Finance Minister P Chidambaram presented the Union Budget for 2007-08 in the Lok Sabha on Wednesday.
Has he made life easier for those related to the advertising industry? What does it mean for the Indian economy?
In an hour-long chat on rediff.com on Wednesday, Nagesh Alai, executive director and Group CFO for Draftfcb Ulka, replied to many such readers' queries. Here is the transcript:
Nagesh Alai says, The reaction to the budget has been mixed this time. The middle class are happy with an increased take home pay due to increasing the slabs, the corporate is unhappy that the surcharge has not been removed as promised, but are happy with the other provisions and of course the farmers are a happy lot - though not a good precedant
mist asked, Hi.. radio ads in India are only take offs of TV ads.. your comments
Nagesh Alai answers, at 2008-03-05 13:59:17Not really. It has its own target audience and are quite different
tryu asked, Why do you think youngsters are so fond of ad industry? Is it because it seems so glamorous?
Nagesh Alai answers, Wrong perception about it being only about glamour - far from the ground realities
bj asked, advertising is the 2nd oldest profession after prostitution - so guess they are becoming more like the first
Nagesh Alai answers, Its a reflection of your mind set
Raguraman asked, The AAAI which is supposed to be the body that facilitates this process has hardly 40 members, while this number should be nearly 40,000 and hence get more clout to balance the media power.
Nagesh Alai answers, AAAI has 80+ plus members who account for 90% of the ad business. The relevance comes in not from the number of members but your ability to influence thought process
bj asked, the budget did not have positive news for the sector ? do u think this will impact advertising spend?
Nagesh Alai answers, No specific impact on the ad industry. Gone are the days when a specific industry has to rely on budget frameworks to make it successful. It is free for all economy today
BABAJI asked, WHY MRKT IS FALLING DOWN CONTIOUSLY?
Nagesh Alai answers, It was overheated in the first place due to misplaced exuberance and too much money from abraod chasing too few a stocks. And the increase in short term capital gain tax to 15% has been an added dampner
bj asked, hi Nagesh , do u think creative agency will perish given the proliferation of specialist shops?
Nagesh Alai answers, No way. It is the mean to communicated the message to the potential customers. It will be as relevant as it has always been
neelann asked, Is there any tax exemption for the year 2008-09 for those employees who would be getting salary 8 lac per annum?
Nagesh Alai answers, Basic exemption limit of 1.50 lakhs, beyond that slab wise rates.
dew asked, Hello Nagesh..why do ads always have women? there are ads for shaving razors that have a good looking woman. what is the logic behind this?
Nagesh Alai answers, you should ask Adam ....or Eve for that matter
RAVINDER asked, Dear Nagesh, Pls. advice which is the best (highest return) tax saving scheme/fund? regds/Rp
Nagesh Alai answers, PPF
aghos asked, Hi nagesh, How much of a role does IT awareness play in advertising?I am a sw engg(B.E) and would like to know the avenues I can get into in advertising with my background..thanks in advance
Nagesh Alai answers, Ibteractive medium is the vehicle of tomorrow. You will be a sought after skill-set
tryu asked, Hi, what is your take on advertising as a career option?
Nagesh Alai answers, Any profession you are passionate about, you will succeed. And dont forget hard work is a pre requisite
mamta asked, i am a house wife and my husband is a salaried person can i take home loan with my husband i take a home tution and share trading and take a interest exemption 1500000 what is proceesure?
Nagesh Alai answers, you can take a loan from your husband and if you are actually paying him interest and he shows it as an income, there should be no problem of claiming it as an expenditure.
adjai asked, Is it worthwhile to buys stocks with focus on agriculture etc.. and your pick
Nagesh Alai answers, yes, from a long term perspective - the logic is you cannot do without food.
Prabhu asked, How do you rate the Indian advertising excellence as against international? Do you think Indian creativity is as good as the best in the world? For, some years, ago Aleque Padamsee joked that Indian advtg is dead because Black Book has stopped publishing. Your comments.
