MAM
Real estate emerges biggest spender on OOH advertising in 2020
NEW DELHI: 2020 was a very crucial year for humanity, as the entire world went into sleep mode due to the Covid2019 outbreak. From wearing masks, social distancing, the deadly virus changed the way people have been living for centuries. The pandemic also brought about changes in the out-of-home (OOH) ad segment, as people limited their lives inside their homes.
OOH segment de-grew 60 per cent in 2020
As a majority of people were confined to their homes for the better part of last year, the OOH sector de-grew by 60 per cent in India. Revenue generated by the category was 15.6 billion in 2020, a steep drop I from Rs 39.1 billion in 2019. According to a recent study conducted by FICCI and EY, OOH advertising will Blake a comeback in 2021, with the revenue rising to Rs 21.6 billion. By the end of 2023, the sector’s revenue will be Rs 31.8 billion, though still less than the 2019 earnings.
Traditional OOH comprised 60 per cent of revenues and remained the largest segment, while transit media comprised 35 per cent of the sector. The OOH spends on transit media was 39 per cent in 2019, and it witnessed a drastic fall as rail, metro, and air all witnessed large drops due to the lockdown and restrictions on travel.
Findings of the study showed that transit media comprised Rs 5.5 billion in 2020, and it is expected to grow to Rs 10.8 billion by 2023. This will be mainly due to 452 kilometers of metro line projects across the top seven cities that are currently under construction. Moreover, the government also plans to build or widen 60,000 km of roads by 2025.
As the vaccine rollout is progressing steadily, the sector is currently on the road to recovery.
Real estate dominates the ad sector in OOH
Real estate and construction, FMCG, financial services, auto, and media are the top five categories that contributed to OOH spends in 2020. With 21 per cent spends, real estate dominated the OOH ad sector. Primarily, the factors that drove the real estate sector in 2020 were revision in home loan interest rates and conducive government policies.
However, OOH spends from hospitals, restaurants, educational sector, organised retail, and telecom witnessed a sharp fall in 2020. Moreover, from April to June 2020, most of the OOH sites were dominated by government ads about the pandemic. During this time, several companies refrained from spending on OOH, as Covid cases in the country were on the rise.
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.
