Marketers and advertisers welcome GST despite short-term hassles

Though GST is seen as a game changer for industries across the board, the new tax system will not immediately be a hassle free affair, say marketers and advertisers

e4m by Ruhail Amin & Venkata Susmita Biswas
Published: Jul 4, 2017 8:00 AM  | 4 min read


The implementation of Goods & Services Tax (GST) has ushered in a new era for marketers and advertisers. Many believe that the new tax regime, which has revised tax rates across industries, will boost ad spends in the long run as there will be rise in consumption.


With the reduction of tax slab in Auto, FMCG and Consumer Durables under GST, these sectors will be able to advertise more in the same budget as cost of advertising will reduce to a large extent. This will however not be the case immediately. In the short term, the ad industry is slated to witness some challenging times too.  


Stating that the current GST regime may bring in temporary supply imbalance, Sunil Lulla - Chairman and Managing Director, GREY Group India, said, "While on the face of it GST is at 18% and Service Tax was at 15%, these are set off taxes paid as input and output. In essence it won't affect the outlay paid to media nor its agencies nor the creative agencies. There is likely to be temporary disruption with these changes, to which extent there will be a supply imbalance more than any impact on demand." 


For Avinash Pandey, COO, ABP News Network, with GST there will be a rise in consumption that will strengthen advertisers spends leading to an overall increase in revenue. ‘’The levy of GST will be marred with minor problems but that will be a matter of days. Every sector has different challenges in GST however every manufacturer, service provider and trader will be impacted positively. Owing to GST there will be a rise in consumption that will strengthen advertisers spends leading to an overall increase in revenue.’’


GST will definitely have its own share of complexities for businesses operating in multi-states, as there will be Central and State GST. Moreover, online matching of sales and purchases filed by the clients and vendors will make it more complex operationally. However, the benefits will outweigh the disadvantages


On an industry level, GST has only brought a positive impact to agencies says Divya Radhakrishnan, MD, Helios Media. Under GST she is looking forward to the three per cent incremental from the advertising business while from the content business it may be a little more, given that service tax and VAT were calculated separately and under GST the taxes have been normalised.


“I see a bigger spending from brands starting October, with Diwali and going on until December,” said Rajiv Dingra, Founder & CEO WATConsult. Dingra also expects this festive season to be much better than last year’s which was massively impacted by demonetisation. There may be some short-term glitches in accounting but industry insiders expect that to settle down in the next three months.


Advertising agencies like Helios Media are having a smooth run under the GST regime. Radhakrishnan said that her company faced no hassles under the new regime. While Radhakrishnan may have no complaints, not all agencies have had it as smooth. Swamped with GST work, clients seem to have slipped up when it came to sharing their new GST numbers with agencies. Industry insiders feel that for the GST implementation to be hassle-free, cooperation among vendors and clients has to be the prime focus area.


Speaking about how GST has impacted the day-to-day functions of the company, Dingra said, “From what we understand, the option to take credit back on service tax, if the invoice is cancelled, is a complicated process as of now.” Dingra said that while the implementation of GST will be accompanied by short-term hassles, it should not deter overall sentiment. He said that for most large and established organisations that have really good systems and processes, everything related to GST should be sorted within this month itself. He believes that for those who will take more time to settle down, they may face more issues and losses even.

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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

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

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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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 by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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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

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

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