years ago, the group brought to Internet two major partners: newspapers Le Monde and Libération. In 2000, Médias et Régies Europe launched its own agency: Médias et Régies Interactive (MRI). Beyond the sale of space MRI will help the market structure itself and gain efficiency. Promising outlook The year 2000 confirmed the trend of the previous two years for most segments of the media and achieved record sales. Médias et Régies Europe benefited from this overall growth and saw its revenues rise 15.4%. All the sectors where the group is active contributed to this good performance. Radio and outdoor advertising recorded the highest growth in revenues in 2000. “Hear, hear” A N N U A L R E P O R T 55 A SYMBOLIC NEWS 2000 SHOP WINDOW 133, CHAMPS-ELYSÉES Publicis showplace: the Drugstore Publicis It bears the Group’s name and aims to present a special image of Parisian life. Like its neighbor, the Arc de Triomphe, it is known throughout the world. Publicis is as much attached to the Drugstore as it is to its own identity. The store will be associated with all the other changes under way. The manner of its renovation is under discussion. A t 133 Avenue des ChampsElysées, Publicis Groupe S.A. owns a store (specialized boutiques, pharmacy, book store, newspaper kiosk) and a restaurant. For 26 years it has been in the same building that houses the Group’s headquarters and a number of agencies (Publicis Conseil, Publicis Consultants, WAM) and it has been, in many ways, the Group’s shop window for the public. An exceptional sight on the world’s most celebrated avenue, the Drugstore has always been a highly friendly and modern place close to the spirit of the times and Parisian lifestyles. It attracts tourists and Parisians around the clock. The Group decided to undertake a profound modernization of the Drugstore in 1999. The concept, activities and layout will change in order to stay abreast of trends in urban sales. An international competition was launched in 2000 and a dozen European, American and Japanese architects were invited to participate. The winner was a young Californian architect Michael Saee. The project is being drawn up and work will start in a few months. 56A N N U A L REPORT Consultancy, conception, creation and production: Pictures: H. de Oliveira, Ph. Zamora, Drugstore photo libraries - Illustrations: Kot / O. Girault Global presence of Publicis Groupe S.A. April 2001 - Major Group companies EUROPE Austria Publicis Saatchi & Saatchi Optimedia Belarus Primary Saatchi & Saatchi Belgium Publicis Saatchi & Saatchi Publicis Consultants Saatchi & Saatchi Business Communications Optimedia Zenith Media Bosnia Hercegovina S Team Saatchi & Saatchi (Sarajevo, Banja Luka) Bulgaria S Team Saatchi & Saatchi Croatia Publicis S Team Saatchi & Saatchi Czech Republic Publicis Optimedia Denmark Publicis Saatchi & Saatchi Optimedia Zenith Media Estonia Adell Saatchi & Saatchi Finland Publicis.Törmä Viherjuuri Saatchi & Saatchi Publicis Dialog Publicis Marché France Publicis Conseil Publicis Etoile Publicis Constellation FCA!BMZ Loeb & Associés Saatchi & Saatchi Publicis Régions (Annecy, Lyons, Clermont-Ferrand, Brest, Nantes, Lille, Strasbourg, Nancy,Besançon, Marseilles, Nice, Paris, Montpellier, Bordeaux, Toulouse,Tours, Le Mans) Publicis Consultants Publicis Dialog Publicis e-brand Publicis NetWorks Publicis Technology Publicis Wellcare Directis Guillaume Tell Media System (Paris, Lyon, Nice, Marseille, Strasbourg) Motivom Mundocom NetIntelligenz Verbe WAM Saatchi & Saatchi Healthcare Saatchi & Saatchi Rowland Saatchi & Saatchi Business Communications France (continued) Optimedia Idemedia Zenith Media Médias & Régies Espaces Libération Le Monde Publicité Médias & Régies Interactive Mediavision Métrobus Régie 1 Drugstore Champs-Elysées