Unilever CEO Fernando Fernandez has publicly questioned the future of traditional “big brand” advertising, announcing a significant shift towards creator-driven marketing at the Consumer Analyst Group of New York (CAGNY) conference last week.
Fernandez told investors that the era of large-scale, corporate brand messaging was over, advocating for a “social-first demand model” powered by a network of content creators. The move signals a potential overhaul of Unilever’s marketing strategy, which historically relied heavily on broad-reach advertising campaigns.
The announcement, coming after just eleven months in the role for Fernandez, has raised eyebrows within the industry, given the scale of Unilever’s operations – 190 countries, 400 brands, 124 factories, and $60 billion in annual turnover – and the established role of Chief Marketing Officer Leandro Barreto. Traditionally, CEOs refrain from making specific pronouncements on advertising tactics, leaving such decisions to their marketing leads.
Despite Fernandez’s declaration, Unilever’s recent financial results reveal a substantial ongoing investment in traditional advertising. The company reported allocating 16% of its $60 billion revenue – roughly $9 billion – to brand and marketing activities in its full-year 2025 results, released ten days prior to the CAGNY conference. This figure casts doubt on the assertion that “big brand advertising” is being abandoned.
The planned shift to a creator-focused strategy involves reallocating media spending, moving from 30% to 50% towards creators and influencers. Although, even with this dramatic change, approximately $4 billion will still be directed towards traditional advertising channels. This continued investment is particularly notable given Unilever’s sponsorship of the 2026 FIFA World Cup, a major global event typically leveraged for mass-market brand exposure.
Industry experts point to the importance of integrated marketing communications, arguing that a singular focus on any one channel is unlikely to be effective. The Ehrenberg-Bass Institute, whose research emphasizes the need for broad reach to attract new customers, has long advocated for a balanced approach. Unilever’s CMO, Leandro Barreto, is reportedly a proponent of the Institute’s principles.
The viability of a creator-led strategy similarly varies significantly across Unilever’s diverse portfolio of brands. Although the company highlighted the success of Vaseline, which saw 12% volume growth over two years through social media engagement, the applicability of this approach to all 400 brands is questionable. The effectiveness of toilet influencers promoting Domestos, for example, remains uncertain.
Unilever has previously attempted a portfolio-wide strategic mandate, requiring all brands to adopt a social purpose. This initiative, which proved challenging for brands like Pot Noodle, was eventually reversed. The experience underscored the importance of tailoring strategies to individual brand needs and consumer contexts.
The current situation leaves Unilever’s brand managers facing a potential disconnect between the CEO’s stated vision and the practical requirements of their brands. Those responsible for brands requiring mass reach to drive growth may find themselves navigating conflicting directives.
