Publicis Combines Razorfish and Sapient in Digital Revamp

Advertising giant Publicis Groupe is revamping its digital agency structure and leadership amid a company-wide reorganization it announced last December.

The French holding company is combining its SapientNitro and Razorfish agencies under the new name SapientRazorfish.

The change comes as clients "grapple with the dual objectives of change and speed -- how to transform to be more digitally-driven businesses, and how to design and implement these changes at the rapid pace of change being dictated by the marketplace," the company said in a statement.

Alan Herrick, chief executive of digital agency network Publicis.Sapient, will move into the role of chairman of the network, "focusing on strategy and market development at the Publicis.Sapient and Publicis Groupe level." Publicis.Sapient has housed Publicis' SapientNitro, Razorfish, Digitas and Sapient Consulting.

SapientNitro CEO Alan Wexler and Sapient Consulting CEO Chip Register will become co-CEOs of Publicis.Sapient. Mr. Wexler will also assume a CEO role at the newly-formed SapientRazorfish. Razorfish CEO Shannon Denton will take on the role of Chief Strategy Officer for SapientRazorfish.

"I am thrilled to have Alan Herrick working with me on the continued progress we are making at Publicis Groupe as I consider how best to position the Groupe and configure leadership across the many dimensions inherent in steering both our clients, and the Groupe itself, to a prosperous future," said Publicis Groupe CEO Maurice Levy in a statement.

Mr. Levy, who is due to step down from his role next summer, said the company would announce his successor between December and February.

The reorganization under digital agency network Publicis.Sapient is the last piece in Publicis' larger restructuring plan, rounding out an effort meant to simplify creative and media agency networks within the French holding company.

Publicis late last year said it would merge all creative operations under a larger group called Publicis Communications, and Publicis heir apparent Arthur Sadoun. It also said it would combine and bring separate media agency operations under one boss, Steve King. In March, the company consolidated its media operations by eliminating divisions like Vivaki and merging some of its media-buying agencies under a new network called Publicis Media.

The only group that hadn't yet gotten a face lift within the holding company was digital, until now.

For the holding company, it's also one more attempt to boost digital growth after a challenging third quarter and a tough couple of years for Razorfish. Mr. Levy has said that Publicis has had problems with the agency, where some big clients cut had cut back on spending and managers had left.

Publicis' Mr. Levy in the third quarter has called 2016 a "year of transition" as he focuses on integrating Sapient and an internal reorganization to encourage its myriad agencies to work more closely together.

The Publicis change signals what will likely be another elevation for Mr. Herrick, who has spent the past two decades building Sapient. The company, acquired by Publicis in 2015, touts a massive operation in India, a business and tech consultancy and an agency services group through its earlier acquisition of digital agency Nitro.

Write to Alexandra Bruell at alexandra.bruell@wsj.com

(END) Dow Jones Newswires

November 17, 2016 14:45 ET (19:45 GMT)

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