Fast-moving consumer goods (FMCG) companies in India are progressively relying on digital advertising to connect with customers, particularly as many individuals now prefer consuming online content.
The pandemic has triggered a significant shift in behavior, leading Indians to increasingly embrace online services such as quick commerce. Furthermore, to effectively target the Gen Z and Gen Alpha generations, companies must leverage online platforms to connect with these digital natives. It’s high time traditional companies revamped their marketing strategies to capitalize on this transformation.
In 2023, the FMCG industry rapidly embraced digital advertising, with approximately 47% of the sector’s total ad expenditures directed towards digital media, according to analysts at Dentsu.
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“Personalised targeting, real-time engagement, and quantifiable results are all made possible by the digital landscape. “Investing in digital advertising is essential to maintain relevance and accessibility to our target demographic as consumers increasingly turn to online content consumption,” stated Marico‘s chief marketing officer, Somasree Bose Awasthi.
The company employs a combination of digital platforms, social media, and influencer marketing to enhance its outreach.
Adani Wilmar tailors its digital strategy based on the platform selected. For example, on Meta, the company emphasizes a content-driven engagement approach. The digital medium enables companies to craft targeted communications for particular audiences, reducing unnecessary reach.
Jignesh Shah, Head of Media and Digital Marketing at Adani Wilmar, stated, “We predominantly utilise Meta ads, Google ads, programmatic partners, and content partners. it is fair to say that we are somewhat upbeat on digital expenditures as part of our overall media strategy.”
Parle Products now allocates more than 25% of its advertising budget to digital, up from 10% before the pandemic. In addition to Google and Meta, the company advertises on various OTT (over-the-top) platforms, content platforms such as ShareChat and Dailyhunt, and even short-format video platforms like Josh.
“Many in the younger generation are now cord-cutters. They prioritize mobile-first experiences and prefer to consume media on their own terms. This shift is prompting most advertisers to allocate more of their advertising budget to digital,” stated Vice-President Mayank Shah. He added that the digital medium currently provides much clearer visibility for assessing ROI (return on investment), indicating how effectively ads translate into reach and sales.
ITC’s digital investments are motivated by its goal to target the appropriate audience and optimize the accessibility of its brand. According to Shuvadip Banerjee, Chief Digital Marketing Officer, as internet penetration expands nationwide and its usage becomes more widespread, the digital medium has become omnipresent and democratized.
“As consumer behaviour evolves, so too must our approaches to reaching them. In terms of total reach, digital media currently outreaches television,” said Banerjee.
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Consumers no longer follow a linear purchasing path. Before making a purchase, whether online or offline, they often browse through content and reviews on the internet. Therefore, it is crucial in today’s world to have a presence on both digital and traditional media platforms, emphasized Nitin Saini, Vice President of Marketing at Mondelez India.
“The benefits of digital advertising are numerous, including precision targeting, personalized communication, robust ROI tracking, data-driven insights, and the capability to establish a brand presence in a crowded media environment. Moreover, the growth in e-commerce and quick commerce offers a lucrative opportunity, especially for consumer-packaged goods (CPG) brands,” stated Saini.
“Our choice to utilize digital marketing is rooted in the rising prevalence of digital users worldwide. With more people accessing the internet and engaging with digital content, it has become essential for FMCG companies like ours to establish a robust digital presence,” emphasized Kush Aggarwal, Head of Marketing at Bikano.
