More Bucks, More Bang: What the Union Budget 2024 Means for Marketers

Hello & namaste youngistan!

The Union Budget 2024 is out, and as always my eyes were on the lookout for what changes (and what does not) for marketing janta. Not to mention the conscious effort to de-jargonize economic mumbo-jumbo and make it simple for a 5th grader to understand.

If you’re a marketing manager, advertiser, or a creative/media agency professional, read on…

1. More Money, More Marketing

The Standard Deduction has been increased from Rs 50k to Rs 75k, along with newer tax slabs in the New Regime. This change is expected to save salaried folks around Rs 17.5k. More cash in people's pockets means more spending. And you know what that means? Brands and companies will likely boost their marketing spends to tap into these consumers’ wallets!

Picture this: the average Indian consumer with a little extra cash will probably splurge on upgrading their smartphones, wardrobe, travel plans, or dining out. Cue the marketing comms like “Switch to xxx”, “Upgrade to xxx”, or “Step up to xxx”! These messages will subconsciously hit home. And here's a fun fact: over 66% of income tax payers are part of the new tax regime.

2. ‘First Time’ is always special: Job Creation Boost

Those newly entering the workforce (EPFO) with wage/salary less than Rs 1 lakh per month will be given month’s wage as subsidy (maximum Rs 15,000) . The scheme is expected to benefit?2.1 crore youth.

The Union Budget 2024 has a special focus on job creation, with incentives for both employers and employees (INR 15k to 1st jobbers). This is set to boost consumption as more new entrants flood the job market. More jobs mean more spending, and more spending means… you guessed it, more marketing opportunities!

3. EV-olution: Keep your marketing comms ‘Green’

While it didn’t directly mention the EV sector, 2024 Union Budget?waives import duties on critical minerals like lithium to indirectly support the EV industry. This move will indirectly fuel the growing EV wave in the country. With increasing disposable income and decreasing EV costs, the trend is set to rise, giving a boost to green marketing communications.

GenZ, being the eco-warriors they are, prefer brands that align with their values of sustainability and eco-consciousness. Marketers, take note: don’t just pay lip service to these buzzwords. Infuse them into your brand values.

4. Digital + Rural Push = More Marketing ‘Reach’!

The government's push for digital infrastructure and capital expenditure targeting rural areas is a win-win for marketers. As the rural economy expands and more people get online, it opens up a fresh pool of Indian consumers for your reach!

Expect digital ad spends to increase over time. And here’s a fun tidbit: the choice to use tablets and not physical paper to present the budget itself sends a strong signal to 150 Cr Indians of where we’re headed! ??

So, there you have it, marketers. When it comes to your campaign comms, keep it fresh, keep it relevant.

Happy marketing!