FMCG firms hike ad budget by 60% this year: Assocham

NEW DELHI: FMCG companies have hiked their advertising and promotional budget by 60 per cent this year to perk up demand and shore up revenues during the upcoming festive season, industry chamber Assocham said on Wednesday.

Despite a slowdown in economic growth during the first quarter of 2011-12, many companies plan to unveil new products during the upcoming festival season and back their marketing plans with aggressive advertising, discount offers and brand promotion, the chamber said.

The festival season generally accounts for 40-45 per cent of annual ad spends by Indian companies, it said, adding "The trend is likely to continue this year as well".

Electronics sector is spending the most in advertising in 2011, followed by retail, auto and mobile cellular services.

Most of the FMCG companies see the festive season as a perfect time to advertise their products.