Fast-moving consumer goods companies placed significant wagers on digital advertising
MUMBAI: To reach consumers, who increasingly depend on consuming online material, India’s fast-moving consumer goods businesses are placing a greater stake in digital advertising.
Due to this change in behaviour brought on by the epidemic, Indians are embracing internet businesses like rapid commerce. Furthermore, the only way for businesses to connect with the Gen Z and Gen Alpha cohorts—who are digital natives—is via the internet. It’s time for established businesses to adapt their marketing approaches to take advantage of this shift.
The FMCG sector has been fast to adapt; according to experts at Dentsu, 47% of the sector’s overall advertising expenditures in 2023 went towards digital media. “There are unmatched chances for real-time engagement, customised targeting, and quantifiable results in the digital world. Somasree Bose Awasthi, chief marketing officer of Marico, said, “Investing in digital advertising is imperative to maintain relevance and accessibility to our target demographic as consumers increasingly turn to online content consumption.” To increase its reach, the business makes use of social media, influencer marketing, and digital platforms.
The digital approach used by Adani Wilmar is contingent upon the kind of platform selected. For example, the organisation has a content-driven engagement approach on Meta. Companies may select messages that are specifically targeted for certain audiences and reduce spillover by using digital media. Jignesh Shah, head of media and digital marketing at Adani Wilmar, said, “We use meta ads, Google ads, programmatic partners, and content partners. It is safe to say that we are quite bullish in terms of digital spends as part of our overall media mix.”
Prior to the pandemic, Parle Products only allocated 10% of their advertising budget to digital; now, that number is above 25%. The firm advertises on a number of over-the-top (OTT) channels, content platforms like ShareChat and Dailyhunt, and even short-form video sites like Josh, in addition to Google and Meta. “The younger generation is full of cable cutters these days. Being the first generation to use mobile devices, they like to consume media whenever it’s convenient for them. Because of this, the majority of marketers are shifting their spending on advertising to digital media, according to vice president Mayank Shah. He also said that digital media now provides much more visibility for evaluating ROI, which measures the extent to which advertisements have converted into reach and sales.
ITC bases its digital efforts on its desire to increase brand accessibility and connect with the appropriate audience. Digital marketing officer Shuvadip Banerjee said that the country’s internet adoption is soaring and that its use has democratised, making digital media pervasive. Our methods for reaching customers must change along with their behaviours. In terms of total reach, digital media has eclipsed television, according to Banerjee. Customers no longer travel in straight lines. Before making an offline or online purchase, they could browse articles and reviews online. Therefore, according to Nitin Saini, vice president of marketing at Mondelez India, having a presence on both conventional and digital media channels is essential in this day and age.
Digital advertising offers several benefits, including precise targeting, customised messaging, effective ROI monitoring, data-driven insights, and the capacity to establish a brand’s presence in a crowded media environment. Furthermore, Saini said that the growth of e-commerce and rapid commerce offers a profitable path, especially for consumer packaged goods (CPG) companies. “We chose to employ digital marketing since it is becoming more and more common for people to use the internet everywhere. It is now essential for FMCG firms like ours to have a strong digital presence due to the rise in people using the internet and interacting with digital content, said Kush Aggarwal, Head of Marketing at Bikano.
