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Will Brexit Affect your Marketing?

Will Brexit Affect Marketing?

No matter which side you were on, there’s no doubt about the result. Brexit is happening. But what does that mean for your business and its marketing?

For those of you who have been hiding away under a rock, Brexit is the nickname given to Britain’s planned exit from the EU, following the 2016 EU referendum. After a 48% – 52% split decision in favour of leaving, the country has been split almost down the middle on whether or not this is ultimately going to be a good or a bad thing for us. Currency valuation and EU regulations are the primary concerns for both UK businesses and the general public alike. How will they change? And will any new arrangement work out in our favour? Due to the complex nature of how these things work, there is no easy answer. There are many different aspects of business that may benefit, and many that may suffer.

In this blog post we are going to discuss how this outcome has, and how it may, affect marketing for our businesses.

The value of the pound sterling

Now, the first thing we should point out is that currency valuations are constantly fluctuating, so the situation will inevitably be different in a year’s time. However, nobody can say for sure exactly where we’ll be. To begin with, the shock of Brexit had a huge negative impact on the valuation of the pound sterling against the dollar and the Euro, although it has shown recent signs of a slight bump back towards where it used to be.

Brexit Affect Your Marketing?

Image credit: Reuters

The biggest concern for us digital marketers is the increase in costs for services which are billed in dollars. This, unfortunately, is quite a few. Act-On, Amazon Web Services, MailChimp, and many others are all billed in dollars. As it stands, all we can do about this is hope that the pound begins to settle against the dollar and returns to its previous level.

On the other hand, UK companies offering products and services to foreign markets may now find themselves a more attractive option to foreign buyers. The Office for National Statistics (ONS) reported a 1.4% rise in retail sales, boosted by increased spending by foreign consumers from China and the US. Although in reality it’s not a huge change, taking advantage of the current hype around the price differences in your marketing communications should definitely be considered. Airlines have been reporting huge increases in the number of bookings coming from the US and China, with Ryanair reporting a 20% increase in flight bookings from the US alone, so these markets currently seem to be the most reactive.

EU regulation

Another concern for digital marketers is what Brexit means for the UK’s part in the EU GDPR (General Data Protection Regulations), set to come into play in April 2018. Making sure that you’re complying with all data protection laws is extremely important, as well as being particularly tricky to keep track of when you operate in more than one country.

We now know that Brexit will in no way impact the GDPR, and that the GDPR will not apply to the United Kingdom. We currently already operate under the UK Data Privacy Act 1998 and will continue to do so, unless we decide to make any changes to it in the future. It is likely that we will update the act to align with the GDPR in the future; however, we can’t say that for sure. For the next two years we are likely to stay a part of the EU, as it takes the triggering of Article 50 to actually begin the process. For now, nothing has changed.

Watch this space

As we head further through 2016 it’s likely that things will start to change; for now, though, we’ll just have to wait and see what happens. For more information on how your business may be affected by Brexit, and how we can help you with your marketing, please contact Impact Digital Marketing.

 

Ryan Sedgwick
Managing Director & Marketing Consultant at Impact Digital Markeitng
A Chartered Marketer, Ryan has gained extensive B2B and B2C marketing experience working across a broad spectrum of industries. Having graduated with a Masters in Marketing Communications from the University of Huddersfield, Ryan successfully utilises his skills and knowledge to effectively support businesses in getting the most from their marketing investments.