The celebrity endorsement biz gets tough in the digital age

Two incidents in the past seven days have drawn attention to the business of celebrity advertising. First, actor Shah Rukh Khan, who endorses at least a dozen brands, came under fire after his son Aryan was arrested by the Narcotics Control Bureau in a drug investigation. News reports said edtech firm Byju’s, which uses Khan as its brand ambassador, suspended its ad campaign featuring the star, though it was seen on Star Sports 1 HD during the IPL on Wednesday Was. Amitabh Bachchan on Monday announced his exit from the deal with pan masala brand Kamala Pasand, claiming that he was not aware that the promotion of silver-coated cardamom was a surrogate advertisement.

Both the stars were being trolled on the digital platform, which made headlines over the uncertain nature of the endorsement business. Brand strategy expert Harish Bijoor, who runs Harish Bijoor Consults Inc., said social media makes it complicated. There are three types of people found on social media – the real consumer, the competitor’s troll and the crazy person who has nothing but ridicule and ridicule. Bijoor said. “In this environment, every action and inaction of the brand endorser is seen and used,” he said.

Brand expert like him and Samit Sinha, managing partner of Alchemist Brand Consulting, is not a fan of celebrity endorsements. Bijoor said this is the “lowest common denominator approach” and Sinha suggests it as a “last resort”.

This does not mean that celebrities do not benefit brands, but it should be noted that the risks often outweigh the rewards, especially in today’s digital age of intense and constant scrutiny that celebrities are subject to. Huh. “Especially because the boundaries between his public and private life have blurred,” Sinha said.

Bijoor said that the brand ambassador worked beautifully when endorsements were scarce and there was still respect left for the word of the endorser. Today, consumers view a brand ambassador as a paid entity doing their job. “The confidence quotient in approval is low. Add to that the brand ambassador’s fault or mishaps, and we have an environment of mistrust, where trust has to be,” Bijoor said.

Still, there are benefits to being associated with celebrities for brands. The fact is that the trend has not waned. Onboarding celebrities give brands instant recognition, attention, and even stature. However, the risks are less predictable.

Even undisputed contracts don’t protect brands from the repercussions of celebrities getting embroiled in harmful controversies. However, in the case of the likes of Bachchan and Kamala, the opposite was true. “It was an excellent case for a brand ambassador to distance himself from a category that can be rocky,” Bajoor said.

Indian law does not allow the advertisement of tobacco or alcohol. The guidelines framed by the Advertising Standards Council of India (ASCI) also state that celebrities should not participate in advertisements for products that require health warnings in their advertisements or packaging.

Clearly, veteran actor Kamala Pasand walked out of the deal as the loss in terms of his image – due to the nature of the product and being roasted on social media – outweighed the gains in terms of money.

The strategy of hiring a brand ambassador should be considered as the popularity of a celebrity is also momentary. “Very few enjoy a sustained level of celebrity status over the years, let alone decades. Brands, on the other hand, have to be built to last,” Sinha said.

Sometimes, the celebrity persona risks dominating the brand to the extent that consumers may remember the celebrity and the advertisement, but not the brand, he said.

Despite the very real risks, brands continue to include celebrities. While this may pay off, it excludes the possibility of coming up with alternative concepts that could potentially be more effective and perhaps much cheaper and safer.

Sinha finds it as a sign of intellectual laziness and perhaps creative bankruptcy to take the route of celebrity endorsement without first exploring other possibilities. “I believe that a celebrity is not a substitute for a brand or communication idea, except in a few rare cases, for example, Unilever Lux, which was positioned as The Beauty Soap of Film Stars, ” They said.

Sinha couldn’t agree more with American advertising icon Bill Bernbach, when he reportedly said: “We don’t have a lot of money. So we have to think.”

Suchi Bansal is the Media, Marketing and Advertising Editor of Mint. The simple post will look at pre-assing issues related to all three. Or just fun stuff.

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