Reacting to the Union Budget 2010 presented by Finance Minister, Pranab Mukherjee, advertising experts are of the view that with larger disposable income, consumers would step up their expenditure, which would provide a fillip to the advertising industry.
Kamal Basu, chief executive officer, Saatchi & Saatchi, India
The reduction in surcharge on service tax is the only direct benefit to the ad industry. The reduction in prices of electronics and other categories will drive consumerism; and that is what will give our industry a fillip that it so needs.
Harish Bijoor, chief executive officer, Harish Bijoor Consults
The indications that the Indian economy will grow at 9 per cent is a definite positive. Economies growing at such a rate are a rarity globally.
In an inflationary economy like ours, marketers have to be competitive. There will be enough opportunities for marketers to showcase their products and services; and one can expect a lot of competition on the prices front.
Also, with newer services related to brands and event management being added to the gamut of the 10 per cent service tax, certain services will get more expensive, as the tax is passed on to the consumers.
Prathap Suthan, national creative director, Cheil Worldwide
This is good for advertising. Because in a scenario that encourages people to upgrade their lives, every brand and product that vies for market share will have to get more visible and spend more on advertising. We are in for better times.
This underlines the spirit and the innate strength of the Indian economy and the insulated robustness of our country as a whole -- to be positive, to be holding its head above and to be inspiring its people, when much of the world is still dealing with the effects of the global slowdown.
Nabankur Gupta, founder and chief executive officer, Nobby Brand Architects and Strategic Marketing
However, this will not be true for the higher ticket items, such as automobiles.
Ajay Chandwani, director, Percept
However, it is disappointing that there has been no reduction in prices of computers. The reduction in prices of computers has not been as much as, for example, mobile phones. There is not much difference in the price of the cheapest laptop available today, compared to three years ago. That is one of the chief reasons why internet penetration is low, when one compares it to mobile penetration, which has been pushed by low-cost phones.
It is also disappointing that domestic travel is going to be expensive. This will bite into the bottomline of advertising and marketing companies.