Unilever CEO Declares ‘Big Brand’ Advertising Dead: A Reckless Pivot or a Bold Modern Future?
Unilever CEO Fernando Fernandez sent shockwaves through the marketing world this month, proclaiming the era of “big corporate big brand messages” over. Speaking at the Consumer Analyst Group of New York (CAGNY) conference, Fernandez outlined a shift to a “social-first demand model,” prioritizing creators over traditional advertising. But is this a visionary move, or a potentially damaging misstep for a $60 billion global giant?
The Rise of the Creator Economy and Unilever’s Response
The move reflects the growing influence of the creator economy. Unilever plans to dramatically increase its investment in creators and influencers, moving 50% of its media budget to this channel – a significant jump from 30%. This represents a substantial financial commitment, with approximately $4 billion still allocated to traditional advertising channels, even with the shift.
However, Fernandez’s declaration has raised eyebrows, particularly given Unilever’s recent spending. The company invested 16% of its revenue – roughly $9 billion – in brand and marketing in 2025, including a sponsorship of the 2026 FIFA World Cup. A World Cup sponsorship is hardly a “small” brand message; it’s a massive, global play for reach.
The Contradiction: Mass Reach vs. Niche Influence
Experts argue that abandoning mass-reach advertising entirely is a flawed strategy. While creators excel at deepening engagement with existing customers, they are less effective at reaching new ones – the “light and nonbuyers” crucial for brand growth. As demonstrated by research from the Ehrenberg-Bass Institute, brand growth relies heavily on expanding reach, something mass media traditionally delivers.
The “one-size-fits-all” approach is also problematic. What works for a brand like Vaseline, which saw 12% volume growth after leveraging social media, may not translate to other Unilever brands like Hellmann’s or Domestos. The idea of applying a single marketing doctrine across 400 diverse brands echoes past missteps, such as the previous mandate for every brand to have a social purpose.
A CEO Overstepping?
The public nature of Fernandez’s declaration is also unusual. Typically, CEOs avoid making categorical statements about marketing trends, leaving tactical decisions to their CMOs. Unilever’s CMO, Leandro Barreto, is a known advocate for the principles of mass reach and penetration, creating a potential internal disconnect.
Pro Tip: Integrated marketing communications – utilizing a mix of channels – is often the most effective approach. Different channels reach different audiences at different stages of the buying process.
The Potential for a Portfolio-Wide Misstep
The risk lies in applying a creator-led strategy uniformly across Unilever’s vast portfolio. While creator content can be highly effective in certain categories, like skincare, it may be less suitable for others. The attempt to find a “brand purpose” for every product, including those with inherently non-purposeful offerings, proved unsuccessful in the past and this new doctrine could face a similar fate.
What Does This Mean for the Future of FMCG Marketing?
Unilever’s move signals a broader trend towards prioritizing social media and creator marketing within the Fast-Moving Consumer Goods (FMCG) sector. However, a complete abandonment of traditional advertising seems unlikely and potentially detrimental. The most successful companies will likely adopt a hybrid approach, leveraging the strengths of both mass media and creator-led content.
Did you know? Unilever rotated 15% of its portfolio in 2025, including the demerger of Ice Cream and several bolt-on acquisitions, signaling a broader strategic shift beyond just marketing.
FAQ
- Is big brand advertising really dead? No, experts agree that mass-reach advertising remains a vital component of effective marketing.
- What is Unilever’s “social-first demand model”? It’s a strategy prioritizing creators and influencers over traditional advertising channels.
- How much is Unilever investing in creators? Unilever is shifting 50% of its media budget to creators, up from 30%.
- What is the Ehrenberg-Bass Institute? It’s a research institute that studies marketing effectiveness, emphasizing the importance of mass reach and penetration.
What are your thoughts on Unilever’s new marketing strategy? Share your opinions in the comments below!
Explore more: Read our latest article on the evolving role of influencers in marketing.
