While many sectors in India have been using digital as an integral part of brand marketing, FMCG has been largely flirting with it. Companies in Telecom, Electronics, Travel and BFSI have been spending between 5 to 35 crores annually. Most of these brands have had a year round presence across most digital media vehicles including search, display and mobile. Many of these brands are also heavy spenders on social networks, notably Facebook.

The story of FMCG has largely been one of finding the right strategic approach. After all Point of sale and ATL (TV, radio etc.) have a clear role to play in increasing awareness and pushing a sale at the point of contact. Digital on the other hand could not do much of either. When you are selling sachets of shampoo for a couple of bucks or a packet of chips for Rs. 10, digital could hardly be considered a cost effective medium.

The FMCG companies worked around this by betting on games, microsites around launches and virals with moderate digital media support to create “buzz” and build engagement. Some like Sunsilk went the furthest with Sunsilk Gang of Girls, which given the time it was conceptualized was well ahead of its time.

The equation has now changed completely with every single FMCG brand planning to enter the digital space with year long presence and a stack of cash! What has caused this change of heart? Social Networks, specifically Facebook.

With the growth of Facebook, FMCG brands now see a clear case of betting big on digital. Building a community for impulse purchase products make logical sense. Spend money to grow the community and you can expose your communication to them every day. Build some engagement for your community and you have a fairly high top of mind presence.

The Facebook audience is also relatively young and that is what most FMCG brands are after – a perfect audience fit. They are also extremely social which allows the messaging to reach a much larger secondary audience, thus amplifying the reach significantly. Just for example in a recent promotion on Twitter for our client Tata DOCOMO an analysis of 500 Tweets throws up some very interesting findings. Just 500 original Tweets  by followers reached the messaging to close to 25,000 people in 24 hours

So what’s likely to happen in 2011 with the FMCG sector? Our prediction is that most brands will be bullish on social media and spends will be between 50 lakhs to 5 crores per brand in 2011. We see FMCG adding an incremental 100 crores to the digital business in 2011. Looks like a clear win win for everyone!

The Tata DOCOMO website and social media has created a huge “Buzz” around the brand since its launch in June 2009. Digital has remained a critical element of the marketing mix for the brand since the beginning.

In this article in Pitch Magazine, Gurinder Singh Sandhu. Head – Marketing, Tata DOCOMO talks about the role of internet and the succcess it has brought to the company.

Read the article here