The global economy is witnessing a tectonic shift, and the marketing and media community are bound to bear a major brunt of the change. For several decades, the US dollar is not only the currency of the financial and capital markets but also the denominator for the marketing and media industry.
As a micro-sector, brand owners and custodians such as agencies and even talents in the industry tied the value of campaigns, services, and campaign activities to the greenback. However, in recent times, everything is about to change as the structure and alignments in the global political economy and geopolitics confront an unprecedented crisis.
Touted as a purely ideological bloc, an alliance of Brazil, Russia, India, China, and South Africa (known as BRICS) has pivoted into a financial market with the plan of building an alternative currency and system that will rival the US dollar. While this could be discounted as a momentary threat, historic events relating to the COVID pandemic and its after-effects on the global economy, the Russia-Ukraine war, and the confrontational competition between two of the world’s superpowers have given oomph to BRICS’ plan to develop a currency that could rival the US dollar as we know it.
Despite the unpredictability of outcomes in geopolitics, the consequences of de-pegging the global economy from the US dollar will be chaotic and nonetheless devastating to the marketing industry. Given a market that was largely built and advanced on a single-minded currency and trading system, the adverse effect of the polarization of the global financial markets on trade, logistics, eCommerce, and the global supply chain could ramp up inflation, thereby crushing the purchasing powers of most currencies.
Therefore, brand owners must not only be prepared for these changes, they must be ready to harness the positives in a global market that is no longer global but polarized, duplicitous, and anarchical.
Get ahead of the curve and build your brand in an unpredictable global market. Talk to us today via email at info@sbimediaglobal.com or info@sbimedia.co.uk.