The arguments used by the "No" lobby are: * slippery slope of meat and alcohol being banned in advertizing; when meat is not even a drug (see https://en.wikipedia.org/wiki/Slippery_slope). * free market disruption; when smoking is obviously a harmful substance and this law applies to all of the competing tobacco companies. * little events like festivals, bars, and shops get less money; this is probably true but festivals can simply raise their prices a bit. For small owner-led shops, yes, less tobacco consumption => less sales and tobacco is a high-margin product.
It's a great example of direct democracy sometimes leading to better political decisions. It's easier for big tobacco to buy off just the legislators (whom actually made an extremely toned down counterproposal) than all of the public.