FMCG firms will strategically boost ad spends as demand stabilizes

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₹849 crore on advertising and promotions last fiscal. “Our intent is that overall A&P (across traditional, digital, consumer promotion) would be higher than last year, which will increase our brand visibility and engagement across all platforms. While core channels remain important, we will allocate budget judiciously and strategically to explore high-impact digital opportunities as well," Jain added.

Biscuit maker Parle Products said it's A&P spends this year could be 30% more than last year, driven by cricketing events at the beginning of the current year. The company advertised during both the ongoing T20 World Cup as well as the IPL. Commodities, barring cocoa, are benign too, said Krishnarao Buddha, senior category head at Parle Products.

"So we are looking at being aggressive. Our participation in these key cricketing events indicates that we are looking at having a greater share of voice this year," he said. Dheeraj Sinha, group CEO of India and South Asia for ad agency FCB expects a single-digit jump in ad spends for the FMCG sector this fiscal.

However, more premium brands could see double-digit growth in ad spends, he said. "A lot of local players are coming up as challengers in the value and premium segments of the FMCG sector, like those in the wearables segment, shifting business to themselves and some larger players are unable to live up to their promises," he said. FCB group manages clients like Amul, Mahindra, Tata Motors, Indian Oil, ITC, and ICICI Bank.

In FY24, makers of fast-moving consumer goods reported a 10.2% jump in sales, according to data from market research firm Kantar. Rural markets too reported signs of recovery after growing behind urban markets. Several FMCG firms spotted an uptick in