July 17 (Reuters) - French advertising firm Publicis
on Thursday raised its full-year organic growth
forecast following stronger-than-expected second-quarter
results, as CEO Arthur Sadoun dismissed concerns over Meta's
AI-powered ad creation system.
"When Meta comes along and says that they can do everything
themselves, I think that they are completely underestimating the
intelligence of our customers, who, moreover, are not fooled,"
he said during an earnings call.
Sadoun highlighted clients' reluctance to entrust their data
to single platforms.
"None of our customers want to leave their data in the
world of 'walled gardens.' None of our customers want to work
with a single platform," he said, adding that customers wanted
to measure the impact of their spending "which obviously cannot
be offered by those that do it within their own walls."
Publicis said it has completed its $12 billion, decade-long
tech transformation and will now focus on executing its
strategy. The company highlighted its proprietary platform,
which leverages in-house AI and big data capabilities to track
consumer behavior and target individualized ads for over 4
billion internet users globally.
"I've been hearing for nine years that the platforms are
going to 'eat us for breakfast.' Honestly, I think it's time to
stop talking about how platforms are going to replace us,
because it's not a reality," Sadoun stressed.
The company upgraded its 2025 organic growth forecast to
close to 5%, up from the previous range of 4% to 5%, after
reporting 5.9% net revenue organic growth in the second quarter.
Publicis cited a "unprecedented new business run" in the first
half of 2025, including wins with Coca-Cola, Nespresso,
Lego, Paramount, and Spotify ( SPOT ).
Second-quarter revenue rose 10%, with growth across all
regions: 5.3% in the U.S., 4.6% in Europe and 5.7% in
Asia-Pacific. The company reported $5.2 billion in net new
business wins for the first half of 2025, outpacing flatlining
competitors such as WPP ( WPP ), Omnicom ( OMC ), Dentsu ( DNTUF )
, and Interpublic, according to JPMorgan data.