Tuesday, December 14, 2010

FMCG companies expected to spend 10% of their ad budget on digital in 18 months

Wheel Detergent ad in rural Nepal area.Image via Wikipedia
Fast moving consumer goods (FMCG) companies in India, which have been traditionally advertising in television, outdoor and print and have just started experimenting with digital medium by allocating 1-3 per cent of their total advertising budget to digital, are expected to increase their digital spend to 10 per cent in the next 18 months. 

Pushkar Sane, chief digital officer, North and South Asia, Starcom MediaVest Group, has said that online advertising budget outlays of FMCG companies in India will increase from the current 1-3 per cent of the overall budgets to close to 10 per cent -- at par with the Western countries -- in the next 18 months. “As marketers experiment with the medium and get success, online advertising will grow exponentially,” Sane has been quoted by Business Standard as saying. 

According to digital advertising and technology company Komli Media, some of the FMCG companies like Hindustan Unilever, Proctor & Gamble, Cadbury’s and Tata Tea have already increased their digital ad budgets upto 8-10 per cent for individual brands. “FMCG companies are experimenting with increased budgets for one or two brands by increasing the brand outlay from 1 per cent to 3-5 per cent. It’s even 8-10 per cent in some categories,” Prashant Mehta, chief operating officer, Komli, has said.

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