Sitting in his office on Paris’ Champs-Elysees, with its stunning view over the Arc de Triomphe, the global president of Publicis Groupe can’t resist a little cultural bravado. “We cherish the fact that we’re different. Celebrate it. Maybe because we are born in the country of revolution and in Europe, where we have small countries of four million people who are very attached to their culture, history, habits and rules that we understand it better,” he says.
Levy appears to take an almost mischievous pride in proclaiming that Publicis brings to Asian clients something that only a European network, “well, more French”, can, that something being diversity. “We don’t want to have a kind of cookie-cutter approach and reputation of having the same model. We believe that we should offer a range of different agencies and not only look at vehicles to handle conflicting accounts,” he says.
It is this protectiveness over his own company’s culture that has been Levy’s best asset while shopping for new agencies to grow the Publicis global empire — an expansion he insists is more out of survival than an obsession with size. “In my view,” he explains, “this has helped us to protect the assets that we have acquired and it has helped us to integrate them so people know that we will respect who they are, what they have been and how their agency has been built over time.”
It’s all part of Levy’s efforts to strengthen the Publicis offering in an increasingly digital world. Indeed, while in 2006 Publicis reportedly generated about 70 per cent of its revenue from traditional advertising and media and 30 per cent from other marketing services, the split is expected to shift significantly on the back of important acquisitions such as Digitas. Even by the standards of the ad industry, which has seen more than its share of acquisitions in recent years, the US$1.3 billion Digitas buy was noteworthy, delivering nearly 17 per cent revenue growth on a stand-alone basis in the first quarter of this year. The company’s interactive focus, it is hoped, will ensure that one quarter of total revenue is from digital by 2010. As part of that, plans to bring Publicis Modem to Asia are also in the pipeline. Levy adds: “The most important discussion that we had (with Digitas) was not about the value, but values. Are we caring about clients and talent the same way?”
This approach applies equally to the positioning of his agencies. Levy stresses that it is Publicis’ individual brands — the likes of Leo Burnett, Fallon, Publicis, Saatchi & Saatchi, as well as media buying agencies ZenithOptimedia and Starcom — that he’d like clients to talk about and rivals to fear, not the holding company brand. “I’d like to see each of our brands considered as big as the agency network, and for every young talent to aspire to work for us,” he says.
To do that, Levy is creating an organisation conscious of global issues. “Today, we have more competitors for the people who want to do something original. They can go to Microsoft, or Google, or have a career in investment banking,” he explain. “In the ’70s, young people had ambition. Now, they are concerned about global issues, corporate responsibility, and respect. We need a structure that shows we are not a cynical company.”
With three years to his retirement, Levy seems determined to drive the business further. He’s attentive to change and demanding of those around him, who say that while he doesn’t micro-manage, he notices every detail. He respects opinions, values loyalty — and rewards it. In France, it would be fair to say he enjoys a higher standing than his counterparts in the UK and US. Yet he has none of the self-importance you might expect from one of his stature.
Charming but relatively low-profile, Levy joined Publicis as an IT manager in 1971 before becoming the protégé of Publicis founder Marcel Bleustein-Blanchet. As the legend has it, Levy caught the eye of his mentor when he risked his life to rush back into the Publicis building during a 1972 fire to save the company’s computer records, famously remarking afterwards that at least now the company’s clients could be billed.
Those close to Levy say one of Bleustein-Blanchet’s requests was that Publicis, although publicly traded, should remain under family control. So, after taking over the top job in 1988 as Publicis’ second CEO in 80 years, Levy seemed more the guardian of the family’s legacy than the ambitious entrepreneur.
The advertising world, however, changed, as global brands started consolidating entire accounts with the big holding companies: Omnicom, Interpublic or WPP. Publicis was forced to join the club. And so began Levy’s journey to position Publicis into the top tier, turning him into something of a “ruthless, albeit amicable, predator,” as one source says.
Levy embarked on a furious shopping spree, which continues to this day. In his first 10 years at the helm of Publicis, he acquired more than 60 agencies. In 1997, he acquired Mojo Partners in Australia and New Zealand. By 1999, the company was in South Korea with Welcomm, and in the Philippines with AMA. He worked tirelessly with outgoing Publicis Asia-Pacific chairman Guillaume Levy-Lambert to fulfill a promise to clients Nestle and L’Oreal to create a global Publicis network by the millenium, achieving it a year ahead of schedule. “In the early years, particularly as we worked on the key acquisitions to plant the Publicis flag in each market, Maurice would be very hands-on — and trusting at the same time. I would debrief him after each market visit, share with him my observations, make a recommendation and get his guidance and decisions, usually by a quick return of my fax with his comments and questions written by the side followed by a phone call,” recalls Levy-Lambert.
In 2000, Levy sealed Publicis’ global position with the acquisition of Saatchi & Saatchi, then merged Optimedia and Zenithmedia to form ZenithOptimedia, and the following year welcomed Bcom3’s Leo Burnett and D’Arcy into his fold. It was also the year that Dentsu acquired 15 per cent of Publicis as part of the Bcom3 deal. There have been countless, smart acquisitions since (with no doubt more to come) to build the Publicis Groupe in Asia and globally.
The Japanese alliance, however, is a sensitive issue. “Dentsu is a formidable partner. The problem is to find things where we can work together without competing, which is complicated,” he notes.
Having committed himself to the network until 2010, Levy is now putting a succession plan into place. Some sources point to an arrangement in which the head of the group’s advertising interests form part of a management collective. But there’s also Elisabeth Badinter, the daughter of the founder, and equity partner Dentsu — which holds 15 per cent of the company’s voting control — to consider.
It’s a question that tests his patience, but he charismatically says: “Publicis has announced long before my retirement date so it doesn’t come as a surprise, so I can work on a succession plan. We have plans for the future and I believe there are a lot of great people in our organisation who will be ready when the time comes.”