As platforms like Meta are set to command a lion’s share in advertising revenue, a report by Nielsen released on Tuesday found that consumer brands advertising on Meta command a significantly higher return on investments in comparison to traditional media channels.
According to Nielsen, between 2022-23 incremental revenue per rupee invested for traditional channels like television was 0.65 rupees, this ROI metric was nearly double at ₹1.76 for Meta.
For consumer goods such as food, household care, health and hygeine these numbers were even higher at 2.6, 1.8 and 1.8 respectively.
Speaking at the sidelines of the report launch, Arun Srinivas, Director & Head of Ads Business for Meta told businessline that engagement for consumer brands on Meta is agnostic of geographies and even of brand categories.
“Meta’s digital ads have made consumer goods aspirational across tier2- tier3 markets as well. Even though the growth will be higher in urban hubs we are seeing significant growth in other parts of the country. Top traditional consumer brands want to work with Meta to to deepen their engagement,” Srinivas said.
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Typically FMCG brands advertise heavily on traditional media like television, especially for their mainstream products because that is where the consumer audience for their product categories lies. However, according to Srinivas, there is a paradigm shift taking place even for consumer brands and where they advertise. Srinivas said that he believes that the way traditional consumer brands build ads for consumers also needs to change as a result.
“We want advertisers to develop content for the medium specifically. Typically traditional advertisers adapt their existing assets to short form videos, which while it provides reach does not drive the degree of engagement as short form ads really would,” he said.