Major FMCG brands have increased their ad spends in the September-ending quarter, with analysts expecting investments to grow further as macroeconomic pressures ease and festive purchases gain momentum.
Companies like Marico and Colgate-Palmolive reported year-on-year increases in ad spends of 44 per cent and 40 per cent respectively on an annual basis. Others like Godrej Consumer Products Limited increased spending marginally marginally by 2.1 per cent.
“The focus moving forward is to continue to accelerate advertising, but we are going to continue to use the tools we have at our disposal to optimise that spending as efficiently as possible. We have got a good handle of what is going on with the advertising line,” said Noel Wallace, Chairman, President, and CEO, Colgate-Palmolive.
Similarly, GCPL during its earnings call said it is optimising and balancing investment given the strong inflation.
“We are also optimising and balancing out the spend and ensuring that our share of voice stays at the target level. This year, we are benefiting by putting in significantly better practices and working more closely with the agencies to deliver that. So, we have been able to deliver much better reach at lower cost on that,” said Aasif Malbari, Managing Director and CEO, GCPL.
Other companies remain cautious about their spending. Hindustan Unilever reduced its ad spends by 9 per cent YoY and Dabur India increased its spending by 2 per cent. When an analyst pointed out that this was the lowest ad spend to sales ratio in nearly 20 years, the company explained its strategy to calibrate spending amid rising input costs.
“We have increased our spends in other categories where we believe we weren’t passing on the same kind of pricing to consumers. We have to be calibrated about it but the most important to think is to think of the absolute benefit with our scale when we grow at this manner as well,” said Priya Nair, CEO and Managing Director of HUL.
When asked, independent brand strategist and angel investor Lloyd Mathias attributed the cautious behaviour to below-par monsoons and global developments. However, with oil prices expected to remain stable, the blue wave in the US and the top 10 per cent brands reviving their ad investments, he expected ad spends to pick up going forward.
Meanwhile, Ajimon Francis, Managing Director at Brand Finance India said the advertising investments have not changed from a headquarters perspective but improved in India owing to the foreign exchange rate. The sector also enjoys the –back-to-school purchases as spends for school related products grow in India.
“This is actually the festive season for India. There will be a flurry of schemes and offers across retail channels and promotional campaigns, so this will be the heaviest spending quarter for all companies,” said Francis.
Published on November 9, 2026
