Amitabh Bachchan & Shah Rukh Khan miss the brand endorsement wagon in 2014?
Why did the top two Bollywood celebs known for massive brand endorsements not make it to the TAM AdEx Celebrity Endorsement List (Jan to Sept 2014)? Are brands going for younger celebrities?
TAM recently released its AdEx celebrity endorsement report for Jan-Sept 2014 period which saw the stars of the likes of Deepika Padukone and Kareena Kapoor taking the lead in celebrity endorsement this year (Deepika Padukone & Kareena Kapoor lead celebrity endorsement race). According to the report film actors/actresses and sports personalities saw a marginal increase as compared to 2013. While Deepika Padukone and Kareena Kapoor have the highest share of 5% among the top ten celebrity list, Salman Khan, Virat Kohli, Ranbir Kapoor and Katrina Kaif each have 4% share the top ten list, followed by MS Dhoni, Abhishek Bachchan, Saif Ali Khan and Pulkit Samrat who had a 3% share each.
Celebrities bag brands
The surprise this year was Deepika Padukone who in the previous year wasn’t included in among the Top 10 list of celebrities. However, this year she has risen to the top and captured the majority market share. It is estimated that Padukone charges between Rs 5-6 crore per brand which is an incredible jump from Rs 2-3 crore in 2012 charged per brand. This comes on the strong success of films such as Chennai Express, Ram Leela and Yeh Jawaani Hai Deewani.
The brands included in her kitty include Kellogg’s, Coca-Cola, HP, Axis Bank, Nescafe, Parachute, Lux, Tissot, Garnier, Van Heusen, Lifestyle Melange, Asian Paints, Yamaha, Sony Cybershot, Neutrogena, Luxor Pilot Pens, Orbit Wrigley’s, Ace Real Estate and Sky I (real estate in Pune). The deal with Coca-Cola was estimated to be around Rs 6 crore according to media reports. There are 20 brand endorsements that she has and if we were to take an approximate estimate it would amount to Rs.120 crore.
Apart from Padukone, Kareena Kapoor too occupies the top share in brand endorsements and her deals are estimated to be around Rs 2.5-3 crore according to some media reports. She is the brand ambassador for Head & Shoulders, iBall Andi, Magnum (HUL), Lakme Absolute, Colgate Active Salt Healthy, Tetley Green Tea, Naturals Beauty Salon, Malabar Gold & Diamonds, Sony Vaio, Lux, Lavie, Vivel and Limca among others.
As per TAM AdEx analysis on celebrity endorsements, Shah Rukh Khan who topped the list last year with a 6% market share was nowhere among the top ten on the list this year. This was also the same for Aamir Khan and Amitabh Bachchan, who each had a 4% market share last year are missing among the top ten celebrities in the brand endorsement list. However, Salman Khan still maintains his position from last year at the third spot. In 2013 he had 5% share and this year it has only dropped to 4%. He endorses a number of brands including aerated drinks, innerwear, detergent, bikes, travel portal, among others.
Shah Rukh Khan and Amitabh Bachchan fail to make the list… are brands going for younger celebrities?
Shah Rukh Khan is known to many as ‘brand SRK’ with the number of brand endorsements he has made which include toilet soaps, aerated drinks to automobiles. However, it comes as a surprise that the king of brand endorsements is nowhere among the top ten on the list. Some of the brands he is an ambassador of include Hyundai, Frooti, Videocon, Dish TV, Tag Heuer, Nerolac Paints to name a few. US Consultancy firm American Appraisal in a study last year on celebrity brand valuation in India estimated him to be worth $100-million, the highest among any other celebrity. He is estimated to charge around Rs 3.5-4 crore per brand. Recently he has also endorsed the brand Yepme.com.
Amitabh Bachchan too is known for his brand endorsements which run into several brand categories over the years. This year we saw him endorsing brands such as ICICI Bank, Gujarat Tourism, Justdial among a few brands. The number of brands endorsed by him however have reduced this year in comparison to the previous year. This begs the question - are brands going for younger celebrities?
Mayank Shah, Dy. Marketing Manager, Parle Products said, “I don’t think they(Amitabh Bachchan and Shah Rukh Khan) have lost their celebrity endorsement power. Ratings are dependent on their presence on screen for endorsement, and all the brands which have roped them may not be on air during the period of consideration or may have curtailed advertising. They were the ones who were endorsing maximum brands till last year. Also with younger generation of actors/celebs coming in, marketers would have more options to choose from. Depending on the need of the brand and synergy with celeb and given the younger demographics of our country, marketers would be looking at young and fresh faces. The new lot brings with them the aggression and irreverence which cuts ice with today’s generation.”
According to Balakrishna P.M., COO, Allied Media, “Sometimes categories can overlap, some categories which they may have endorsed and other brands. It can be a sheer matter of contracts overlapping. There might even be some lull periods. Shah Rukh Khan and Amitabh Bachchan overnight cannot become redundant. That certainly is not the reason but it could be purely technical reasons where they give commitments by category or brands. So sometimes their contracts might end a bit early and it might not get renewed because they might want to work with another brand which might have another celebrity involved,” he said.
Anisha Motwani, Director, Chief Marketing & Digital Officer, Max Life Insurance felt that it depends on a lot of factors and not whether they have lost their appeal or not. Whether the celebrity is the right fit for the particular brand category and how that celebrity is used are some of the most important things for brands, she said. “Another factor is what life stage the brand is in. If it is a cluttered category and you are launching something new in this category which is very crowded then a celebrity like an Abhishek Bachchan for an Idea (Cellular) in a very established category such as telecom is good. Idea comes in as a challenger brand gets in an Abhishek Bachchan and gets to use him very intelligently, it works. If you are challenger brand in a very cluttered category and want to get through then you use the right celebrity and you use him correctly then it really helps you make space and a niche for yourself,” she said.
Sashi Shankar, CMO, Idea Cellular on selecting Abhishek Bachchan as their brand ambassador, said, “We chose Abhishek Bachchan in the year 2006-2007 as a brand ambassador. We chose him because he was unique, also because at that time he was an upcoming actor like how Idea was an up and coming brand. We have used him very intelligently on television as in he doesn’t play Abhishek Bachchan at all in the TVCs, he plays a character. He is the ‘Sir ji’ and he personifies ‘Sir ji’ and he has made the brand very visible and we continue to use him.”
• Note : The TAM Adex analysis is based on the Ad volume during commercial time i.e. Duration in seconds & does not include any promotional appearances/activities
• Base : Celebrities (Actor/Actress) from Hindi Movies & TV Industry and Sports personality considered.
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