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2026.10.05 | TB | Media | Publicis: European Outlook & AI Adoption

原标题：Publicis Groupe – 12-24-month European Outlook, AI Adoption & Competition Against Advertising Holding Company Rivals

#media

Third Bridge · 2026-10-05

Analyst-led • 17 Sep 2026

Companies: ACN US, CAP FR, WPP GB, PUB FR, OMC US

Lena Greve (LG) Director, Growth at Digital Agency Holding BV (Dept)

Albie Amankona (AA) — Third Bridge Sector Analyst

Agenda

Key Insights

Introduction

AA: Welcome to Third Bridge's Interview entitled Publicis Groupe – 12-24-month European Outlook, AI Adoption & Competition Against Advertising Holding Company Rivals. My name is Albie Amankona, and it's a pleasure to be facilitating today's Interview. It's also great to have Lena Greve joining us, who is the former Group Executive Director for Growth at Publicis. Lena, welcome. Great to have you with us today.

LG [00:00:28]: Thank you. Great to be here.

AA [00:00:30]: Before we start, Lena, could you please state either I agree or disagree to the following statement: You understand the definition of material non-public information and agree not to disclose any such information, or any other information which is confidential, during the Interview today.

LG [00:00:51]: I agree.

AA [00:00:52]: Thank you. Could you please begin with a brief introduction to your background and experience to date?

LG [00:01:11]: I've been with Accenture the last year. Before that, I've been with Publicis for two years, working in both roles for collaboration and growth projects. Within Publicis, I was responsible for the DACH region as a Growth Executive Director for Media and Creative mainly and a focus for the Power of One concept and trying to grow Publicis Groupe in DACH and worked internationally as well with our teams.

Questions

00:01:48] Publicis Groupe delivered about 5.6% organic revenue growth in 2025. For 2026 and beyond, the organic growth guidance is 4-5%. How might CoreAI and Epsilon help Publicis sustain its revenue lead over WPP, IPG and other competitors over the next 12-24 months?

LG [00:02:27]: Actually, I forgot to say that I've also been with WPP and Omnicom, which is maybe interesting to have a great overview over the industry. Within Publicis, I think it differs how AI and how Epsilon as well are contributing because in DACH, it's not… I mean, your interest is probably in the whole international group and DACH didn't play a role as much. I think it will not play a role as much as in UK or in the US actually, for example, because it just hasn't been established as well. I think the main growth from Publicis, even without Epsilon and all the AI it comes from because it's a lot of senior people who know what they're doing actually and who know how to handle clients. This is where this organic growth comes mostly, I think.

00:03:28] Do you think Publicis can achieve 4-5% revenue growth in the next 12-24 months?

LG [00:03:39]: Absolutely, and they still have great people. They have advantages against WPP and Omnicom and all the other holdcos because they are so stable in their system and with their senior management, and they really deliver against all the market competitors because they have a very clear focus on how they want to build and what they keep doing actually because they have this Power of One in place. This really helps to cover even more services for clients, and they're trying also to get Sapient as a consultancy more in a focus and to deliver with all the other client services together, and so be a more consultant partner for our clients as well.

00:04:40] Do you think Publicis's proprietary first-party data assets are actually a moat vs the open-source and third-party data partnerships that some of the company's competitors have?

LG [00:05:00]: In my opinion, I don't think even coming out of the perspective of all the other holdcos, I don't think they have… They say they have a big advantage, but I believe they haven't yet as much as they would like to, but it's their story. They're trying to tell the story also to clients, but it's not that they can deliver as well as they are promising actually.

AA [00:05:29]: Why do you say that its data is not actually proprietary?

LG [00:05:36]: I mean, it doesn't play a role as much as they would have liked for their competitive advantage against the other holdcos because third party is not as important as we thought five years ago, I'm not sure, or three years ago, as it would be because a lot of clients have trouble with their first-party data. It's not every client can work with their first-party data as well as the service providers would like them to, so it hasn't played as much a role as Publicis would have liked it to play. First-party data is not as important yet as service provider would have liked it to.

AA [00:06:33]: Why do you think that is?

