MAM
Ad spend to remain bullish this festive season
Mumbai: After two Covid-impacted years, the mood among consumers and advertisers for the festive season is a lot better. Media agencies expect a decent uptick in ad spends.
The overall sentiment is positive. iProspect India executive vice president Kaushik Chakraborty explains, “Unlike the last two years, this festive season will be far more exciting. We can expect brands to encash on the positive sentiment. While media spends will be primarily driven by TV and digital, print and OOH spends will also grow,” he tells Indiantelevision.com.
He explains further that there has been a robust growth in ad spends during festive seasons in the last three years. “In 2021, the growth was more than 20 per cent as compared to the previous year. Although the inflationary pressure will impact overall consumer sentiments, we can expect a 10 per cent plus growth in media spend this festive season.”
The key categories that will witness a strong push in demand are e-commerce, automobiles, e-wallets, BFSI, and retail.
“Normally, festivities contribute around 40 per cent of AdEx. A similar trend will continue this year. The bulk of the spending will happen till Diwali, and post that, advertisers will rationalise spending,” he says.
When asked about the impact of startups being under pressure to conserve cash, he points out that startups contribute less than 13 per cent of overall AdEx. “Traditional advertising players will contribute during the festive seasons, while seasonal advertisers will continue their spending.”
IPG Mediabrands chief investment officer Hema Malik says that ad spend growth will be 10-15 per cent. Print, radio, cinema and out-to-home (OOH) are bouncing back. She expects the print media’s festive season ad spend growth to be over 50 per cent. “This will be the first festive season in three years without restrictions. The festive season will be celebrated in full-swing on-ground. Earlier, there were issues with masks, fewer places to visit and timings. The market should see a good pick-up currently.”
However, Malik highlights that television ad spends during the festive season will be flat due to the Indian Premier League (IPL) that happened last year. The annual advertising budget was diverted to IPL promotions. Also, the upcoming Twenty20 World Cup in Australia will take place after Diwali, which is an appropriate time and cooling-off period for advertisers. Hopefully, things will pick up in the advertising market and advertisers will likely increase their spending.
“Companies discontinue campaigns after Diwali and take a break. There will also be a struggle due to the disappointing IPL viewership recently and also the mediocre performance of India in the Asia Cup. It will be difficult to watch the Twenty20 World Cup on television. The challenge for television is that viewership has been steadily declining. The numbers are unexplainable. It is becoming a deterrent to price revisions. This has been a perennial issue for a couple of months now,” Malik tells Indiantelevision.com.
Elucidating further on the startup situation, she says, “Startups are facing a slowdown that is another challenge for television and digital media. Big sports properties will come under pressure. Other categories will fill up the gap, and selling inventory will not be an issue. The issue is whether those companies would be willing to spend as much as startups who have a target reach.”
Filling up inventory is never an issue for television, Malik explains further. It is yield maximisation that will be the challenge. The startup issue will also have an impact digitally. “The dampener is the startups and new-age companies that are under a slowdown this year. That is impacting the advertising mood and AdEx growth, she adds.
She adds that a few categories are firing, but not all. She expects categories like confectionery, paint, and jewellery to do well. “They will come back in full force. Retail is expanding into more areas. E-commerce will also be there,” she concludes.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI:Â Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
