The election of Donald J. Trump as the 45th president of the United States sent shockwaves throughout the country – indeed the world. Most of all, it has left those in the marketing and advertising industry unsure of what his presidency will bring.
Brian Wieser, senior research analyst at Pivotal Research Group, wrote in a note that ad deals might slow down.
“We do expect an impact in the form of delays in spending decisions now that the unexpected combination of a Republican victory for the presidency and control of Congress occurred,” he wrote, adding, “Still-to-be defined policy choices could impact the economy in difficult-to-predict ways during 2017, and we think this lack of clarity may curtail advertising growth rates.”
Martin Sorrell, founder and CEO of WPP, echoed the sentiment that a Trump presidency brings much uncertainty.
“Effectively a second Brexit that leaves many very surprised, including the markets and me, it’s going to take a significant amount of time to assess the implications beyond the short term,” he said in a statement, adding, “Increased levels of uncertainty will mean more hesitation to make important decisions in the short term, both by people and governments. But it may accelerate implementation of helpful reforms in the medium term to reduce uncertainty and stimulate investment as a result.”
Trump will be friendly to ad industry, leaders say
The Association of National Advertisers agreed: “Right now there are more questions than answers as to how the new administration will oversee the advertising world.” But officials were hopeful that Trump’s business background, as well as his Republican leanings, would be good for the industry. In particular, a Trump presidency could positively affect a proposal floated in the last Congress that would modify tax deductions and drive up the cost of the business of advertising.
“The likelihood of a major effort in regard to tax reform has gone up dramatically,” Dan Jaffe, the ANA’s executive VP of government relations, told The Wall Street Journal. “Now the Republicans at least theoretically should have the ability as they control all major branches to be able to push this forward.”
The Direct Marketing Association also predicted that the Republican sweep of all three branches of US government will be good for marketers.
“An all-Republican lineup in the nation’s capital should present a much more business-friendly environment,” said Emmett O’Keefe, senior VP of advocacy at the DMA, in a statement. “Regarding legislation and regulation that specifically affects the data and marketing industry, there are indications that regulations adopted by the current Administration, including privacy rules passed last month by the Federal Communications Commission, will come under review in the next Congress.”
Not all rainbows and unicorns
However, some tech marketers are at risk because of Trump’s anti-trade positions, pointed out Telecoms. The UK publication warned that tariffs placed on foreign businesses could create a gap in the market for new US brands to enter the fold: “The risk here will be undertaken by companies like Dell Technologies, VMWare, Intel, IBM etc. who are only looking internationally for growth. The US market is stagnant; new projects and customers are coming from the likes of China, India, South America and Eastern Europe, the very countries Trump is sizing up for a trade war. The US has a lot more to lose than the rest of the world.”
Others in the industry urged leaders to take the opportunity to encourage more inclusion and diversity in advertising and marketing.
“I think this election will have a big impact on advertising, in that we probably all have to examine what is happening in this country and how to readjust our advertising tools to be more effective moving forward,” CP+B LA Chief Creative Officer Kevin Jones told Fast Company. “One other thing we’ve been feeling here, based how this election played out, is that we need to put even more effort behind our industry-wide diversity and gender-equality initiatives. That seems to be one way that we can put our money where our mouth is.”