India Inc happy, will show it with higher ad spends
Post Sitharaman's sops, companies are reworking their India plans to take advantage of the incentives.
“In India advertising tends to be based on sentiments. When sentiments are low, lot of clients are in wait and watch mode. This move has completely changed the sentiments and will make a positive impact,” said Ashish
Bhasin, chairman, CEO, South Asia, Dentsu Aegis Network. He added that the positive impact will last beyond the festive season. “Corporates will definitely have some surplus money to spare with the corporate taxes going down,” Anita Nayyar, CEO, South East Asia, Havas Media group adding that this spare money can be used to incentivize employees, boost bottom line and promote the brands.
The positive impact of tax reduction can be felt in the immediate impact on the stock market would certainly result in festive buoyancy and return of consumer sentiments, said Sivakumar S, president Revenue, Bennett Coleman & Co Ltd, which owns The Economic Times.
“Corporates which were focused on cost cutting would do well to leverage this buoyancy and positive sentiments to shift focus from cost savings to top line growth. The reduction of corporate tax frees up cash flows to be deployed on costs which would boost revenue. Advertising is one such key input especially during festive season to maximise consumer share of wallet,” he added.