India’s leading FMCG companies have reduced their ad and promotion spending in Q2 FY25 due to high food inflation and weaker urban demand. According to TAM AdEx, FMCG TV ad volumes dropped by 6% in the first half of 2024, while digital ads grew by 7% year-on-year.
Hindustan Unilever (HUL) cut its ad spend by 14.8% in Q2 FY25, reporting a slight dip in profit but focusing on long-term brand investments. Similarly, Godrej Consumer and Marico reduced their ad spend by 5.7% and 15.8%, respectively. In contrast, Colgate-Palmolive and Patanjali Foods increased their ad budgets, with Colgate raising spending by 18% and Patanjali spending Rs 130 crore on advertising.
Despite reduced ad outlay, Marico reported a 105% profit increase, and Colgate’s net profit rose to Rs 395 crore, highlighting that strategic ad investments are still delivering returns in a challenging market.