Publicis Groupe’s businesses in the Middle East and North Africa region have bucked any decline trend that the market witnessed in 2015 or that the holding company itself experienced globally. For Raja Trad, CEO, Publicis Communications Middle East, the year 2016 will build on this momentum by not only aligning a structure that revolves around its clients but also introducing new services that strengthen the Publicis Communications offer in the region.
Publicis Communications is the newly formed hub for Publicis Groupe’s creative and specialist agency brands in the region including Leo Burnett, Publicis Worldwide, Saatchi & Saatchi, Flip Media, Arc Worldwide, LeoComm and Optimedia.
“While the market was declining at over 11 per cent, we were doing well, all things considered,” remarks Mr Trad, adding, “In 2016, the industry projections forecast a decline of over 11.1 per cent; I think it would be a steeper drop than that. To ensure that we are on track, we have begun reviewing our financials on a bi-monthly basis. From this, I can tell you that while 2016 will be very tough, so far it is manageable.”
Mr Trad is neither pessimistic nor optimistic but “realistic” on the matter, owing to the fact that developments in the region, whether in countries such as Syria, Yemen, Libya or the economic fallout from dropping oil prices will have its bearing across the region. At the same time, the region has also learned from its past experiences on how to cope with the changes.
Last year, Publicis Groupe globally had recorded a decline across most of its regions, as per its Financial Report 2015. When asked on whether this would translate to a tightened purse for investing in the market, Mr Trad replies, “On the contrary. We are getting all the support that we ask for. This is evidenced in the fact that Publicis Communications and Publicis Media have been put in place in the region and that we have a strong line up of plans in terms of investment. As long as we deliver, we will get the necessary support. We are putting innovation at the core of our strategic thinking and this will give us the impetus to move the business into the future.”
Eyeing Extraordinary
Publicis Communications is investing in setting up its production platform Prodigious in the region. This will be available to service all brand agencies under Publicis Communications. Publicis Communications intends to launch this by July 2016. “It will be a state-of-the-art production facility. We will set it up in Dubai and in one more location, such as Beirut, to give it the desired scale,” Mr Trad informs.
In Quarter 3 of this year, Publicis will also launch Sapient Inside. “We are investing significantly in our digital capabilities. In the region, we have Flip that is powered by Sapient. Sapient Inside would be a major addition to the services we provide. As Flip is already doing that here, in many ways we are ahead of the plan. Since Maurice (Lévy, Chairman & CEO, Publicis Groupe) introduced the Power of One late last year, everything we do and build is around the client. We also know that the future of our business lies in digitizing our agencies. We aim to constantly improve our connection with our clients’ business to help them transform it by bringing innovation and technology at the service of creativity. Sapient Inside, hence, is extremely important.”
The fusion of marketing and technology will unleash extraordinary creative potential. Mr Trad clearly marks this as the primary objective. The Publicis Communications’ Middle East Chief is also looking forward to the launch of ‘Publicis Innovation Hub’, a startup incubator. He says, “In this case, our role is to bridge the gap between our clients need and the ideas and services that come from startups. Publicis Innovation Hub will allow Publicis Communications clients to access creative innovation and guidance to transform business models. We intend to introduce this by October 2016.”
Connected Company
Another clear mandate for all the Chiefs of the Publicis Groupe hubs is to work closer together. The proverbial Chinese wall has fallen except for specific cases that require a certain measure of confidentiality. “The key word here is interdependence,” explains Mr Trad, adding, “Publicis Groupe overall is aiming to work as a connected company, across all competencies. Our clients brands are at the core of our efforts and all the support, whether it is content, UX, strategy, web design, continuous optimization, business brand strategy or the likes, is customized to meet the needs of each individual brand. There would be a highway of communication not only among the agencies within Publicis Communications, but also between the brand agencies and media. We understand that to service our clients’ business, it would take two to tango. Brand agencies, technology, media should all act as one.”
For those who know the industry also understand that the working as “one” between several agency brands, especially of the size of Publicis Groupe agencies, is no simple task. The leaders are still to work out the structure that will allow them to achieve this but Mr Trad informs that a committee would be set up that will ensure that all are talking to each other to achieve this “highway of communication”.
At no point however, whether it is within each hub or across, will the personality and values of individual agencies be compromised. “We are not trying to bring everything together. We will keep the brand culture and collaborate where it does not conflict with the confidentiality and the promise to the clients,” Mr Trad reiterates.
Spelling Success
Publicis Communications’ newly formed hub format will be observed only in the regional headquarter, which is Dubai. Not more than three roles including that of Mr Trad will be designated as Publicis Communications. The leaders in the various markets will continue to function in brand agency format and report to line bosses. Mr Trad explains that this is a deliberate move to keep the structure simple. Some early success of the new hub format is seen in the efficiencies that Publicis Communications agencies have been able to build.
“Any business should make sure that its plan is financially efficient and sound. This requires synergizing a common pool of shared services, which are not core to our business that might help deliver a cost savings. Our recent Emirates Airlines win is in fact a matter of pride for me. The team worked relentlessly and was able to convince the client that we are the right partners and we have more in the pipeline that is indicative that we are heading in the right direction,” Mr Trad says.
Inorganic growth through acquisitions is not on the table at present given the investments that are already planned. However, the door is not closed either. Mr Trad states, “There is enough on our plate but we will never shy away from an opportunity. The good thing about Publicis Groupe global is whenever there is a sound recommendation, even in tough times, they always listen.”
Though the plan to achieve success is mapped out and gauged on a monthly basis, Mr Trad’s personal benchmark is three-fold. “It is now a consolidated financial plan. We have to meet it by growing the business, by increasing efficiency and productivity and by putting together a linear and simpler operation across the board,” he sums up.
