Businessmodel of Publicis Groupe

Customer Segments

Publicis Groupe has a mass market business model, with no significant differentiation between customers. The company targets its offerings at firms of all industries and sizes that seek advertising and public relations services.

Value Proposition

Publicis Groupe offers two primary value propositions: innovation and brand/status.

The company has a long history of innovation with many firsts, including the following:

• Rolled out one of the first ads to use a symbolic emblem to promote a product, rather than the product itself
• Introduced concept of institutional advertising, in which a firm discussed its business and manufacturing techniques, instead of its products
• Conductor of the first public opinion poll (similar to Gallup) in France
• Owner of the first radio station to establish regular news broadcasts in France The company has established a powerful brand as a result of its success. It is one of the “Big Four” ad agencies along with Omnicom, WPP, and Interpublic. It is the third largest communications group in the world by revenues, with 2015 earnings of €9.6 billion. It has over 1,375 sub-agencies and employs over 77,000 professionals in 108 countries. It has several prominent clients, including Best Buy, Comcast, Bristol-Myers Squibb, Honda, and Kraft. Lastly, it has won many honors, including “Holding Company of the Year” at the North American Effie Awards (2014), a #1 ranking in Creative Performance by the Gunn Report, and 16 Health Lions at the inaugural Lions Health Awards (2014).

Channels

Publicis Groupe’s main channel is its website. The company promotes its offering through its social media pages, advertising, and participation in conferences.

Customer Relationships

Publicis Groupe’s customer relationship is primarily of a personal assistance nature. Customers work closely with employees as they design their advertising and PR campaigns.

Key Activities

Publicis Groupe’s business model entails designing and developing its services for clients.

Key Partners

Publicis Groupe maintains strategic partnerships with a number of major firms; for example:

• An alliance with Wal-Mart through which the retailer has complete access to all of its agencies and resources. The two partner on various marketing and advertising efforts
• An alliance with Internet giant Tencent through which the two share data, partner on the development of web native content, and invest in startups The company also operates Publicis90, a program through which it will support 90 startups involved in digital projects with funding and mentoring. Specifically, it will offer equity funding ranging in the amount of 10,000 – 500,000 euros and a year of mentoring with company experts in the digital, marketing, and communication fields.

Key Resources

Publicis Groupe’s main resources are its human resources, who include content creators such as writers and artists who design and develop campaigns for clients.

The company also depends on its Shared Service Centers, which offer specialized financial services for internal clients in order to ensure the conformity of operations related to their activities.

Cost Structure

Publicis Groupe has a value-driven structure, aiming to provide a premium proposition through significant personal service. Its biggest cost driver is likely cost of services, a variable expense. Other major drivers are in the areas of sales/marketing and administration.

Revenue Streams

Publicis Groupe has one revenue stream: the fees it charges for its advertising and PR services.