Germany Publicis (Berlin, Frankfurt) Publicis.MCD (Munich, Erlangen) BMZ/FCA! Saatchi & Saatchi Publicis Dialog (Hamburg, Frankfurt) Publicis NetWorks (Munich, Frankfurt) More Sales (Dusseldorf, Munich) Publicis Vital Mundocom ADF DTP Dialog Team Marketing Publicis.Lenze More Interactive Saatchi & Saatchi Healthcare Optimedia (Dusseldorf, Frankfurt) More Media (Dusseldorf, Munich) Zenith Media (Frankfurt, Hamburg) Greece Publicis Adel Saatchi & Saatchi Publicis Dialog Publicis Technology Optimedia Zenith Media Hungary Publicis Saatchi & Saatchi Zenith Media Ireland Zenith Media Italy Publicis (Milan, Rome) FCA!BMZ Saatchi & Saatchi (Milan, Rome) Carmi & Ubertis Design Welcome 2000 Optimedia Zenith Media (Rome, Milan) Mediavision Opus Latvia Adell Saatchi & Saatchi Lithuania Adell Saatchi & Saatchi Macedonia Publicis S Team Saatchi & Saatchi The Netherlands Publicis Saatchi & Saatchi Publicis Consultants Mundocom International (Amsterdam, Eindhoven) Kern, Habbema & Yap BMB AMI Change the Script Compasso Optimedia Zenith Media Publex VKM Mediavision Norway Publicis Saatchi & Saatchi Zenith Media Poland Publicis Saatchi & Saatchi Mundocom Optimedia Zenith Media Portugal Publicis Publicidade BMZ/Park Saatchi & Saatchi Publicis Consultants Publicis Technology Publicis Dialog Optimedia Zenith Media Intervoz TCS Portugal Romania Centrade Saatchi & Saatchi Zenith Media Russia Viag Saatchi & Saatchi Slovakia Publicis.Knut Optimedia Slovenia S Team Saatchi & Saatchi Spain Publicis Publicis, Casadevall, Pedreño & PRG (Barcelona, Madrid) Saatchi & Saatchi (Madrid, Barcelona) Publicis Dialog Optimedia (Madrid, Barcelona) Zenith Media (Madrid, Barcelona, San Sebastian, Valencia) Publisistemas Sweden Publicis.Welinder Zenith Media Switzerland Publicis (Zurich, Lausanne) Publicis Consultants Publicis Dialog Fisch Maier Direkt Global Event Management Saatchi & Saatchi Rowland (Geneva, Zurich) Optimedia Mediavision UK Publicis Fallon Saatchi & Saatchi Team Saatchi The Triangle Group Publicis Dialog Publicis Blueprint Publicis NetWorks Mundocom International The Facilities Group Saatchi & Saatchi Healthcare Duffy Optimedia Zenith Media Ukraine Adell Saatchi & Saatchi Yugoslavia Publicis S Team Saatchi & Saatchi NORTH AMERICA Bermuda AAC Saatchi & Saatchi Canada Publicis (Montreal, Toronto) Saatchi & Saatchi (Toronto, Montreal) Saatchi & Saatchi Drum Publicis Dialog (Montreal, Toronto) Publicis NetWorks (Montreal, Toronto) Publicis Wellcare (Montreal, Toronto) Publicis Brand & Design Goodhue & Associés Ove Design & Communications Taylor Tarpay Direct Optimedia (Montreal, Toronto) US Publicis (Dallas, New York, Chicago, Seattle, Indianapolis, Salt Lake City) Publicis & Hal Riney (San Francisco, Atlanta, New York) Fallon (Minneapolis, New York) Burrell Communications (Chicago, Atlanta) Publicis Sanchez & Levitan (Miami, Dallas, Los Angeles) Saatchi & Saatchi (New York, San Francisco, Los Angeles) Conill Advertising (New York, Los Angeles) Nazca Saatchi & Saatchi Team One Advertising Publicis Dialog (New York, Dallas, Chicago, Seattle, San Francisco, Boise, Indianapolis, Salt Lake City) Nelson Communications Frankel (Chicago, Irvine, San Francisco) Winner & Associates (Washington, Los Angeles) Publicis Technology Klemtner Advertising Saatchi & Saatchi Rowland (Fairport, Wilmington) Saatchi & Saatchi Collaborative Marketing Siren Technology BrandGuard Fallon Interactive Duffy (Minneapolis, New York) US (continued) Optimedia (New York, Chicago, Dallas, Indianapolis, Salt Lake City, San Francisco, Seattle) Zenith Media (New York, Atlanta, Chicago, Denver, Dallas, Fort Lauderdale, Kansas City, Los Angeles, Portland, San Francisco) Médias & Régies LATIN AMERICA Argentina Publicis.Capurro Del Campo Nazca Saatchi & Saatchi Publicis Dialog Optimedia Brazil