This is bubblegum music, really, and yet there's some folk quality to it that is very rooted in tradition. Notice how slowly it is played. The dynamics, with the soft drumming, are a bit more like Fairport Convention than they are the Sweet, yet the composition and arrangement - the economy of the verses, the snare on every beat - are bubblegum rock.
With the horns and the vocal harmonies, the Shocking Blue show themselves to be masters of that genre. The archetypicality of the lyric, though, plays (also masterfully) into the deeper tradition.