AI Critics Initially Dismissive, But Early Adopter Arthur Sadoun Now Declares No One is Laughing Anymore
Publicis Groupe kicked off 2023 on a high note, posting a whopping 7.1% organic growth in Q1, following a impressive 10.1% growth in full-year 2022. According to CEO Arthur Sadoun, there's still plenty of room for more growth, with predictions of 3%-5% for the year ahead.
Adweek was privy to the insights shared by Sadoun. He believes that the digital consulting business Sapient, which saw an impressive 11% growth, and Epsilon, which contributed a substantial 10% increase, will continue to be key growth drivers. These two companies, employing approximately 30,000 tech and data specialists, account for a significant one-third of Publicis' revenue.
Interestingly, Publicis managed to overtake its US counterparts during this period. The network's stride in Q1 2023 can be attributed to a 5.8% increase in revenue in the U.S. and a stunning 12.3% growth across Europe, thanks to the performance of Sapient and Epsilon.
Looking ahead to 2025, Publicis has expressed optimism about posting a 4-5% organic growth, similar to the outlook for 2023. This expectation is based on the company's robust new business performance, which it believes can help offset potential economic challenges.
In 2025, the growth was fueled by a "record new-business run" across multiple regions, notably in Latin America and the Middle East and Africa. This trend of increased demand from new business wins could very well be a significant factor driving Publicis' growth in Q1 2023, although specific details are not provided in the search results consulted.
Historical financial reports or industry analyses from Q1 2023 may provide more insights into the specific drivers of Publicis' growth at that time.
Technology and artificial-intelligence played significant roles in Publicis Groupe's Q1 2023 growth, with digital consulting businesses Sapient and Epsilon, both specialized in tech and data, contributing a combined 11% and 10% growth respectively, accounting for one-third of Publicis' revenue. In 2025, the company expects to continue leveraging these tech-centric businesses to maintain a growth rate of 4-5%, highlighting the importance of artificial-intelligence in fueling their growth strategy.
