Budget 2025: Ad industry expects measures that will ignite economic momentum
The Union Budget 2025 presents a significant opportunity for the advertising industry to align with broader economic goals while addressing sector-specific priorities. As consumer sentiment and spending power form the backbone of advertising growth, policies that enhance disposable incomes, promote rural spending, and offer sectoral incentives are eagerly anticipated. A consumption-driven economy directly translates to increased brand investments, allowing advertisers to capture the attention of a more confident and financially empowered consumer. This Budget is poised to shape the narrative of the industry by recognizing advertising’s pivotal role in driving demand and influencing consumer behaviour across sectors.
Leaders within the advertising industry are calling for measures that boost digital infrastructure, streamline compliance frameworks such as GST for agencies, and incentivize innovation in areas like AI-driven solutions and immersive consumer experiences. With regional markets and retail media networks emerging as high-growth areas, support for technological advancements and investments in content creation will be key to unlocking new opportunities. Additionally, infrastructure and tax reforms aimed at bolstering consumer markets could further amplify advertising’s reach, enabling brands to connect with diverse audiences more effectively while fueling broader economic momentum.
A critical lever to boost consumer sentiment - Krishna Iyer, Director - Marketing, MullenLowe Lintas Group:
“The Union Budget 2025 is a critical lever that energizes consumer sentiment and drive consumption in a challenging economic landscape. With global economic uncertainties and challenging market conditions, the advertising industry always looks forward to policies that enable greater disposable income in the hands of consumers. Measures such as tax reforms, increased rural spending, and sectoral incentives can create a ripple effect, bolstering consumption across key categories.
For the advertising sector, a consumption-driven economy directly translates to increased brand investments. Brands seek to capture the attention of a more confident and financially empowered consumer. However, it’s not just about fueling spending. As we look ahead, this Budget presents an opportunity to recognize advertising’s role in shaping behaviour and driving demand across sectors. The industry hopes for collaborative efforts between the government and private sectors to ignite economic momentum.”
Policies that foster growth - Nisha Singhania, CEO & Managing Partner, Infectious Advertising:
“As Budget 2025 approaches, the advertising industry looks forward to policies that foster growth, innovation, and ease of doing business. A boost in digital infrastructure, incentives for brand-building, and a more streamlined GST framework for agencies would be highly beneficial. A thriving economy fuels brand investments, and in turn, a robust advertising sector drives consumer engagement and market momentum. We hope this Budget sets the stage for a dynamic and prosperous year ahead.”
Incentivize local manufacturing - Dr Sandeep Goyal, Chairman, Rediffusion:
“Budget 2025 presents a critical opportunity to tackle urgent fiscal priorities while fostering inclusive and sustained economic growth. Budget 2025 should incentivize local manufacturing through favorable policies.”
Relook at taxation structures - Naresh Gupta, Co-founder, BITM:
“I would expect this year’s Budget to do three things: One, I would expect it to push a much greater investment in urban renewal of Indian cities. This will ensure that our cities and the civic amenities see a greater push. This will have a positive impact on consumer markets and sentiments. Two, I would expect the budget to push the issue of air and ground pollution. It’s time that we as a nation declare war on the general mess we have in our cities. Our air and river need cleanups. Three, I expect the Budget to relook at taxation structures and find ways to boost the consumer markets. The country’s economy grows when the consumer spending increases and the small reduction in taxes can lead to massive revenue gains for exchequer.”
Evolution in the advertising landscape:
“We anticipate significant evolution in the advertising landscape through Budget 2025, particularly in retail media advancement and regional market expansion. Our sector seeks robust policies supporting AI-driven solutions and immersive consumer experiences, which would fundamentally advance brand engagement capabilities. We welcome measures strengthening digital infrastructure, especially in regional markets where content consumption patterns are rapidly evolving.
The programmatic space and creator economy show remarkable potential, with many of us preparing for increased investment allocations. We see tremendous opportunities in emerging technologies like advanced analytics and retail media networks. Support for MSMEs through streamlined compliance could unlock fresh advertising avenues, while proposed infrastructure and tax measures could energies consumer markets across India.”
Preet Tyagi, National Business Development Head (VP), FCB:
"Increased capital expenditure will help with fiscal liquidity, thereby boosting domestic demand. Restructured direct personal tax structures can increase disposable incomes and drive consumption. However, measures must be taken to stabilize the falling rupee amid uncertain global cues. The RBI has been tacitly managing our forex kitty; it’s now time for policymakers to step in and protect our consumer markets from these burdens.
There’s a definite pinch affecting consumer facing industries; the brunt of which is borne by the entire economic system. We need to see positive steps to reduce economic pressures & stimulate demand. As brands navigate these challenges, advertising will need to be more sensitive and targeted than ever before."
Also Read: Budget 2025: Resurgence of inflationary concerns, amid growing calls for tax relief
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