Nagesh Alai answers, I would say that this is a wrong notion. Advertising is always done with the target audience in mind and considering the local culture and milieu, it is not about one size fitting all.
astir asked, Hi Nagesh, What is the best way to get into ad industry to pursue a career for oneself?
Nagesh Alai answers, through recognized campuses or direct applications
chavi asked, i have 831 Ispat industries averge price @ 44.30, 100 GTL Infra. @ 80/-, 100 Excel Ind. @ 80/-, 100 IFCI @ Rs. 80/-, 80 Idea @ rs. 75/-, 100 Birla XVL @ 24.75, 200 Indo asian @ 145/- plese tell me sell or hold and what is the future
Nagesh Alai answers, keep the infrastructure ones and sell the rest
WS asked, hey! all good brands have celebs in their ads. what is the criteria of having celebs? i don't think i would buy chyawanprash looking at shah rukh khan
Nagesh Alai answers, to get noticed out of the clutter, it depends on the people's perception about the celebrity
aghosh asked, creativity over biz sense..what rules the roost in the Ad industry?
Nagesh Alai answers, a judicious mix of both, one cannot survive without the other
Almas asked, Is advertising also under services tax net? What is the rate?
Nagesh Alai answers, yes of course, 12% + education cess
Raguraman asked, True. 80 people controlling 90% of the business is ok. But the media will respect and only respect those 80 AAAI members. What about all of us aspirants who start a small agency and want to climb up the ladder.
Nagesh Alai answers, The respect you command of media depends on your financial credibility and the volume of biz you can get them. That's fair game.
ashisha asked, hi dont' u think adagency gives too much stress to their employees.. odd hours working and that too very long, I left Top agency just b'cos of this reasons
Nagesh Alai answers, every industry is high pressure today. It is for you to work out a balance
Uruj asked, Hi there, How do you feel about the impact of dollar drop down will reflect the indian BPO/KPO industry. Uurj
Nagesh Alai answers, short term disadvantage, but will stabilise over time.
Shyam asked, Nagesh, what are the ingredients of a successful ad / successful ad campaign ?
Nagesh Alai answers, brevity .....is the sould
Rakesh asked, Why is that the recruitment practise in Advertising Industry still suffers the "My uncle referred me"/"My aunt works there" syndrome. I see a lot of graduates with absolutely no Advertising backround entering the industry through their uncles and aunts. When can we see some professionalism in Advertising industry wrt hiring?
Nagesh Alai answers, A complete misconception. I know the agency that I work for, that is DRAFTFCBULKA stays miles away from nepotism and is merit driven completely.
vsn asked, Hi Nagesh, I want to establish a career in Account Planning. How good is this job in India, the good institutes for the same. Any other suggestions you would like to give, I will be glad to listen to them. Thanks.
Nagesh Alai answers, a pre requisite for an agency to be successful. Huge career potential.
adjai asked, undercuttin is so rampant in the ad world.. how best can agencies address the issue? is there any code of conduct etc..
Nagesh Alai answers, AAAI is focussed on this and trying its best.
aghosh asked, Hi nagesh..can you plz name some PG courses and colleges where one can apply for a relevant Advertising course?You can send me a link if possible..thanks again
Nagesh Alai answers, please e-mail me
vishal asked, why tax exemption limit fo women is more than the men.
Nagesh Alai answers, Be fair to the fairer sex :-)
Karthick asked, what will be the impact of this budget 2008-09 on home loan rates?
Nagesh Alai answers, rates are expected to ease slightly
alainag asked, what is this chat about???
