1. PIBLICIS GROUPE: FRANCE CASE STUDY Publicis Groupe: The Company The Subsidiaries Contemporary Performance Global Advertising, Sesi 12 Global Advertising, Sesi 12. Prepared by Z. Hidayat, MM, M.Si. 1

2. PUBLICIS GROUPE: THE COMPANY Publicis Groupe is a French multinational advertising and public relations company, headquartered in Paris, France. It is one of the world's three largest advertising holding companies (the others being Omnicom, and WPP). Its current president is Maurice Lévy. Publicis Groupe S.A. provides digital and traditional advertising, media services, and specialized agencies and marketing services (SAMS) to national and multinational clients. 2 Global Advertising, Sesi 12. Prepared by Z. Hidayat, MM, M.Si.

3. Global Advertising Services The company owns several full-service advertising groups that undertake a range of media activities: mobile and interactive online communication, television, magazines & newspapers, cinema and radio, outdoor. The company’s SAMS services include direct marketing/customer relationship management services, sales promotion, healthcare communications, multicultural and ethnic communications, corporate and financial communications, human resources communications, public relations, design services, interactive communications, events marketing and management, sports marketing, and production and pre-press services. Its media services include media planning, media buying, and media sales. Publicis Groupe's Vivaki pole has developed a technological platform supported by Microsoft, Google, Yahoo! and AOL Platform A technologies that offers advertisers the possibility to target specifically defined audiences in a single campaign across multiple networks. 3 Global Advertising, Sesi 12. Prepared by Z. Hidayat, MM, M.Si.

4. From Interpublic to Publicis In 2010, Publicis was named the third largest marketing group by revenue, replacing Interpublic. By the end of 2010, the twin sectors of digital activities and high-growth emerging countries represented one-half of Publicis Groupe's total revenue. The company conducts its operations in over 200 cities in 104 countries. Publicis has a strategic alliance with Dentsu, Inc. The company was founded by Marcel Bleustein-Blanchet in 1926. 4 Global Advertising, Sesi 12. Prepared by Z. Hidayat, MM, M.Si.

5. PUBLICIS’S SUBSIDIARY As of 2012, the main subsidiary companies of this group are: Advertising – Global networks Leo Burnett Worldwide Publicis Worldwide Saatchi & Saatchi – Other creative networks and agencies Bartle Bogle Hegarty (BBH): As of July 2012 Publicis Groupe holds a 100% stake. Fallon Worldwide Kaplan Thaler Group Burrell Communications Group (49% owned) Bromley Communications Digital and Media – Rosetta – VivaKi Digitas Starcom MediaVest Group – Starcom USA – MediaVest ZenithOptimedia Performics LBi Razorfish Big Fue Resultrix Media 5 Global Advertising, Sesi 12. Prepared by Z. Hidayat, MM, M.Si.

6. Other Subsidiaries Specialized Agencies – MSLGROUP – Publicis Healthcare Communications Group Publicis Healthware International – Médias & Régies Europe – Conill Social – Big Fuel Mobile – Phonevalley – Monterosa 6 Global Advertising, Sesi 12. Prepared by Z. Hidayat, MM, M.Si.

7. Publicis says has no visibility for 2013 BARCELONA | Thu Nov 15, 2012 Nov 15 (Reuters) - French advertising group Publicis struck a cautious note on the prospects for global advertising at the end of 2012 and 2013, saying they did not know how their clients would react in the future. Chief Operating Officer Jean-Yves Naouri was asked for his thoughts on the future of ad markets at an investor conference run by Morgan Stanley, where rival groups WPP and Omnicom had already laid out their thoughts. The advertising industry is renowned for its high- profile executives who give a running commentary on the state of the markets. An announcement by Publicis that organic revenue had grown by 7 percent in October after an industry-wide slump in September was described as "incredible, in every sense of the word" by the WPP Chief Executive Martin Sorrell on Wednesday. 7 Global Advertising, Sesi 12. Prepared by Z. Hidayat, MM, M.Si.

8. "The main answer is we don't know," Naouri said, after explaining that clients in Europe were very cautious and the United States tough. "We don't know what will happen by the end of the year, we don't know if we will see some clients adjusting their numbers by cutting their marketing expenditures. This is something that we have witnessed in the past. "So we are not giving any strong perspective for the end of this year or the next as it's too early to tell." Omnicom said on Wednesday that it was more optimistic about 2013 while WPP said it was remaining cautious. Naouri said the French group, the world's third largest advertising company, had been surprised in September when some of its projects were delayed. But he said this has been merely a phasing matter. "And we have been reassured to see that those projects have been delivered in October, so that explains why September and October were upside down. 8 Global Advertising, Sesi 12. Prepared by Z. Hidayat, MM, M.Si.

9. Publicis CEO: Advertising Will Not Pay Digital Media Bills Monaco--Advertising will not pay the freight for digital media, like it has for newspapers and television, as it morphs into an interactive experience riveted on transactions, according to Publicis Groupe (PUB) Chairman and CEO Maurice Levy. "Advertising cannot cover the cost of everything in the new digital media world. Other sources of generating revenues will have to be created, such as having consumers pay for some content. It cannot all be free or paid for with advertising," Levy told me in a weekend interview at the Monaco Media Forum, co- sponsored by Publicis. 9 Global Advertising, Sesi 12. Prepared by Z. Hidayat, MM, M.Si.

10. "There is no reason why digital media should give away information and other content, when it can target its value to the consumers it is reaching," Levy said. The same is true with advertising, "which can and must be transformed into a link that is brilliant and relevant to specific consumers. It will take creativity to make targeting more precise in a way that is not intrusive, "but creates digital value for content owners, advertisers, agencies and consumers." Although advertisers and agencies continue paying for the right to use professional music, video and other content, the issue of paid versus free will become even more explosive. It will be difficult, but imperative to change the expectations of Interactive consumers taking all they want gratis. 10 Global Advertising, Sesi 12. Prepared by Z. Hidayat, MM, M.Si.

11. "Free content devalues everything in the food chain. It is disintermediating everything, including ad agencies and advertising revenues," he said. "As consumers take ownership of brands and transform them, we are losing control of the message," Levy said. "Advertisers and agencies must make more aggressive use of the Internet as a tool for reinventing themselves." They can begin by purging the Internet of what Levy refers to as "dreadful, insulting" banner ads. "You bring that banner to life with motion. We must use much more creativity and interactivity in all that we do," he said. "Five years from now, agencies and advertisers will be very different as they move their messages along the digital food chain. They ultimately will lead to and incorporate transactions," Levy told me during a relaxed discussion. Publicis Groupe has taken its own advice by redesigning its Web site with more intuitive, interactive features. Over the next 18 months, Publicis will continue experiments and strategic alliances aimed at transforming "from a communications service provider to a value creator for clients that shows them how to change their business models and stretch their brands," Levy said. "In turn, we want a share of the risk and the profit of the client." 11 Global Advertising, Sesi 12. Prepared by Z. Hidayat, MM, M.Si.