# Digital ad demand helps Publicis hike 2021 growth outlook
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-10-14
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Publicis Boosts 2021 Outlook Amid Digital Shift
Meta Description: French ad group Publicis boosts forecast as digital shift drives organic growth, attracting new clients with data-driven campaigns.
URL: https://financedigest.com/digital-ad-demand-helps-publicis-hike-2021-growth-outlookhtml

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By Milla Nissi

(Reuters) – French advertising group Publicis raised its outlook for 2021 on Thursday as a global shift towards digital media and e-commence helped its third-quarter organic growth exceed market expectations.

Demand for digital advertising helped Publicis, which has sought to attract new customers by promising targeted campaigns based on large pools of data, return to organic growth this year for the first time since before the coronavirus pandemic.

Publicis, home to ad agencies such as Leo Burnett and Saatchi & Saatchi, said it had also benefited from new business wins during the [third quarter](https://www.financedigest.com/delivery-hero-sees-higher-gross-merchandise-value-in-third-quarter.html "Delivery Hero sees higher gross merchandise value in third quarter"), including Walmart and Planet Fitness.

The [world’s third-largest advertising group](https://www.financedigest.com/soccer-womens-rights-group-calls-on-fifa-to-kick-iran-out-of-world-cup.html "Soccer-Women’s rights group calls on FIFA to kick Iran out of World Cup") behind Britain’s WPP and U.S.-based Omnicom now [expects organic growth](https://www.financedigest.com/universal-music-q3-earnings-beat-expectations-streaming-growth-slows.html "Universal Music Q3 earnings beat expectations, streaming growth slows") of 8.5% to 9% this year, up from a previous 7% forecast.

The continued outperformance of our [data and tech capabilities once again demonstrated our ability to capture a disproportionate share of the shift in client investment towards digital](https://www.financedigest.com/why-data-is-the-best-weapon-in-the-war-for-digital-talent.html "Why data is the best weapon in the war for digital talent") media, commerce and DTC (direct-to-consumer),” Chief Executive Arthur Sadoun said in a statement.

Its digital business Sapient [reported 20% organic growth](https://www.financedigest.com/reinsurance-demand-increasing-as-growth-opportunities-emerge-according-to-aon-outlook-report.html "Reinsurance demand increasing as growth opportunities emerge, according to Aon outlook report") in the United States, which is Publicis’ biggest market and the source of more than half of its revenues, with data company Epsilon 13% above last year’s level.

“Epsilon’s potential for development outside the U.S. is very interesting,” Sadoun told [reporters when asked about the unit’s dependency on its home](https://www.financedigest.com/brexit-begins-to-bite-spanish-holiday-home-budgets-reports-kyero-com.html "Brexit begins to bite Spanish holiday home budgets reports Kyero.com") market.

“We have a small base today (internationally), between 5 and 8% of revenues … but this base is already growing at 40% over the first nine months.”

Underlying [sales in the United](https://www.financedigest.com/automotive-digital-key-market-unit-sales-to-witness-significant-growth-in-the-near-future.html "Automotive Digital Key Market Unit Sales to Witness Significant Growth in the Near Future") States grew by 10.9% in the quarter, while Asia-Pacific posted 12.5% growth. Sales in Europe rose by 10% from last [year and regained pre-pandemic levels](https://www.financedigest.com/2016-must-be-the-year-of-board-level-transparency-and-good-governance.html "2016 must be the year of board level transparency and good governance").

At group level, underlying [sales rose by 11.2% to 2.6 billion](https://www.financedigest.com/allianz-puts-n26-stake-up-for-sale-at-3-billion-valuation-ft.html "Allianz puts N26 stake up for sale at billion valuation – FT") euros ($3 billion) in the third quarter compared with the same period last year, and exceeded 2019 levels by 5%.

Analysts had [expected organic growth](https://www.financedigest.com/contract-caterer-compass-expects-2023-profit-growth-to-top-20.html "Contract caterer Compass expects 2023 profit growth to top 20%") of 7.8% for the quarter, a company-provided consensus forecast showed.

($1 = 0.8643 euros)

(Reporting by Milla Nissi and Valentine Baldassari in Gdansk; Editing by Alexander Smith)


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