LG [00:06:35]: Because the clients don't have their data in order mostly. Actually, that's the main point, I think, the main challenge. Of course, they're using it, but it's not as they are not working with them as well and they don't have it in order as good as they could have, but of course, Publicis and others are helping them, but it's just not as easy as everybody thought in the beginning when this conversation started about first-party data and how third-party data is not that we can't use it anymore and so on. The story has developed differently in the whole industry.

00:07:21] What is your view on the global scaling of CoreAI? How long do you think it will take to scale it, at least for Publicis's European operations?

LG [00:07:46]: I think, of course, they're in a good way, but they have tools that work together with CoreAI that are not as finalised as they would have liked them to. I think a lot of teams within Publicis don't know really how to use it yet and how to sell it to clients. That was a big issue. Clients often rather like to have their own tool set in place and not buy into something and to be dependent then on a service provider with that. I think that's why it's struggling in the growth. It hasn't developed as great as Publicis would have liked.

00:08:46] In the next 12-24 months, could you see CoreAI improving the operating margin in Europe beyond the 18.2% baseline that we saw in the company's H1 2026 reporting?

LG [00:09:02]: I guess, yes, because Publicis is really good in transformation. If they discover problems, they are really good in solving them within their system, so they're going to be solving this. I believe they probably will be a little ahead of Omnicom and WPP even more than now with that, which are the main competitors. Of course, the main business of those three holdcos is the media business, and that's where they all compete against each other. I think CoreAI will play a bigger role maybe than right now. I guess they will be developing it even better, so it serves clients even better. The growth that we will see will be more than before because Publicis is very good in transformation.

00:10:10] What do you think might happen to Publicis's operating margin over the next 12-24 months? The company seems to think that it'll get slightly above 18.2%. Do you agree with that? Could it be higher than that in 2027?

LG [00:10:28]: Yes, it could be even higher, I guess. It's really hard to look in the future with this transformation that's so quickly happening, but because they're trying to bring also what I said before, Sapient as a consultancy in place, and that together with CoreAI and with Epsilon's experience and expertise, it is really a good set-up that should work well. Whenever Publicis can combine those expertise and competencies even better, I think, we could even see even more growth than that.

AA [00:11:21]: If we could see more growth, where do you think it could get to? Could it get up to 20%, or would it be less than that?

LG [00:11:28]: I think it could be more than 20% because it's also a good momentum from Publicis worldwide right now. They have a good momentum. They're really doing a lot of good stuff to try to extinct the competitors. They're putting a lot of effort in as well. I think it could be even more depending on a lot of clients' decisions in the media business as well, but I could imagine because clients are questioning WPP's and Omnicom's capabilities and because they are in transition themselves, Publicis could profit from that as well, so it could be even higher growth.

00:12:13] Within what time period do you think Publicis's operating margins could be above 20%?

LG [00:12:20]: I think, two years, I mean, between one and two years, I think it's reasonable to believe that it could be even higher.

AA [00:12:34]: Do you think that's mostly due to CoreAI being scaled or other things?

LG [00:12:42]: I think it's not only CoreAI, but of course, it plays an important role. What I said before, they're trying to get all the… Of course, CoreAI helps, but they're really trying to push their system in those directions. This Power of One mindset, what I said is really helping to get everybody aligned and to bring all the competencies together that really help solve clients' problems right now, however they will develop. Publicis is always a little ahead of the competitors and sometimes even of the clients, so that really helps and having those senior people pushing this Power of One mindset with everyone helps to use all the expertise and competencies in the right way in a more winning way and to support more and push more growth.

00:13:55] Do you think there would be much client resistance to proprietary AI data lock-in, and could that slow down CoreAI platform monetisation across multi-agency pitches in the next 12-24 months?

LG [00:14:15]: No, I don't think and I think it's not in that time range. I think that will happen later in my opinion. I think in the next 12-24 months, there will be still a push for that and clients will act on it, but maybe later. I don't think it's going to be in the next two years.

AA [00:14:43]: Within what sort of timeframe then, if not in the next two years?

LG [00:14:47]: I think in the next five years, I believe, yes. I don't believe in the next 12-24 months.

00:14:56] Have you seen any resistance to AI platforms from clients?

