You have made two big related announcements at Cannes Lions this year – the rollout of Converged and the Euro 400 million additional investment in data, tech and AI. Let’s begin with Converged. For a company that had so-called pioneer the ‘together’ approach in a scalable way, why did you not have something like this already?
Integration has proved to be beneficial for us in the last decade and we have been evolving that process. Our Together Strategy and Havas Village were some very big steps. Converged, our new operating system, builds on this. It has been ready for over six months now but we wanted to have some use cases of its implementation before we rolled it out globally.
Converged, as you know, integrates various tools and systems we had in different divisions within Havas. Previously, our creative teams, media planners and production units all had their separate tools but Converged brings these elements together, allowing seamless collaboration and providing a unified platform for strategy, creativity and production.
You mentioned that Converged is built on your media audience buying tool. How has it evolved?
Yes, Converged started as an audience planning tool for our media teams. We saw great potential in it and decided to invest further to make it a comprehensive tool for the entire group. Now, everyone in Havas – from strategists to creative people to production teams – can collaborate through this common operating system. It’s a significant upgrade that enhances our ability to deliver real-time, optimised and personalised content.
How does Converged ensure compatibility with various client systems?
One of Converged’s strengths is its interoperability. It’s open and transparent, meaning it can integrate with whatever systems our clients use. This flexibility ensures a smooth workflow and allows us to adapt quickly to new technologies. If a new tech company introduces something groundbreaking, we can easily incorporate it into Converged.
Let’s discuss the Euro 400 million investment….
We have consistently invested in data, technology and AI. Before coming to Cannes, I was wondering whether we could put a number to the investment so far. We have invested over Euro 600 million in the last few years because that is how the landscape has changed. Now we are earmarking an average Euro 100 million a year for the next four years to continue building on these capabilities.
You are preparing for the possibility of Havas being listed again. I recall you had said on an earlier occasion that post the delisting in 2017, Havas did not have the quarter-to-quarter pressure of its peers and was able to invest more in the long term. How does all this change?
Vivendi will still be the largest shareholder and that will continue to allow us to think long-term and prioritise our clients and our people. The process at Vivendi is under study. It is complex and involves several steps, including validation and approval from various bodies, and a two-thirds majority from our shareholders. The earliest we will know is by December on what is happening. While we prepare for this possibility, at best our relationships with the Vivendi companies change from sisterhood to cousinhood. But more importantly, it means we will have more financial means to grow Havas.
How do you see the future of holding companies in the advertising industry?
The industry is growing steadily, with annual growth rates between four to six per cent. It is resilient and not very CapEx intensive, making it attractive for investment. Among the holding companies, there are ups and downs, but what is important is overall growth. At Havas, we have been championing the industry with strong organic growth, making us an attractive option for investors. So if we do list again, now would certainly be the best time.
With the growth of diversification, especially in markets like India, how does Havas maintain its vision of a consolidated entity?
We remain committed to the vision of a consolidated Havas. In India, we have seen rapid growth - from 200 people, it is nearly a 10-fold growth in scale. I have told Rana (Barua, Group CEO, Havas India, Southeast Asia & North Asia) that it is crucial to integrate well and foster a unified culture. Our goal is to ensure that while we grow and diversify, we continue to operate as one cohesive entity, delivering consistent value to our clients.
_20241105155901_original_image_37.webp)
