Companies’ ad spend on GST campaigns crosses Rs. 300 crore beating Diwali fanfare

  • Goods and services tax has come as a major windfall for the advertising industry, with various estimates by media planners and companies putting spending on GST-related ads in June at more than Rs 300 crore, matching the same as that during Diwali for some industries.
  • As per advertisement industry executives, major advertisers included consumer electronics retailers, automobile dealers and software and tax firms.
  • Ecommerce marketplaces, too, ran campaigns of pre-GST sales, mostly in the digital media. Such high spending has come as a boon for the industry since June is typically a dull month for advertisers.
  • Companies have been running campaigns on pre-GST discounts since they wanted to sell off old inventory where they would incur loss under GST.
  • The government and some telecom companies have been using the outdoor media to convey the benefits of GST to the masses.
  • While the advertising activity has gone up across print, television, digital and outdoor, most media planner believes that this will not have any implication on the overall ad spending.
  • It is a short-term activity and the ad spends are minuscule in the overall pie- CVL Srinivas, CEO-South Asia at GroupM.
Source: http://bit.ly/2tQRXgq

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