LG [00:15:12]: Actually, yes, of course, some critical questions I have, but right now, all the clients are really trying to figure out how AI will help them in all possible ways. It's a very positive and also very driven kind of mindset right now towards AI, not as critical. Of course, there are questions, but not as critical as I believe whenever we all start working with this more will come. It's not that it will slow down the growth right now, I think.

00:16:00] What is your view on the impact of tightening global privacy enforcement on Publicis and Epsilon's ability to sustain high-single-digit media growth, relative to the alternative data architectures of other competitors?

LG [00:16:25]: I'm not quite sure how WPP and Omnicom are because, of course, they're telling their story, but I'm not sure how they really are set up right now and what's the story and what's the reality, I have to say. With Publicis, I have a little deeper because not as long ago, knowledge. The privacy, the consequences everybody will see them and feel them. I wouldn't know actually how Publicis is different in that and whether they have a competitive advantage still against WPP and Omnicom. I would believe, yes, but I'm not sure I have to be honest, I'm not sure.

00:17:19] What is your view on Sapient's flatter performance more recently amid broader IT consulting pullbacks? What's your estimate for Sapient's recovery in the next 12-24 months vs the pure-play consulting players that have entered the space?

LG [00:17:50]: Actually, because I have insights, of course, from both companies, I believe that Sapient is not… The set-up is not as ideal as other competitors. Of course, everybody is looking at all the competitors in the markets with the AI business actually and with technology as competitors like Accenture and other consultancies are set up. I think Sapient is a little behind with that. They are a lot smaller. For Sapient, it's not ideal to be under the Publicis roof because Publicis is perceived as more of an agency and not as a consultancy. I believe both topics are hindering Sapient for more growth right now, but I'm not sure how they're transforming, but they really need to be still a competitor to have more growth than before and to compete with all the other consultancies because they're not as well set up right now. Also with the management team as well.

AA [00:19:28]: Why do you say that it isn't as well set-up?

LG [00:19:33]: They don't have the right people right now, not all the right people, not maybe all the tech people that we need right now or what clients believe if you have a DNA in tech, they believe more what you promise and that you are the right transformation partner for the AI and tech and data business more than Sapient is. This is really what clients are looking for right now for a partner that's very confident in that part and has a heritage. I think that's a problem. Also being docked to Publicis is not helping.

00:20:17] How might Sapient's ability to bundle media data and digital business transformation allow Publicis to protect its 18.2% operating margin and also push beyond the 20% mark, which you said is possible, while competing against players such as Capgemini, Deloitte and so on?

LG [00:20:42]: All right. Actually, Sapient doesn't really play a major role yet with the media business as I think it would be smart, but it's not what clients really were asking for before. As I said, normally in Publicis, everything is one P&L and Sapient is not, so this is also making a difference on how to collaborate in between the system and globally. I think they need to push Sapient into more clients' business and into more media business and to incentivise this to get all of their capabilities in place and to move forward even the media business, and to have a more competitive advantage against WPP and Omnicom, for example. This would really help to have Sapient more closer to the media business, but I think right now, they're not doing it. What I have, not enough, could be more, could be a lot more and it would help.

00:21:55] If Sapient were brought closer to the media business, what would be the advantage? How might that boost the top-line revenue growth or the ability to charge more or win longer contracts? What's your view on that?

LG [00:22:10]: Of course, if you would do cross growth with Sapient, of course, if you bring Sapient in and clients believe that you already serve that Sapient would be, and I think they would be, just you have an advantage also for clients to have more closeness between consultancy and media business because it would help them to find a different business model, for example, and how to do media differently within their business model. Sapient could help with that where the media people from Publicis are not as well-trained. That would help clients. If you could push this and clients feel the difference for their business, that would make a competitive advantage also and that would help for the growth of Sapient and Publicis.

AA [00:23:21]: What would the growth look like if it were able to execute that successfully?

LG [00:23:28]: What do you mean? It would mean growth for Sapient mainly actually and it would help a little bit, of course, for the media part as well, but I think the media it would mainly help for Sapient growth.

00:23:44] Do you think Sapient growth could reach the 4-5% revenue growth target over the next 1-2 years, or do you think it will be below or above that?

LG [00:23:56]: I think it could even be above that because it's good people, but they need to combine the knowledge and the expertise better from the tech people within Publicis and from the CoreAI and Epsilon people, I believe. It's not happening as much in this system. That would make the business even grow more than 5-6%, I believe.

