Publicis is struggling, but it's not a sign of deeper problems with ad agencies, say analysts

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Publicis is struggling, but it's not a sign of deeper problems with ad agencies, say analysts
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Publicis reported poor Q3 results, but analysts say despite headwinds, Publicis' competitors are weathering the storm.

into the agency space. The holding companies have also had to face shifts in the industry from longer "agency-of-record" relationships with clients to more project-based relationships, downward pressure from clients on fees and other challenges.

"We are without a doubt at the hardest part yet of our journey and as is the case with any major structural change, things always get worse before they get better," Publicis Groupe CEO and Chairman Arthur Sadoun said in an earnings release statement. "We could have chosen the easy route and taken advantage of the status quo to find small pockets of immediate growth. Instead we are accepting this painful situation in the short-term, to be better prepared for the future.

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