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PepsiCo spends 15- 20% of its marketing budget on digital: D. Shivakumar

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MUMBAI: Emphasizing on the importance of the digital medium, PepsiCo India  chairman and CEO D. Shivkumar said that 15 per cent to 20 per cent of all marketing spends of PepsiCo are on digital. He also added that RS 35 lakhs per month should be the bare minimum digital spend by a Pepsi brand while addressing a conference session at 12th Marketing Conclave, organized by the Internet & Mobile Association of India (IAMAI) in Mumbai.

Breaking the maths down further, Shivkumar explianed that if the marketing budget of a brand for the year is about Rs 10 crore then, the brand should spend Rs 35 lakh every month on digital which is about Rs 5 crore for the year.

He also  added that if  one wants reach and result, then digital will give them the same provided brands are patient for the big return and not invest meagerly for short returns. 

Reiterating the importance of mobile, Shivkumar added, “In a nation of 1.2 billion people, millions of people have smart phones and a lot of them have internet. Over 50 percent of search, shopping, travel and YouTube streaming happens on mobile. Not only that, e-commerce has seen the rise of categories which never could have reached the consumers without the online platform. Luxury brands, vegetables, innovators and a lot of categories today reach the consumer through online. "

Advising  marketers to understand the pulse of the consumers of both the genders  Shivkumar said,“Today the consumer is King, Queen and has a voice.”

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