00:24:27] Do you think Publicis is currently operating in such a way that would allow growth at more than 4-5%, or is that something that the company would need to change in the next year in order to get there?

LG [00:24:44]: I think they are trying. When I was still there, they really tried to change and to bring Sapient more prominent in all the client discussions and to change the story of Sapient more into, we are a consultancy that has all the competencies at hand that the Publicis system offers. This is a plus for the clients, but it just didn't catch yet, I think, with the clients. I'm not sure what the story could be and should be where they should be changing to. I don't have the answer, but I think there are opportunities there that they could use and they could transform into to have this growth.

00:25:44] What are your views on Publicis's net-new business wins? In 2025, I think the company had USD 8bn-10bn in these new business wins. How might it defend its top-ranking accounts vs rivals such as Omnicom, IPG and others who are streamlining their operational structures over the next 12-24 months?

LG [00:26:14]: What Publicis really does very well is making clients happy. How they do it, of course, they transform as well as other companies also even better in the data and tech and AI sections, but they really bring senior people to make clients happy. I think that's the story of the Publicis. That's why they are keeping clients for so long, and they have really great senior people who take care of clients and clients' needs and are very close with whatever challenge they have in their business, and that's helping them keep clients happy. Really it's the main point, I believe.

00:27:09] In terms of Publicis's net-new business, how sustainably do you think it will be able to continue the massive USD 10.4bn in net-new business media billings that it got in 2025? That was much higher than what IPG had, which was just USD 1.8bn, while Omnicom saw negative USD 1.3bn and WPP saw negative USD 1.8bn. Publicis is the clear industry leader in client acquisition. How sustainable do you think that is?

LG [00:27:44]: I think it is. Right now, even more so because WPP and Omnicom, which are the main competitors and biggest ones are struggling with their own transition and transformation. Publicis is just doing what they do good and best and keep doing it. Also, Publicis is very good in transforming themselves and the system just a little bit over every year, so to keep their competitive advantage and being ahead of the game. I believe right now, it's very sustainable. The teams that do growth are really well trained. They are well in the system. It's a big team. They know what they're doing. It's a sustainable system that Publicis is using to have this kind of growth and to keep clients and to win new clients.

00:28:55] When it comes to Publicis' growth vs peers, if competitors decide to discount their fees to stem market share loss, what might be the impact of that?

LG [00:29:14]: Actually, it's already happening, and it's really a price fight right now. Publicis can afford to play that game even longer than WPP and Omnicom are doing it. That's what I said before that really trying to extinct the other ones. That's also with prices. They're willing to go really low and invest very much in clients so that they only take slim margins home and are willing to do the price fight against WPP and Omnicom. I think that Publicis has the means to do it, and will do it as long as it takes, I guess.

00:30:13] Is Publicis already cutting its prices in order to win as much new business as possible?

LG [00:30:21]: Yes. Everybody is doing it. WPP and everybody is doing it. They're really cutting prices so that it hurts.

AA [00:30:29]: How sustainable do you think that is?

LG [00:30:31]: Actually, what I said, Publicis can afford to do it right now. They are hoping that they will minimise the other competitors so much that their advantage is even better, higher, whatever you say, what you want to call it. It is sustainable for, I don't know, maybe one or two years. Then let's see how the industry competitors are set and how it looks, I'm not sure, but Publicis can afford this. They're in a good place, and they're willing to do it as well.

00:31:24] Do you think Publicis's pricing is the main reason that it can grow at USD 10bn?

LG [00:31:33]: No, really not.

AA [00:31:33]: If it's not just the pricing, could you talk through what it might be?

LG [00:31:42]: Of course, they're really changing their offers and how the clients' businesses change, how the industry is changing, and they're really changing fast. What I said, they really know how to transform themselves in a fast way, and everybody is used to it. The whole system works like this. They have the senior people who are paid well, who also liked the way they are treated as an importance of the system to keep clients happy and to grow clients. They have the senior people who are also responsible for growth. They only have growth people as well who really know how to grow such a system. A lot of people are there for a lot of years already. It's really not pricing, they just have good offers, what kind of team they offer, what kind of system they offer.

