FMCG Giants Surge in Ad Spends, Vying for Dominance in Quick Commerce Battleground

FMCG Giants Surge in Ad Spends, Vying for Dominance in Quick Commerce Battleground​

The Rise of Digital Marketing for FMCG Brands​

The landscape of Fast-Moving Consumer Goods (FMCG) is rapidly shifting, with brands increasingly leveraging digital and quick commerce platforms. These channels have become critical not only for sales but also as key points of product discovery. Major players like Nestle India, Dabur India, and Hindustan Unilever are actively increasing their advertising and promotional expenditures to maintain relevance and drive growth in this highly competitive environment.

Quick commerce platforms have seen a significant boom in advertising revenue over recent years, establishing brand spends as a core component of their business model. This trend underscores the strategic importance of these speedy delivery channels for FMCG companies navigating modern consumer behavior.

FMCG Majors Adjusting Digital Spending Mix​

Nestle India is consistently raising its investment on quick commerce channels as digital sales surge. The company is intensifying its focus on technology-led sales, aiming to achieve penetration-led volume growth in the upcoming quarters.

Dabur India has similarly recalibrated its digital spending approach. Ankush Jain, CFO at Dabur India, noted that while overall Advertising and Promotion spends are aligned with business needs and market share growth goals, "rebalancing is done between ATL and BTL spends in view of the market situation and competitive intensity."

Below-the-line (BTL) marketing, which is more targeted toward specific consumer groups, allows companies to closely track their return on investment. This contrasts with above-the-line (ATL) marketing, which typically involves broader campaigns aimed at building widespread brand awareness.

Quick Commerce Fuels Exponential Ad Revenue Growth​

The financial dynamics of the quick commerce industry highlight the power of brand visibility. IPO-bound quick commerce company Zepto reported that its advertising revenue increased by 151 percent to Rs 1,636 crore in FY26, up from Rs 651 crore in FY25. This impressive growth significantly outpaced the company’s overall revenue increase of 104 percent during the same period.

For Dabur, quick commerce represents a substantial segment of its digital business. Mohit Malhotra, global CEO at Dabur India, stated that the channel is growing at nearly 50 percent. Consequently, quick commerce now accounts for 70 percent of e-commerce sales for the company, which was 50 percent in the previous December quarter.

Building Dedicated Capability to Conquer Quick Commerce​

The intensification of new product development, driven by rising competition from private labels and direct-to-consumer brands, has further fueled this strategic pivot.

Hindustan Unilever (HUL) has responded by establishing a dedicated quick commerce organization. CEO Priya Nair informed analysts that this organization is specifically focused on improving effectiveness within the channel. This includes managing demand generation through marketing, ensuring availability and supply chain readiness, technology integration, and developing an end-to-end go-to-market strategy tailored for quick commerce, distinct from general trade.

Industry experts emphasize the discovery function of these platforms. Anand Ramanathan, partner at Deloitte South Asia, noted that "quick commerce is becoming a great platform for product discovery," leading to increased spends on these channels.