Brexit: The case to ‘remain’ for the marketing and media industry | M&M Global

Brexit: The case to ‘remain’ for the marketing and media industry

Jason Carter, chief digital officer at IPG Mediabrands EMEA, explains why he believes the UK would become less attractive to media and marketing businesses outside the European Union.

Jason Carter
Jason Carter, chief digital officer at IPG Mediabrands EMEA

Google’s auto complete tool is pretty insightful. Type ‘pros and cons’ into your search box and the first suggestion you’ll get is ‘pros and cons of Brexit’ – a clear barometer of what’s on people’s minds.

It’s hardly surprising that interest levels are spiking given that we’re a couple of months away from a decision that could have huge economic implications and from which there’s no return to the EU fold, should we choose to leave. The fact that we have to google the ‘pros and cons’ says it all. We really don’t know what could happen and despite their bold claims, Dave, Boris or Barack don’t know what the exact ramifications will be either as no country has left the EU before.

Pro-leavers say we’ll be able to have our cake and eat it by cutting the red-tape, negotiating new free trade deals with the EU and with complete sovereignty. Others say ‘non’, pointing out that some nations would love to make the most of our new isolated status to gain their own ground. When the food fight clears, the UK ad industry would have lost ground to others who’d love to take our seat at the table.

What is certain is that all this uncertainty isn’t good for business and the ad industry is no different.   They say cabbies feel it first when people sense economic woes.  Advertising runs a close second – we’re also in the confidence game.  If we opt to break away, it could provoke a confidence crisis which, combined with the complexity of unbundling us from Brussels, could become a chronic illness dragging on for years.

EU run its course?

The EU’s origins can be traced back to a continent-wide determination for stability and security after two world wars that left devastation on a previously unimaginable scale.  Thankfully the Europe of 1945 is well behind us but that doesn’t mean the EU has run its course. The positive impact of ‘Project Europe’ continues to be felt throughout our business.

The UK ad industry (and London in particular) has benefited disproportionately from the single market, reducing the barriers of doing business for global brands.  For the significant majority, London is the staging post to launch their non-military campaigns into mainland Europe.

“We’d be a much poorer place if this talent packs its bags for Berlin or Paris. Make it harder to lead the region from London and that’s exactly what might happen”

People from all over the globe want to work here.  Freedom of movement for labour is central to the EU’s DNA and is arguably the most important factor making London so creative and energetic.  The world’s best and most dynamic marketers pass through our boardrooms. Looking around the floor of my office it’s amazing how many nationalities are represented and it’s this rich diversity which makes London so special. We’d be a much poorer place if this talent packs its bags for Berlin or Paris. Make it harder to lead the region from London and that’s exactly what might happen.

Our business is also increasingly technology driven. Today’s martech companies come here first and they know full well that to win the battle for Europe, they must win over London first. This is a great position to be in for inhabitants of St John’s Square and Charlotte Street – London is where it’s happening and it’s never been more exciting.  Perhaps because of this, the UK is one of the world’s most intensive digital ad markets. Given the industry is increasingly a web-based one, it is therefore by definition global. The likes of Google and Facebook don’t respect borders. Now’s not the time to go the other way and re-build barriers – that’s the last thing advertisers need as they do battle with these aggressive new media Superpowers.

London’s vibrancy

Perhaps we take London’s vibrancy for granted. In the conversations I’ve had with my peers, a good number appear fairly blasé about the implications of the referendum. The industry has been good to them recently and we’re experiencing a good stint of growth.  However, people have short memories. The grey haired amongst us know that it’s not always been like this. We’d be foolish to sleep-walk into something which could be damaging.

If ‘Brexit’ does happen, the UK market would continue to evolve but perhaps not with the same rigour or with a true international focus. The recent comments of one senior Ogilvy exec who said his group would stop investing in the UK are in my opinion slightly over-reactive. No client should accept their agency halting investment in the world’s 5th largest economy, regardless of whether it remains the International hub for their European marketing operations or not. However, it would certainly become less attractive.

My instinct tells me that when push comes to shove we won’t leave but it could be a close run thing. The marketing industry should use its incredible powers of persuasion to do its bit to convince others that to remain might save us a whole load of pain.

Want to argue the marketing and media case for the UK leaving the European Union with an article in M&M Global? Contact alex.brownsell@csquared.cc

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