Companies like Hindustan Unilever, Proctor & Gamble, Cadbury's and Tata Tea have increased their digital ad budgets for individual brands. "FMCG companies are experimenting with increased budgets for one or two brands by increasing the brand outlay from 1per cent to 3-5 per cent. It's even 8-10 per cent in some categories,"says Prashant Mehta, chief operating officer, Komli, one of the largest digital advertising and technology companies in India.

The biggest plus point is that it is an interactive medium, so customers can be roped in easily. Look at the success of Sunsilk's sunsilkgangofgirls.com or Mattel's barbie.com. The GoaFest's internet & new media category saw a surge in entries, with the winners being brand campaigns such as Axe Spray Chocolate, Cadbury's `Celebrate with Cadbury Dairy Milk' and Tata Tea's `One Billion Votes'. Each of them had a huge role to play in the success of the brands.

But many FMCG companies say the digital medium will have only a limited role to play for some time, given the low internet penetration in the country. "The medium is not suitable for mass market brands as the target audience is not present online. It is better suited for brands targeted at urban consumers, professionals and housewives,"says Sangeeta Talwar, executive director, Tata Tea.

Not many agree with that. "FMCG companies must change their mindset to use the medium more effectively. They are used to one-way communication (television, print) and are using the medium largely to supplement their mass media campaigns and for one-way interaction,"says Rajesh Ghatge, executive director and chief operating officer of 141 Sercon, a digital media marketing company.

But these companies shouldn't forget that it's a growing medium that is being used by a lot of young users in the age group of 13-20 who access the internet in schools and at homes. "Marketers must also learn to engage with this segment," Ghatge says.

With inputs from Suvi Dogra

There are enough reasons why FMCG companies have no option but to experiment with digital ads. The internet medium has 50-60 million users online and is largely accessed by people in the age group of 20-35 years living in the metros and Tier I cities

NET SUCCESS:Sunsilk's sunsilkgangofgirls.com, Tata Tea's Jago Re and Axe Spray ads were big hits on the web