With the first half of the fiscal year 2023 coming to an end, it is evident that one of the most crucial aspects of the Indian advertising landscape, the FMCG sector, has posted a significant double-digit increase in the ad budgets for the quarter and half-year-ended September 30, 2023.
The Indian FMCG majors; namely- Dabur, Colgate Palmolive, Hindustan Unilever, Emami, Marico and GCPL collectively spent Rs 2909.34 crores in the second quarter ended September 30, 2023.
In the corresponding quarter of the previous fiscal year, these conglomerates had cumulatively spent Rs 1995.93 crores, which means that these FMCG majors' ad spends were up 45.76% YoY.
Of this, Hindustan Unilever’s spending on advertising and promotion during Q2FY24 went up by 65.43% YoY as the FMCG major had spent Rs 1742 crores on advertising and promotion. Earlier, in the corresponding period of the previous fiscal year, it had allocated Rs 1053 crores.
Dabur’s ad spends also soared up 40.35% on a YoY basis to Rs 172.99 crore in Q2FY24. The FMCG major had spent Rs 123.26 crore on advertising in the second quarter of the previous fiscal year.
Similarly, Colgate Palmolive’s spending on advertising during the second quarter of the current fiscal year was up 30.18% YoY to Rs 206 crore. In Q2FY23, the FMCG major had spent Rs 181.31 crore on advertising.
Godrej Consumer Products’ ad spends also surged 28.91% on a YoY basis to Rs 365.94 crore in Q2FY24 as against Rs 283.87 crore it spent during the corresponding quarter, last fiscal.
FMCG major, Marico, also increased its advertising spends by 25.82% YoY in the second quarter of the current fiscal year and spent Rs 268 crore on advertisement and sales promotion in Q2FY24 as against Rs 213 crore it had spent in the corresponding quarter of the previous fiscal year.
On the other hand, Emami recorded a single-digit spike of 9.14% YoY in its ad-spends as the company had allocated a sum total of Rs 154.41 crore on advertisement and sales promotion in the quarter ended September 30, 2023. In Q2FY23, the company had spent Rs 141.49 crores on advertising and promotion.
When taking a look at the half-yearly spending of these majors, it is pretty evident that a similar trend continued in terms of ad spending on a YoY basis as GCPL’s half-yearly ad spends went up 41.44%, HUL’s by 36.03%, Dabur’s by 34.21%, Colgate Palmolive’s by 20.56%, Marico by 16.50% and Emami by 10.26%.
In the first half of the current fiscal, HUL allocated an ad budget of Rs 3247 crores as opposed to previous year’s Rs 2387 crores, Dabur spent Rs 340.36 crore in H1FY24 as against Rs 253.61 crore in H1FY23 and Colgate Palmolive ad budgeted the first half at Rs 387.30 crores as opposed to Rs 321.24 crore it spent during the first half of the previous fiscal year.
Similarly, Marico’s spending on ads also increased from Rs 412 crore during the first half of the previous fiscal year to Rs 480 crore this year, GCPL’s from Rs 485.25 crore to Rs 686.33 crore and Emami’s half-yearly ad budget soaring from Rs 277.78 crore to Rs 306.28 crore in H1FY24.