Cameron’s Entry to Number 10 Leaves Many Questions for Marketers

Today’s headline in Marketing Week said it all: “Businesses give cautious welcome to new PM but marketers wonder what next.”

Five long days after the general election in the UK delivered a hung Parliament with no majority for any party, Labour’s Gordon Brown resigned suddenly on the evening of May 11. A few hours later, the Conservative David Cameron took over. He will govern in coalition with Nick Clegg, leader of the Liberal Democrats.

Many business leaders are pleased that the Conservatives are in charge once more; they are traditionally seen as more pro-business than Labour, keener supporters of the free market and more likely to favor a light touch in the regulation of banks and other institutions.

In the wake of the financial crisis, however, the new Prime Minister has said he will look for significant spending cuts in many areas, to bring Britain’s budget deficit under control. Clegg has agreed with Cameron that the government’s own enormous advertising and marketing budget needs chopping back. There may also be new regulations for advertisers marketing to children.

Until the new PM and his team produce detailed plans, advertisers and marketers will share two emotions: relief that a new administration is in place, and concern about the potential pain to come. Consumer confidence could also take a knock if cuts in public spending appear harsh. Digital marketers can probably discern a silver lining, however. While total ad spending in the UK fell in 2009, investment in online advertising grew, according to ZenithOptimedia and other sources. Any future shrinkage in ad budgets will likely drive even more marketing to the Web.