Publicis Groupe SA

OTCQX International:PUBGYUnited States

Nov 22, 2024

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• DJ Publicis' Lead Over WPP Could Narrow in 2025 -- Market Talk, from 2:07AM ET on Friday Nov 22, 2024 by Dow Jones

  2:07AM ET on Friday Nov 22, 2024 by Dow Jones
  Companies Mentioned: PUBGY, WPP
  
  0707 GMT - Publicis Groupe's lead in organic revenue growth versus peers, and WPP in particular, is likely to narrow progressively in 2025, Citi analysts say in a research note. France's Publicis has consistently outperformed rivals and beaten expectations in recent times, the analysts say. Meanwhile, London-based WPP underperformed peers in the past 18 months and only exceeded expectations twice, Citi says. The growth gap between the two companies is expected to narrow next year and this will happen at the same time WPP's cash conversion and its balance sheet strengthen, according to Citi. This means WPP's shares could follow a trajectory similar to Publicis', Citi says. "We don't see it as a 'zero sum' game, but we believe where [Publicis] has gone WPP can follow," the analysts say. (adria.calatayud@wsj.com)
  

• DJ Investor Fears on Ad Groups Might Be Misplaced -- Market Talk, from 1:48AM ET on Friday Nov 22, 2024 by Dow Jones

  1:48AM ET on Friday Nov 22, 2024 by Dow Jones
  Companies Mentioned: PUBGY, WPP
  
  0648 GMT - Investor concerns about risks for advertising groups stemming from artificial intelligence and a shift away from agencies' role as middlemen might be misplaced, Citi analysts say in a note. A survey of chief marketing officers conducted by Citi suggests a muted overall growth outlook, but this is in line with agencies' revenue growth expectations, analysts say. Many investors fear AI could put ad agencies' revenue under pressure as more work is outsourced, according to Citi. Moreover, investors are worried that agencies could lose their intermediation role due to the inexorable rise of digital-ad channels, the analysts say. However, the survey results don't give weight to either of these investor concerns, Citi says. (adria.calatayud@wsj.com)
  

• DJ Marketers Turn More Cautious -- Market Talk, from 1:30AM ET on Friday Nov 22, 2024 by Dow Jones

  1:30AM ET on Friday Nov 22, 2024 by Dow Jones
  Companies Mentioned: PUBGY, WPP, CGEMY
  
  0626 GMT - Marketers are turning more cautious both on their near-term budget expectations and spending priorities, Citi analysts say in a note, citing data from a survey of chief marketing officers conducted by the bank. Marketing budgets are expected to grow 3.5% in the year ahead and 6.1% over the coming two to three years, Citi says. This marks a deterioration from Citi's previous survey in January, which pointed to growth expectations of 4.2% and 8.3%, respectively. Priorities are shifting toward short-term investments in performance marketing and brand messaging away from longer-duration work on digital transformation, according to Citi. A shift to digital is accelerating, which bodes well for global agencies and IT services and has mixed implications for traditional media, the analysts say. (adria.calatayud@wsj.com)