Budget 2014: Hits and misses for the advertising and media industry
Ashish Bhasin, Chairman & CEO South Asia, Dentsu Aegis Network, talks about the impact of Budget in terms of service tax, community radio stations, custom & excise duties & sees the Budget more as a Statement of Intent, the success will lie in the implementation and not the rhetoric

I see this Budget more as a Statement of Intent by the Finance Minister because there isn’t too much he could have done in six weeks. The real test will be if he is able to deliver against his intent. It’s in the implementation not the rhetoric, that we, as a country, often fail and it remains to be seen whatever this Finance Minister will be any different, in that respect.
My analysis of the Union Budget 2014 is as follows:
Overall: I think this budget puts more money in the pockets of the common man though increased income tax exemption limits, through Rs. 50,000/= additional relief u/s 80C and Rs. 50,000/= additional relief on Housing Loans for self-occupied properties. It also focuses on growth for the industry overall and gives impetus to the manufacturing sector, all of which will eventually result in increased advertising, directly or indirectly.
Winners & Losers: The changes in customs and excise duties will work favorably for the FMCG industry, who tend to be large advertisers, particularly those involved with manufacturing soaps and oils, as their input costs will go down. Like-wise mobile hand set manufacturers, PC makers, real estate industry, footwear makers and others will benefit. This should result in increased advertising spends from these sectors, over a period of time.
On the other hand, soft drink manufacturers may probably curtail their spending due to the increased input costs.
Regional TV, Community Radio and Digital India thrust: The Finance Minister has introduced a Kisan TV channel, which could develop into a medium for reaching the rural audience, if it does well. Likewise, the potential of the North East markets is huge and having Aruna Prabha TV channel may help open up those markets. The Finance Minister also announced steps to develop Community Radio Stations, which augers well for reaching deeper. He further announced Rs. 500 crore towards Digital India, which would help drive broadband connectivity to the village level. All these bode well for our industry. Coupled with reduced customs and excise duties on Cathode Ray Tubes, small sized LEDs, LCDs, etc., it should all help drive media reach deeper and wider.
Service Tax: This is an area where I think the Finance Minister has not applied mind adequately. On the one hand he is speaking of a major digital thrust. All government departments are to be enabled for transacting business by 31/12/14, Digital India, Connectivity etc. On the other hand he has removed Digital and Mobile advertising from the Negative List i.e. there will now be Service Tax of 12.36 per cent imposed on them. To me this is a dichotomy. The Finance Minister must reconsider this.
What’s worse is that there is ambiguity about other media in the negative list now, due to lack of a clear direction. While print is still clearly in the negative list, some tax advisors have opined that OOH, ambient and cinema will also now not remain in the negative list. That will be truly detrimental and I hope this is reconsidered.
Moreover, I don’t think the industry minds paying reasonable taxes. What the industry abhors is the tedious procedures, unnecessary harassment by the tax departments and ambiguity, which leads to corruption. I hope procedures will be clarified and simplified to address this.
Given all of this, on balance, I still feel the Budget will be favorable to our industry, though I would caveat it with what I began. I see this Budget as a Statement of Intent by the new government. It’ real test will be whether they are actually able to deliver what they promise.
Ashish Bhasin is Chairman & CEO South Asia, Dentsu Aegis Network and Chairman Posterscope & psLIVE Asia Pacific.
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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
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.
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Swapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
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.
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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 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.
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Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
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."
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KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
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."
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