Global brands are turning increasingly cautious on advertising spends in India as prolonged geopolitical tensions in the Middle East, rising crude oil prices and mounting macroeconomic uncertainty force marketers to prioritise measurable returns over large-scale brand visibility campaigns.
Multinational advertisers and global agencies say companies are gradually shifting budgets toward performance-led digital media, AI-driven targeting and commerce-linked advertising formats, even as broader awareness campaigns witness slower momentum amid fears of a prolonged energy and consumption shock.
Top advertisers like Dabur India recorded sharp decline in advertising and publicity spending in Q4 FY26, with the company’s ad expenditure falling nearly 10% sequentially to Rs 214.51 crore from Rs 238.02 crore in the previous quarter.
Godrej Consumer Products also reduced its A&P spending both sequentially and on a-year-on-year basis. The expenses stood at Rs 274.3 crore in Q4 FY26, down from Rs 306 crore in Q3 FY26 and Rs 280.9 crore in previous quarter last year. HUL also reported a marginal sequential decline of 0.85% in advertising spend during the quarter.
The concerns come amid rising crude oil prices and pressure on India’s foreign exchange reserves following the continuing conflict involving the US, Israel and Iran. The disruption has intensified after the Strait of Hormuz — a crucial global oil transit route — remained shut for more than two-and-a-half months, triggering fears of a prolonged energy Against this backdrop, Prime Minister Narendra Modi recently appealed to Indians to revive work-from-home practices, reduce gold purchases and limit foreign travel in an effort to conserve fuel and foreign exchange reserves. shock.
India imports nearly 90% of its crude oil requirements, making the country especially vulnerable to global energy disruptions. Advertising executives say that while India’s domestic economy continues to show resilience, brands are becoming more selective and strategic with media spending amid the uncertainty.