They're really also with their system, they are ahead of the competitors, I believe, how they are set up, how the teams are set up, how the operating models function, how the operating models are set up. It's not also different, of course, from WPP and Omnicom, but I think it's a well-oiled system. Everybody really knows what they're doing. Publicis also, of course, has a brand image that is really great globally and in all the markets. Publicis is really well-received as a very future-proof kind of company. Clients trust this brand and believe in this kind of transition that everybody is in right now with AI and tech and data and stuff. It's really also helping Publicis to have such a trusted brand as well. I think this is all why they are growing that much. Of course, pricing is one pillar of it, but everybody is doing it. It's not because of the price that Publicis is winning that much and growing that much.

00:34:21] Around one year after the Omnicom-IPG merger, which closed towards the end of 2025, what do you think has been the impact of that on the market and Publicis in particular? Has it had a major impact? Have we seen any major changes?

LG [00:34:41]: I think, what I said, is it really helps Publicis and that clients feel that they don't know whether they can trust for Omnicom to deal with them, with the clients' needs as well as before or as the other competitors because they are themselves in such a transition and transformation phase. I think that's what clients are looking very critically at. Whenever a pitch is done… WPP even because they are not in the transition as Omnicom, but still they are also in a transformation phase. Publicis has profited from Omnicom and IPG merger as much, the most of in the market, but mainly because of trust from the clients, I think, and this insecurity feeling that they have because the clients don't know what to expect from this and how this will go and how many people are leaving because they don't like what Omnicom is doing and stuff, and what of the senior people. This really also falls into the insecurity feeling for the clients, I believe.

00:36:18] Over the next 1-2 years, do you think there are still actionable account-poaching opportunities for Publicis across media and creative as competitors focus on merging and integrating, notably Omnicom and IPG, or do you think that opportunity is slowing down now?

LG [00:36:41]: It's slowing down. I think it's slowing down because they're getting stuff in order, Omnicom and WPP, but still, it's a momentum that it's only slowing down, I believe. It's not over and it really helped the Publicis brand as well even more to have this trusted image to be the one service provider that's been very stable. It's future-proof. I think it will still make a difference, but it will be slowing down, yes.

00:37:25] Do you think we could start to see major advertisers mandating multi-holding-company roster models over the next 1-2 years, which might cap Publicis's wallet share expansion and addition, despite its high client retention?

LG [00:37:50]: What do you mean multi? What do you mean by that?

AA [00:37:55]: Could you see a situation where clients start to work with more than one holding company, so for example, they might have contracts with Publicis and WPP?

LG [00:38:09]: They split their budgets?

AA [00:38:11]: Yes.

LG [00:38:11]: Okay, got it. Actually, it could be because they don't want to be as, how you say it, they don't want to be stuck with one holding company. It might be that for the clients, it could be that they believe they get better prices when they split it because all the competitors have even then to compete against each other all the time. It could be that they believe they're going to be more up to date if they are challenged all the time against each other. I've seen phases in the industry that this has been the reality that clients have tried to have an agency pool and pitch budgets whenever the project was due, for example. It goes up and down those phases on how clients act, but I believe clients would do it and would challenge agencies and service partners with this kind of pitch situation all the time.

They notice over time that it's not helping their business to not have one partner for at least the biggest part or one very close partner, trusted partner to do the most of the work with and maybe have some special agencies or service partners on the side, but I think clients normally profit from having one main partner, but it could be that clients will tend to have agency pools or work with more than one holdco at once. It would be, I think, because of pricing then. I think that's like the main… If they will be pressured to be even more price sensitive, this could be a way to try to get more competitive prices even, but I don't think it would be good for them and for the outcome and for their goals and challenges to do this, but I believe it's a possibility that clients will change in that direction, but not so many, I think.

00:41:03] Do you think Publicis can sustain organic expansion from existing clients if key clients demand AI-driven fee reductions in 2026-27 contract renewals?

LG [00:41:22]: I believe in the media business that they will be growing a little bit still because they know how to offer clients different solutions and grow their media business when they have the client and offer them and be a better partner. I think for that, they will be growing a little bit, but within the whole Publicis Groupe, the other more creative or other expertise that they have, apart from Sapient, they bring so little margins that I don't think they will grow as much from that, but because clients really like to have a trusted partner, it could even help them help Publicis grow also with the creative business. This will show some growth, I believe, but I'm not sure about Sapient. Sapient, even though they're not as big as other consultancies, of course, they have a lot better margins than the creative and most of the media business. I think what Publicis will try to do is to grow even more with Sapient to grow better and to grow with better margins.

