Publicis, the Maurice Levy-led holding company that owns three big advertising networks including Saatchi & Saatchi and Leo Burnett, sees its below-the-line activities as being less advanced and in need of development.
One area of focus will be its public relations operations and there it intends to develop two smaller networks -- New York-based Manning Selvage & Lee and Paris-based Publicis Consultants.
In contrast to rivals WPP, Omnicom and Interpublic, Publicis is weak on the PR front and has little to match its rivals' offerings. WPP owns Hill & Knowlton and Ogilvy PR; Omnicom has Fleishman-Hillard and Ketchum and while Interpublic Group has Weber Shandwick, all of which are well-known international firms.
Eric Giuily, president and chief executive of Publicis Consultants, told The Wall Street Journal: "We need to develop the below-the-line activities, which quite frankly are a little bit less advanced, less developed, than what we have in advertising. That's why we are always looking at opportunities to acquire capacity in that field."
The paper reports that Publicis plans to bolster its two agencies and is looking out for acquisitions to grow the two PR firms, which both have weaknesses. Manning Selvage is strong in the US but less so elsewhere.
Publicis Consultants is strong mainly in France with a weaker international force. It does have two agencies in the US bought since 2000 in Winner & Associates and Johnston & Associates, and this week it launched in London with the integration of the London office of Rowland Communications, which has been renamed Publicis Consultants.
Rowland is the former PR arm of Saatchis, which Publicis acquired in 2001. With 15 staff and clients including Diageo and Procter & Gamble, the London office will continue to be led by joint managing directors Richard Moss and Richard Stacy.
"Establishing an operation in London is an important step for us. We selected the London office of Rowland as our preferred option because of its strong track record in recent years and the fact that its competencies and approach very closely matched our own," Giuily said.
The London move supports Publicis Consultants' strategy to become a major international PR and communications network. Last year Publicis did consider merging Manning Selvage, which it acquired along with Leo Burnett as part of its Bcom3 acquisition in 2002, with Publicis Consultants.
Giuily told the WSJ that he was looking for possible acquisitions in Germany and Spain. "We are also looking to develop ourselves in the UK in terms of financial communications," he said.
Last year WPP said it was to shift its business away from advertising and increase its focus on market research and direct marketing in the next five to 10 years. Sir Martin Sorrell, WPP chief executive, said that direct marketing currently accounts for around one third of WPP's $6bn (拢3.7bn) annual revenue and Sir Martin wants to increase that to more than 50%.
The shift will not just include traditional forms of direct marketing but the fast-growing interactive area as well. Sir Martin said that the internet will play a key role in this growth.
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