International Journal For Multidisciplinary Research

E-ISSN: 2582-2160     Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 7, Issue 3 (May-June 2025) Submit your research before last 3 days of June to publish your research paper in the issue of May-June.

Impact of Budgetary Allocation and Tax Policy on Digital Advertising Trends in the Indian Cosmetics Sector

Author(s) Reetika Pare, Dr. Sanjay Payasi
Country India
Abstract The convergence of fiscal strategy and digital commerce is transforming the advertising landscape in India’s cosmetics industry. This research examines the role of Union Budget 2024–25 allocations and tax policy reforms in shaping trends in digital advertising across this dynamic sector. With a significant shift in promotional strategies toward influencer-based and performance-driven digital platforms, cosmetics brands are rapidly adapting to government-led fiscal incentives and regulatory frameworks.
This paper adopts a mixed-method approach to assess the interplay between budgetary outlays, GST rationalization, digital adoption subsidies, and advertising behavior. Primary data was collected from 210 digital marketing professionals, advertising executives, and brand managers representing major Indian cosmetics brands. Analytical tools including ANOVA, regression, and factor analysis were used to quantify the influence of policy factors on digital ad investment, channel selection, and performance metrics.
Findings indicate that tax deductions on digital promotional expenses and incentives for startup-led advertising platforms have significantly improved advertising reach, ROI, and platform diversification. Social media (especially Instagram and YouTube), programmatic ad placement, and influencer-led branding have gained prominence post-budget announcements. The study also reveals that policy-driven support has not only democratized ad spending but also led to improved regional targeting and multilingual content production.
The paper concludes with strategic recommendations for enhancing transparency, standardizing digital ad metrics, and aligning brand strategy with evolving policy levers. It also underscores the importance of nurturing domestic ad-tech startups and establishing policy-monitoring mechanisms to ensure equitable market access.
Published In Volume 7, Issue 3, May-June 2025
Published On 2025-06-05
DOI https://doi.org/10.36948/ijfmr.2025.v07i03.46601
Short DOI https://doi.org/g9pzr6

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