To showcase the growing relevance of digital for the country’s FMCG sector, Meta released findings from commissioned studies with market research firms Nielsen and Kantar on the sidelines of a FMCG marketing summit held by the tech major in Mumbai on 11 June.

The learnings cover the role of media channels in driving sales, how ROIs compare across media channels, and across product categories. 

Among the key findings, the studies underscore digital platforms, especially Meta, as the mainstay in driving brand imagery, equity, and higher return on investment across categories. 

According to Nielsen’s ‘Unveiling media ROIs 2024 for India CPG’ June 2024 report, increased investments in digital has given a high revenue pay-off for FMCG brands over the last few years, with digital bagging a 43% share of media spends as compared to Television’s 57% in 2022-23. 

Of this, 31% belongs to Meta while 59% share is from online video (OLV) and 10% from other digital platforms.

Notably, digital platforms’ contribution to overall media revenue was at 48% over TV’s 52% in 2022-23. Of this, Meta’s share is attributed to be 37% while OLV is at 54% and other digital channels are 9%, as per the study.

Additionally, the study noted that the return on investment (RoI), which is the incremental revenue generated per rupee invested is 1.42 for digital mediums vis-a-vis 0.95 non-digital mediums. Within this, the RoI from Meta is 1.76 for every rupee invested.

The report also indicates that the ROI achieved by Meta is stronger than other traditional and digital platforms across categories such as food, household care, health and hygiene, baby care and personal care.

The study further extrapolates that scaling of Meta’s share of digital investment increases the overall ROI for a brand.

Meta also released the findings from cross media studies by Kantar in India covering more than 140 campaigns across industries from 2012 -2023.

The Kantar study revealed that digital platforms contribute significantly in building a brand. Amongst digital channels, Meta has been instrumental in driving brand imagery where around 20% of all media-led brand growth comes from its platforms - Facebook, Instagram and Whatsapp.  Furthermore, digital media channels led by Meta provide the highest ROI for building mind measures, according to the study. 

Both the studies highlight that the investment by FMCG/CPG brands on Meta poses stronger returns indexed to traditional channels across categories including food, household care, personal care, baby care, laundry, and health & hygiene.

Abhinav Maheshwari, vice president APAC Nielsen, marketing effectiveness said, “In today’s fragmented ecosystem, quantifying the effectiveness of media strategies has become a daunting challenge. Cross platform nuances require a laser focused approach to uncover what truly drives performance. Nielsen Marketing Mix Modeling (MMM) enables marketers to assess the impact of their investments, understand what is working, and unlocks several opportunities to increase ROI and drive profit, bringing accuracy and simplicity to an increasingly complex advertising environment in India”. 

Arun Srinivas, director and head (India), ads business, Meta, said, “The FMCG industry is a leading contributor to the country's overall ad-ex, and a marked shift in its media consumption patterns is going to be significant for the country’s creative ecosystem and the digital economy. The studies with Neilsen and Kantar clearly demonstrate the transformative power of digital channels for the FMCG sector. Catering to such an important industry, we are excited to see Meta platforms not only enhancing brand imagery and mindshare but also delivering exceptional returns on media investments.”