Is Celebrity Endorsement Effective?

By Rebati Adhikari

Numerous advertisements crowd the print, electronic and digital media outlets. Rather than some unknown face appearing in an ad, a well-known face draws significant attention. The trend of aligning a brand with star power is not uncommon since it is a tried and tested PR and marketing strategy. But is it worth it? Do celebrity endorsements truly sell? Amit Giri, Assistant Supervisor of Prisma Advertising, refers to celebrity endorsement as a strategy used by companies to boost sales and increase brand recall among consumers. He opines that celebrities have a certain allure that appeal to consumers. The public’s perceived connection with a celebrity they admire is at play resulting in the boost in sales, if everything goes as planned. Keki Adhikari, who has recently been appointed as the brand ambassador of RMC Rajesh Jastapata says, “Endorsement does impact sales and brand image which is why it has been established as a universal marketing tool”. Kashyap Shakya, Brand Manager of Nepal Life Insurance agrees that endorsement is an effective marketing tool. He opines that the Nepali consumer market is small but growing gradually. He shares, “Though celebrities have not achieved god-like status, celebrities like Priyanka Karki, Hari Bansha Acharya and Madan Krishna Shrestha are most sought after for endorsements.” Sitaram Kattel, brand ambassador of United Insurance Company Limited along with his wife, Kunjana Ghimire, believes that when a known face is attached to a product, it does make a difference. “Our endorsing it means it is a guarantee that the product is good. Credibility of the product increases with a celebrity’s affiliation with it”. A known name attached to a product makes it easy for customers to remember it. But does every endorsement contribute to brand recall or push product sales? Santosh Shrestha, Client Servicing Supervisor of Adopt Pvt Ltd says, “Social media fan following and the celebrity’s public image, especially whether they have fallen into controversy or not should be kept into account while choosing a celebrity so that the partnership doesn’t go haywire.” Giri opines that success of the brand-celebrity collaboration heavily depends on the compatibility between the brand and the celebrity in terms of personality, identity, positioning in the market and lifestyle. He thinks certain compatibility factors need to be considered to leverage maximum from the collaboration. According to Shakya, Nepal Life Insurance assesses market value, integrity of the celebrity, along with the celebrity’s relevance to the brand when deciding on a celebrity. Shrestha shares, “Certain celebrities are high in audience appeal. For instance, Priyanka Karki has an unparalleled crowd-pleasing personality.” Meanwhile, Kattel gives thought to the market value of the company and the side benefits it can offer to his social work before conceding to a deal. For him, it is a give-and-take relationship. When Kattel and Ghimire were the face of City Express, it had helped them collect funds while building an integrated settlement. Likewise, Bank of Kathmandu Lumbini, which the couple endorses, provided financial support to build quake-resistant houses in Giranchaur, Sindhupalchowk. Looking at the trend established in the Nepali advertising market, companies have the upper hand while selecting a celebrity. Giri states, “It’s the joint effort of the agency and the company in choosing the right person as per the target group for the product or service. The agency shares their list but ultimately, it’s the company who chooses the celebrity.” There is an implicit rule that governs celebrity endorsement for it to work: the attributes of the company and those of the celebrity should match. In recent times, a strong social media fan following has become equally important. The number of followers a celebrity has on social media platforms such as Instagram are taken into consideration. It is an advantage for marketing. Giri asserts, “With YouTubers, Snapchat, Facebook celebrities and Instagram stars making names on their own, brands are also targeting influencers with large audiences to get their brand messages to the masses.” Celebrity endorsement overcomes advertising clutter, drives sales, reaches out to a larger audience. Nonetheless, risks are also involved. Shakya opines, “Endorsement doesn’t pay off overnight. It all depends on the communication plan of the company. Success will be visible at the time of brand recall and how customers relate with the brand. To make sure that several brand associations of a celebrity doesn’t hamper the image of the company, strong communication plans must be formulated.” Mahendra Singh Dhoni, former captain of Indian Cricket team had to end his contract with the real-estate firm, Amrapali last year following a social media outrage over the conduct of the company. Amarpali residents had launched a social media campaign stating the builder had not completed the construction work in the promised time. Herein, the moral responsibility outweighed. Brands here prefer to commit a celebrity for short term campaigns. Short term endorsements like print ads normally get settled for around Rs 50,000 and long term endorsements go up to 5 lakhs. Is celebrity endorsement effective? Most advertisers agree. However, the public is clearly divided. While some people agree that it helps in brand recall, many feel that they buy a product or service based on value for money and quality. 20 year old Subash says,” I wouldn’t buy a product just because xyz recommends it. I will buy it if it feels right to me”. Shraddha a 32 year old working professional says, “We get to see so many brand endorsements here but it doesn’t really create a recall. I don’t think I have a connect with any particular celebrity here. However, I do take note of international celebrities. It’s hard to ignore them”. Madhu, 23, has just moved to Kathmandu from his village and says while he does look at advertisements and brand ambassadors, he buys only what he can afford at the end of the day”.