In 2016, one of our blog posts spoke about the role that marketing played in Brexit. We examined how the leave campaign was able to get their message across outside of traditional outlets like Question Time and late-night debates. This allowed them to run a much more effective and direct marketing campaign, which led to their victory. Now in 2019, Brexit and the future of the country remains in limbo, as many issues remain unsolved. In fact, the uncertainty is already affecting many industries.
FXCM’s economic calendar shows how the country’s manufacturing industry is volatile, which indicates how Brexit is still causing uncertainty in the business world. Some of the industries hit hardest include the automotive industry, pharmaceuticals, aviation, and the financial services industry. The question for us though is how will it affect data marketing? When it comes to the marketing industry, Brexit has the potential to make it difficult for companies to transfer business data across borders.
The uncertainty could bring EU-to-UK data flow to a halt, and both small and large companies would both be impacted. For example, large UK data processing companies with EU-based customers, and an EU data center would no longer be able to move their data across borders. In effect, Brexit would cause them to lose control of their own data. For small e-commerce companies who have valuable data in their database, they may need an EU-approved standard contractual clause to be able to continue accessing their data. And it’s not just the data transfer that would be affected when the UK leaves the EU; the country’s marketing budget could also take a hit. In fact, current figures are already showing the slowest rise for almost three years. In a CNBC report, it states that more than 20 marketing professionals believe digital ad spending would go up in the third quarter of 2019, while 10% believe it will decrease. Meanwhile, PR spending is set to go up, with 15% expecting higher growth. Can the marketing industry really say it’s ready for the possible repercussions of Brexit? A study published on Econsultancy revealed that only a small percentage of marketing professionals have implemented a strategy to deal with Brexit.
Only 10% of the study’s respondents said they have a Brexit marketing strategy, while 29% said they have a strategy in development, which means less than two-fifths of the marketing industry have a strategy in place. So what can the marketing industry do? Business 2 Community lists several factors to think about including getting a better understanding of international contracts and the import and export of services. For marketing companies to continue to thrive they need to be ready, and be part of the two-fifths, with a strategy planned for every outcome of Brexit. The keynote is that marketing is still vital to UK business and as we put in our Brexit article: “growth will carry on.”