By Javed Farooqui
Copyright indiatimes
Mumbai: Advertising expenditure (AdEx) during the upcoming festive season is expected to get a major boost with incremental spends of ₹5,400 crore projected as the Union government’s move to rationalise GST rates buoy consumer demand across categories such as FMCG, consumer durables and automobiles, said industry executives. The timing is significant. FMCG companies, the largest advertising segment, had been cautious on marketing spends amid macroeconomic pressures, while the Centre’s ban on real money gaming earlier this year created a ₹7,000 crore gap in AdEx. Industry executives expect FMCG players to drive most of the incremental spending. “FMCGs account for 54% of AdEx. If their festive spends rise by 10%, the overall AdEx impact would be about 5.5%. On an industry size of ₹1.2 lakh crore, that translates to nearly ₹6,000 crore annually. Since 60% of spends occur in the festive period, the upside this season alone could be around ₹3,600 crore. Other categories may add another ₹1,800 crore, taking the total expected jump to roughly ₹5,400 crore,” said TAM Media CEO LV Krishnan. Jai Lala, CEO of Zenith India, said GST benefits will help unlock both consumer demand and advertiser confidence. “FMCGs and consumer durables, followed by two-wheelers, will clearly see higher spends this festive season. The timing is right, and GST rationalisation will benefit both consumers and marketing budgets. Together, these should deliver a strong festive push. While hard to quantify, I would peg it at least a 10% incremental benefit over and above normal festive growth,” he said.”Over the last three years, the August-December period has consistently contributed around 58% of annual AdEx, aided by marquee cricket properties such as the World Cup.,” added Krishnan.Live EventsAdd as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onzenith indiaFMCG AdvertisingFestive Season AdvertisingIncremental Ad SpendsGST Rates ImpactAdvertising ExpenditureMarketing SpendsConsumer Demand Boostgst(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
