India Inc On An Ad-renaline Rush!

IN HIS 1963 BOOK, Confessions of an Advertising Man, David Ogilvy articulated an interesting insight: “The manufacturer who dedicates his advertising to building the most sharply defined personality for his brand will get the largest share of the market at the highest profit.” This insight seems to be reverberating through the corporate corridors of India Inc. today, where a growing number of companies are pouring immense resources into advertising and publicity, each striving to carve out a distinct identity in the minds of consumers.

In the heart of Mumbai, the towering billboards of Tata Motors’ latest electric vehicles stand as bold signals of this ongoing advertising blitz. As the third-largest passenger vehicle player and the leading electric vehicle brand with a market share of over 70%, Tata Motors has emerged as the nation’s largest advertiser, investing a remarkable ₹9,221 crore on ‘publicity’ in FY24. This aggressive spend, which accounts for 2.11% of its net sales, underscores Tata’s strategic push to dominate the automotive sector — both in traditional vehicles and EVs.

“We are focusing on retail acceleration backed by effective marketing campaigns, micro market focus, and targeted product interventions,” shared Shailesh Chandra, managing director of Tata Motors Passenger Vehicle and Tata Passenger Electric Mobility, during a recent earnings call.

But Tata Motors isn’t alone in its pursuit of consumer attention. Analysis of 280 companies from the BSE 500 universe reveals that India’s corporate giants are ramping up their marketing spend like never before. The cumulative expenditure on advertising and publicity among these companies surged from ₹54,288 crore in FY14 to an impressive ₹79,488 crore in FY24, marking a 46% increase over the past decade, and 30% jump over ₹70,542 spent in FY19.

FMCG heavyweight Hindustan Unilever (HUL) is right behind Tata Motors, investing ₹6,489 crore into advertising last year, a notable increase from ₹4,907 crore in FY19. For HUL, this isn’t just about visibility; it’s a critical strategy for maintaining market share amid intense competition from local and global players alike. In a landscape dominated by thousands of choices, brands such as HUL know that consistent, high-impact advertising can make all the difference.

The top five ad and publicity spenders — Tata Motors, HUL, Grasim Industries, State Bank of India (SBI), and ICICI Bank — together spent ₹25,690 crore on advertising in FY24. Grasim, for instance, spent ₹3,702 crore, or 2.83% of its net sales, to maintain its market presence across textiles, chemicals, and the newly found consumer segment in paints. SBI, India’s largest public sector bank, spent ₹3,449 crore to push its growing suite of digital banking products, aiming to attract customers from both urban and rural areas. ICICI Bank spent ₹2,829 crore — an expenditure focused on promoting its innovative digital services in a highly competitive financial landscape.

While the top five names reflect the continuing influence of legacy sectors in India’s advertising arena, the landscape is evolving.

A new breed of digital and tech-savvy companies is starting to make waves with equally bold advertising budgets. Zomato, for example, has climbed the ranks to become one of India’s top 10 ad spenders, allocating ₹1,432 crore in FY24 — an impressive leap from ₹1,227 crore in FY19. For Zomato, this ad spend represents 11.82% of its net sales and underscores the company’s goal of cementing its presence in the highly competitive quick-commerce market. As it extends its reach through ventures such as Blinkit, Zomato is leveraging marketing to build a brand that resonates deeply with consumers accustomed to instant gratification.

And Zomato isn’t the only digital-first company following this trend. PB Fintech, the parent company of Policybazaar and Paisabazaar, spent ₹872 crore on advertising — an astonishing 25.38% of its net sales. This focus on customer acquisition and brand building reflects a deliberate strategy to quickly establish itself in a crowded fintech space, where consumer trust and awareness are paramount. Such levels of ad intensity indicate that these new-age companies are not just participating in the market but actively trying to reshape it through brand recognition and customer loyalty.

When analysing these numbers, in terms of sectors, automotive sector retains the top slot with Tata Motors, Maruti Suzuki (₹1,041 crore), and Hero MotoCorp. (₹1,090 crore) investing significantly in marketing to navigate a rapidly changing landscape. As electric vehicles gain traction, these companies are vying for early dominance in a sector poised for dramatic transformation. FMCG remains another advertising juggernaut, with HUL, Godrej Consumer Products (₹1,336 crore), and Dabur (₹849 crore) keeping their ad budgets high to maintain consumer trust and brand loyalty in a crowded market. With consumers looking for more than just savings accounts, banks are doubling down on digital products and marketing campaigns that communicate a future-ready image.

Interestingly, several firms are adopting what could be called an “advertising first” approach, allocating a significant portion of their revenue.

The data reveals that PB Fintech leads in advertising intensity, spending 25.38% of its net sales on ads, reflecting a high focus on customer acquisition and brand visibility in the competitive fintech sector, while Emami and Angel One follow with ad spends of 18.23% and 17.31% of sales, underscoring the importance of brand recall in FMCG and the brokerage industry’s need to attract clients; e-commerce players such as Zomato and Easy Trip Planners invest 11.82% and 13.90% of their sales into advertising, aiming for rapid growth and user engagement. Traditional sectors such as real estate have lower ad spend percentages but still prioritise advertising selectively, as seen with Godrej Properties at 12.02%, reflecting how companies across industries use advertising to enhance consumer connection, differentiate themselves, and adapt to sector-specific challenges and opportunities.

Digital platforms are reshaping how companies connect with their audiences, enabling more personalised, data-driven advertising strategies. But traditional media is far from obsolete. Major players such as Tata Motors and HUL continue to dominate with broad-reaching campaigns that cover every inch of India’s media ecosystem — from print and TV to digital and outdoor advertising. As Tata Motors leads the automotive sector’s shift towards EVs, it’s joined by disruptors such as Zomato, whose campaigns capture the zeitgeist of a generation raised on smartphones and instant delivery apps.

Of the companies in the BSE 500 list, 41 spent between 1 and 2% of their sales with a cumulative spend of ₹13,331 crore, 34 spent between 2-4% of their sales with a cumulative spend of ₹25,121 crore, while 16 spent between 4-6% of their sales with a spend of ₹6,224 crore.

As companies continue to navigate the complexities of the Indian market, advertising will remain a critical tool for differentiation and growth. But as Ogilvy mentioned, the true test will be how the spend translate into real profits for India Inc.