UK’s export of ad services triples in less than a decade
James Murphy and Credos’ Karen Fraser at the report’s launch event during Advertising Week Europe
Demonstrating the growing strength of the UK’s ad industry, the AA has published the sector’s first-ever exports tracker, showing international trade in UK advertising services reached £6.9 billion in 2017.
By gathering information from 120 UK advertising and marketing businesses, the Ad Association has charted an 18% increase on the £5.8bn registered in 2016, outstripping overall UK service exports which grew by 7% in comparison.
The UK’s export of advertising services has nearly tripled in less than a decade, up from £2.4 billion in 2009, revealing a strong trend towards global business which – currently – defies predictions that the sector would be handicapped by Brexit.
The data also demonstrates the continuing importance of EU markets ahead of the UK’s withdrawal, with the £3.2bn exported to EU nations representing 55% of advertising exports. The percentage of all UK advertising exports going to Europe, including both EU and non-EU countries, was 59%.
“This new report demonstrates the strength of the UK as a global exporter of advertising services,” said James Murphy, the recently-named ‘exports champion’ for the AA and group CEO, adam&eveDDB.
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“To have reached almost £7 billion in exports and more than tripled the value of overseas trade in the past ten years testifies to the creativity and entrepreneurial approach that is a hallmark of UK advertising.”
However, as the UK approaches Brexit, Murphy said it was crucial to champion the industry on the world stage and “pursue bold policies” in areas such as overseas talent recruitment, ensuring a complementary regulatory environment and continuing to develop a strong exporting strategy.
“The report actually feeds the narrative that Brexit is not having the negative impact we thought it would have,” Murphy, a Remainer, added – but he did warn there could be unforeseen damage over the longer-term that the sector “could only guess at.”
Asked if there was a correlation between exports rising after the EU Referendum because UK businesses were actively seeking growth outside of a UK handicapped by Brexit turmoil, Murphy told Mediatel that was not his own experience running an agency.
“That’s not what we’ve noticed. UK business has continued to grow, but what we’ve been able to do is layer on good overseas wins, particularly in non-European markets.”
As part of Export Month taking place throughout March, a delegation of UK agencies has been touring Chinese, American and Japanese markets, with agencies of all sizes picking up business and being invited to pitch for work.
In April 2018, Murphy told Mediatel that adam&eveDDB was looking to North America and China to help boost growth prospects in the wake of Brexit uncertainty, using technological advances to allow the agency to project its capabilities globally.
A year on, and only days away from the Brexit deadline, Murphy said the EU remains an important market for UK businesses, but the advertising sector’s future lies in being “more open” to bringing in talent from anywhere in the world, particularly when trying to win large, global contracts that require regional expertise.
“Future migration policy has to keep a talent pipeline flowing,” he said.
Nine out of ten businesses surveyed by the AA said they generate income overseas, with overseas clients accounting for an average of 31% of revenue where known.
High levels of export activity were not limited to large companies, with both small and medium sized companies generating a similar proportion of their revenue from exports. Meanwhile, over a third (35%) of businesses surveyed claimed to operate as a regional or global hub for their clients, reflecting the UK’s role as Europe’s advertising capital.