MAM
UK ad spend holds steady in Q1, to gain steam in 2012 on back of Olympics
MUMBAI: The advertising spends of UK have remained steady despite turmoil in the global economy.
In the first quarter of 2012, UK‘s ad spend increased by 1.1 per cent, according to Advertising Association /Warc study.
UK ad expenditure is expected to improve over the year, reaching overall growth of 2.5 per cent in 2012 with forecasts of a further rise of 4.4 per cent in 2013.
The ad expenditure is predicted to reach a value of ?16.8 billion in 2012 and ?17.4billion in 2013.
The report provides the comprehensive measure of UK advertising activity. It includes an overview of advertising spend by individual media, encompassing print, TV, internet, radio, cinema and out of home.
Internet spend is estimated to have grown by 11.1 per cent in Q1 2012 compared with Q1 2011 and is expected to remain strong throughout the year, with a forecast of 10.1 per cent growth and an overall value of ?5.3 billion in 2012.
Out of home saw a 3.1 per cent increase in Q1 2012, in a year when Olympic and Paralympic Games are expected to drive overall growth by 4.1 per cent to ?0.9 billion.
Radio grew by 6.9 per cent in Q1 with forecasts of 3.8 per cent (?0.4bn) in the year overall.
As per the report, the government ad spend is set to increase faster than any other category in 2012 which is traditionally a strong source of radio revenues. Cinema expenditure increased by 9.5 per cent in Q1 with a positive forecast of 3.1 per cent for 2012 (?0.2bn) as a whole.
Meanwhile, the television ad spends fell 0.7 per cent in the quarter but is expected to remain broadly steady with 0.3 per cent growth (?4.2bn) for the year.
The study revealed that the spend was weakest in press, with a decline of 10 per cent. Overall, press is forecast to fall by 5.1 per cent in 2012 (?3.7bn), though spend is predicted to stabilise in 2013.
Advertising Association chief executive Tim Lefroy said, “In the face of global economic uncertainty, UK advertising holds a steady course. Evidence shows that advertising invigorates GDP growth, so a healthy ad market is good news for the whole economy, not just advertisers.”
Warc data editor Suzy Young added, “It remains a very short term market. There is some evidence that TV advertisers, for example, have brought budgets forward to Q2 from Q3 to get the benefit of marketing spend now as prospects for the rest of the year remain unclear.”
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.
