Higher smartphone use rings in FMCG mobile ad growth

22 Jan,2014

By Samidha Sharma

 

Consumer goods companies upped their media spends on the mobile platform in the past one year as smartphone penetration, coupled with a spurt in data usage, grew exponentially in the country. InMobi, a mobile advertising network, said spends by FMCG companies, which are clubbed as traditional advertisers, grew 175 per cent on its network last year. Similarly, Vserv.mobi, another mobile ad network, registered a 300 per cent increase in ad dollars while Vuclip, a mobile-focused aggregator of video content, saw its FMCG clients double their ad spends in 2013.

 

In India, FMCG saw a high uptake in the last two quarters of 2013, as five major advertisers including ITC, Reckitt Benckiser, HUL, Mondelez and Nestle ran more than 30 campaigns at a reasonably good scale as opposed to 2012 where only one consumer goods company utilized mobile effectively, said Dippak Khurana, CEO & co-founder of Vserv.mobi.

 

Buoyed by a slew of mobile-only content, the Indian mobile advertising market is estimated to reach Rs 2,800 crore by 2016 from a mere Rs 180 crore according to estimates by Avendus Capital, a Mumbai-based financial advisory firm. The Indian advertising industry is pegged at around Rs 28,000 crore with FMCG as the biggest contributor on mediums such as television and print as well.

 

“With the growth of mobile solutions companies, apps and other mobile technologies, we have seen FMCG advertisers tap the mobile in a big way over the past year. With over 800 million mobile subscribers, these advertisers targeting rural consumers find the medium extremely effective as mobile reaches even the remotest geographies,” said Basabdutta Chowdhury, CEO of Platinum Media, a division of Madison, which buys media for FMCG majors like P&G, Marico and Godrej.

 

What is significant is that India could currently have as much as 50 per cent or more mobile-only internet users, much above the global number, making the medium an attractive one for even traditional advertisers.

 

Consumer products companies are increasingly adopting a mobile-first strategy. Our growth has come from engagements with more than half of the top 25 FMCG brands, including a partnership with Unilever, said Atul Satija, VP & MD (Asia-Pacific and Japan) at InMobi.

 

Source:The Economic Times

Copyright © 2014, Bennett, Coleman & Co. Ltd. All Rights Reserved

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