Here’s how Unilever and P&G’s 2025 advert budgets are having a look after seeing Trump’s price lists

It turns out for one of the most business’s greatest advert spenders, that’s true. In an replace this week (April 24) Unilever mentioned it might doubtlessly up its logo and advertising spend to up to 16% of gross sales whilst P&G mentioned its advert investments have been flat for the yr however would flex relying at the “innovation pipeline.”

Here are the important thing takeaways.

Unilever

• Sales fell 0.9% to €14.8bn within the first quarter
• Underlying gross sales expansion of 3%, fairly forward of analysts’ forecasts of 2.8%.

This used to be the primary time new leader govt Fernando Fernandez had addressed analysts since taking the highest task previous this yr. Previous CEO Hein Schumacher stepped down in January after lower than two years within the function amid stories that shareholders sought after a extra decisive and sped up tempo of alternate.

Fernandez now faces the problem of turning in that during an more and more complicated buying and selling surroundings.

“We currently assess that the impact of tariffs on our value chain will be limited and manageable, driven by the localized and flexible nature of our supply chain. We are evaluating all options, including further localization and changes to material specifications, to minimize the impact. If necessary, we will also resort to price increases,” mentioned Fernandez.

As for budgets, Unilever higher its logo and advertising funding by means of €900m in 2024 and is dedicated to spending between 15% to 16% of gross sales “behind the right innovations” for the yr forward. Though Fernandez stressed out it might shift the place that spend is going “depending on where we have momentum versus where there could be less momentum in this current macroeconomic context.”

The new CEO has made no secret of his plans to place part of the corporate’s funds into social media and influencer advertising as opposed to conventional media. He mentioned he needs to “cover every zip code with influencers and other people talking about our brands.”

“In the last few weeks, I have spent a lot of time with my top marketeers defining what we call the 4V model of social media – variety of creators, volume, virality and velocity of content,” he mentioned.

“I’m really focused on that because the next stage in the transformation of Unilever is about creating a machine of demand creation both in marketing and sales.”

Procter & Gamble

• Net gross sales dropped 2% to $19.78bn

P&G mentioned it expects to take a £1.5bn hit from the tariff state of affairs (it imports 10% of its uncooked fabrics from China, the place present price lists stand at 145%) and deliberate to extend costs on some merchandise to soak up one of the most have an effect on.

Chief monetary officer Andre Shulten mentioned international financial uncertainty used to be impacting on shopper sentiment and spending, which has intended intake ranges over the last two months are down in each Europe and america.

It mentioned it might “pull every lever” in its arsenal to mitigate in opposition to the have an effect on. This would possibly imply promoting spend is pulled down the road, however for now, it stays solid.

P&G spent kind of $12.7bn on international advertising for the yr finishing June 2024.

“But the one thing that is very clear to us is that we continue to be committed to fully supporting innovation. That innovation is best supported with strong communication. So, media and advertising to our consumers is the primary vehicle of investment,” mentioned Shulten.

“Investment levels specifically on media and advertising are flat in terms of percentage of sales. But we have a very strong innovation pipeline in the balance of the year, which we intend to focus all investments on. What exactly is dollar spending? We’ll adjust as we see the plans unfold.”

One level it did deal with used to be whether or not it might alter its verbal exchange to mirror any “anti-American” sentiment rising amongst customers in areas which were focused by means of Trump, together with China and Canada.

Shulten mentioned it used to be “paying very close attention to social media or trade activation” to watch shopper behaviour. While it has noticed some “noise in markets like Canada” it hasn’t impacted gross sales.

“I would argue in most of our markets, our brands have been present for 10, 20 or 30 years. And if you ask consumers, they view them as local brands that they grew up with, not as a US brand that is foreign to them,” he added.

“That’s the case in Europe; that’s the case in China. And even in Canada, where the noise level is probably the highest. Consumption has held steady.”