Amidst the turbulence in the months leading up to Brexit, there was huge uncertainty among digital marketers, with many concerned with how a British exit might impact their agencies, access to talent and consumer data, and even how they perform their jobs.
On June 23, 52% of Britons voted to leave the European Union. When the news dropped, fears expressed by marketers before the vote became a very real and imminent threat, and many in the marketing sector are still reeling at the possible implications. Here are three major reasons why:
Uncertainty about the Pound
According to a post on DigiDay.com the next few years are going to be unpredictable, as the UK negotiates exit terms with the EU. Brexit’s impact on the Pound has already been negative and this means consumers, investors and advertisers could become far more conservative with budgets and spend in the upcoming months. Businesses may be less likely to recruit, leading to fewer jobs being created. “When there’s uncertainty, businesses become conservative, fewer jobs are created and people stop spending, risking a recession”, reports DigiDay.
Shortage of Skills
“There’s already a shortage of digital marketing skills in the UK and Brexit is just going to exacerbate this further” says MediaVision CEO Louis Venter. “We already see a great deal of digitally skilled people across Europe either setting up digital agencies or filling vacancies. Brexit adds a layer of complexity, limiting this highly skilled workforce from applying their skills. With the digital economy making up 10% of the entire UK GDP, Brexit may create more of a skills shortage in this rapidly growing market sector”.
A Decrease in Advertising Budgets…Might Actually Benefit Digital
Although unlikely to impact advertising spend immediately, advertisers are likely to reassess their budgets and reconsider various strategies they invest in over the next year. This could lead to all kinds of delays in decision-making and it also means new media formats could suffer as businesses will be less likely to want to take risks. The Guardian reported that Brexit fears could lead to a £220m decrease in advertising spend, including mediums like TV and print advertising. On the flip side, this could potentially have a positive impact on digital spend as other media is downgraded. To find out which digital services are the most cost effective and have the biggest impact, brands should be consulting with specialists to determine the way forward.
Watch this space for digital marketing Brexit news when we know more.