“Budget 2021 needs to remove levies on advertising & bring everything under GST”

With the Budget session of Parliament commencing from yesterday (January 29, 2021), all eyes are on the Union Budget 2021-22 that will be presented by Finance Minister Nirmala Sitharaman on February 1. Coming out of a year severely disrupted by the global pandemic and subsequent lockdowns, the industry is looking for growth impetus from the Budget.

Ambika Sharma, Founder & MD, Pulp Strategy, pointed out, “COVID-19 has hit businesses hard; technology adoption for businesses, especially MSME, has taken a backseat except in the most essential areas. The Government can look at SOPs for MSMEs adopting technology, which will give a boost to MSMEs as well as to the digital industry.”

Sharma noted that there are many initiatives for small businesses that have been launched in the last 2 years, and felt that it was important to refocus on them and set a TAT or improve the efficiency of those policies or systems. “Improving efficiency should be of importance,” she stressed.

From a direct impact digital advertising perspective, Sharma said that it would be good to see improved policies with removal of levies on advertising in the few cases it is still applicable and bringing everything under GST, which will contribute to ease of business.

Adding further, Sharma said, “Digital has not reached its full potential from both a depth and breadth perspective and there is more to be achieved. As the digital adoption increases in Tier 3 and 4 and non-urban areas, there will be an increase in regional language content and, in turn, localised advertising will grow. The future of digital will follow a similar trend like newspapers or television did decades ago, with localised content and proliferation of platforms.”

Engagement has always been the centre focus; it is the largest contributor to ROI in advertising. Planned and sustained engagement with the brand is important to improve confidence, increase consumer satisfaction and drive loyalty. “Loyalty translates into consistent brand adoption. It is good for business,” she maintained.