FMCG firms kept Q1 ad spends tight, plan to ramp up in coming quarters

Dabur, Britannia, and Marico cut or rationalised ad spends in Q1 to protect margins but plan higher investments ahead to boost brands, sales, and market presence

Fast-moving consumer goods (FMCG) companies kept their purse strings tight in the April–June quarter and didn’t splurge on advertising spends. However, companies will return to spending on advertising in the coming quarter, as they pointed out to investors on their earnings calls.

 

Compared to last year, many FMCG companies focused on arresting the fall in margins due to higher raw material costs witnessed during the quarter.

 

Companies also reiterated on their analyst calls that advertising spends were lower in the quarter.

 

Dabur India focused and invested more in trade schemes and less on media spends.

 

However, the company pointed out