MAM
Digital ads share low; CII-KPMG hopes for 33.5pc CAGR
MUMBAI: Confederation of Indian Industry (CII) and KPMG in India unveiled today a report titled ‘Digital – The New Normal of Marketing’, at CII National Marketing Summit, which brings out valuable information on Indian digitization and the shift from traditional to digital marketing.
The report estimates that, India is one of the fastest growing advertising markets globally with an estimated growth of 15.5 per cent in 2016, driven by a large consumer base and a burgeoning e-commerce industry. Although the share of digital advertising spend remains low at 12.7 per cent in 2016, it is one of the fastest growing mediums at an expected CAGR of 33.5 per cent (2015-2020) to cross INR 255 billion in 2020.
Of the total digital advertisement spends, ‘search and display’ commands the largest share even though it is a relatively maturing segment.
“The post-demonetisation days have clearly showed how the country is set to leapfrog a few stages to embrace the power of digital. Mobile is being rapidly adopted and marketers have an incredible opportunity to enhance the game of digital communication and deliver great customer experiences at each point of the journey,” said CII National Committee on marketing chairman and Aditya Birla Group CEO – textile business Thomas Varghese.
As per the report, connected devices, smarter devices and ‘hyper relevant rich content’ will drive consumption for the consumer. Marketers will be well served if they are able to ride the data wave and use technology to build in analytical models. The Digital marketer will be responsible to deliver a distinctive consumer experience using various channels – thus making the role a key contributor to the overall omni channel experience. The report also gives insights into nascent technologies like emotions analytics and predictive marketing.
‘There have been silent and not so silent changes around us that are changing the way marketing will be done. With the internet becoming all pervasive, it has become so integral to our lives that it has literally disappeared. Singularity, connected systems, Cognitive and AI will create a world where the marketer will be marketing not only to humans but the ‘self-thinking’ machines,’ says KPMG India partner and head – digital consulting Rachna Nath.
“Digital marketing is more about big data and technology innovation rather than conventional marketing. Digital marketer today will have to look at the consumer as a living sensor which creates data. Insights on consumer behavior will drive the next big innovation on the campaign. Success will depend upon how the digital marketer is able to drive differentiated strategies for each digital channel and eventually converging on consumer experience” says Aditya Rath, Partner and Lead for Digital Customer.
Other key findings and suggestions presented in the report are:
Video is new data format
The digital consumer’s attention span has now come down to 8 seconds, down from 12 seconds in 2007. Marketers are expected to direct their content strategists to curate short videos that create a greater impact on the consumer’s mind while holding their attention till the end. Live streaming videos are interactive, immersive and cost-effective.
Omni-channel experiences and touch points are essential in the digitally charged marketplace Healthcare, automotive, insurance, retail and manufacturing companies are experimenting on various IoT use cases to enhance the consumer experience.
Wearables provide a new dimension from a data perspective Through the galvanic skin sensors and gyroscopes that are in-built in these devices, marketers can continuously monitor the customer’s physiological and behavioural data.
Authenticity, relevance, and value are increasingly important parameters for content creation and distribution Customers trust user-generated content and give more weightage to peer recommendations and reviews than to professionally curated content.
Native ads are being used increasingly to combat mobile and desktop ad blocking They blend in and appear as content that would normally and deliver value and relevance to the consumer and do not hinder user experience of the website even while monetizing.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: 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.
