Article 50 triggering heralds new ad dawn

29th March 2017

ARTICLE 50 of the Lisbon Treaty has been invoked today (29 March) and the Brexit process has begun: how we advertise will also change.

Naturally advertising evolves over the course of time: technological developments, innovations and increased consumer knowledge creates a culture of evolution in marketing.

However the tact we take as we advertise is nothing more dependant on than our consumers themselves and their spending habits.

Despite the ongoing uncertainty over the last nine months regarding the timetable for Brexit negotiations, consumer spending has remained largely flat, with increases in the last quarter of 2016.

However this has been stimulated by the perennially low interest rates that have expedited any conflict over whether to save or spend.

Given the fact that inflation has risen to 2.3%, the chances of interest rates remaining so low is limited, especially given the fact that then squeeze on consumer spending will precipitate savings increases.

Thus the corresponding effect on advertising will be one of patience in how we measure success.

At a time where spending was far more liberal and copious in nature, DRTV remained buoyant and successful as a means of growing business, particularly for those who relied on modular performance. 

Article 50 being invoked will ensure that DRTV will have to be utilised more sparingly and for branding effects.
Article 50 being invoked will ensure that DRTV will have to be utilised more sparingly and for branding effects.


By no means will the invocation of Article 50 by Theresa May underscore the demise of DRTV, it will ensure that you as marketeers and decision makers have to ensure you know as much about your audience as possible.

Although online entities continue to be maligned by issues such as fraud and extremist content, TV continues to deploy the stringent regulation that has instilled unbridled credibility within TV.

Therefore by focusing on interactive campaigns, either using the automative software available at Sky, Tevo, Hive or other third party inventory holders.

Such information will be imperative to know if you are to exploit your broadcast time efficiently.

By hypothesising and deploying a degree of trial and error, the chances of your campaign succeeding will be reduced given the lack of knowledge of when and how your potential consumers are ingesting content.

This is commonly used by companies within niche industries who are attempting to understand the viewing habits of their consumers, with any conversions a bonus to the campaign.

Such undertaking during the Brexit transition process would be ill-advised-especially in 10-second form- where you cannot forge some form of brand resonation or stimulation.

With a paradigm of saving consuming many spenders in the wake of Article 50 being invoked, short term advertising should be built around branded content.

DRTV will of course be beneficial to short-term sales increases, but to do so without a degree of transparency and variability would be counter-productive.

If you are an existing large company, the risks of utilising DRTV will be lower, however your cost-per-conversion will ultimately increase.

Thus to maintain efficiency with your advertising, regardless of your company size or level of notoriety, focusing on entertaining branded content that can be shared and redistributed across online, will increase efficiency.

Brand exposure has historically been the most effective way of ensuring long-term business success through periods of uncertainty, with increased spending conflating to higher profit margins through the last two recessions.

The triggering of Article 50 though is unprecedented in this context though, although nothing like the economic crises we have seen previously, the period of transition even with more prosperous times at the end will ensure some degree of fiscal adjustment.

In the short-term, with a tendency to save as appose to spend, the services industry nationally is expected to flourish, notwithstanding the domestic holiday market.

If you are within these sectors, looking towards brand response content that focuses on humour, the abstract and aspiration alongside an element of response will be beneficial; not though for those that are also niche entities offering luxuries.

The triggering of Article 50 will ensure a more patient approach needs to taken to measure ad success.
The triggering of Article 50 will ensure a more patient approach needs to taken to measure ad success.

Technology is gradually being implemented to offer unbridled levels of understanding of not just how consumers interact with content, but why they do.

The power of language, jingles and entertainment are undisputed, but using them to appeal to your audience universally across brand and direct response can be detrimental.

Making trivia of some products and services will lead to averse brand perception, therefore it is integral that other elements should be maximised in you ads to ensure they resonate.

Ads that incorporate jingles or other forms of music are 12% more successful universally than ads that do not, while branded content that entertains is 40 per cent more effective according to IPSOS research.

Overall in our own experience and the proven cognitive behaviour of consumers, focuses on branded content with a duration of thirty seconds will help your company continue growing through the Brexit process.

With more conversions and measurable impacts amid the increasing analytic software that media buyers have, your KPI achievement can be easily tracked while your ROI is increased.

Space has been producing TV and online ads for 25 years, continue to grow business’ profit margins by as much as 140%.

Contact the team now and ensure any post Article 50 uncertainty does not effect your sales in 2017.



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