👨‍🎤 Celebs, Brands, and Sales

Big B Amitabh Bachchan is taking big strides into the world of AI with his latest brand association. He is working with studio, aggregator and digital IP monetization platform Ikonz to interact with fans globally through generative AI. If the technology pans out well, fans could probably even take selfies with Bachchanji in the metaverse.

Companies have used celebrity endorsements for years to reach out to their consumers and give them a sense of proximity to their heroes. Remember those days when Sachin Tendulkar declared proudly that "Boost is the secret of My Energy!" and it was cool to grab a Pepsi bottle that even Shahrukh Khan couldn’t resist, saying “Yeh Dil Maange More”?

With so much money going into celebrity endorsements, investors are bound to question what these celebs bring to the table.

💵 Celebs and sales - Celebrity placements and ads play an important role in the success of the product by generating publicity and attention, and in some cases even impact a product’s sales.

In 2022, CRED’s Rahul Dravid ad of “Indiranagar ka Gunda” went viral, and its operating revenue jumped 4.4x to ₹393 crores.

Cricketer Virat Kohli’s wedding to actress Anushka Sharma in 2017 helped men’s ethnic wear brand Manyavar (which Kohli endorses) become the most-preferred brand during weddings and festivals.

And this doesn’t happen only in India! In 2014, mobile phone maker Micromax roped in ‘Wolverine’ star Hugh Jackman as its brand ambassador because of his global popularity, especially in Russia. Its revenue is estimated to have crossed ₹6,000 crores in fiscal 2014 from ₹3,168 crore in fiscal 2013!

🤑 The cost of celebrity endorsement - Of course, if the celebrities bring in money, they also cost a lot of money. In a country where cricket is a religion, a report noted that a whopping ₹640 crores were spent on endorsements by cricketers, with Virat Kohli, MS Dhoni, Rohit Sharma endorsing 30 brands each. And cricketers make up for only 11% of celebrity-endorsed ads. Big Bollywood stars make up for 60% of the ₹1,000 crore celebrity endorsement industry, says celebrity brand consultancy Alchemist. And more than 25% of the TV ads are being endorsed by celebrities.

📈 The growing engagement - Today, celebrity attributes are tied to the brand and vice versa. Many celebs refused or cancelled their contract with several brands, preferring to stand by their personal preferences and public opinion. For instance, Amitabh Bachchan and Virat Kohli discontinued their long-standing association with Pepsi due to health concerns around sugary drinks.

On the other hand, Hrithik Roshan who is a passionate advocate of working out and staying fit, partnered with Myntra to launch his own active apparel and casual wear brand HRX in November 2013. Shilpa Shetty, the face of Mamaearth, is also a stakeholder in it. Even Alia Bhatt and Katrina Kaif are investors as well as endorsers of Nykaa.