In terms of political news, there hasn’t been anything as big as Brexit for quite some time (and as a Brit, it’s getting a little tedious seeing it on the news everyday)! The reason it is such big news is because it is a huge change for Britain and Europe to manage and deal with: something we have never seen before. This has caused much uncertainty which has seen many businesses stock pile, move business head quarters and more to best manage Brexit, without actually knowing what sort of deal has yet to be agreed.

With this, PPC will no doubt be affected by this political storm. Here are some of the likely ways PPC will be affected.

#1 Reduced CPC

The uncertainty around Brexit has caused many businesses to stockpile and prepare for a ‘bad’ economical period. Any cash that are in businesses now are being put to one side to prepare for potential negative cash flows when Brexit occurs.

When businesses save on cash, one of the first areas that tends to be hit hard is marketing. With this, if businesses reduce their marketing, the competition in PPC will decrease, potentially seeing a reduced CPC for keywords.

#2 CPC Increase in Europe

Due to this politcal storm, the exchange rates for currencies has taken a turn for the worse (or better, depending with what currency you trade with). If you are from the UK, it will cost you a lot more to run PPC campaigns in Europe, since the Pound is very weak to the Euro. As for US citizens, it should be slightly advantageous, based on the exchange rate, to run campaigns targeting Europeans.

#3 Lower Conversion Rates

Looking at the consumer, the whole deal around Brexit is still very uncertain. This makes investors hesitant to invest and consumers hesitant to buy or invest in anything, such as a new car, house improvement, or as simply as a new phone.

This will result in a negative drop to the conversion rate of PPC campaigns. If consumers don’t have confidence as to what the outcome is going to be, they will refuse any actions until there is some form of clarity.

#4 No Deal Brexit Woes for Trade

If you are a company that uses PPC to sell a product worldwide from the UK, then you are not going to be in the best of situations if there is a no deal Brexit. At the moment, it is completely free to trade between the UK and Euro. However, with a no deal Brexit, the UK would automatically switch to World Trade rules, where there will be tariffs on exports and imports on the EU – another cost you will have to take into consideration in a worst possible outcome for Brexit.