Unilever Raises Marketing Spend Despite Dip in ProfitCEO Fernandez doubles down on brand-building with influencer-first strategy
Unilever, the multinational behind brands like Dove, TRESemmé, and Axe, has increased its marketing spend in the first half of 2025, even as profits declined. The company allocated 15.5% of its revenue to marketing, up 0.4% from last year, reflecting a strong commitment to brand-building amid shifting consumer trends.
Despite a 4.8% dip in operating profit to $6.64 billion, revenue climbed 3.4% to $34.45 billion, supported by growth in personal care (up 4.8%) and ice cream (up 5.9%). CEO Fernando Fernandez, who took over in February, remains firm on his strategy: invest heavily in long-term equity, even at the cost of near-term margins.
Central to this approach is an “influencer-first” marketing model, with 30%-50% of Unilever’s annual ad budget now going toward creator partnerships. The strategy has already delivered results for brands like TRESemmé and is part of a broader effort to engage Gen Z audiences more authentically.
In parallel, Unilever recently acquired U.S.-based men’s grooming brand Dr. Squatch, further strengthening its foothold in the digital-first, wellness-driven segment.
Fernandez outlined a focused roadmap: “More beauty and wellbeing, more in India and the U.S., and greater emphasis on premiumisation and digital commerce.”
Unilever also plans to spin off its ice cream division in November, forming The Magnum Ice Cream Company, in which it will retain a 20% stake. CFO Srinivas Phatak confirmed that any upcoming tariffs would remain within margin expectations.
