First celebrity brush

It's the era of digital. But despite an influx of programmatic advertising, micro-influencers and social media marketing, the good ole ambassadors still reign supreme for brands.

Even legacy brands like 260-year old tour operator Cox & Kings and 47-year old Apollo Tyres have for the first time roped in high-profile celebrity endorsers by signing actress Anushka Sharma and cricket legend Sachin Tendulkar, respectively to endorse their products in the country. 

Very recently, cosmetics major Estee Lauder also appointed Bollywood actress Diana Penty as its first Indian brand ambassador. Japanese automobile maker Isuzu signed South African cricketer Jonty Rhodes and Bata India took on board actress Kriti Sanon. 

Experts say irrespective of the shifting market scenario, one cannot discount the importance of celebrity endorsers to lure in the millennial consumers who constitute 46% of the Indian workforce and account for a third of the Indian population, according to data from Morgan Stanley Research. 

“Brands are no doubt leveraging techniques like programmatic advertising, which is the method of buying and selling digital ads through algorithms. Brands are also engaging with micro-influencers, people who create podcasts and promote brands on social media. But at the end of the day, they ultimately need ambassadors to establish a deeper and long-term connect with consumers,” said an expert.

Signing on a celebrity or a renowned sportsperson can accelerate the stock prices and sales of a brand by an average 4%, says data by Marketwatch. 

“The connect that a celeb ambassador provides often tempts the consumer to make a purchase and stay loyal to the brand,” added the expert.

Yuvraj Singh, in his capacity as brand ambassador for online fantasy gaming and sports platform LivePools, had said, “I have decided to put my name and face to the brand as I am a sports enthusiast and believe that fantasy sports is a great way to further engage fans.” For new-age, technology-driven brands like LivePools, ambassadors help in enhancing reach, creating awareness about the brand and building a loyal customer base.

For legacy brands like Cox & Kings, ambassadors are needed to further consolidate their presence in a market that is increasingly competitive, thanks to a bevy of travel-tech start-ups and platforms looking to grab a share of the consumer pie. Capturing consumer attention is challenging. On average, travel-crazy consumers spend 49 minutes spread over 46 days visiting over 17 different online touch-points to plan, research and make a booking, says a report by Google India-BCG.

Ambassadors help a brand rise above the clutter of conventional advertising, believes Karan Anand, head - relationships, Cox & Kings. “Anushka Sharma perfectly represents a generation that is energetic, unapologetic and fun-loving, making her the right fit to showcase our innovative offerings. Ambassadors help to amplify our message.”

“All brands have value systems and ambassadors present a relatable human face to the brand. It is always a strong marketing tool to have brand ambassadors,” says Varun Duggirala, content chief and co-founder, The Glitch.

As per data by ESP Properties, celebrity-led endorsements in India increased from about 650 in 2007 to over 1,660 in 2017. Brands do not hesitate to shell out huge sums to sign on ambassadors. Experts say high-profile Bollywood and cricket celebs can charge as much as Rs 4-6 crore a day. As per global advisory Duff & Phelps, Anushka Sharma had a brand value of $23.4 million in 2018 while Sachin Tendulkar had a brand value of $21.7 million.

But why aren't brands thinking of mascots, which are extensively cheaper and go on to establish their own legacies; for example, the Amul girl? 

“A mascot is a long-term bet as it takes longer to build a connect with the consumers vis-à-vis a brand ambassador. But having a long-term outlook allows brands total control of a narrative as against an ambassador. A blended approach is, therefore, needed,” says Duggirala. 

A more effective way is to use the licensing route or by seeking associations with sports clubs such as Real Madrid which personify a winning attitude, says Jiggy George, founder and CEO, Dream Theatre. “Associating with an evergreen brand or a sports club through licensing allows brands to stand apart, and also de-risk the brand from the fortunes and personal reputation of the celebrities who endorse the brands."

WOOING THE YOUNG

• 46% – Of the Indian workforce constitutes millennials
   
• Over 1,660 – Celebrity-led endorsements in India in 2017