Nagesh Alai answers, About Budget 2008
Raguraman asked, Why is the Advertising industry so fragmented that we do not have an association that works for the industry as such. Moreover, there is tremendous pressure by the media companies who directly approach advertizers directly and offer bigger and bigger discounts -more than the std. 15%. How can we as part of the industry fight if we do not have an association that has teeth and venom
Nagesh Alai answers, I think you are not aware of what the AAAI is doing - it has been at it. To have a disciplined approach to doing business in everyone's interest
abc asked, Why is print media exempt from service tax net and why now agencies are being asked to pay service tax on the full value of bill including payment to the press.
Nagesh Alai answers, Print media for historic reasons has been a holy cow. There seems to be a misgiving that agencies will have to pay on print medium of routed through them. The demand made on this in Chennai is erronueous under law
SandeepK asked, I'm doing MBA & wish to enter the media field, specially advertising. I dont have much knowledge in the field but i have considered it as my career option,coz it interests me a lot.Do u think the person who doesn't have any knowledge abt advertising can survive in the media field?
Nagesh Alai answers, Yes, we are not dealing with rocket science.
bj asked, is it true that IPG is looking for buyers ?
Nagesh Alai answers, it would have come out in the press if it is so
PrasoonJoshi asked, what is your take on creative guys becoming agency heads? can they manage the agency business?
Nagesh Alai answers, Anyone with their head on their shoulders and having an awareness will succeed
m asked, What is you take on the increasing gold prices?
Nagesh Alai answers, long term, it is the best hedge against inflation
sanjay asked, Hi, what is yr hoby
Nagesh Alai answers, of course, answering you
satyam asked, what is the effect of budget -08 for middle family?
Nagesh Alai answers, increase in slabs at lower rates of 10% AND 20%. so better take home
jeet asked, is there will be any impact of paycommision on private sectors
Nagesh Alai answers, pay commission is for government jobs
bj asked, Why is the starting salary so low in advertising when compared to main line companies?
Nagesh Alai answers, entry levels may be low, but over time people who perform well do exceedingly well for themselves. So do not have a wrong idea, please.
symphonyx asked, Do you think the Fed is overreacting to the slump in the US economy?
Nagesh Alai answers, No. It is a colletive imprudence of financial institutions and banks which has caused the problem. A paradox here, finances are supposed to be handled prudently which most of the companies did not do.
Aarvee asked, Hi Nagesh, Is there anything particular that has made impact for the advertising industry post the budget declaration? Any particular demands of the industry that have been taken care of?
Nagesh Alai answers, The industry did not have any specific demands.
cyrus asked, i want to switch from It industry to ad industry ... suggest ...
Nagesh Alai answers, not a bad thought.
PrasoonJoshi asked, with the likes of bbdo, w+k Crispin porter bogusky and others looking at setting shop in India...what affect do u think will it have in the industry? Given the fact that it is already struggling with a talent dearth? Will the bubble burst soon?
Nagesh Alai answers, As long as there are products offerred for consumption, advertising will be there. So dont worry, the best will survive.
symphonyx asked, How did you make a transition from being an accounting, to working in a pharmaceutical firm to being an adman?
Nagesh Alai answers, the principles of doing business are the same.
sonu asked, will u answer me??
Nagesh Alai answers, what's your question
Vibgyor asked, Hi, would you consider MBA with experiance in IT industry for positions like Account Planning in your Ad Agency?
Nagesh Alai answers, Yes
wefwef asked, Do you think it is a good idea to get into farming? I can take a lot of free loans. And banks will have no option but to grant me new loans every 5 years. And more often god willing.
Nagesh Alai answers, The grass is always "greener" on the other side!!
keshu asked, gold prices more sir
Nagesh Alai answers, Be careful if you are in it for short term
vidyasankar asked, do you think global agencies known for great creative moving into india for e.g. tbwa, bbh, bbdo india, ddb, w+k will make traditional agencies like fcb, o&m and jwt jitter?
Nagesh Alai answers, as long as an agency is successful in building brands, they will survive
Nagesh Alai says, Good bye, folks. My apologies if I have not been able to answer all questions. Have a good day.