AA [00:42:54]: For example, could a client say, "We've realised we're spending X amount less because we are using AI, and we imagine you're probably spending X amount less because of AI as well, so we won't renew unless you reduce our fee by X%"? What would you say in that scenario?

LG [00:43:26]: Actually, it's already happening. Actually, all service partners and agencies are trying to get away from these hourly rate contracts. They're trying to be a solution partner and sell solutions and be paid for packages or more solutions rather than hours. That's what we're trying to do against this because, of course… Also tools are expensive for AI, so it's not that only because we are saving some hours, the bill is cheaper or is less, not automatically and because clients need strategy and strategy partner as well for all these AI topics, we're trying to switch a little from only being the partner who is the execution partner to be even more the strategy partner and to move a little bit of the lost hours or lost costs or less costs on the execution part to shift this into more strategic or tech solution or other ways of servicing the client to remain the overall contract. We're trying to do that, but it's not so easy. It's a difficult conversation we're having with clients, all of the industry is having. Of course, the clients always try to reduce their costs. Of course, they do, and it's clear, so we're trying to shift a little the budgets, but it's not happening. It's not a solution for everyone, and it's not all clients buy this.

00:45:50] What are your expectations over the next couple of years when clients are renewing? Would you expect clients to be driving a hard bargain and pushing their fees down, or do you think the company will be able to maintain the fees where they are, or even grow them slightly? What are your views?

LG [00:46:10]: Actually, all the industry, and I know within Publicis, we had had those discussions as well, but everybody is having them. We and Publicis as well are trying to push against it, of course, but they expect that they won't succeed with all the clients and to remain all the contract as they are. They're expecting to earn less with the contracts or with the services they are providing right now and try to as well shift more to Sapient. We try to do that and all the service partners are trying to find different ways to be of a trusted partner for the clients than just those execution ones, so go more into consultancy and more into strategy and more maybe into a tech transition partner and so on and transformation partner to also grow the offer and to widen the offer as well and to compensate this, but we all are expecting to develop even more contracts with clients.

AA [00:47:24]: It's expecting its free cash flow to be about EUR 2.1bn in 2026. Do you think that is realistic?

LG [00:47:34]: Yes. I do. Actually, when they are planning, Arthur is normally the one who… He's a reasonable guy, and he knows what he's doing, and so I believe that if he says.

00:47:48] What do you think Publicis's free cash flow could be in 2027? It was up 10% in 2025, and going from EUR 2bn to EUR 2.1bn means being up 5% in 2025-26. Can it keep growing at 5-10% YoY, or would it slow down? What's your view on that?

LG [00:48:13]: I think for '27, the growth will keep up like it has been. It's a sustainable growth, I think. For '27, yes, I don't know how it will be for '28. If it's 12 months, I would say the momentum will still be on their side, and they will be able to keep up with the growth and how they are planning right now. After that, I'm not sure how the industry will develop and how even clients will change in what they are asking for and how the discussions will go about contracts and how to spend less money and have the same service for clients and so on. For '27, I think I believe it will be the same, more or less.

00:49:21] How do you think Publicis should balance M&A spending on retail media networks or other technological AI platforms against the company's quite generous 50%-plus dividend payout ratios over the next 12-24 months?

LG [00:49:40]: Whether they will be doing M&A buying any companies, you mean?

AA [00:49:48]: Yes. Do you think that could help the company?

LG [00:49:52]: Yes, it always can. Yes, I could imagine. Right now, I wouldn't know who they could buy, which would be a very sustainable growth factor, I'm not sure. I think the management is always trying to be also in that game ahead of the game. I think it's really possible. Right now, I wouldn't know what will they profit from as much as they would with Epsilon or something like the biggest. Of course, they could grow in areas that they are not as strong, like social, for example, even more, but it wouldn't bring them the growth that they need and not the margin as well. I believe they might be buying big as well. For Publicis, it's always very important to have a global offer, this would be something globally relevant.

