Paris-based Publicis Groupe, the world’s fourth-largest advertising conglomerate, says 20% of its sales will come from digital advertising by the end of this year. That percentage will grow to 25% by 2010, chief executive Maurice Levy told Mediapost after releasing its Q1 results.
Publicis reported revenue of $1.65 billion, a 8.2% increase, and organic growth of 5.4%. This is more or less in-line with other global ad firms in Q1: WPP reported organic growth of 5% and Ominicom Group 6.4%. North America revenue, Publicis’ largest market, was up 5.3%, and Europe, a close second, was up a mere 3.2%.
The bright spot in the quarter was Boston-based Digitas, which saw sales increase 23%. Overall digital revenue was up 20%. Publicis acquired Digitas last year; it’s also parent of Starcom MediaVest Group, Zenith Optimedia Group, Fallon, Leo Burnett and Saatchi & Saatchi.
Shares in Publicis have dropped more than 6% since the beginning of the year, when it missed organic growth targets for 2007 and warned the outlook for 2008 was “uncertain.”
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