UK adspend grew 4.2 per cent in Q3 2016, despite uncertainty caused by the UK’s vote to leave the EU – according to a report from the Advertising Association (AA) and Warc.
Data from the AA’s advertising think-tank Credos and Deloitte shows that advertising contributed £120.4bn to GDP, and it supports over 550,000 jobs. In addition, 20 per cent of those working in UK advertising are non-UK EU nationals.
A survey by Credos, of 200 advertising businesses about Brexit, found that 23 per cent of respondents saw Brexit as an opportunity for growth and eight per cent have increased investment in the UK.
“Brexit isn’t the only major shift affecting our industry; the growth of programmatic marketing is also fundamentally changing the game for advertisers and agencies around the world,” said Johnny Hornby, chief executive of The&Partnership. “As an established global creative hub with both very strong creative and technology credentials, the UK should, with the right government support, be able to make the most of a lot of opportunities, both in Europe and internationally.”
However, 22 per cent, of those surveyed by Credos, reported lost business or contracts since the vote and 62 per cent felt the decision had negatively affected the outlook of their businesses.
“Brexit, and what this will actually look like in reality, still looms large. The industry while in rude health, continues to face the pressure of ever lengthier payment terms. Due to outdated methods of dealing with payment, many companies within the digital media industry are unable to conveniently and quickly access their revenues,” said Christopher Vogt, co-founder and managing director of Billfront.
“This hampered ability to readily access capital makes dealing with unexpected economic issues, such as Brexit, more difficult, particularly for small to mid-sized companies who are more cashflow dependent. Those with readily available capital can pivot faster and more easily in the face of unexpected events than those who don’t.
“This is why many within the industry are looking towards alternative financing options, to make sure they have as much flexibility as possible, regardless of what may be thrown at them this year.”