Steep rise in FMCG brands adex in FY2024

Delhi: Often considered the backbone of the Indian Adex, major FMCG companies saw double-digit growth in advertising spending in FY2024, ranging from 13% to 47%. 

HUL emerged as the top spender as it allocated Rs 6,489 crore on ads in FY2024. 

Even though HUL was the largest advertiser in FY24, the highest growth was seen in Godrej's ad spend.

Even in Q4, the FMCG majors like Dabur, Colgate-Palmolive, HUL, Marico, GCPL and others increased their ad spends in double-digits, in comparison to the corresponding quarter of the previous year. 

However, on a quarter-on-quarter (QoQ) basis, FMCG brands reduced their ad spends in Q4. This decline was primarily due to the festive season and World Cup occurring in Q3, whereas Q4 lacked major events that typically drive heavy advertising expenditures.

FMCG brands adex in FY2024 vs FY2023

FMCG brands Q4 adex in FY2024 vs Q4 FY2023

FCMG brands’ adex comparison on a QoQ basis

Procter & Gamble Hygiene and Health Care adex

The brand’s advertising spending increased by 25.9% to Rs 134.09 crore in Q3 of FY24, compared to Rs 106.53 crore in the corresponding quarter of the previous year.

The company’s adex was also up by 5.8% on a QoQ basis. It had spent Rs 126.70 crore in the quarter ending December 31, 2023. 

Until March 31, the company has spent Rs 414.26 crore on ads and promotions in the financial year 2024. It had spent Rs 372.98 crore in the first three quarters of 2023.  

Total ad spends by P&G Hygiene and Health Care stood at Rs 426.52 crore in FY23. 

FMCG adex to further grow in Q1 FY25

Experts anticipate FMCG adex to further grow in Q1 of FY24 due to IPL and general elections falling in the quarter.  

In one of the previous interactions with BestMediaInfo.com, Shashank Srivastava of Maruti Suzuki, said, “Both general elections and the IPL are important media events in April 2024 and May 2024. IPL being the major cricketing event of the year will see huge ad budgets getting allocated because of its universal appeal in India as well as ad rates for cricket being higher than normal ad rates.”

“At the same time, general elections are a once-in-a-five-year event, and consumption of news increases during some key days during the elections, which makes this another important media event not to be missed,” he added.

FMCG continues to be the growth driver of Indian adex in 2024

As per GroupM, Madison and dentsu Indian adex predictions for 2024, FMCG will continue to be the growth driver for Indian ad spends.

According to dentsu’s estimates, in 2023, the FMCG category held the largest share, contributing 34% (Rs 31,428 crore) to the Indian advertising market.

Historically, approximately one-third of the annual spends in the Indian advertising industry has been attributed to the FMCG category. In 2023, the FMCG category witnessed an ad spends growth of 22.6% over 2022.

Here’s what the FMCG leaders have to say on their latest results:

Rohit Jawa, CEO and Managing Director commented, “We remain focused on driving operational excellence and have continued to build back our gross margins whilst stepping up investment in brands and long-term capabilities. Looking forward, I am optimistic that consumer demand gradually improving due to a normal monsoon and better macroeconomic indicators.”

He further said, “Our key thrusts of growing our core through unmissable brand superiority, market making and premiumisation, re-shaping our portfolio to high growth spaces and leadership in channels of future, backed by our distinctive capabilities will enable us to continue winning in the Indian FMCG sector.”

“Strong execution of our Power Brand strategy, Increased premiumisation, and distribution footprint expansion coupled with the benefit of our stringent cost reduction actions helped Daubar to report a steady performance during the fourth quarter and the full year 2023-24,” Dabur said.

"We have closed fiscal 2023-24 on a promising note, delivering our highest-ever annual operating margin with sequential improvement in both the domestic and international businesses," Marico Managing Director and Chief Executive Officer Saugata Gupta said.

GCPL Managing Director and CEO, Sudhir Sitapati said the company delivered a strong performance for all four quarters in FY 2024, despite challenging conditions across markets.

"Our consolidated organic volumes for Q4FY24 grew by 9%, led by the India business growing volumes at 7% and Indonesia growing volumes at 12%. This led to strong full-year organic volume growth delivery at 7% for our consolidated business, 6% for India and 11% for Indonesia," he added.

"From a geography lens, our rural business has grown faster than urban and we continue to see strong performance in modern trade and e-commerce platforms," Colgate-Palmolive (India) Managing Director & CEO Prabha Narasimhan said.

On the outlook, Narasimhan said, "In the coming year, we are optimistic about seeing the market recovery, the continued strengthening of our very strong brand and a robust innovation pipeline, starting with a first of its kind 'Tooth Whitening Booster' under the 'Visible White' range." 

LV Vaidyanathan, Managing Director, Procter & Gamble Hygiene and Health Care, said, “We remain committed to our integrated growth strategy of a focused product portfolio of daily use categories where performance drives brand choice and superiority — across product performance, packaging, brand communication, retail execution and consumer and customer value — productivity, constructive disruption, and an agile and accountable organisation. We are confident that these strategies will help us navigate the mid-term and deliver balanced growth and value creation.”