The Paris-based advertising company that owns agencies such as Saatchi Saatchi, Leo Burnett and Spark Foundry, said it expects organic revenue to grow 8.5% to 9% in 2021 from the previous year, up from an earlier forecast of 7% growth. Organic revenue growth is a common metric that strips out the effects of currency fluctuations, acquisitions and disposals.
Publicis nudged up its projected operating margin to slightly above 17% from an even 17%.
The company reported an increase in organic growth for the third quarter. Chief Executive Arthur Sadoun announced in a statement that the Publicis has recovered from the covid 19 pandemic, noting that organic revenue was 5% higher in the third quarter than in the comparable period in 2019.
Third-quarter organic revenue was up from a year earlier by 11% in Europe, 13% in Asia-Pacific region and 10% in the United States. When compared with two years earlier, before the pandemic, organic revenue in the third quarter was up by 8% in Europe and 2% in the Asia-Pacific region, while remaining flat in the U.S.
The company said its data and technology capability in the third quarter benefited from clients investment in digital media, commerce and direct-to-consumer efforts, particularly in the U.S.
In the US third-quarter organic revenue increased 13% at marketing agency Publicis Sapient and 20% at technology and digital marketing firm Epsilon.
Most brands have resumed their marketing activity, albeit often with more emphasis on digital media and data and analytics to better understand and reach consumers.
In the second quarter, Publicis reported a 17% increase of organic revenue.