What Are The Effects Of Brexit On My Business's Digital Marketing?
Unless a Liberal Democrat majority government is returned on 13th December, Brexit will probably happen in some form in 2020. When it does, the majority of UK businesses will be affected, even if they don’t trade directly with other EU countries. One area that will probably be impacted is digital marketing, an aspect we will explore further in this article.
Leaving the European Union is going to be a change, certainly, and there will be both positive and negative effects. Some sectors will be affected more than others, and in many important regards, business will continue unchanged from how it’s conducted today. The important thing is to be prepared for the possible impact of Brexit, so you can mitigate the negative effects and capitalise on the opportunities it brings.
How Will Brexit Affect Digital Marketing?
Brexit hasn’t happened yet, but the uncertainty around Brexit over the past three years has been felt strongly. When businesses feel shaky about the future, marketing is an easy budget to cut. We believe this is a mistake, as spending money on marketing is the key to long-term growth. If you opt to stand still, you risk losing customers you already have should the economy experience a downturn. This creates a vicious cycle in which investment in growth is increasingly difficult. There is also an opportunity here. If your competitors are tightening their belts regarding marketing, there will be less competition for the prospects you are trying to attract. Brexit signals a time to spend more on marketing, not less.
Many UK sectors have benefited from the free movement of workers from EU countries. Following Brexit, it may not be as easy to recruit from abroad, and this could impact companies that run an in-house marketing team more than those that don’t. To sustain an in-house team you may have to cast your net far and wide for the necessary expertise or invest heavily in upscaling your team. Alternatively, consider working with an agency – such as JDR – that already has a well-established, trained and experienced team of workers who aren’t going anywhere after Brexit.
Despite Brexit uncertainty, the years since 2016 have been buoyant for the UK economy, largely due to the devaluation of the pound making the country an attractive marketplace for inward investment. If – and this is a big if – the pound remains relatively devalued against the dollar and euro after Brexit, this appeal will continue, especially if it is coupled with incentives for inward investment, such as a cut in corporation tax. British businesses may find it easier than previously to recruit new customers from the EU, the USA and elsewhere; another reason to sustain your marketing spend and give thought to exploring alternative markets.
How prices will be affected by Brexit is still unknown. Globalised online services shouldn’t be much affected, but you may see some online services, such as HootSuite and MailChimp, raise their prices based on the valuation of the pound against the dollar and euro. While increased costs for products in the supply chain don’t directly affect marketing, they do squeeze budgets and make less money available. Consider the most cost-effective marketing strategies to pursue if this is likely to affect your business. Luckily, inbound digital tactics have some of the best returns on investment, so are a good place to spend your pound.
The UK and EU are likely to remain very closely aligned for the foreseeable future, especially in terms of regulation and recognition of goods. In data transfer and marketing there will also be continuity, as the UK and EU countries will all continue to be governed under the GDPR legislation introduced in 2018.
Find Out More
In uncertain times, a knowledgeable and reliable marketing partner can make all the difference. If you’d like to grow your business and are struggling to carry out marketing in-house, consider working with an agency such as JDR. We offer flexible packages tailored to long-term, sustainable growth through inbound marketing. Call 01332 343281 today to discuss strategies to allow your business to thrive, whatever Brexit May Bring.
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