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Digitas Gives Publicis the Digital Edge

Publicis Groupe is wasting no time in leveraging its almost-completed takeover of digital marketing firm Digitas Inc.

Some Digitas staff members are already working on Publicis clients, and the new owners are already looking for ways to create digital work at a higher profit margin, according to the Financial Times.

The $1.3 billion deal is expected to make Publicis the largest customer for Google, Microsoft and Yahoo in terms of search ad spend. Nevertheless, Publicis apparently believes it must improve as a provider of online display advertising, which is friendlier to branding campaigns.

Doing so would help it remain a sought-after partner for marketers seeking interactive agencies, Publicis execs say. And branding campaigns are more lucrative than search because of the higher cost of both production and placement.

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