FMCGs will increase their advertising investment budget

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In 2020, FMCG firms' advertising spend fell sharply as they faced distribution infrastructure issues in order to get products to consumers quickly enough.

As for the growth it could experience, a rebound in 2021 is almost inevitable , although it will still be 6% below 2019 levels. Overall, Zenith estimates annual growth in FMCG advertising afghanistan telephone number data investment between 2020 and 2023 of 4.4%, reaching $30.3 billion in the latter year.

At that time, the economy will have fully recovered from the fall in investment caused by the pandemic, surpassing 2019 levels.

India and China, two bastions of advertising investment
Over the next three years, India will be the market that will grow the most , with 14% growth each year. The other markets in the report, meanwhile, are expected to grow steadily between 2 and 5% annually.

China stands out as the market where companies have most quickly adopted e-commerce and digital advertising. In fact, in 2020, Chinese brands invested 71% of their budgets in digital advertising , compared to 46% across the 12 markets.

In this country, companies focus on online video and live streaming with influencers , where products can be purchased directly, as if it were a point of sale.

“E-commerce will be the key battleground for FMCG brands’ growth in the coming years,” said Jonathan Barnard , Head of Forecasting at Zenith. “Western brands should look to China for best practice in using digital communication to drive FMCG e-commerce sales,” he advises.