In 2012, Publicis Groupe bought Publicis Bucharest and set up Publicis Communications Services Bucharest; this year, it continued consolidation, by acquiring Zenith Romania and, most recently, the majority stake in affiliate agencies Leo Burnett & Target, Starcom MediaVest Group, Optimedia, The Practice and iLeo.
The latest move on Romanian market represents a further step towards Publicis Groupe’s goal of accelerating its presence in fast-growing markets, and also reaffirms its commitment to Romania, as a priority market in Central & Eastern Europe. Through this acquisition, Publicis Groupe clients will have access to best-in-class communication services. Teddy Dumitrescu and Stefan Iordache will be the co-CEOs of the operations, with Teddy Dumitrescu also assuming the position of Country Chairman. Management of the acquired companies will remain unchanged. The operations will be reporting to Tomasz Pawlikowski, Chief Executive Officer of Central & Eastern Europe, Publicis Worldwide.
In a press conference organized after the announcement on taking over the majority stake in the 5 mentioned affiliate agencies, Publicis’ officials offered more information on how group’s move will reflect on the local market.
We are trying to create as many synergies as possible and a proactive action for the clients. The plan was the same 3 years ago. We have a great opportunity in our approach and we also have some new platforms to develop. The best times to invest are the ones when the market is decreasing. We are better off with less competition. Still, we are not looking for a monopoly, but for great partners
Chief Executive Officer Central and Eastern Europe – Publicis Worldwide.
We don’t look at this as a decreasing market. We believe in this market, in this region. We have a very ambitious plan in the region. We are investing in it. This market represents a great opportunity for us and we are very excited about this step
Vice President – Publicis Groupe.
Making sure that the message is properly understood and there are no confusions along the way, Stefan Iordache insured the journalists present at the press conference that the two big groups are not merging.
We keep separate identities, separate cultures and teams. We will still be Leo Burnett, Publicis, Starcom, The Practice, etc. This is also the idea for the new companies we will create in the future. What we don’t want to change is the entrepreneurial level that is driving the agency and that took us that far away
Co-CEO Publicis Romania
At his turn, Loris Nord explained that the starting point is always the market.
We will maintain the brand identity, but also provide a more holistic approach for the clients. We have even greater ambitions for this market.
On things that can be improved on Romanian advertising market, Stefan Iordache talked about the image Romanian advertising market has after all this years and the way Romanian advertising is still being evaluated (mainly in terms of official data and less based on insight information – n.red)
The market is very divided. One thing we can do together is to find the real value of this market, beyond the data we can all gather from the Ministry of Commerce. To gave a better understanding of the market, to also take in account the fees of the agencies
Also, Teddy Dumitrescu said that, if he’d have a super power, he would change the ethics in the advertising market.
We want to be able to do everything that the client needs and we are always investing for that.
This is our policy everywhere around the world. We have a code of practice that we are never compromising. The key word is transparency
It’s not a question of performance, but bringing all the capacities under one roof. That is our opportunity. We have always gone against the tide and we became better because we offered a new proposal on the table for our clients
As for the overall Romanian advertising market, Teddy Dumitrescu believes that the market will start to grow once the consumer’s bying power and index of trust will also grow. “We would better ask the politicians about that”, he said.
But there are good pieces of news. For the next two years, Stefan Iordache predicts that the market will, at least, stop descending.
Material written by Romanita Oprea.
Romanita is Communication Consultant and journalist and, during her career, was editor in chief for the Romanian edition of Campaign and worked for Strategic.ro, Smark.ro, IQAds.ro, Ad Maker, MediaWeek, Biz publications and was also producer of “Marca Inregistrata” TV show