Global brands turn cautious on India advertising, focus on ROI-driven media

Posted on 14th May 2026

670+ Rupee Bag Icons Stock Illustrations, Royalty-Free Vector Graphics & Clip Art - iStock

Advertising executives say while India’s domestic economy remains resilient, brands are becoming more selective and strategic with media spending

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 shock.

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.

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.

Nikhil Kumar, Chief Growth & Marketing Officer (India & Emerging Markets) at Affle, said, "While the global economic environment remains challenging, India's economy continues to grow strongly. The long-term, fundamental trends support the growth of digital advertising. Advertisers increasingly want measurable outcomes (installs, purchases, conversions) instead of just awareness, and technology companies like ours are positioned to do exceptionally well in India and emerging markets. This, coupled with how AI is changing consumer behaviour trends, is creating new opportunities for intelligent advertising and consumer engagement platforms.

Kumar said, "The biggest shift is that marketing budgets are no longer being distributed purely based on reach or historical media plans, but increasingly on where measurable consumer intent and conversions are happening in real time. The increasing conversations around AI, qCommerce, retail commerce, and the adoption of AI technologies across business functions is also accelerating how media dollars are spent."

Industry executives believe the current environment is unlikely to trigger an immediate advertising slowdown, but marketers are preparing for possible shifts in consumer spending if oil prices remain elevated for a prolonged period.

Priti Murthy, President, Client Solutions, WPP Media South Asia, said immediate seasonal consumption trends remain largely intact because most discretionary purchases had already been planned in advance.

“This season, most consumers who had to travel or make discretionary purchases like jewellery for weddings have already planned and spent. The summer break is already underway, so there is no immediate disruption in consumer behaviour,” Murthy said.

“At the same time, there are broader economic reasons behind the recent announcements — whether it is the oil crisis, pressure on forex reserves, or larger macroeconomic concerns. All of these factors do have an impact on how industries operate and how consumers spend,” she added.

Murthy said the industry is approaching the situation with “cautious optimism” rather than panic, drawing comparisons with earlier periods of economic uncertainty. The impact, however, appears more visible among multinational advertisers and global brand campaigns.

Benjamin Joy, Agency Lead at LinkedIn India said geopolitical tensions are making global brands increasingly careful about advertising placements and campaign planning.

“Primarily, it is geopolitical tensions and other external factors that are contributing to clients becoming more conscious about their advertising spends. This is especially visible among larger global brands and global campaigns,” Joy said.

He added that India-focused brands remain relatively insulated because of strong domestic demand and localised business operations.

“When we talk to Indian brands, India as a market is still operating relatively strongly. Local brands whose businesses are inward-looking and focused on Indian audiences are not showing as much concern,” Joy said.

According to Joy, marketers are currently in a “wait-and-watch” mode, especially for large-scale brand campaigns.

“This caution is particularly visible in top-funnel brand campaigns. Performance marketing, however, continues steadily. For us at LinkedIn, performance-led advertising remains the bread and butter of the business, especially among B2B clients where these campaigns are always-on,” he said.

Joy added that impression volumes and campaign reach for top-funnel campaigns have slowed modestly, though he does not see signs of a structural pullback yet.

Industry executives say sectors such as aviation, travel, luxury retail and consumer durables could face greater pressure if the energy crisis deepens further. However, digital advertising linked to measurable outcomes, AI-led targeting and commerce-driven platforms is expected to remain relatively resilient as brands prioritise efficiency and return on investment over broad awareness-led campaigns.