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By Jack Marshall 

As the global advertising industry finishes up a week in the sun at the Cannes Lions festival in France, it awoke Friday morning to news that Britain -- the largest advertising market in Europe -- will be leaving the European Union.

The financial markets reacted quickly and negatively to the development, sending the Stoxx Europe 600 on track for its steepest fall since the financial crisis in 2008, on concerns about the future of politics and economies across Europe.

The initial reaction from media and advertising executives was one of uncertainty about what it could mean for their businesses and indeed those of the clients they are paid to advise.

"Very disappointed, but the electorate has spoken," Martin Sorrell, chief executive of London-based WPP said in a statement. Mr. Sorrell had been a vocal proponent of remaining in the EU leading up to the vote. "The resulting uncertainty, which will be considerable, will obviously slow decision-making and deter activity. This is not good news, to say the least."

Friday morning, British Prime Minister David Cameron said he would step down within a few months, following an epic miscalculation on his part.

"The PM's resignation clearly adds to the uncertainty," Mr. Sorrell said. "However, we must deploy that stiff upper lip and make the best of it."

Interpublic Group CEO Michael Roth sent an email to the company's employees Friday morning predicting similar market uncertainty as a result of the news.

"Yesterday's decision will undoubtedly lead to market volatility in the short term, both in Europe, as well as globally. It's important to remember that what does not change is the fact that the U.K. is a vital cog in the world's economy, and that together with our clients, we'll find footing in a post-Brexit world," Mr. Roth wrote. "Longer-term, as long as open trade remains a priority, markets should normalize, and that's the timeline we're focused on."

While they evaluate uncertainties about the structure and future of their own businesses in Europe, agency executives say they're also fielding questions from clients, who are also unsure of the impact the "Brexit" might have on their marketing activity there, if any.

"This is completely uncharted territory we're in," said Johnny Hornby, founder of agency group The & Partnership, speaking Friday morning at a panel in Cannes hosted by The Wall Street Journal.

"I've had clients emailing me worried about whether they will invest in the U.K. if this happened," Mr. Hornby said.

Stock prices for European advertising companies mirrored the activity of the wider market Friday. U.K.-based WPP's share price was down about 4.4% by midafternoon local time, while France-based Publicis Groupe and Havas were down around 7% and 4%, respectively.

Write to Jack Marshall at Jack.Marshall@wsj.com

(END) Dow Jones Newswires

June 24, 2016 11:00 ET (15:00 GMT)

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