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FMCG brands revive ad spending as consumer sentiment and festive demand improve
Our read
India's FMCG majors will turn festive marketing back on, using measurable digital, retail-media and outdoor campaigns to defend share; the key test will be whether volume growth catches up with the renewed advertising intensity.
For operators
FMCG brands’ return to heavier festive advertising signals stronger demand confidence, making retail media, digital placement and in-store activation more valuable in the coming quarter.
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Quarterly advertising-and-promotion expense as a percentage of sales for HUL, Dabur, Colgate-Palmolive and peers.
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The report,
Indian FMCG brands including HUL, Dabur and Colgate are raising advertising budgets after two quarters of cuts, targeting festive demand and improving consumer sentiment. Colgate lifted ad spend 34% year-on-year to 15.7% of sales, with brands emphasizing ROI-led digital and outdoor media.
Reported figures
From the report. Source details below
- Two quarters of prior marketing-spend cutbacks
Other figures
- Q1 FY27
Why it matters for the brand
Renewed ROI-led spending by HUL, Dabur and Colgate creates partnership opportunities for digital, outdoor and retail-media platforms with measurable festive conversion capabilities.
What to track next
- Festive-season volume growth versus value growth, indicating whether marketing is generating unit demand or merely supporting pricing.
- Rural FMCG volumes, monsoon outcomes, food inflation and disposable-income indicators.
- Quick-commerce and e-commerce contribution to FMCG sales, including sponsored-search and retail-media spending trends.
- Gross-margin and EBITDA-margin commentary: sustained ad investment with stable margins would validate demand strength.
- Competitive responses from P&G, Reckitt, Marico, Emami and regional brands, particularly promotional intensity and new launches.
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- Nielsen/Kantar market-share trends in oral care, hair care, health supplements and household care.
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- Increase festive campaign bursts around high-frequency categories such as oral care, wellness, personal care, packaged foods and home care.
- Redirect incremental advertising toward retail media, quick-commerce search/display, regional-language digital video and measurable out-of-home placements.
- Pair media spending with retailer-specific promotions, premium packs, gift bundles and limited-period launches to convert awareness into sell-through.
- Use higher visibility to defend share against D2C and regional competitors, especially in urban and affluent consumption clusters.
- Tighten marketing-mix measurement and reallocate spend quickly if conversion rates lag media reach.
The counter-case
The case against this reading — not reported by the source.
Higher advertising spend may signal defensive spending amid weak underlying volume growth rather than confidence in a durable demand recovery. A 34% increase off a reduced base can overstate the shift, while elevated media costs and promotional intensity could pressure margins without delivering lasting market-share gains. Festive-led campaigns may also pull demand forward rather than expand consumption.
The source
Published
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