FMCG cos are top 10 TV advertisers amid festive season; HUL leads the pack

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Published: October 22, 2019 4:51:17 PM

Fast-moving consumer goods (FMCG) companies including Hindustan Unilever, RB and Procter & Gamble have ramped up their advertising spends in the festive season and according to BARC data.

HUL, the parent company of brands such as Lifebuoy, Surf Excel, Dove etc was the largest advertiser with over 1.5 lakh insertions in the week ending 11 October alone.

Fast-moving consumer goods (FMCG) companies including Hindustan Unilever, RB and Procter & Gamble have ramped up their advertising spends in the festive season and according to BARC data, all of the 10 top advertisers on television medium last week were FMCG companies. While HUL, the parent company of brands such as Lifebuoy, Surf Excel, Dove etc was the largest advertiser with over 1.5 lakh insertions in the week ending 11 October alone, Dettol-fame Reckitt Benckiser (India) Ltd followed shortly, according to the latest data by Broadcast Audience Research Council Data (BARC). The latest findings are very much in line with last year where eight of 10 top advertisers were FMCG companies, BARC data from the corresponding period from last year showed. 

When asked about how FMCG advertising spends should be seen in the light of ongoing demand slowdown and festive season sales, Vashista Unwalla, Research Analyst, CARE Rating Ltd, told Financial Express Online that slowdown does not mean that people are not spending at all. “In a slowdown, consumers tend to become value-seeking and look for promotional activities. Buyers tend to delay purchases till festivals as retailers extend discounts during festival sales,” she said. Also, the upbeat consumer sentiment is evident from the fact that e-commerce players including Amazon, Snapdeal and Flipkart have reported robust sales numbers during sales, she added.

For this week, other than HUL, RB and P&G, ITC ltd which is known for brands like Fiama de wills, Godrej Consumer Products, Brooke Bond Ltd, which is a brand under HUL, Mondelez India’s Cadbury chocolate range, Ponds, Colgate Palmolive and P&G Home Products were the top advertisers across all TV genres.

Festive sales contribute to a large amount of total annual sales for FMCG companies. Even amid an economic slowdown, these companies had high hopes from festive sales at people tend to loosen up purse strings during the time. While it is generally believed that GDP numbers are proportional to advertisement spends, “in difficult times, companies have to push harder for consumers to purchase products,” Vashista Unwalla said during a CARE Ratings webinar on Tuesday. This is evident from the previous year data. While the GDP growth in FY19 stood at 6.8%, advertising spends grew by 10.2% she added.

Meanwhile, FMCG companies have been the top advertiser in FY19 as well with their advertisement spends corresponding to about 6.6% of net sales. 

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