Quarterly Report Card: FMCG brands drive marketing with new campaigns

Following the close of the July-September quarter, most consumer brands have reported robust performance in the period. As profits increased, companies expanded their marketing budgets too. Here’s a look at how the top FMCG advertisers performed this quarter.

According to TAM AdEx's most recent study, FMCG has continued to be a key contributor to advertising. Even while FMCG ad spends in print and TV fell by 6% apiece, most brands increased their overall ad spends. When compared month to month, May 2024 had the highest share of FMCG TV ad volumes (18%). In print, January 2024 had the greatest share of FMCG advertising space at 20%. The FMCG ad volumes on radio, however, showed no resounding growth, rather a marginal increase of 1% during H1’24

Digital advertising in the FMCG sector increased by 7% in H1 2024 compared to the previous year. March 2024 had the greatest monthly ad impressions, at 22%.

Ad spends

Hindustan Unilever Limited’s (HUL) advertisement and promotion expenses fell 13% in Q2 FY25 to Rs 1501 crore, compared to Rs 1742 crore it spent in the same quarter last year. Nevertheless, it secured the title of top ad spender. Also, among the top FMCG advertisers, Hindustan Unilever stood first with 18% share of TV ad volumes, TAM’s data suggested.

Following this was Marico’s ad and sales promotion expenses, which increased 8% to Rs 290 crore. Next, Godrej Consumer Products saw an ad spend of Rs 363.95 crore during the quarter.

For Colgate-Palmolive, the advertising spends increased by 17.8% to Rs 242.72 crore in the current quarter as compared to Rs 199 crore in the same period last year.

During Q2 FY25, Dabur’s advertisement and publicity expenses turned out to be Rs 225.63 crore, which was 4% less than Q1 FY25 when it was Rs 235.89 crore but also 4.2% higher than Q2 of FY 2023-24.

Procter & Gamble spent Rs 172.94 crore during the quarter, which was 12.5% higher when compared to Rs Rs 153.66 crore last year in the same quarter.

Patanjali did not disclose exact growth or decline in its marketing spends, but its financial statement said the brand has boosted its advertising and sales promotion to Rs 130 crore for the quarter.

When compared on H1 basis, HUL and Marico topped the charts here as well. While the former spent Rs 3182 crore during H1, Marico spent Rs 530 crore during H1 FY25.

Dabur’s advertisement and publicity expenses were Rs 461.52 crore, which is 9.6% higher than last fiscal’s H1. Patanjali’s ad and sales promotion expenses in H1 of FY25 stood at Rs 185 crore.

Colgate-Palmolive incurred an ad expense of Rs 441.9 crore during H1 of FY25 vis-a-vis Rs 387.30 crore during last fiscal’s H1.

Marketing campaigns

As FMCG brands boost their revenues, they’re becoming more aggressive with marketing investments across nearly every medium. These brands are allocating substantial resources to digital marketing, balancing traditional TV ads with creative digital campaigns to reach a wider and more diverse audience. In the first half of 2024, programmatic advertising led the way as the top transaction method for digital FMCG advertising, accounting for 84% of impressions.

Rohit Jawa, MD & CEO of HUL, in their earnings call said, “We have basically designed our portfolio and our promotional incentives to ensure that we stay competitive in quick commerce as well, even though it's a small part of our total e-commerce business, we want to win in every corner of the market.”

HUL’s campaigns like #BetiBannKeAana for Clinic Plus, Vim x Ritvis collab campaign video called Nazaare, #TheBeautyTestStopsWithMe for Dove have been the highlight their marketing aggressiveness.

In their earnings call, Prabha Narasimhan, Managing Director - Colgate Palmolive shared, “Colgate Strong Teeth saw new advertising, built on the very relevant insight for today of increased snacking leading to increased loss of calcium.”

The brand recently launched ‘#TheDailyGrind’ campaign for Colgate Strong Teeth brand. The campaign spotlights the rampant increase in snacking frequency across India which results in teeth weakening, impacting overall oral health.

Patanjali has roped in various celebrities, including Shilpa Shetty, Shahid Kapoor and Khesari Lal Yadav, for their Nutrela-branded soya chunks and edible oils

Dabur too has roped in Naga Arjuna for Meswak ‘Complete Tooth and Gum Care’, Kartik Aaryan for Red Toothpaste, Kareena Kapoor Khan for Real Fruit Juices and more. Additionally, the brand will acquire Sesa Care, maker of Ayurvedic personal care and wellness products, at an enterprise value of Rs 315-325 crore. It has entered into an agreement to acquire the majority 51% stake from private equity fund True North.

With the rise in consumer demand and the festive season setting in, FMCG brands have pulled out all stops to capture the attention of consumers. This quarter, from July to September, saw some heavyweights in the sector pushing substantial ad budgets across TV, digital, print, and out-of-home (OOH) channels.

What’s hot this quarter

Many FMCG brands, though still active on TV, are now allocating substantial portions of their budgets to digital advertising, driven by the rise in mobile usage and internet penetration in rural areas.

The ad spending in Q3 typically sets the stage for the festive season, and hence, FMCG products, which are mostly tied to celebrations, like snacks, personal care items, and hygiene products, saw an uptick in advertising.

Health-conscious and eco-friendly messaging continues to dominate. Brands like HUL and Dabur effectively used these themes to connect with the audience's evolving preferences.

(The story has a comparative study of only the brands that are listed and have specified their advertising/marketing/promotion spends for the quarter and half year ended September 30, 2024)