Brexit's Impact on the UK Marketing Industry?
When the British public voted to leave the EU on 23rd June 2016 many people feared it would be the start of a slippery slope for the British Economy. However, despite an initial dip in the value of the pound, the impacts haven’t been as negative as some might expect.
The main issue
Uncertainty is the main issue facing the industry and the economy overall. No one really knew what would happen in a post-Brexit Britain and no one still seems to have much idea. With words such as hard, soft, red, white and blue being bandied around, many people have been left feeling confused as to how Brexit will impact them.
All we really know is that when Britain leaves the single market we will have to renegotiate trade deals with countries outside the EU and with the EU itself. The result of these deals will give us a much better idea of what the future holds.
Initially, Brexit is likely to have some impact on consumer spending as the price of imports from Europe rise. European partners may even choose to work with companies still part of the single market in order to avoid paying fees or taxes and to avoid added bureaucracy.
However, the fall in the value of the pound means that British marketing agencies are more affordable to international businesses. So we could see a rise in the number of businesses using British marketing agencies. Marketing, and digital marketing, in particular, is in a unique position to be very easily exported.
Marketing agencies should see this and make use of the opportunity by seeking international contacts. The possibility of a new trade deal with America is also a bonus.
The Market's Reaction
The marketing industry itself appears to be seeing Brexit as a new challenge. The IPA has stated that that the result is an opportunity for marketers to up the creativity levels and prove their worth globally. Many marketing departments have increased budgets up until the end of 2016 and the industry is continuing to invest in new ideas.
With new potential markets to attract and more international competition, it seems only natural that Brexit would be positive for the marketing industry. Employment expectations within the industry are positive. A survey by marketing week shows that ~30% of professionals felt that employment within the industry would be higher in the coming year.
European business may see a downturn and those marketing agencies who work closely with European organisations will have to look elsewhere for new business. But with new international opportunities, this shouldn’t be a problem for any marketing department worth it’s salt. After all, the name of the game is developing new ways to attract customers!