India’s Biscuit Market Sees 16% Drop In Digital Ad Spend, TV Ads Dominate

In a shift within India’s $4 billion biscuit market, major manufacturers reduced their digital advertising expenditures in the 2024 fiscal year, according to a recent report by AdEx India. The biscuit category saw a 16 per cent decline in digital ad insertions, even as leading brands maintained a robust presence on television, underscoring the continued importance of brand visibility in a fiercely competitive market.

Among the digital advertising spend, three dominant players accounted for 85 per cent of all ad insertions. Britannia Industries led with a 44 per cent share, followed by ITC and Mondelez India Foods, with 23 per cent and 20 per cent, respectively. Within individual brands, Cadbury Oreo and Britannia NutriChoice Seeds were the top digital advertisers, each capturing 20 per cent of the digital ad share. Sunfeast Dark Fantasy Choco Fills secured 15 per cent while Brit JimJam Pops and Parle G had smaller shares at 9 per cent each.

Television advertising revealed a different picture, with Cadbury brands, including Oreo and Chocobakes Cookies commanding 17 per cent of ad volume. Britannia retained its leadership position on TV with a 34 per cent share, followed by Cadbury India at 22 per cent and ITC at 20 per cent.

Despite modest investments in both digital and TV advertising, Parle Biscuits reported strong financial results, posting a net profit of Rs 1,607 crore in FY24. The company, home to the Parle-G brand, increased its advertising budget by 3.23 per cent to Rs 442.81 crore.

Meanwhile, Mondelez India Foods was one of the more aggressive spenders, boosting its advertising and promotional budget by 14 per cent, reaching Rs 1,603.15 crore, up from Rs 1,396 crore in the previous year. This investment paid off, with the company reporting a 72 per cent jump in net profit, reaching Rs 2,020 crore. Britannia also ramped up its advertising spend, increasing its budget by 4.2 per cent to Rs 619.37 crore, compared to Rs 594.26 crore the previous year.

These spending trends highlight the fierce competition in India’s biscuit industry, where companies are increasingly using advanced branding, packaging and marketing strategies to stay ahead in the market.