Publicis says Meta AI ad tools won't replace agencies

Publicis Groupe has dismissed concerns over threats posed by its competitors and increased its 2025 growth forecast. 

The French advertising firm Publicis has raised its full-year growth forecast after a strong second quarter. The company also directly challenged Meta’s AI-powered advertising tools, arguing that its clients value independent strategy and data control.

Publicis reviews 2025 growth forecast

Publicis Groupe raised its 2025 organic growth forecast on Thursday following its stronger-than-expected second-quarter results. Publicis’ CEO, Arthur Sadoun, dismissed concerns over the competitive threat posed by Meta’s new artificial intelligence ad tools.

“When Meta comes along and says that they can do everything themselves, I think that they are completely underestimating the intelligence of our customers, who, moreover, are not fooled,” Sadoun said during the earnings call.

He stated that clients are cautious about giving up control of their data to dominant tech platforms. “None of our customers want to leave their data in the world of ‘walled gardens.’ None of our customers want to work with a single platform,” he said. “They want to measure the impact of their spending, which obviously cannot be offered by those that do it within their own walls.”

Meta and other tech giants have increasingly been promoting AI-driven tools that promise to automate much of the advertising creation and delivery process. Sadoun, however, was adamant that this does not threaten Publicis’ model. He mentioned that similar predictions of platforms replacing agencies have been circulating for years.

“I’ve been hearing for nine years that the platforms are going to ‘eat us for breakfast,’” he said. “Honestly, I think it’s time to stop talking about how platforms are going to replace us, because it’s not a reality.”

Publicis highlighted the completion of its $12B, decade-long technology transformation, which it says now enables the group to shift its focus from development to execution. The company pointed to its proprietary platform, powered by in-house AI and big data capabilities, which it says can target individualized ads to over 4 billion internet users globally based on consumer behavior.

Publicis’ Q2 results beat expectations

Publicis reported 5.9% net revenue organic growth in the second quarter of 2025, outperforming expectations and prompting the group to upgrade its full-year guidance. The company now anticipates organic growth to be “close to 5%,” compared to its earlier forecast range of 4% to 5%.

Total revenue in the second quarter increased 10% year-on-year, with balanced growth across key regions. The U.S. experienced 5.3% growth, 4.6% in Europe, and 5.7% in Asia-Pacific.

Publicis also cited an “unprecedented new business run” in the first half of 2025, announcing $5.2B in net new business wins. The company also gained major clients, including Coca-Cola, Nespresso, Lego, Paramount, and Spotify.

According to JPMorgan data referenced in the report, Publicis outpaced industry competitors such as WPP, Omnicom, Dentsu, and Interpublic in net new business wins for the period.

Many legacy advertising firms are just now adjusting to the digital transformation and increased competition from tech platforms within the industry. Publicis, which began its tech overhaul years earlier, is now positioned as both a creative and data-driven marketing partner capable of delivering significant impact at scale.

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