MAM
China to overtake Germany as No. 3 ad economy; global ad spends recovering
MUMBAI: The rise of China as a powerhouse stretches to the advertising world as well. China will overtake Germany to become the third largest advertising economy in the world in 2011, behind the US and Japan.
While the global advertising market will continue to recover steadily over the next three years, China will outpace this growth to touch $34.24 billion in 2013, a 51 per cent growth over the next three years, according to a forecast by ZenithOptimedia.
China could soon beat Japan, a country hit by deflation and high public debt which will slow down ad growth to 5 per cent through 2013. The Chinese ad market, which is currently just over half the size of the Japanese market, will be three-quarters that of Japan in 2013, according to Zenith.
Meanwhile, Russia will enter the top ten list in 2012, outpacing Australia and Canada to take ninth place, and overtaking Italy to take the No. 8 spot in 2013.
The global ad market is on a rebound. The global ad spends will continue to recover steadily and by 2012 will surpass the 2008 levels, according to two new research studies published today.
Group M‘s forecast has predicted the $500 billion mark to be achieved “at some point in 2012”. According to the WPP-owned media buying agency network, the Internet will overtake newspapers as the second biggest global advertising medium behind TV.
ZenithOptimedia forecasts the overall ad market to grow between 4.6 per cent and 5.2 per cent annually for the next three years. Driven by the rapid growth of online video and social media, Internet advertising will lead the pack at 48 per cent growth. Outdoor advertising will grow by 18 per cent and TV and cinema 19 per cent each. Radio will lag behind with 10 per cent and newspapers and magazines will see a two per cent dip.
ZenithOptimedia global CEO Steve King said Internet advertising “will grow three times as fast as the rest of the market as a whole” and the “importance of the internet is underrepresented” in the figures.
According to Publicis‘s media buying agency network, this growth over the next three years will be sponsored by the developing markets – Asia Pacific will grow by 23 per cent and Latin America by 26 per cent.
“The key result of this update is the continued rise of developing markets and digital media, and their central role in driving global growth,” elaborated King.
“Advertisers are investing a lot more in owned and earned media, where their activities do not count as ad expenditure in the traditional sense,” adds King.
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.
