Many experts have made statements on the Brexit impact on ad industry, we wanted to share them with you and look at what the future holds.
It’s safe to say that almost every business up and down the country probably found that they were split last Friday. Some celebrated and some commiserated. Here at Broadplace we were just the same – differing ideas. But ultimately, we had some really interesting debates and discussions about the subject. We watched with interest as events unfolded on rolling news.
Response from Ajay Syal, Managing Director Broadplace Advertising
“While it wasn’t the result many were expecting, we are committed to working with our clients, some of whom are understandably concerned, to minimise the impact. But wherever there is uncertainty, there is also opportunity. We will be working with our clients and our CampaignHub technology to identify those opportunities. We know that, as a pureplay internet advertising agency, we will be in a stronger position than many in the more traditional ad industry”
Here’s our round-up of Brexit Fallout and Future Predictions from the Ad Industry…
Tim Elkington, chief strategy officer, IAB
“Uncertainty always brings economic challenges, and the decision to leave the EU will usher in a period of considerable uncertainty as brands assess the economic impact of the decision.
The UK advertising industry is currently in good health and grew by 7.5% in 2015. The most recent comparable situation to this was the recession caused by the credit crunch in 2008, when digital advertising still grew 5.7% year on year, so while conditions may be tough in the short to medium term, there is a history of growth in challenging times.
As a trade body it’s important that we give our members all the support they need, whether its in relation to the impact of Brexit on policy and regulation or to help shape their businesses and teams in order to meet upcoming challenges.”
Jenny Biggam co-founder, the7stars
“[The] result is a massive surprise even to those who voted for Brexit. I think it’s too early to predict the impact on the UK ad market however one thing is clear: Brexit is now no longer just a political issue it’s an economic concern.
Turmoil in the financial markets over the next few weeks is inevitable and we can’t disassociate the advertising industry from the wider economy – our clients’ share prices have been hit and that won’t be good for advertising budgets.
It’s the same for global businesses and the weakened pound. The ad market needs a stable economy because ad spend is fuelled by consumers’ spending power.
In the short term I think Euro 2016 will continue to buoy adspend. Longer term I am hoping for stability and for business and politicians to collaborate more closely to avoid recession. We need to pull together to make the best of this decision going forward.”
Jonathan Barnard, head of forecasting, Zenith
“In the short term we don’t expect the Leave vote to cause much immediate damage to the UK ad market. When we polled our key clients about the referendum, they all said that they would not change their spending plans simply as a result of the vote.”
Martin Sorrell, CEO, WPP
“I am very disappointed, but the electorate has spoken. The resulting uncertainty, which will be considerable, will obviously slow decision-making and deter activity. This is not good news, to say the least.
However, we must deploy that stiff upper lip and make the best of it. Four of WPP’s top ten markets are in Western Continental Europe and we must build our presence there even further. It just underlines the importance of implementing our strategy: fast-growth markets (BRICs and Next 11), digital, data – and horizontally, which ironically means getting our people to work together, not apart!”
Bob Wootton, principal, Deconstruction
“Uncertainty will surely dog the UK economy as it did during the run-up to the vote. Ad budgets may not shrink but will be certainly harder to get committed. Hiring and the raising of capital will slow – the number of IPO’s, booming recently, could diminish.
The bars of South Kensington will be slightly quieter and the arts will continue to be great as they were before and during membership.
The UK remains a remarkable, vibrant country with whom overseas partners would be stupid not to trade reasonably once the emotions have subsided.”
Paul Frampton, CEO of Havas Media Group UK & Ireland
“Some organisations will see the result as a reason to put the brakes on and ad spend may well drop in certain sectors but we need to look at the long term – it has stayed fairly consistent and stable through challenging economic times.”
Tal Smoller, European telecom & media analyst, Bloomberg Intelligence
“Brexit’s most immediate and obvious implication for the media industry is a potential slowdown in advertising spending. Given our economists at Bloomberg Intelligence predict that the UK economy might be 2% smaller in the medium-term, we think it’s inevitable that advertising revenue will follow suit as consumer spending slows.”
Brexit and GDPR
After four years of debate and discussion in Brussels, Europe has agreed a new law – the EU General Data Protection Regulation (GDPR) – that is likely to transform the way the digital advertising sector collects, shares and uses data. Expected to come into force in mid-2018, the new rules will present the sector with opportunities as well as challenges. But what will the Brexit mean for this? The Internet Advertising Bureau is running a seminar on this very topic in July. Overall, watchdogs, industry experts and Broadplace are all for complying with the newest EU Data Protection Laws even if we are to leave the EU. It’s best all round for users and businesses alike and it’s vital if we want to continue to do business with the EU and access data.
Alan Duric, CTO and founder of security comms app Wire
“In a similar vein to Norway and Switzerland’s relationship with the EU, if the UK is to continue to access EU citizens’ data, then the same regulations would have to be met regardless of the UK’s membership status. Adhering to EU standards would not only enable the free flow of data to continue, but would protect people’s right to privacy and therefore is a decision to be embraced.”
If you’d like to know more about how we can help you to reach wider audiences and enjoy better clickthrough rates, give us a call on 020 3813 9576.