What will be the impact of GST on PPC?
Answers
GST initially will have a negative effect for sure on all sectors because even though most companies have made themselves ready for GST on paper but actually the entire sector is not ready at all.
Coming to PPC: Companies have to now update their GSTIN with Google Payments & Digital Marketing Agencies also have to do the same. But for Individuals it is not compulsory.
Service based companies & mostly Advertising Firms will now attract a service tax of 18%, 3% more from the previous tax regime.
However according to experts PPC will for surely gain in the longer run.
As companies will be getting benefits from Input credit of GST, their Advertising spend will surely increase as the cost of creating a creative will also be reduced.
How PPC will Benefit?
Companies will surely want to transfer this benefit to their Marketing Budget at the same time ensuring the strategy is right.
In the current scenario owing to large presence of Indian population in the Digital medium, most companies would prefer to maximise their spending in Online Marketing field.