The latest UK decision to exit from EU turned out to be a real shock for all european economy community. After Brexit supporters raised 52%, EU leaders in terms such hazardous maneuver demanded Britain to leave the union immediately.

 

Brexit and What It Was

Britain exit as a campaign for leaving Euro Union was supported by 17 million British, all of them voted for exit and that was enough to take such fateful decision. Right after Britain some european countries like Holland raised discussions about leaving the union. However, markets were not happy about that movement and responded with obvious reluctance.

And this position was supported by pound which landed at its lowest point since 1985 and prime minister David Cameron who announced abjuration from his current appointment.

Great Britain has always driven for independence in political and economical ways which confirms rejection to participate in big integration EU projects such as euro zone and the Schengen agreement. No need to write about euro which didn’t replace pound.

But still taking into account all of this, Britain made great contributions on which EU was surviving. For the past 2015 Britain put 11 milliard euro in EU and there is no wonder when some British complain that EU costs taxpayers too much. And that was the main reason for UK to exit EU.

 

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Brexit potential consequences

The main question stays opened is which consequences market should expect. In terms today outcome seems too gloomy to spread panic or fall into despair, some buzz about new barriers for trade and future British consumer protection laws appeared.

This April, during Ad Week Europe Sir Martin Sorrell, WPP CEO, said that if UK leaves EU market, his advertising group would lose influence in 4 of its top 10 markets: Germany, France, Italy and Spain.

«I know clients will close plants and jobs will go», – assured Sir Martin Sorrel.

Sorrel also admitted that tariffs and trade costs growth and new barriers for business can be expected. However, Brexit camp asserts that British economy will constrain other nations to continue trading with the country on usual terms.

But taking Britain’s strength in exporting advertising services,Tim Lefroy, Advertising Association CEO, says that ad industry will be «resilient whether we are in or out». And according to latest Advertising Pays report, Britain exports £4.1 billion of advertising services per year and this way it has the greatest ad surplus in Europe – £1.6 billion.

In fact Britain has its own regulatory body in Ad Standards Authority that’s why Brexit would not change the standards which British brands and marketers steak to.

 

Uncertainty as a pivotal enemy

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No one can 100% say what Brexit means for the media industry in UK and that is what scares marketers. It’s clear enough that there would be no immediate changes like alternative trade deals as it would take 2-3 years. And UK will remain under EU jurisdiction though will have no power in shaping Euro Union future.

Uncertainty has already caused pounds fall and it will scare away investors, businesses are not eager to risk and will prefer keep conservative, which means less unknown formats in media and advertising. This way fewer jobs will be created and people will cut shot their expenses.

«Investors, advertisers and consumers don’t want to open their wallets, so it’s done huge damage already to the whole value chain,» – admits Nick Thomas from Ovum.

In spite this, digital advertising market in UK has already parted from its austerity. According to Yves Schwarzbart from IAB, even after 2008 financial crash digital ad revenue continued to grow for 5-7% per year.

Even when TV market nowadays looks not so flourishing, it still attracts a lot of money.

For several years London has been investing in programmers, developers, data scientist all known creators and TV production from abroad but now it needs to develop local talents. Moreover, it’s better for businesses and marketers to invest and plan for growth.

At the same time Chris Combemale, CEO at Direct Marketing Association seems no to be so harassed.

«Media businesses that take Brexit as an opportunity to pause will find that the world moves quickly around them. Digital disruptors will transform major business models. Companies should continue to invest and evolve and modernize,» – says Combemale.

The only stronghold of struggle for democracy and EU stays tandem of London and Scotland, where citizens are even ready to leave Great Britain to stay in EU. But there is nothing astonishing – in fact the majority of ad agencies – who’s job is communication with people – are based in London.

In terms the future problems stay unknown, Ovum Thomas says that the next question people from information industry are going to ask themselves is: «Do we understand this country anymore?»

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