Publicis Romania to go digital and put more focus on PR, after group acquisition

Publicis Groupe’s recent acquisition of three of its long-term affiliates Publicis Romania, Focus Advertising and Publicis Events will not bring important changes in the agencies’ strategy or current configuration, stated Tomasz Pawlikowski, CEO at Publicis CEE, Russia and Greece. The group will focus in Romania on the development of the emerging digital area, as well as on PR, since the latter is holds notable potential for growth in Romania, added Pawlikowski.

“Reaching an estimate total value of EUR 12 – 15 million, the digital market is not worth investing in, if an agency does not produce over EUR 2 million”, stated the CEO. Publicis Groupe also aims to announce the acquisition of media agency ZenithOptimedia in the following one or two months. More interestingly, the agency might split in two in Romania, in Zenith and Optimedia agencies, as well, following other examples in the group, so that the two new agencies may work with competing clients.

The group’s recent purchase of its local long-time partners in Romania were, as Pawlikowski explained, a confirmation to their successful collaboration – yet why has the takeover not happened sooner? The regional CEO explained that negotiations had been taking place for almost two years and considering the current economical context, this was the right time to do so. Pawlikowski considers Romania to be one of the most interesting in the area, since, as he explained to Business Review, the Romanian market is more responsive to creative messages, perhaps mostly due to its Latin origins, unlike Russia or the Czech Republic which are more rational markets.

The Romanian media & advertising market is expected to begin to show signs of recovery by the second half of 2011 and will hopefully reach pre-crisis level in 2012-2013, added Pawlikowski. Not so long ago, in 2004-2005, the local market used to hold a lot of potential and was one of the most important in the region, stated the CEO, and the crisis occurred just as the market was taking momentum. Also holding shares in Leo Burnett group Romania, but in this case in minority, Publicis is currently one of the most profitable communication groups in Romania and one of the largest in the world.

More technical details of the deal were not disclosed by Publicis officials. As to turnover or profit expectations, Pawlikowski and Teddy Dumitrescu, CEO of the local branch of Publicis Groupe, Grupul Publicis Communications Services Bucharest, agreed that they will hopefully reach the same level as in 2009 and 2008. In 2009, the turnover was of an estimate EUR 17 million and a profit of EUR 330,000, show media reports. What’s more the local team of specialists will not currently suffer any major changes, including the management, against which the international group now has a veto, since it holds over 51 percent of Grupul Publicis Communications Services Bucharest, with the rest owned by Teddy Dumitrescu.

Grupul Publicis Communications Services Bucharest offers advertising, branding, strategy, creative, production, sales promotions, event marketing and digital. Founded in 1994, the agency has been a partner of Publicis Worldwide since 1995. The agency employs over 75 communications professionals, and services a broad range of international and local clients including Orange, Renault, Nissan, L’Oreal, LG Electronics, Ursus Breweries, Microsoft, Procter & Gamble, Granini (soft drinks), Omv Petrom (petrol), Carrefour, HP, Citibank, sanofi aventis, Nestle ice cream, Albalact (dairy), Whirlpool. The agency received 55 awards and nominations over the past four years alone, including a Cannes Finalist and multiple recognitions at the Effies, Epica, the Golden Drum Festival and the New York Festivals.

In picture, Teddy Dumitrescu, CEO of the local branch of Publicis Groupe, Grupul Publicis Communications Services Bucharest.