Budget 2008-09: The media and advertising industry goes amiss, again

Even as the Union Budget 2008-09 is being hailed as ‘populist’, the media and advertising industry has been ignored once again. The media and advertising industry is happy on some aspects, and at one level, at the derived benefits that the Union Budget 2008-09 presents. Apart from that, however, the Government has clearly lost another opportunity to support the advertising industry.

e4m by Noor Fathima Warsia
Published: Mar 3, 2008 7:14 AM  | 3 min read
Budget 2008-09:  The media and advertising industry goes amiss, again

The Union Budget 2008-09 is being hailed as a progressive Budget that would play a role in driving economic growth by promoting consumption. However, the media and advertising industry doesn’t stand to benefit from this Budget. Even though the economy has grown at 8.8 per cent GDP in the year, the Finance Ministry hasn’t taken any bold steps in this Budget.

Sam Balsara, Chairman, Madison Communications, said, “The Government has missed a golden opportunity to take bold steps, and take pre-emptive measures to ensure that early signs of slowing down are arrested – that is not good news for advertising. I am happy with the Budget only to the extent that taxes have not been increased by and large.”

Colvyn Harris, CEO, JWT, added, “The Finance Minister has an opportunity every year to set a direction for India. I’m not getting into the consumption aspect of the Budget right now, but this is not a bold Budget, and it isn’t addressing anything more than what has been happening already. I don’t think the advertising and marketing industry is even considered for the Union Budget – I think we are too small in the scheme of things.”

Four services have been brought under the service tax net this year – including the right to use goods in cases where value added tax (VAT) is not payable. Even as the full implication of this is yet to be comprehended, some sections of the media explain that this means that development and supply of content for use in advertising purposes would be brought under the service tax net. Also, the sale of space or time for advertisement service to specifically include sale of space in business directories, yellow pages and trade catalogues, which are primarily meant for commercial purposes, have been brought under the service tax net.

Radio City’s CEO Apurva Purohit observed, “The burden of rise in advertising cost would be passed on to the consumer. Corporate advertisements garnered the maximum 29 per cent share of ad volumes of the IT sector on TV in 2006. Rise in advertising cost will bring a slowdown in the advertisement revenues to broadcasters and print media. However, it will also depend on the performance and growth potential of industries such as FMCG, pharma, telecom and software, which are involved in huge ad spends.”

P&G’s Bharat Patel said, “The Budget is clearly focussing on the increase in consumption, and this would lead to more industrial growth in sectors such as FMCG, pharma and so on – it is a very positive Budget.” When asked more on the service tax net, he replied, “The service tax shouldn’t be a bother since you can offset service tax against excise.”

Shashi Sinha, CEO, Lodestar Universal, said, “This Budget, too, sees the discrimination between print and television in terms of service tax, and it really doesn’t have anything for the media and advertising industry. However, it is the kind of Budget that would make clients happy and grow further – whether it is the auto sector or pharmaceuticals – so there are some derived benefits.”

M G Parameswaran, Executive Director and CEO, Draftfcb+Ulka, observed, “The decision to lower excise duty on a whole range of products will help in spurring demand, especially when industrial production figures are showing a slowing down. I expect a positive impetus in auto, durables, white goods, etc. Service tax is something that is now a part of the new tax regime, and the Government is reaping rich dividends from this process. I only wish the procedural issues are ironed out as we go forward.”

Also read:

Budget 2008-09: A tricky balance between growth rate and political reality

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
Test

With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
test

Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
Test

e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
test

Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

test

test

e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

test

test

e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
khugfu

KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp