MAM
Digital marketing to see an upsurge in advertiser movement post-Covid
NEW DELHI: The Covid2019 pandemic has impacted the business community in a number of ways. However, the one industry that seemed to have gained from the pandemic is digital marketing. It was already growing at a rapid phase within the country and the lockdown came as a great catalyst for boosting it.
However, the growth in the domain might not become visible immediately. In a zoom webinar with Indiantelevision.com, discussing how digital marketing will change in the post-Covid world, Kinnect CEO Rohan Mehta said, “Digital surely stands out as an industry that will get positively impacted by this, but that positive impact will surely take some time to come. While digital adoption has gone through the roof, because businesses are in a downturn, spending still doesn’t have come. I think, evaluating the spend over the last couple of months isn’t the right metric. We will have to see over a period of six months to gauge the impact.”
Kinnect COO Chandni Shah added, “I think more than digital spends increasing, what the businesses today are focusing on is digitising their businesses. A lot of companies were already working towards this and what the pandemic has done is that accelerated the process towards that.”
She also noted that news apps, especially regional, mobile gamings and OTT platforms, will see a lot of traction from advertisers once the lockdown is lifted. However, the content on OTT platforms is needed to become more inclusive and family-friendly.
Mehta highlighted that regional content, not just in the news space but overall, is up for gaining massive traction from brands. Apps like Helo and ShareChat will see an upsurge in advertisers’ interest. “It has already been happening. There have been many campaigns for which we too have used micro-influencers, for region-specific conversations. But there is a lot of scope for an uptick there, and I see it happening in the near future.”
The duo also agreed that another positive that this pandemic has brought in, not just for digital but for industries across domains, is that it has made people more punctual and organised in their way of working, which Shah Mehta thinks will continue even after the new normal sets in. Shah said that she sees more of client meetings happening virtually in the coming future.
According to them, the pandemic might act as an accelerator to the gig-economy in India. Mehta noted that more agencies will be open to outsourcing specialised skills to freelancers and consultants. However, there is a long way to go for standardizing the prices and work culture for those who are not on company payrolls.
This also will popularize LinkedIn as a platform as a lot of talent search is happening there and will probably see more advertisers coming in if the professional social networker manages to deal with some glitches.
Mehta noted, “LinkedIn has been a part of the media mix for most advertisers for the past three years now and it has constantly been bringing in new formats to advertise also. The place where LinkedIn lacks a little bit is its expensive pricing. Also, the number of people on the platform is quite limited and you can’t reach a wide audience.”
He added, “I have been waiting for LinkedIn to become more India-centric and viable in terms of pricing. As soon as that happens, a tonne of advertisers will flock the place and will be using it way more aggressively.”
Old vs New: Digital Marketing for the New World with @KinnectOnline https://t.co/O3EELU65lX
— Indiantelevision.com (@ITVNewz) May 29, 2020
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.