00:51:15] Is there anything in Publicis's portfolio that you think it's particularly weak at? Where is the company weakest vs competitors?

LG [00:51:26]: In the social game, they're weak. They just don't have the right offer to do globally. In some markets, they have a good social expertise and players, but for the global, they are not. That's a weakness. I believe the weakness with Sapient, Sapient is not a bad company. It's just not fulfilling what they are hoping for right now yet. They don't have so much weakness. Actually, they have a weakness with digital transformation a little as well. Sapient is not as strong in that context. That would help to be more in the discussion with clients to be also a partner who can offer that that will also help. To have more buying somebody who has more technical heritage for this tech and AI transformation and also bring a better margin.

00:52:46] How might Publicis go about improving in the areas that it's weak in? Do you think the company should be looking to acquire players that have those capabilities or looking to build them itself?

LG [00:52:56]: I think they will acquire something if they can. I mean they're trying to, of course, do some stuff and some of those topics also out of themselves, but most of the time, they're trying to buy something. I think it's a smart way as well, but because of this Power of One mindset, it really also helps whenever Publicis acquires a company that the transition internally is very fast as well that they're integrated into the whole system and this Power of One mindset.

00:53:40] What do you think are the biggest challenges facing Publicis in the next 1-2 years? It is probably doing the best out of all the advertising and holding companies. Is there anything that could knock it off-course?

LG [00:54:01]: Right now, I can't think of anything that would really knock them off especially against the competitors like WPP and Omnicom because they have even less competencies in the consulting business. If Publicis does this right, it could even be a bigger advantage for them to have Sapient as it is now, but I can't think of anything that would make such a difference in how Publicis is performing right now against the competitors, of course, the main ones.

00:54:49] How sustainable do you think Publicis's lead is over its competitors?

LG [00:54:53]: It is. I think it's very strong. If not, I couldn't imagine how a lot of the senior people and management people would leave. That would be something, but I couldn't imagine how this would happen. I couldn't think of anything that would weaken right now as much their competitors' advantage.

00:55:35] In terms of European market share, how would you say Publicis compares to players such as WPP, Omnicom, IPG and others over the next 12-24 months?

LG [00:55:56]: I'm not sure how it is right now, actually, I have to say, how much it is in the European market, but I think this will also strengthen even their position in the market. I couldn't believe, I couldn't imagine how this should change. They will grow stronger because they are of the things that we discussed because they're ready to do the price fight and ready to do whatever it takes to be upfront and when I say extinct, I don't mean that… Trying to extinct the others is a big goal, and that's how to be the first in the market and stay the first. They're really looking also into how sustainable can we do this and they're good at it. I think this will keep stay this way.

00:57:16] What do you think is the risk to advertising holding companies of AI-native challengers or clients that would have previously used an advertising agency and could now make their own assets using Claude, Gemini or similar? How much of a risk do you see that being to a player such as Publicis in the next 1-2 years?

LG [00:57:49]: It will be a little bit shrinking the margins and shrinking the budgets that clients will be able to do some stuff of that whatever agencies have been doing themselves, but in the next one or two years, I think they will be doing it even more the clients. We will see the same development even a little bit that clients will do things for themselves that they were doing before with agencies, but it will not double or something. It will be developing like we've seen it right now, I think, over the next one or two years. It will not be as much of a problem for the next one or two years because also the agencies, as I said, are developing in that direction that they know clients are taking some parts for themselves, and we're trying to compensate this and shift in different ways and be a better partner in different expertise and competencies. I don't think it will make such a difference than we've seen already.

AA [00:59:31]: What about in a longer-term time period, perhaps in 3-5 years?

LG [00:59:38]: Actually, because AI is developing so fast, everything is possible, so yes, we might be seeing agents that are working, that are doing media planning for themselves completely, and there's only one person needing to operate it, but I'm not sure. Right now, it still needed, the expertise and the people knowledge that we have is still really important. Of course, for 3-5 years, this could be changing even.

AA [01:00:22]: All right. Thank you so much for your time. It's been great to chat. Enjoy the rest of your evening.

LG [01:00:28]: Thank you. You too.

AA [01:00:29]: Thank you. Bye-bye.

LG [01:00:31]: Bye-bye.

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