
Publicis Groupe said it saw “higher-than-expected attrition in traditional advertising” of $170.4 million last year, mainly from several consumer packaged-goods clients in the U.S. The French advertising holding company, which owns agencies including Leo Burnett, Digitas and Starcom, reported its fourth-quarter earnings Wednesday after market close in Paris.
The holding company said it hopes the ramp-up of significant accounts won toward the end of 2018 will lead to improved organic growth as of the second quarter of this year. Until then, Publicis cautioned it expects a “bumpy ride” due to prolonged effects of spending declines among its CPG clients last quarter. Publicis called that cut in that sector’s spending is a broad industry challenge and said it’s taking “taking strong actions to overcome it.”
North America saw organic growth decline of 0.8 percent in 2018, while globally the Groupe saw organic growth of 0.1 percent for the year. During the fourth quarter, Publicis Groupe’s net revenue was up 0.4 percent from $2.8 million in 2017. During the fourth quarter in 2018, the Groupe saw an organic growth decline of 0.3 percent.
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