Publicis to prioritise AI and data over dentsu acquisition

New Delhi: Publicis Groupe has indicated it is more interested in enhancing its data and AI capabilities than acquiring new business, according to the report.

CEO Arthur Sadoun told a Bank of America investment day that Publicis was only interested in buying capabilities in data, technology and AI that will “enable us to continue to outperform the market” and deliver value to clients.

"We are not interested in consolidating more of the same for the sake of efficiencies," he added.

“Our transformation allows us to deliver AI-powered marketing to our clients and 100% of our investment is focused on accelerating even further in that direction," Sadoun said.

The comments come as dentsu has hired investment banks Mitsubishi UFJ Morgan Stanley and Nomura Securities to explore options for its underperforming international advertising business, including a possible sale. No decisions have been made.

While the Japan-based component of dentsu's business, which accounts for 42% of net revenue, posted 5.3% organic growth in the half-year to June, the international segment, including an 8.9% decline in Asia-Pacific, pulled the company down to a 0.2% negative result.

Publicis Groupe, which tops the global advertising rankings, raised its full-year outlook in July following stronger-than-expected 10% growth, with organic revenue at 5.4% in the June quarter.

Sadoun added that the group had experienced a good northern summer. “The marketing cuts that we have discussed in Q2 did not appear,” he said.