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Labour’s ad policy vacuum presents a huge opportunity for purpose-driven brands

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By Lewis Parker, Strategy director

July 5, 2024 | 7 min read

Shape History’s Lewis Parker explains how the new Labour government presents a new opportunity for purpose-driven brands.

A shot of Downing Street

This election has delivered more twists and turns than a soap opera season finale – even though we already knew at the start how it was going to end. Hello, Prime Minister Starmer!

We’ve heard a lot over the last six weeks about how each of the parties have advertised themselves [read it all here] but very little about what they’ll actually do for the advertising industry itself. And now, with Labour coming into office, marketers are keen to understand the implications of the party’s promise of change.’

What can we expect from this shift in political leadership, and how might it impact our industry?

Aside from Labour committing to banning the advertising of “junk food” and vapes from being marketed to children, truth be told, there’s not much to the agenda. But don’t panic - this policy vacuum isn’t necessarily a red flag.

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The lack of substance in the Labour manifesto can actually be a good thing. No big controversial changes are being proposed, so there’s no mass panic. We’re not running around like headless chickens or gearing up for chaos like with GDPR or the Google Analytics update deadlines. Given our recent political history, this feels quite… dare I say, reassuring.

However, it is a shame that the equally important topic of political advertising and the current restrictions on charities and NGOs has had no mention.

But that topic requires its own separate piece.

The future of advertising with purpose

Purpose-driven advertising is where brands promote their commitment to social or environmental causes to build trust and connect with consumers on shared values. While progress has been made in recent years to improve advertising standards, limit the harm it causes, and prioritize ethics, purpose, and authenticity, there is still significant room for improvement.

The future faces a lot of critical questions.

  • How do we effectively deal with greenwashing?

  • What can be done to address ‘dark patterns’ and addictive design that results in endless doom-scrolling and risks to mental health?

  • How do we protect children’s health and safety?

  • How will AI impact advertising?

  • What new regulations and processes do we need in place to safeguard against disinformation?

With Labour’s policy vacuum, there is a real opportunity here for purpose-driven brands to lead. However, some brands are ditching the purpose, citing it as “cringey” or a “parade”.

Something that has also been mirrored in our political debates and the never-ending culture wars – with government ministers even previously criticizing brands for this. This hostile political environment has also contributed to the spread of the backlash.

The truth is more nuanced than headlines suggest. When brands lack authenticity and launch superficial, opportunistic campaigns, they fail. Jumping on bandwagons only to collapse under insincerity shows that actions don't match words. If your actions don’t match your words, stop speaking. Despite some failing, purpose-driven ones thrive. They drive social progress, build deeper connections with customers, and boost their bottom line.

The leaders of the post-election future

The Labour government doesn’t have advertising reform high on its agenda - and that’s completely fine. Arguably, the biggest impact it will and can have on our industry is creating growth in our economy.

It’s only through economic growth that consumers are going to have more spending power and brands will have more money to invest in advertising – giving us all the opportunity to come up with groundbreaking creative ideas that speak to hearts and minds and deliver results. Additionally, a Labour government is likely going to be more supportive of purpose-driven brand advertising and interventions, which would be a significant departure from the last few years.

So if our new government isn’t leading the charge, who should and could be?

It comes down to two groups.

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First, rather obviously, are the independent regulators. They’re the ones in charge of setting and regulating our advertising standards. We’ve seen a lot of action from them recently, as seen with the FCA’s recent anti-greenwashing guidance and the ASA’s updates ahead of the DMCC Act coming into force. They play a crucial role but often take time to address current needs.

The second group is purpose-led brands. They have a clear path to continue leading and raising the bar for others to follow. Continue and Innovate. Hold steadfast against the backlash. Foster closer relationships with the incoming government to help shape their agenda.

These brands must continue to lead with purpose. The future of purpose-advertising may not be government-led, but it promises to be shaped by those willing to take the charge.

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