MAM
ZenithOptimedia predicts 4.6% ad growth to $525 bn in 2013
MUMBAI: Publicis Groupe’s research agency ZenithOptimedia has said in its latest forecast that global ad expenditure will grow 4.6 per cent to touch $525 billion in 2013.
Continuing the trend that started with the economic downturn in 2007, the growth next year also will be led by developing markets predicted to grow by 8 per cent on average in 2013. Central and Eastern Europe are expected to bounce back after a tough 2012 with 7.4 per cent growth in 2013 ($28.592 billion), while Asia Pacific (excluding Japan) will grow by 8.2 per cent ($148.423 billion) and Latin America by 10.1 per cent ($41.935 billion). North America which has had a particularly strong 2012 owing to record Olympic audiences and heavier than expected political advertising in the US is expected to grow at a solid 3.6 per cent in 2013 ($178.313 billion).
The digital medium will continue its strong growth into 2013 and is expected to grow at 15.1 per cent as compared to traditional media which is set to grow at 2.3 per cent.
The agency has also revised it for the remainder of 2012 slashing the growth further from 4.3 per cent (as predicted in June) to 3.8 per cent. The main reason attributed to this downgrade is advertisers in the eurozone cutting expenses in response to further economic weakness. ZenithOptimedia predicts that the eurozone spend will shrink 3.1 per cent over the course of this year as compared to the earlier 1.1 per cent decline forecast in June. Assuming the region remains intact, budgets are expected to resume slow 0.9 per cent growth in 2013, strengthening to 2.3 per cent in 2014.
“Advertisers are broadly continuing to invest, despite the global economic concerns and issues. However, they are seeking to ensure that all expenditures are delivering strong return on investment. The US continues to deliver solid growth. This combined with the growth in developing markets and in digital media, has helped mitigate the drop in eurozone spending,” said ZenithOptimedia Group global chief executive officer Steve King.
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.
