MAM
Ad spends on cable grow at cost of networks: Kantar Media
MUMBAI: Broadcast networks in the US continued to stumble despite humble gains in advertising spends on television as a whole.
During the first half of 2011, advertising sales at the broadcast networks reduced by 7.6 per cent to $10.8 billion.
According to a report issued by Kantar Media, several factors contributed to this reduction.
The broadcast of BCS bowl games on ESPN instead of Fox generated a major one-time shift in spending to cable. The shift of March Madness from CBS to Turner Sports benefited cables further at the cost of networks.
To make things worse, ad spends on prescription drug, financial services, and consumer package goods categories were shifted to cables as well. From 1 June till 30 June, the budget allocations on cable networks were further augmented by 11.8 per cent, reaching a total of $10.8 billion.
Television on the whole rose by a meagre 1.8 per cent, as the total amount of monies spent in the medium touched $32.9 billion. TV accounted for approximately half (46 per cent) of the total advertising expenditures.
Overall, ad growth lost pace in the second quarter, as spending increased 2.8 per cent versus the year-ago period. In Q2 2010, the dollars increased 5.1 per cent.
Kantar Media North America executive vice president of research Jon Swallen said, “Advertising grew at a slower rate in the second quarter, contributing to speculation about the durability of an advertising recovery that is into its second year. Key ad spend indicators are painting a mixed picture.
On the one hand, a majority of media types actually improved their performance from Q1 to Q2. On the other, spending growth for the Top 100 advertisers stalled in Q2, and the ad market became more dependent on the comparatively smaller budgets of mid-sized advertisers.”
In the first half, top 10 TV advertisers reduced their spending by 1.7 per cent to $5.17 billion. Six out of the major spenders slashed their ad spends to some extent.
AT&T remained the largest TV spender, buying $789.4 million in air time, down 3.7 per cent as compared to the same period a year-ago.
Other significant advertisers on television: Procter & Gamble ($762.7 million, down 11.3 per cent); General Motors ($570.3 million, down 7.7 per cent); Verizon ($478.1 million, down 22 per cent); Johnson & Johnson ($431.7 million, down 15.2 per cent) Ford Motor Co. (up 0.8 per cent to $410.8 million); Pfizer ($397.4 million, down 8.2 per cent) and McDonald‘s (up 7.3 per cent to $375.1 million).
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.
