Achche Din for Adspends post-Budget 2017-18

02 Feb,2017

 

The Union Budget presented by Finance Minister Arun Jaitley is by far one of the most awaited annual economic and political events in the country. On the surface, the Budget didn’t make any specific provisions for the media and entertainment sector. But MxMIndia analysts believe that the Budget could well result in a medium boost for the sector.

For one, adspends are going to increase with the all-out emphasis increase on domestic consumption. The government is aware that it’s just got two years to go ahead of the next elections, and more than lipservice, there have to be concrete signs of ‘achche din’ having arrived.

We asked Bharat Rajamani, Executive Director & Solution Leader – Marketing & Advertising Risk Services (MARS), at EY India, for his expert view, and this is what he said:

“The Budget was a fine balancing act between the need to push growth and to achieve it within fiscal constraints. The key takeaways include emphasis on rural economy, affordable housing and encouragement of digital transactions. The budget’s focus on digital transactions and rural digital network will encourage the FMCG, consumer durable, automobile and micro finance companies to explore innovative ways of utilising digital advertising in rural areas. The cap of Rs 3 lakh on cash transactions will bring about transparency and boost tracking efficiency in marketing. Further, the budget recognised Metro rail as an emerging mode of urban transportation which will again encourage brands to shift focus to transit media and make Out of Home (OOH) media more versatile.”

While we will await other industry forecasts – specifically the one from Madison on February 15, MxMIndia believes that while the direct sops to M&E are not very high, the elections, two major cricketing events (IPL and Champion’s Trophy), telecom (post-March 31, when the Reliance Jio free internet scheme ends) and routine FMCG, retail, BFSI, real estate and festive spends should see the growth of adspends in early two digits.

Let’s wait and watch.

 

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