Publicis buys identity firm Lotame as Arthur Sadoun updates AI pitch to clients

Publicis Groupe is to buy Lotame, a US-based data and identity firm, to expand the capabilities of its existing data arm, Epsilon, and improve its use of artificial intelligence on its CoreAI platform.

Lotame, which is led by Andy Monfried, the chief executive and majority shareholder, has more than 150 staff and a database of more than 1.6 billion identities, based on more than 100 data sources. Financial terms were undisclosed but Lotame previously said it raised at least $44 million (£34 million) from external investors.

Arthur Sadoun, the chief executive of Publicis, claimed the combined footprint of Epsilon and Lotame will mean the group can target close to four billion  “unique profiles” or more than 90% of the global population on the internet. Lotame has a greater global presence, particularly in Asia Pacific and Europe, than Epsilon.

Sadoun told Campaign owning data was essential because “in the age of AI, the name of the game is connect or die” and data is “the connector”. He added: “You can't connect anything if you don't have identity.”

He used the Lotame acquisition to update the company’s AI strategy in a 23-minute video pitch to clients, staff and the wider market—a year after giving a longer investor presentation on AI.

“By connecting Lotame to Epsilon, we’re reinforcing our industry-leading identity graph, giving clients the unique competitive advantage of seeing and engaging with 91% of all adults who use the internet, safely and transparently,” he said.

“By connecting that best-in-class identity to our clients’ data thanks to AI, and leveraging it across their marketing spectrum, from their PESO [paid, earned, social and owned] media eco-system to content production, all in their owned environments, we are truly delivering measurable outcomes for their business.”

Publicis’ strategy contrasts with some rivals such as WPP, which told investors last week it planned to move from identities to AI to drive its media business.

Pilot schemes using AI are “concrete” and “delivering business outcomes"

Sadoun said Publicis has run about 50 pilot schemes using its CoreAI platform for clients in the last 12 months “that are concrete” and “delivering business outcomes”—proof that the company has moved from “strategy” at its investor presentation a year ago to “a reality”, according to Sadoun.

He gave three examples in the video of how unidentified clients in healthcare, quick-service restaurants and automotive are able to use AI to improve personalisation and marketing effectiveness and reduce waste. “It’s how we are making CoreAI a reality,” he said, describing the combination of identity, AI and creative as “intelligent creativity."

Sadoun’s video presentation also included an example of how Publicis is able to use identity to build a profile of a consumer called “Lola”, a mother of two, and target her, based on her habits and social media activity. Lola is a buyer of a premium fruit juice brand but AI identifies she may be in a demographic looking to trade down to a cheaper, private label. That allows the brand to respond by promoting one of its more affordable products in a bid to retain the customer.

Asked how Publicis was ensuring that it is protecting individuals’ privacy and not being “creepy” in collecting so much personal information, Scott Hagedorn, the global chief solutions architect, said: “The protection of consumer data is built into our systems by design. In every market where we operate, we have teams who ensure we’re complying with local regulation and anticipating future regulation and requirements.”

Monfried founded Lotame in 2006. External investors included Battery, Emergence Capital and Sozo Ventures. It is understood some of Lotame’s management and other investors also held stakes.

Monfried said: “We have a rich history of innovation, building out our global data marketplace and scaling our identity solution to become among the most trusted and adopted in the industry.” He added Publicis “shares our commitment to industry inter-operability, connectivity, and privacy”.

Lotame works with many companies across the advertising eco-system including some of Publicis’ rivals such as Omnicom’s PHD and Interpublic’s Acxiom, but Sadoun said Publicis was happy for them to continue working together.

Confident AI can drive growth, not destroy jobs 

Sadoun maintained Publicis’ faster growth compared to agency rivals – revenues increased 5.8% in 2024 and are forecast to rise between 4% and 5% in 2025 – means it is able to invest more in AI and acquisitions as well as re-skilling staff.

He acknowledged some jobs were likely to be at risk because of AI but said: “AI is only a threat if you don’t have the data and technology to train and equip your people and also if you don’t have the growth.”

Sadoun said Publicis has been adding between $431 million (€400 million) and $647 million (€600 million) in revenue a year, which means the group has been able to add “the right capabilities” and “to make sure that some jobs that will be replaced by the machines will be reallocated to new revenue”, adding: “This is why we feel confident about not destroying jobs.”

He went on: “One of the reasons why we are confident about 2025 on both our revenue and margin is definitely the fact that those first [50] pilots have been successful, and this is helping us to get market share at the moment.”

Publicis employs about 108,000 people, up 5,000 from a year ago.