Biscuit brands bullish on TV, digital ad insertions decline 16% in FY24

In a strategic shift that reflects evolving marketing dynamics in India's $4 billion biscuit industry, major manufacturers scaled back their digital advertising efforts in fiscal year 2024, according to a new report by AdEx India, a division of TAM Media Research.

Digital advertisement insertions in the biscuit category fell by 16 percent, even as industry giants maintained their aggressive television presence in a fiercely competitive market where brand visibility remains crucial for market share.

The digital advertising landscape was dominated by three major players, who together accounted for 85 percent of all digital ad insertions.

Britannia Industries led the pack with a 44 percent share, followed by ITC and Mondelez India Foods at 23 and 20 percent respectively.

Among individual brands, Cadbury Oreo and Brit Nutri Choice Seeds emerged as digital frontrunners, each capturing 20 percent of digital advertising share. Sunfeast Dark Fantasy Choco Fills secured 15 percent, while both Brit JimJam Pops and the iconic Parle G maintained more modest presences at 9 percent each.

Television advertising told a somewhat different story. Cadbury's brands, including Oreo and Chocobakes Cookies, commanded 17 percent of advertisement volume share. Britannia Industries maintained its leadership position with 34 percent of television advertising share, followed by Cadbury India at 22 percent and ITC at 20 percent.

Despite its relatively low profile in both digital and television advertising, Parle Biscuits reported robust financial results, posting a net profit of Rs 1,607 crore in FY24. The company, known for its 80-year-old Parle-G brand, increased its advertising and promotional spending by a modest 3.23 percent to Rs 442.81 crore.

Mondelez India Foods emerged as one of the more aggressive spenders, increasing its advertising and promotional budget by 14 percent to Rs 1,603.15 crore, up from Rs 1,396 crore in the previous fiscal year. The strategy appears to have paid off, with the company reporting a 72 percent surge in net profit to Rs 2,020 crore.

Britannia Industries also loosened its purse strings, hiking its advertising expenditure by 4.2 percent to Rs 619.37 crore, compared to Rs 594.26 crore in the previous fiscal year.

These spending patterns reflect the intense competition in India's biscuit market, where companies are increasingly relying on sophisticated branding, packaging, and marketing strategies to differentiate their products and maintain their market positions.