Publicis.Norton (São Paulo, Rio de Janeiro) Publicis.D&M Nortsouth/Norton Flores F Nazca Saatchi & Saatchi Dialog MPA Publicis Consultants Mediavision Chile Publicis.Unitros Sutil Nazca Saatchi & Saatchi Colombia Publicis.CB Costa Rica Consumer Excepcional Nazca Saatchi & Saatchi Dominican Republic Cumbre Nazca Saatchi & Saatchi Ecuador Publicitas Nazca Saatchi & Saatchi (Guayaquil, Quito) Guatemala Creacion Nazca Saatchi & Saatchi Honduras Mass Nazca Saatchi & Saatchi Mexico Publicis.Romero Nazca Saatchi & Saatchi Optimedia Panama Publicis.Fergo Peru Publicis Asociados Quorum Nazca Saatchi & Saatchi PA Comunicadores Puerto Rico Badillo Nazca Saatchi & Saatchi Trinidad & Tobago Publicis Caribbean Lonsdale Saatchi & Saatchi Venezuela Publicis.67 AW Nazca Saatchi & Saatchi AFRICA/ THE MIDDLE EAST Bahrain Publicis-Graphics Egypt Publicis-Graphics Saatchi & Saatchi Gabon Synergie Saatchi & Saatchi Ghana Target Saatchi & Saatchi Israel Publicis.Ariely BBR Saatchi & Saatchi AB Data Super Push Web Image Optimedia Tanzania Century Saatchi & Saatchi Laos Prakit.Publicis Tunisia FCA! KNR&G Saatchi & Saatchi Malaysia Publicis Saatchi & Saatchi Adsell Advertising Publicis Dialog Angsana Comm Publicis PR Saatchi & Saatchi Recruitment Optimedia Zenith Media Turkey Publicis-Graphics Reklam Birikim FCA! Guzel Sanatlar Saatchi & Saatchi UAE Publicis-Graphics Saatchi & Saatchi Zenith Media Uganda Saatchi & Saatchi Zambia D&C Advertising Zimbabwe Linsell Saatchi & Saatchi Ivory Coast Univers COM Saatchi & Saatchi Jordan Publicis-Graphics Saatchi & Saatchi Kenya MCL Saatchi & Saatchi Kuwait Publicis-Graphics Lebanon Publicis-Graphics Saatchi & Saatchi Madagascar Erré Saatchi & Saatchi Mauritius P&P Link Saatchi & Saatchi Morocco Publicis KNR&G Saatchi & Saatchi Mozambique Ferro & Ferro Saatchi & Saatchi Namibia DV.8 Saatchi & Saatchi Nigeria MC&A Saatchi & Saatchi Qatar Publicis-Graphics Saudi Arabia Publicis-Graphics (Jeddah, Riyadh) Akeel Saatchi & Saatchi Zenith Media South Africa Publicis (Cape Town, Johannesburg) Saatchi & Saatchi (Cape Town, Johannesburg) Optimedia ASIA/PACIFIC AREA Australia Publicis.Mojopartners (Sydney, Melbourne, Brisbane) Saatchi & Saatchi Publicis.DRUM Publicis Dialog (Sydney, Melbourne, Brisbane) Publicis Wellcare Optimedia (Sydney, Melbourne) Zenith Media (Sydney, Adelaide, Brisbane, Melbourne) Cambodia Prakit.Publicis Zenith Media China Publicis.Ad-Link (Shanghai, Beijing, Guangzhou, Hong Kong) Saatchi & Saatchi (Shanghai, Beijing, Guangzhou, Hong Kong) Publicis Dialog (Hong Kong) Publicis Link (Hong Kong) Zenith Media (Beijing, Shanghai, Guangzhou, Hong Kong) India Publicis India Communications (Bombay, New Delhi) Saatchi & Saatchi (Bombay, Bangalore, Madras, New Delhi) Saatchi & Saatchi Direct Optimedia Zenith Media (Bombay, Bangalore, Calcutta, Madras, New Delhi) Myanmar Prakit.Publicis New Zealand Publicis.Mojopartners Publicis Communication Saatchi & Saatchi (Wellington, Auckland) Publicis Dialog Rainger Direct Publicis.Drum Optimedia Pakistan Publicis (Lahore, Karachi) IAL Saatchi & Saatchi Optimedia Philippines Publicis.AMA Basic Advertising Ace Saatchi & Saatchi Publicis Dialog Publicis.Spark Publicis.Interbrand Optimedia Singapore Publicis.Eureka Saatchi & Saatchi Publicis Dialog Saatchi & Saatchi Recruitment Optimedia Zenith Media Taiwan Publicis Saatchi & Saatchi Zenith Media Thailand Prakit.Publicis Saatchi & Saatchi Optimedia Zenith Media Vietnam Publicis Saatchi & Saatchi Zenith Media Indonesia Publicis.Metro Optimedia Japan Publicis Saatchi & Saatchi Korea Publicis.Welcomm ■ ■ ■ ■ ■ Advertising Media buying Marketing services / specialized agencies Media sales Retail Publicis Groupe S.A. 133, avenue des Champs-Elysées 75008 Paris - France Phone: + 33 (1) 44 43 70 00 - Fax + 33 (1) 44 43 75 25 www.publicis.com