"While the market overall was down by 12% to 14%, Publicis managed to limit the decrease to 6.5%, thereby gaining market share," Levy stated, referring to Publicis' full-year organic revenue growth rate. The rate of erosion declined to only 5.4% during the fourth-quarter, something the agency had predicted.
"The economic environment worldwide was characterized by constant crisis of unprecedented proportions," Levy stated. "In our industry, it manifested itself by a shrinking of the advertising market, which, month after month, caused us to reduce our outlook by as much as 12% to 14%. That left us few options but to manage on a short-term basis, making constant corrections that nevertheless kept us on course to pursue our long-term strategy.
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Levy attributed part of Publicis' resilience to its heavy commitment to emerging markets, and especially to its investments and diversification into digital media and advertising services, including its year-end acquisitions of Razorfish from Microsoft.
"Our aim is eventually to derive a total of 60% of our revenue from the two sectors of digital activities and emerging economies," he stated, noted that "digital services" had an organic growth rate of 7.1% during 2009, and that if the negative impact of Publicis client General Motors was factored out, the organic growth rate of digital media would have been 11.9%.
Digital media accounted for 22.4% of Publicis' total 2009 revenues, and Level said Publicis has set a target of 25% for 2010.
"And we have already set a new target, which is to reach - in the coming years - 30%," he added in a question and answer interview transcript released as part of Publicis' earnings statement.