What Will Brexit Mean for PPC Advertisers? 28 Jun 2016
The political world was hit by, what can only be called, a seismic earthquake, as on early Thursday
morning, Great Britain’s public decided to leave the European Union. Of course, this has been a very controversial decision which has sparked hundred of thousands of people, if not millions, arguing why they should not (or should have). As a Brit myself, it was definitely worrying to see the pound fall very weak when the vote was announced officially. However, democracy is democracy and the best businesses in the world will prepare for such eventualities and even potentially capitalise from it. For PPC, what does Britain exiting (or ‘Brexit’) mean? Here are a few pointers I thought would be worth noting down that may help PPC advertisers for the future of Britain leaving the EU.
#1 It’s Not All Bad News
Straight off the baton, the pound dropped quite considerably against the American dollar and Euro, which is currently trading at $1.37 to the pound (down from $1.50) and €1.22 to the pound (down from €1.28). On the whole, this is pretty bad news for the pound as it means, for Brits like me, it is going to cost more to go abroad and interact financially with any European country or America.
However, this also means it is cheaper for American and European countries to buy goods from Britain, since their currency is now worth more than before when converted to sterling. This means it is actually currently beneficial to buy goods and services from the UK, such as:
- Bidding on keywords that are targeted for Britain in PPC. The equivalent CPC in currencies other than the Sterling pound will have reduced. Thus, you are more likely to win bidding wars in Britain with a lower-adopted CPC.
- Gaining services from the UK. For bloggers that expect to be paid in pounds, say £10 per article, this would have cost $15 for an American before or €12.80 for a European. Now, it will only cost $13.70 or €12.20.
So it might seem like bad news. But, the best entrepreneurs will see Brexit as a potential for savings. Therefore, if you were thinking of making a PPC campaign targeting Britain or looking to hire some freelancers, think about doing it and hiring from Britain after Brexit since the currency drop will mean it will be cheaper for you in the short term (or long term if the pound does not recover).
#2 Cure for Brexit Uncertainty is Certainty
The main problem with Brexit is the fact that the uncertainty is what is causing the stocks and currencies to oscillate like a yo-yo. We have never been in a situation where the 5th biggest economy in the world wanted to leave the EU and none is really sure how to handle it all…
For this reason, the best cure to uncertainty is certainty. Implementing a PPC campaign that will guaranteed x, y and z for the web user will help to gain your campaign more clicks and conversions. For example, here are two metaphorical PPC adverts:
- Advert 1 – The advert is advertising a sale on TVs in preparation for Euro 2016 football tournament. They have a special offer where you can choose a team to support and for every goal they score in the tournament, you get £10 cashback off the price of the TV.
- Advert 2 – The advert is advertising a sale on TVs in preparation for Euro 2016 football tournament. Their special offer is a flat 10% off all TVs using voucher code ‘EURO2016’.
Due to the level of uncertainty amongst markets and people, more people are more likely to click and convert for advert 2 as opposed to advert 1 because when uncertainty creeps into people’s lives (such as with Brexit), immediately, they want reassurance of certainty – from these two adverts, only advert 2 can reassure a certain saving from the TVs, even if it proves to be less than the potential saving of advert 1.
A student in England studying a Masters in Automotive Engineering with Motorsport, Will created AskWillOnline.com back in 2010 to help students revise and bloggers make money developing himself into an expert in PPC, blogging, and online marketing. He now runs others websites such as PoemAnalysis.com and RestoringMamods.com You can follow him @willGreeny.