Publicis Buys Ad Unit With Luxury Focus

Publicis portrayed the deal as a vote of confidence in the continuing buoyancy of luxury goods advertising, in which, the company said, spending was expected to rise 7 percent worldwide this year, despite a generally downbeat outlook for advertising.

“The luxury market is an advertising segment ripe with investment opportunity,” Jean-Yves Naouri, chief operating officer of Publicis, said in a statement.

AR’s staff of 50 has worked with fashion brands like Valentino, Versace, Salvatore Ferragamo, Jimmy Choo and Dolce Gabbana, as well as brand owners like Moët Chandon, Banana Republic and Conrad Hotels, creating advertising and advising them on strategy.

While AR focuses on the U.S. market, Publicis said it would add the agency to a mini-network of agencies specializing in the luxury sector, including Publicis Shanghai, Publicis 133 Lux and Publicis EtNous. By joining Publicis, AR will also gain more direct access to the media buying clout of Publicis, one of the big four global advertising giants, alongside WPP, Omnicom Group and Interpublic Group.

“AR New York will now have the expanded resources of Publicis Groupe to continue to deepen our international growth — particularly in Asia and India, where many of our clients are actively driving new initiatives,” AR said in a statement attributed to Diane desRoches, the chief executive, and Raul Martinez, the chief creative officer.

Publicis declined to disclose what it paid for AR, which has grown quickly since its founding in 1996 and has gained a reputation for hip creative work.

“They are passionate about the powerful influence of contemporary arts, design and culture on consumers’ engagement with brands,” Mr. Naouri said.

Article source: http://www.nytimes.com/2012/12/05/business/media/publicis-buys-ad-unit-with-luxury-focus.html?partner=rss&emc=rss