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Wherever FMCG advertisers go, ad dollars follow. Once firm believers in the charm of the ‘idiot box’ and the power of print, FMCG players are leaning more towards digital, while continuing to invest in traditional mediums as well.
Pitch Madison Advertising Report 2025 (PMAR) numbers say the FMCG sector’s category contribution towards traditional mediums like TV, print and radio, stood at 33% in 2023, dipping slightly to 32% in 2024.
Gunjan Khetan of Perfetti Van Melle highlighted that with FMCG leading in multiple categories, brands would either increase spending on TV and print or shift more towards digital.
A recent TAM AdEx study said that the FMCG industry's TV and print advertising volumes have significantly decreased in the first half of 2024 when compared to the same period in 2023. Particularly on TV, FMCG ad volumes witnessed a de-growth of 6% over the same period last year.
Why the shift?
Marketers noted that the advantages of digital media have restrained the expansion of traditional media. Digital platforms enable marketers to increase audience engagement and provide more precise information into the efficacy of their campaigns.
Nevertheless, FMCG brands are still allocating a lion’s share, about 70% of their ad spend to television as per PMAR, and the rest is digital.
Mayank Shah, Vice President of Parle Products also explained that this shift from TV and print to digital is because it gives marketers the capabilities of finer targeting as compared to TV and other traditional mediums.
A decade back Parle invested less than 10% on digital, but today that same number has ballooned to one-third of their total marketing spend.
“It's obvious that the FMCG companies would move towards advertising on digital. Unlike the other mediums, like outdoor, they are only visual mediums. If you talk about radio, it's really just an audio medium. Therefore, except for TV, there is no other traditional medium which is audio-video,” Shah added.
The shift towards digital advertising is a natural and strategic response to the evolving behaviour of today’s consumer. Millennials and Gen Z, who make up 52% of the population, are deeply engaged online, consuming content at a rapid pace across various platforms, as per Khetan. Their attention spans are shorter, and they prefer quick, interactive content, something digital delivers far more effectively than traditional media.
Today’s consumers, especially younger demographics, spend more time on digital platforms than on TV or print. Zoff Foods opt for digital ads to provide real-time analytics, allowing brands to track conversions, optimize spends, and achieve better ROI. With impulse buying on the rise, digital ads directly drive sales by integrating with shopping platforms.
As per Zoff Foods, over the past year, their digital AdEx has grown by approximately 40%. Given the evolving consumer behavior and the rise of quick commerce, digital is now a critical component of their marketing strategy.
Unnati Gala, Chief Communications Officer, Galaji Spices also agreed that they have significantly increased their digital ad spends, by about 36% compared to previous budgets. “The primary reason is that digital advertising provides a highly targeted approach, ensuring better ROI. For a brand like ours, which caters to a niche audience, digital media offers precision and efficiency that traditional channels often lack,” he shared.
Unlike traditional advertising, digital ads provide real-time analytics, helping brands optimize campaigns for maximum impact. This level of control and insight makes digital the preferred choice for many FMCG brands.
Dabur’s Rajiv Dubey noted that FMCGs have traditionally been advertising more on television, and roughly between 33-40% on digital. This shift has been happening gradually because a few years back this number was just about 10-15%.
But, dependence on digital is always based on the target audience in urban areas. Where the area is serviceable through quick commerce and e-commerce, there is a higher dependence on digital media.
“As there is a shift in purchase behaviour from regular GT stores to e-commerce and quick commerce, more money is going to shift towards the digital side,” he added.
For Continental Coffee, digital spending has doubled with a 100% increase over the past financial year. Raja Chakraborty, the CMO, believes that the growing penetration of smartphones, affordable internet access, and the rise of e-commerce have made digital a crucial touchpoint for engaging with their audience more effectively.
Successful strategies
Social media engagement, influencer marketing, hyper-personalisation, quick commerce presence are some of the strategies that have helped FMCG players the most with changing consumer behaviour.
Instagram ads have been the most effective, especially with the rise of Reels for Galaji Spices. As more people engage with food-related content, the platform has become a hub for discovering new brands.
He said, “The growing trend of users sharing food reels has amplified visibility, making it a modern-day version of word-of-mouth marketing. Additionally, today’s buyers rely heavily on peer recommendations and influencer content, making Instagram a key channel for engagement and conversions.”
Zoff Foods has used AI-driven insights and first-party data to optimize campaigns for different consumer segments. Moreover, snackable content on Instagram Reels, YouTube Shorts, and regional language videos help them connect better with Gen Z & Millennials.
Along with this, leveraging WhatsApp, Instagram DMs, and live commerce to drive direct consumer engagement and high visibility on platforms like Blinkit, Zepto, and Amazon with performance-driven ads has worked wonders for the D2C spice brand.
Chakraborty shared their focus on storytelling through engaging and informative content, including short-form videos, brewing guides, coffee recipes, and brand-led initiatives that foster a deeper connection with their audience has been an important game plan. Additionally, interactive experiences such as virtual coffee tastings, augmented reality (AR) filters, and engaging contests help them enhance brand recall and consumer engagement.
"The rise of OTT platforms has also opened new opportunities to connect with engaged, niche audiences. With more consumers shifting to on-demand content, OTTs offer a highly effective way to expand our reach, particularly in urban and regional markets. By integrating our brands into premium content on these platforms and leveraging unified programmatic campaigns, we are able to drive incremental reach and build deeper connections with viewers," Khetan mentioned.
What’s in for 2025?
As per PMAR, while digital is expected to continue growing and increasing its market share, TV will remain under pressure. That said, there has been a noticeable shift back to television by certain brands, particularly for high-impact shows, alongside some organic growth from FMCG brands.
Overall, this Union Budget 2025 is said to have given the push to drive growth in discretionary spending, boosting demand in consumption-heavy sectors such as FMCG, Retail, Automobiles, Real Estate, and Travel— traditionally the largest contributor to advertising in India, according to PMAR.
As brands navigate this dynamic landscape, a balanced approach across digital and traditional media will be key to capturing consumer attention and driving growth.
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