Digital and mobile ads boost advertising industry revenues

Digital AdBIZMOLOGY — Successful digital and mobile advertising programs are giving the traditional advertising industry a lift. The industry has also seen innovative startups and boutique firms get acquired by big firms in need of new blood and cutting edge ideas.

Publicis Groupe, one of the world’s largest advertising and media services conglomerates, posted $2.3 billion in revenue for Q2. Its revenue for the first half of 2013 was about $4.4 billion — up almost 9% compared to the same period in 2012. The Paris-based company claimed a total of about $8.75 billion in revenue for fiscal 2012, driven by strong results from its digital operations.

Publicis provides a wide range of corporate communication and media services, including creative advertising, media and campaign planning, marketing, and public relations. Its flagship advertising networks include industry stalwarts Leo BurnettFallon WorldwideDigitasRazorfish, and Saatchi & Saatchi; Publicis’ Starcom MediaVest and London-based ZenithOptimedia units are among the world’s largest media planning enterprises.

Mobile and Digital Ads Drive Revenue

Like many traditional advertising agencies, Publicis’ digital media efforts and mobile ads are now driving innovation and results, especially in the US. The company’s digital segment now accounts for more than 35% percent of its total revenue.

As the digital arena continues to reign supreme in the advertising industry, Publicis has used acquisitions to strengthen its position in this key strategic area. It bought Rosetta Marketing Group for $575 million back in 2011. The purchase broadened Publicis’ digital offerings, as Rosetta offers consulting services along with expertise in digital marketing, search engine advertising, and media planning and buying. A few months later Publicis swallowed up public relations firm Schwartz Communications and integrated it into MSLGROUP, its strategic communications network. That purchase created Schwartz MSL and specifically enhanced Publicis’ position in Boston and San Francisco.

Outside the US and Continental Europe, Publicis sees Brazil, China, India, Mexico, Russia, and Turkey as emerging markets ripe for growth.

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Photo by Bisgràfic used under a Creative Commons license.

 

Michael McLellan

Michael McLellan covers the business of restaurants, marketing, media, technology, and more for D&B and Hoover's. He is a graduate of the University of Texas at Austin's Radio-Television-Film program. Follow him on Twitter.

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Comments

  1. Did you hear the Marketplace Tech’s story this morning about how Google is now bundling mobile advertising into its customers’ ad buys? http://www.marketplace.org/topics/tech/even-google-struggles-mobile-ads

    That’s one way to grow the segment. After all, mobile is where the customers are at right now.

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