FMCG brands keep ad spending steady in Q2 FY2025

New Delhi: Amid rising costs and a dip in urban demand, FMCG brands maintained strong advertising and promotional spending in Q2 of the current fiscal. 

While HUL and GCPL scaled back their ad budgets, companies like Dabur, Marico, P&G Hygiene, Gillette, Colgate-Palmolive, and Patanjali increased ad spend this quarter.

Despite its reduction, HUL remained the top ad spender in Q2. 

Colgate-Palmolive led in growth, with ad spending surging 17.8% year-over-year, 21.9% quarter-over-quarter, and 14% over the half-year. 

Quarterly figures show HUL and Dabur’s ad spends declined, while Marico, GCPL, Colgate-Palmolive, P&G Hygiene, and Gillette increased their adex.

In a half-yearly comparison, FMCG giants continued to double down on advertising, with overall ad spending up from the previous year’s first half.

Historically, approximately one-third of the annual spends in the Indian advertising industry has been attributed to the FMCG category. As per GroupM, Madison and dentsu Indian adex predictions for 2024, FMCG will continue to be the growth driver for Indian ad spends.

According to the latest AdEx report from TAM, FMCG advertising volumes on television experienced a 6% decline in the first half of 2024 compared to the same period in 2023. In the print medium, FMCG ad space also declined by 6% year-on-year. On the radio front, FMCG ad volumes rose slightly by 1% during H1 2024 compared to H1 2023. Digital advertising for the FMCG sector surged by 7% in H1 2024 compared to the previous year.

FMCG brands’ adex in Q2 FY2025 in comparison to Q2 FY2024

FMCG brands’ adex in Q2 FY2025 in comparison to Q1 FY2025

FMCG adex comparison on a half-yearly basis

Patanjali Foods has stepped up advertising and sales promotion substantially to over Rs 130 crore in the second quarter of fiscal year 2025.

Grooming products maker Gillette India reported a rise of 11.3% in marketing and sales promotions expenses in the September quarter to Rs 113.44 crore, versus Rs 101.89 crore it spent in the corresponding quarter of the previous year.

In the last quarter, the company spent Rs 114.25 crore on marketing and sales promotions. 

The previous year ended on June 30, 2024, the company’s marketing and sales promotions expenses stood at Rs 358.90 crore.

Procter & Gamble Hygiene and Health Care reported a rise of 13.5% in advertisement and sales promotion expenses in the September quarter to Rs 172.94 crore, versus Rs 152.42 crore it spent in the corresponding quarter of the previous year.

In the last quarter, the company spent Rs 153.66 crore on advertisement and sales promotions. 

The previous year ended on June 30, 2024, the company’s marketing and sales promotions expenses stood at Rs 567.76 crore. 

Leading FMCG firms reported a nearly two-fold increase in the share of quick commerce within their total e-commerce sales, and this surge is anticipated to continue, according to a joint report by Deloitte and industry body FICCI.

Quick Commerce, also known as hyperlocal delivery, is now reaching around 35% of online sales and has become a preferred channel for urban consumers.

"About 18% of consumers prefer purchasing food and beverage items from Q-commerce channels. The Q-commerce segment has grown by 230% from 2021 to 2023," said the report titled 'SPURring growth in FMCG, retail and e-commerce sectors in India'.