If we talk about advertising, FMCG industry is on the top of the list, it forms the major part of advertising budgets in India. According to a report by ASSOCHAM this industry is growing at the rate of 20% despite facing recession. Consumer goods industry has been the most aggressive in terms of its advertising campaigns over television, print or radio. Now the question here is whether this industry is adopting internet as its platform to connect with the customers ?

Internet advertising industry accounts for Rs 650 crore business in India. FMCG companies has definitely found a way of engaging their consumer group in a dialogue. PepsiCo “Lays” has successfully completed its recent “yourlaysflavor.com” contest over internet.

Likewise Sunsilk launched its “sunsilkgangofgirls.com” campaign to engage the target over internet and giving them solutions regarding their hair troubles, to latest fashion trends. There are many examples to cite. All these measures are taken to keep the brand alive in the mind of customers, which further helps in brand recall.

Cyberspace management is not only a place to advertise but also provide a groundswell for acceptation or rejection of brands. PepsiCo launched its “One People” campaign online  “refresheverything.com”, the latest effort by a company to let consumers have a say in how its philanthropic dollars should be spent, voting opened this week in Pepsi’s Refresh Project. These type of projects are major brand building exercises taking place in the and around the consumer goods industry. However, the charm of these campaigns is that people don’t see it as an advertising campaign, but a way to communicate with the organization.

In 2009  PepsiCo has appointed Microsoft for the first time to produce its biggest online campaign.  Bruno Gruwez, marketing director UK Beverages at PepsiCo, said: “We wanted to make sure we were in the digital space as that’s where our consumers are and we will continue to increase investment in the digital space.”

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Internet advertising, a Rs. 650 crore industry in India today, is still largely formed of banner ads which also happen to be the oldest form of advertising on the net and eat up the least amount of bandwidth. Courtesy slow internet speeds especially in home connections, advertising modes which take up more bandwidth, like video ads and high graphic pop ups, become un-viable. However, with the broadband revolution slowly beginning to move from metros to the Tier 1 and Tier 2 cities, the online marketing and advertising landscape is fast changing. In terms of sectoral share, financial services occupy the largest chunk of the online advertising space in the country with 40-50% of the market share – one reason being that most of the financial services customers are office employees who access internet during work. But does that work for FMCG too?

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