FMCG giants scale back traditional advertising as digital channels gain favor

While television and print saw notable declines, overall marketing outlays from publicly listed FMCG firms remained robust, albeit redirected to digital and emerging platforms.

By  Mansi JaswalJun 13, 2025 6:26 PM
FMCG giants scale back traditional advertising as digital channels gain favor
TV ad durations for FMCG brands declined 12% in fiscal 2025.

In response to tepid urban consumption and persistent inflation, some of the country's largest FMCG companies have scaled back their presence in traditional advertising media over the past fiscal year, favoring more targeted and digital channels instead.

Television advertising for FMCG brands declined 12 percent in fiscal year 2025, according to data from TAM AdEx, a division of TAM Media Research. The reduction reflects a broader shift in marketing strategies as companies recalibrate their outreach to consumers amid changing media consumption habits.

Despite the downturn, Hindustan Unilever Ltd. (HUL) and Reckitt Benckiser (India) retained their positions as the leading advertisers on television, accounting for 22 percent and 18 percent of FMCG ad durations, respectively. Household brands such as Harpic, Dettol and Lizol maintained notable visibility on screen.

The contraction was even more pronounced in print media, where FMCG advertising space shrank by 20 percent year-over-year. Dairy giant Gujarat Cooperative Milk Marketing Federation (Amul) and Emami Limited led in print, holding 5 percent and 4 percent market shares, respectively. Patanjali Ayurved, however, slashed its print advertising from 5 percent in FY24 to just 2 percent in FY25.

While television and print saw notable declines, overall marketing outlays from publicly listed FMCG firms remained robust, albeit redirected to digital and emerging platforms. Dabur India Ltd. reported a 1.83 percent year-on-year increase in advertising expenditure, reaching Rs 864.64 crore in FY25, up from Rs 849.06 crore the previous year.

“The advertising ecosystem has evolved significantly post-COVID,” said Vaishal Dalal, Co-founder & Director, Excellent Publicity. “FMCG brands are increasingly investing in performance marketing, influencer collaborations, and Connected TV. While ad durations on traditional platforms may have dipped, actual spend has remained fairly stable.”

Marico Ltd. increased its ad and promotional spending by 18.4 percent to Rs 1,128 crore in FY25. Britannia Industries emerged as a digital frontrunner, claiming a 44 percent share of FMCG digital advertising. “With the right balance of insight, creativity, and innovation, we aim to ensure our brands remain engaging and relevant,” said Siddharth Gupta, the company’s General Manager for Marketing.

Emami Ltd. also adopted an assertive approach, committing over Rs 690 crore to advertising during FY25. “We intend to continue at this level in FY26,” said Mohan Goenka, the company’s Vice Chairman and Whole-Time Director. “If summer sales hold steady, we expect to see favorable results in the coming weeks.”

Patanjali Foods directed 3.36 percent of its fourth-quarter revenue toward advertising and sales promotions, totaling Rs 325.66 crore, while Godrej Consumer Products Ltd. modestly increased its annual ad spend to Rs 1,020.22 crore.

In a notable exception, Hindustan Unilever trimmed its annual advertising expenditure, reducing it to RS 6,028 crore in FY25 from Rs 6,380 crore a year earlier.

Tata Consumer Products Ltd. has yet to disclose detailed advertising figures, though Chief Financial Officer Ashish Goenka said the company’s promotional strategy remains aligned with revenue growth goals. “Our ad and promotional expenses are being scaled appropriately in line with our top-line growth,” he said.

Dalal noted a growing preference among marketers for “high-impact, measurable platforms,” including Connected TV. “Brands are no longer chasing visibility for its own sake,” he said. “They’re choosing relevance and effectiveness, and the Q4 uptick in ad spending highlights a more strategic approach.”

First Published on May 22, 2025 8:04 AM

More from Storyboard18

Advertising

As ad giants merge and markets shift, agencies turn to brand refreshes

As ad giants merge and markets shift, agencies turn to brand refreshes

Advertising

Cannes Lions to impose stricter integrity standards including three-year ban amid AI concerns

Cannes Lions to impose stricter integrity standards including three-year ban amid AI concerns

How it Works

Spoiled milk and rotten promises: Q-comm firms' hygiene lapses threaten FMCG brand ties

Spoiled milk and rotten promises: Q-comm firms' hygiene lapses threaten FMCG brand ties

Advertising

Google expands AI-driven ads in India, betting on generative search to power growth

Google expands AI-driven ads in India, betting on generative search to power growth

Brand Makers

Microsoft's Cindy Rose to succeed Mark Read as WPP CEO

Microsoft's Cindy Rose to succeed Mark Read as WPP CEO

How it Works

Chrome killers? How OpenAI and Perplexity AI browsers could rewire Google’s ad empire

Chrome killers? How OpenAI and Perplexity AI browsers could rewire Google’s ad empire

Brand Marketing

Cannes Lions Grand Prix Spotlight: How PENNY turned price into packaging - and won big

Cannes Lions Grand Prix Spotlight: How PENNY turned price into packaging - and won big

Brand Marketing

YouTube cracks down on repetitive content: Monetisation only for original creators from July 15

YouTube cracks down on repetitive content: Monetisation only for original creators from July 15