Profit is expected to rise nearly 20% this year, driven by a growing client base and a unified structure for the group’s 10 companies

10/08/2024

As one of the largest advertising and marketing groups globally, Publicis is seeing expanding revenue and profit in Brazil. Business trends indicate a 14% increase in revenue and an almost 20% jump in profit this year compared to last year. Led by Gabriela Onofre, with a more centralized structure and lower costs, the number of clients and the budget of some advertisers already in their portfolio have grown.

The journey to streamline the French group’s structure began 14 years ago. In 2010, then P&G marketing director Onofre faced the challenge of managing brand communications with five Publicis agencies. Frustrated by the lack of integration and the complexity of coordinating multiple operations, she approached the group for a more centralized approach. This led to the creation of a media planning hub to align and mediate P&G’s strategies.

In July of last year, Onofre returned to Publicis, this time invited to take on the role of Chief Executive Officer (CEO) of the group, a position previously unheard of in Brazil.

Over the past year, her mission has been to implement a unified structure for the group’s companies in Brazil, focusing on client needs and aligning with Publicis’s global standards.

This new phase represents almost a natural continuation of the initiative she championed over a decade ago, now on a much larger scale. “For me, as a client, it was obvious, but not for the agencies. The group began to listen more to client needs,” she notes.

According to Onofre, the strategy of investing in new services—in September, Publicis acquired Mars United Commerce, specializing in retail media, and in July, Influential, a marketing influence firm—was the key factor for the group assuming the position of the second largest advertising and marketing group globally last year, dethroning the Omnicom Group, which held the spot for decades.

In Brazil, the group, comprising 10 companies including five advertising agencies, is projected to end the year with a 14% revenue growth, in line with the 14% recorded in Latin America in the first half. The profit projection is an increase in the range of 20%.

Since Onofre’s arrival, Publicis has secured 16 new clients, including Heinz, Banco Inter, Decathlon, Barilla, Pfizer, and Ferrero, among others. The company also expanded its scope with existing clients like Nestlé, Bradesco, Claro, and P&G.

A new agency, Le Pub, was established in the group. An office relocation took place in June this year to bring together 1,150 employees from agencies Le Pub, DPZ, Leo Burnett, Publicis, and the group’s business units. Talent, with 350 employees, was excluded for now due to a recent relocation during the pandemic.

“The changes are taking effect. We restructured the agencies to make them more agile and unified the group culture into a single structure. Our goal is to have diverse operations and build this ‘Lego’ according to each client’s needs. We’ve also brought clients closer. They now visit the agency more often,” explains Onofre. The reorganization also reduced operational costs.

The new structure, strongly grounded in data and technology, uses automated tools to optimize media buying and allow for more precise campaign execution. “Data enriches the creative aspect. With it, we better understand our clients and their consumers, presenting more effective solutions,” states the CEO.

With a background in food engineering, Onofre expresses a passion for data. “You can’t take the engineer out of me. At P&G, where I spent 18 years, I used a lot of data. At Johnson & Johnson, I worked more with consumer emotions. Publicis is a blend of all these experiences,” she indicates.

In her first year at the helm of Publicis Brazil, there’s also a significant milestone: currently, 70% of the top leadership in the advertising and marketing group is composed of women. At the start of her leadership in July 2023, this figure was 30%.

This statistic includes leaders in operations, communication, marketing, media, and human resources, as well as the presidencies of business units and agencies. The group has 10 companies and employs 1,500 people in the country.

The CEO recounts facing prejudice when she took over at Publicis: “I’ve had a client request a man be present at a meeting right when I joined Publicis. In such moments, I try not to judge, as this behavior isn’t so different from what we see in society at large. My approach is to understand his viewpoint and how to change that perception. I believe these barriers break down as I demonstrate that I understand business as well as he does and when we deliver good results.”

Onofre observes that “while female leadership has always been an important issue, it became crucial with the weight of the position. This shift in proportion within the group happened naturally.”

“If I’m here today, it’s because both men and women recognized my potential and opened doors for me. Now, I feel it’s my responsibility to do the same,” she says.

*By Luana Dandara, Valor — São Paulo

Source: Valor International

https://valorinternational.globo.com/