Nearly Rs 20,000 cr adex to get boost under GST
Some sectors will be able to advertise more within the same budgets allotted for advertising when the new tax regime comes into play

Sectors like FMCG, consumer durables, retail, and automotive will benefit from the forthcoming Goods and Services Tax regime rollout because of reduced advertising costs, claims an E&Y report on the impact of GST on advertising released on Thursday. These sectors will be able to advertise more within the same budgets allotted for advertising when the new tax regime comes into play. Some sectors like banking and financial services, alcoholic beverages will, however, feel the brunt as the effective cost of advertising will increase under the regime, the report said.
The FMCG industry spent approximately Rs 12,492 cr on advertising (32% of the total adex) in 2016. Once GST comes into effect, this industry will be able to avail full input tax credit because most FMCG companies have set up their factories in excise free zones, as area-based exemptions are likely to be withdrawn under GST. Therefore, FMCG advertisers will be able to advertise more in the same budget as the cost of advertising will reduce. The report cautioned that FMCG companies will need to educate sales teams to prevent downward rate pressure due to optical increase in advertising budgets.
Similarly, the automotive sector, which is the second biggest advertiser (Rs 4,030 cr adex in 2016), is expected to have a positive impact under the new regime. Auto companies engaged in the import of completely built units were not eligible for input tax credit of service tax charge in the pre-GST regime as their output tax was only subjected to state VAT. Under the GST regime, such companies would benefit from availing full input tax credit. Therefore, auto companies will also be able to advertise more in the same budgets. Much like FMCG and auto companies, consumer durable companies will experience a reduction in advertising costs as well.
Positive impact
Negative Impact
Sectors such as e-commerce, BFSI and Alcoholic Beverages will be negatively impacted by the GST rollout. In the case of the e-commerce sector which contributes more than Rs 1,500 cr to the nation’s advertising pie, loss making companies in the sector that have accumulated credits could initiate budget curtailment due to cash blockages in credits. In addition, depending on working capital requirement of e-commerce companies, advertising budgets may increase or decrease. Sectors like BFSI and alcoholic beverages will be forced to spend more for the same volume of advertising under the new regime. The negative impact is because banks will have to continue to reverse partial input tax credit under the new regime just as they did under the pre-GST regime.
According to the report, companies in the banking and financial services sector will be able to advertise less in the same budget, as effective cost of advertising will increase under GST regime. The BFSI sector spent around Rs 1,400 cr on advertising in 2016. The third largest advertising spenders - telecom companies - will weather the impact of GST. As per the report, telecom companies, which are eligible to avail input tax credit of taxes charged on advertising spends, will continue to avail full input tax credit of GST charged. Therefore, GST rollout may not heavily impact the telecom sector in any way.
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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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