Marketing Investment: Introductory Comparison of Five Marketing Behemoths
| Company | Expected Marketing/Ad Trend (2026 → 2027) | Key Message | Approx. Annual U.S. Ad Spend (2025) |
|---|---|---|---|
| Procter & Gamble (P&G) | Slight increase, tied to sales growth | Invest through digital productivity gains. Baby, Fabric and Beauty Care | ≈ $4.5 billion (U.S.) |
| PepsiCo | Moderate increase (~ +2–3%), in line with revenue | Maintaining high investment while shifting focus to digital, ROI, and retail media | ≈ $2.5 billion (U.S.) |
| Unilever | High and still rising | Doubling down on brand strength recovery and clean beauty introductions | ≈ $1.3 billion (U.S.) |
| Kimberly‑Clark | Flat to slight rebound | Careful reinvestment after early‑year cuts | ≈ $650 million (U.S.) |
| Constellation Brands | Stable % of sales (higher in absolute terms) | Sustained promotion in beer and digital channels | ≈ $550 million (U.S.) |
Procter & Gamble: Emphasis on Baby, Fabric, and Beauty Care
P&G’s U.S. sales rose 4 % year‑over‑year during the January 1-March 31 period of 2026, and advertising and promotional (A&P) expenses increased about 5 %, according to managerial commentary in the quarterly call. The company emphasized a heavier domestic brand and media investment behind loyalty and trade‑up campaigns, particularly across key consumer segments (home care, baby care, beauty). At the conference call, P&G CFO Andre Schulten said that incremental marketing investments will be deployed in U.S. Baby Care brands – Pampers, including sublines Swaddlers, Cruisers, and Pure, and Luvs – Fabric Care -including Tide, Gain and Ariel – and Beauty Care – brands such as Olay, Pantene, Head & Shoulders, Aussie and My Black is Beautiful – where interventions and innovation are showing momentum.
Incremental marketing investments will be deployed in U.S. Baby Care, Fabric Care, and Beauty Care, where interventions and innovation are showing momentum.
P&G’s management reaffirmed that marketing investment will remain elevated through the rest of 2026, with growth targeted “in line with or slightly above sales,” balancing strong brand building and cost discipline. Management also said the U.S. remains the largest source of incremental ad dollars globally, fueled by ongoing e‑commerce growth and retailer media partnerships (e.g., Walmart Connect, Amazon Ads).
CHECK OUT: How Procter & Gamble’s ‘Always’ Benefits from the 4R Framework
Unilever: Aggressive Future Marketing Stance
According to Unilever’s Q1 2026 trading update and management commentary, the company kept marketing expenses at historically high levels—roughly 16 % of global turnover, the largest share in more than a decade. Absolute spend increased low‑ to mid‑single digits year‑over‑year, maintaining a similar marketing‑to‑sales ratio as 2025.
Spending rose most in the Beauty & Wellbeing and Personal Care divisions—driven by Dove, Axe, TRESemmé, and the new Vaseline Clinical Care line—reflecting ongoing U.S. repositioning toward premium and wellness products.
Home Care advertising remained roughly flat, while Nutrition (led by Hellmann’s) saw slightly reduced spend as Unilever redeployed funds to higher‑margin categories. Unilever recently announced that it is combining its Unilever Food business with McCormick. The company moved more budget into digital, influencer, and retail media, particularly in North American e‑commerce channels (Amazon and Walmart Connect), while trimming traditional TV placements.
Overall, Unilever’s U.S. marketing spend rose approximately 3–4 % year‑on‑year in Q1 2026—less than the global total increase but still representing significantly higher investment than pre‑2024 levels.
Unilever kept marketing expenses at historically high levels—roughly 16 % of global turnover, the largest share in more than a decade.
Unilever plans to maintain marketing at the upper end of its historical range (≈ 16 % of sales globally) and continue modest U.S. increases, particularly in premium and health‑oriented categories. Management emphasized that the company will “keep investing strongly in brand power and innovation visibility” while improving ROI measurement to reallocate funds across brands more quickly.
The U.S. market is expected to see sustained mid‑single‑digit growth in marketing outlays through 2026, supporting relaunches and clean‑beauty product introductions. Unilever clean beauty products include Paula’s Choice, Dermalogica, and Simple.
Kimberly-Clark: Disciplined Brand Support
Kimberly-Clark’s marketing expense in the first quarter of 2026 declined compared with Q1 2025. Kimberly-Clark confirmed flat‑to‑lower marketing costs going forward. Management explicitly stated that lower marketing and general expenses contributed to its profit growth in Q1 2026. The guidance is to “maintain disciplined brand support”, but without returning to previous high levels of spending.The Q1 2026 call referenced “moderate reinvestment behind product innovation” later in the year but reaffirmed that cost management remains a near‑term focus.
FIND OUT how Stacie Medley, Sr. Director, Integrated Media & Agency Relations, Kimberly-Clark, brings a ‘retail last touch’ perspective into the media planning process
PepsiCo: Marketing Investment to Grow In Line Or Slightly Below Revenue
PepsiCo’s Q1 2026 results indicate organic revenue growth of around 4%, while selling, general and administrative (SG&A) expenses—including advertising and marketing—rose slightly, mainly due to increased brand support in beverages and convenient foods. Management reiterated that marketing spend will stay elevated across key brands (Pepsi, Lay’s, Gatorade, and newer energy and snack lines) but will grow in line with or slightly below revenue, suggesting slower percentage increases than in 2025. Analysts estimate advertising and marketing spend increased by about 3–4% year‑on‑year, consistent with PepsiCo’s prior quarters of mid‑single‑digit growth in marketing outlays.
CFO Hugh Johnston, in PepsiCo’s April 2026 earnings call, emphasized continued investment discipline, noting marketing “will continue to rise, but not ahead of sales growth.”PepsiCo is directing incremental spend toward digital, personalization, and retailer media partnerships, reflecting a shift from pure-volume advertising to ROI‑driven engagement.
MORE ABOUT PEPSICO’S MARKETING INVESTMENTS
- PepsiCo Formula 1: F1 Consolidates as PepsiCo’s New Engine
- PepsiCo Acquires Mexican American Food Brand Siete Foods
- Soccer Promotions: Inter& Co, PepsiCo grow Hispanic and Gen Z Reach
Constellation Brands: Marketing Investment in Modelo and Corona
In its fiscal Q4 2026 call (covering Dec 2025–Feb 2026) showed mid‑single‑digit growth in advertising and promotional spending, largely to support Modelo and Corona. The company explicitly said it would “continue investing at an elevated but sustainable rate” in marketing, especially in its beer segment (Modelo, Corona, Pacifico). Management expects advertising and promotion (A&P) as a percent of net sales to remain roughly stable through FY 2027, but absolute spend will rise with sales growth. This includes expanded sports sponsorships, digital media, and innovation launches.
MORE ABOUT CONSTELLATION BRANDS’ APPROACH TO MARKETING INVESTMENTS:
- Brian Brown, Director, Lifestyle and Experiential Marketing (Modelo), Constellation Brands, explains Modelo’s College Sports Investment Rationale.
- Rene Ramos, Senior Vice President of Brand Activation at Constellation Brands, on How to Deal With Soccer Audiences’ Fragmented Nature
- Connor McDougal, Integrated Media, Modelo, at Initiative: Marketing the FIFA 2026 Soccer World Cup: Tentpole Event with Linear as a Must
Note: This Portada editorial feature has been compiled with help from ChatGPT, the analyzed companies’ Q1 earnings presentations and earnings calls, and input from the Portada community of brand marketers.
Feature Image by Pete Linforth from Pixabay
