Brexit is the latest hot topic doing rounds in the industry sectors across the world. After formation of European Union in 1990’s, the first jolt that it received was the exit of Greece famously called Grexit.
In the current year 2016, Britain wanted to go out of EU. There was a referendum in Britain on the issue – whether to continue in EU or exit. The initial outcome of the poll was Britain should exit and this is called Brexit. There is an increasing demand that another round of referendum needs to be conducted – that is a different story altogether. Brexit has the vast impact on various factors- economic, political, cultural etc.
Brexit is also having its impact on video advertising industry. The initial surveys indicated that Brexit will make waves on video advertising industry as well.
The immediate shock wave (on the outcome of poll results) was that the publicly traded stocks went in for a nose dive. This shows that Brexit will have an impact on video ad industry as well. Post-Brexit companies will be more conservative in their decision making (they will prefer to ‘wait and see’) and this will definitely impact the video ad industry as well. Advertising, TV, film and video industries are going to contribute more for the good of UK. Brexit leads to increased transparency, says experts especially in the digital media industry as the ad budget spending will be scrutinized and this is a positive event, they say.
However, some of the advertising leaders are quite hopeful that the effect of Brexit on video advertising industry is very high but it is manageable. Now that the Brexit formalities are to continue for the next 2 years before the actual exit of UK from EU, there is enough time for the video ad industry to take alternative steps to reduce the impact of Brexit.