A Government Asking Brands to Cut Marketing Spend Shows 'Lack of Understanding'

The ad industry reacted negatively to the report over a forthcoming campaign to cut ad spend and reduce prices

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“The sales of a brand are like the height at which an airplane flies. Advertising spend is like its engines: while the engines are running, everything is fine, but, when the engines stop, the descent eventually starts.” This is a well-known paragraph written in 1989 by Simon Broadbent in The Advertising Budget: The Advertiser’s Guide to Budget Determination.

It becomes relevant once again as the U.K. advertising industry reacts strongly to reports of an impending campaign by the British Government to persuade brands to cut their marketing spend to lower the cost of products as part of its response to the rising cost of living.

According to the BBC, the campaign, which will include a yet-to-be-decided slogan, will offer brands that do choose to cut marketing spend to lower their prices a chance to tie themselves directly to the campaign.

The campaign is being led by David Buttress, former Just Eat chief executive...

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