MAM
Madison for astute use of radio by advertisers
MUMBAI:Car owners may not turn out to be the largest audience segment for radio in the country, but they are the ones that advertisers are most likely to target, if a Madison study is to be believed.
In its latest media newsletter, Madison says that it is not important whether in-car listeners form the bulk of listenership base. Radio worldwide has been the best medium to target upwardly mobile high spending executives and business people, says the study. Quoting previous studies, Madison says that in-car listeners have proved to be light consumers of other media like television, making radio a very effective medium to reach. Research by Radio Advertising Bureau, UK indicates that contrary to popular myth, nearly 85 per cent of in-car audience do not shift stations frequently while driving.
The Madison study points out that in other markets, many successful service brands, especially those in office supplies and financial services have benefited by judicious use of radio. The study notes that campaign efficiency increases by around 15 per cent if 10 per cent of a given TV budget can be re-deployed by advertisers on to radio.
For advertisers keen to employ radio as a secondary medium, Madison has some good news. Quoting a Statistical Research Inc study, it says that Imagery Transfer helps three out of four consumers who have watched a TV spot ‘replay’ the visual image mentally when they hear a radio commercial for the same brand. Another series of studies called ‘distraction study’ tried to simulate the fact that radio listening is always secondary activity. These tests also indicated that listeners were able to create and keep images fresh and top of mind even when engaged in other tasks.
Sonic branding, where aural brand elements are used, is also very effective in sustaining brand recall, says the study. Citing the example of Britannia’s Ting-ting-ti-ting campaign, the study says that creation of sonic branding reduces long term cost of advertising, as one need not air the complete commercial to register recall.
While spots of 45 seconds or more are effective on radio, research also indicates that the fatigue factor is high with radio commercials – a factor that can be countered with copy variations, says the study.
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.
