MEC’s study finds that celebrity endorsement influences purchase

Mediaedge:cia's (MEC) consumer insight and ROI division MEC MediaLab, recently released the findings of its latest celebrity Sensor report. The research conducted among over 1000 adults in India reveals that while celebrity interest among consumers is high, multiple brand endorsements by celebrities confuses consumers and reduces correct brand and celebrity associations. To be an effective marketing tool, celebrity endorsements need consistency over time and should go beyond the obvious to make a strong connection between the brand's value and the celebrity.

Almost a third of consumers (32%) said that celebrity endorsements influence their purchasing decisions and over one in four (27%) have bought a product because a celebrity was promoting it. But overwhelming majorities - 75% - of consumers now believe that too many products are promoted by celebrities in India.

Jon Wright, Regional Director, Asia Pacific, MEC MediaLab says: "The popularity level of celebrities in India was on the whole higher than the global average, and endorsement remains a powerful tool for marketers in India despite the potential over-exposure. Significantly, people in India were more likely than the global average to want to interact with celebrity content online (among a comparable urban online population), demonstrating the depth of involvement people want to have with celebrities, and therefore the opportunities for brands to extend the effectiveness of communications."

Interestingly, there is no significant variation in the level of celebrity interest or level of celebrity influence across the 4 different regions of India. The research shows that celebrity endorsement still plays an important role in generating brand salience and positively affecting brand image:
•Over half of Indian consumers (57%) believe that celebrity endorsement makes a brand stand out
•62% agree that it enhances a brand's personality

However, the role of celebrities in advertising is complex. What celebrity endorsement doesn't appear to do is build brand trust or belief in product efficacy, nor does it encourage word of mouth:
•Only 35% of consumers feel a celebrity helps them to trust a product
•Just 32% believe a celebrity helps them believe that a product actually works
•Only 31% say that a celebrity makes them want to recommend a brand

The research also highlights risks for brands that use popular celebrities with broad appeal.
42% of people find it hard to remember which celebrity promotes which product, but for
celebrities who endorse more than one brand, this figure jumps to 66%.

At its most extreme, using popular celebrities with multiple endorsement deals can actually reduce brand saliency. When asked which brand Indian consumers most associate with Kareena Kapoor, out of 51 brands named unprompted, only Airtel (17%) and Boroplus (10%) achieved double digit recall. Likewise, M.S Dhoni had 81 unprompted brand associations in consumers' minds, but only Boost (12%) and Pepsi (10%) reached double digits.
With most Indian celebrities endorsing multitude of brands, the research demonstrates that one of celebrity endorsement's greatest strengths - driving brand salience - can be completely negated by a celebrity who is spread too thinly across brands.

Shubha George, Chief Operating Officer, MEC says: "While the problem of multiple endorsements impairing brand salience is real and likely to stay, partnerships remain an important and effective marketing tool for many brands, when done well. And they are still useful for reaching a wide audience, not just the minority who are actively interested in celebrities. However, this salience problem necessitates brands to be more strategic in their use of celebrity endorsements. Brands must take a long term view on celebrity endorsements and like any marketing investment it must have a targeted measurable return."

From analyzing its research data, MEC provides 6 pointers to brands evaluating celebrity endorsements.
1.Pick the right celebrity and have a long term strategy on how to use them
a.Among the most recalled associations are Sachin Tendulkar - Boost (34%) , Shahrukh Khan - Hyundai (18%) , Amitabh Bachchan - Reid & Taylor, Dabur and Cadbury(16-20%). All of these associations are almost a decade old, if not more.

2.Have a powerful central thought that strongly binds the brand and celebrity and uses the celebrity beyond his or her recognizable face
a.Strong scores emerge for associations with powerful ideas. Cases in point are Abhishekh Bachchan - Idea (29%), Aamir Khan - Tata Sky (23%)

3.Avoid the danger of casting the celebrity as a screen ‘avatar'.
a.Everyone knows Hrithik Roshan as a great screen dancer, but having him dance in all commercials reduces brand recall. Only 5% recall for Hide & Seek, a Hrithik Roshan endorsed brand.

4.Beauty brands beware of beautiful faces
a.Just a ‘pretty face' causes confusion in consumers' minds. Most actresses are glamorous and when used without any differentiation to the brand, consumers tend to replace one beauty with another in their minds. Example - Vivel's celebrity recall is split in the middle between Kareena Kapoor and Deepika Padukone.

5.Multiple celebrities for a single brand dilute the associations and fragments recall.
a.Pepsi is an example with only M.S. Dhoni (10%) having relatively stronger recall and the myriad other celebrities of the brand having far lower recall levels.

6.Last, but not the least, under investing in media kills the association without even an opportunity to test the strength of the association. To be effective celebrity endorsement must be used as part of an overall communications strategy, and not standalone.
a.Cases in point are Shahrukh Khan - Compaq, M.S Dhoni - Titan Sonata