CELEBRITY-BASED AD CAMPAIGNS: WHAT ARE THE PROS AND CONS?

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1 132, BRAND REPORTS CELEBRITY-BASED AD CAMPAIGNS: WHAT ARE THE PROS AND CONS? Celebrities are used in advertising around the world. The right celebrity, used in the right way, can undoubtedly be a powerful brand asset. But using a celebrity does not guarantee effective advertising; overall, there s very little difference between the performance of with celebrities versus those without. And there are pitfalls to using celebrities. To gauge whether a celebrity is right for your brand, you need to establish whether they are known, whether they are liked, and what they stand for, among your target audience. WHERE ARE CELEBRITIES USED IN ADVERTISING? The use of celebrities in advertising varies enormously around the world. It continues to be highest in Asia Pacific, as this analysis of we have researched with our Link copy test shows. In terms of individual countries, use is highest in Japan and Korea, where around 4 percent of TV feature celebrities; and lowest in Norway, Austria, Croatia, Kazakhstan, El Salvador and Costa Rica, where the proportion is under 3 percent. It is 31 percent in China, 23 percent in India, 11 percent in the U.S., and 11 percent in the UK. Percent of featuring celebrities by region Asia Pacific Africa/Middle East/Turkey While celebrities are less likely to be used for medical, there is little other pattern of celebrity use by category, as this comparison of India, China, US and UK data shows. Different regions show a variance in the use of celebrities across the categories Percent of using celebrities North America India China USA UK Personal Care Western Europe Medical Leisure 7 1 Central & Eastern Europe 8 Household Latin America 8 Food and Drink 27 3 Establishments Durables Automobiles Apparel Minimum base size for category 3

2 , ADS The type of celebrity used varies a lot by region. Movie stars are particularly popular in Asia, notably Japan. TV presenters are particularly popular in the UK; while sports stars are more common in the US. The type of celebrity used varies by country 8 7 Film/movie star Musician/singer Sports star TV personality 74 An in-depth analysis of Twitter volumes and sentiment for 16 brands across 5 countries found that celebrities are one of the drivers of short-term buzz. Brand campaigns and short-term promotions generate buzz more often, but celebrity associations and endorsements are likely to increase positive sentiment for the brand in the short term. Drivers of short-term spikes in social conversation France United Kingdom USA Japan Brand activity Celebrity News Meme Other Source: Millward Brown Global R&D Study 215 ARE THEY EFFECTIVE? Celebrity-based campaigns can be very effective. The Snickers You re not you when you re hungry campaign won a Cannes Lion Creative Effectiveness award; as did Virgin Mobile Australia for their Fair Go Bro campaign. In the US, one client had used a celebrity in some of its over a ten year period, and wanted to know if they should continue the relationship. Our analysis showed that the featuring the celebrity performed better on key measures than those without the celebrity. The celebrity had also become a strong branding cue. We were able to estimate that the celebrity was worth over $5 million per year to the client. After an ROI calculation, the client continued the relationship. Celebrity campaigns more likely to generate a positive improvement in sentiment change in sentiment Ratio Change () More Negative More Positive 11. Brand Activity Celebrity Meme News Other Source: Millward Brown Global R&D Study 215

3 1,4 CASE STUDIES Whilst most of these effects are largely short term, a successful celebrity-brand partnership can also strengthen social buzz in the long term. In February 214, Mila Kunis was announced as the new face of Jim Beam and featured in a number of and videos for the brand. Using our Digital Behavior Analytics solution to decompose the raw digital signal into more meaningful metrics, Millward Brown was able to quantify that this was a more efficient use of the brand s marketing budget, and delivered a greater return on investment in both the short term and the long term. However, while individual celebrity campaigns can be highly effective, there is very little difference overall between the performance on most key measures of with celebrities versus those without; as illustrated by the analysis of ad enjoyment below. There is no difference seen across the regions in terms of enjoyment of the advertising when celebrities are used ENJOYMENT Ads with celebrities Ads without celebrities Base* Base* The Effect of the Mila Kunis campaign on Jim Beam Indexed vs. 12 months before campaign () Campaign Spend 186 Campaign Efficiency 12 months before 12 months after Social Buzz: Long term trend Source: Millward Brown Digital Behavior Analytics, using social data from Crimson Hexagon 118 TOTAL Africa & Middle East * Finished films 2 to current Asia Pacific Central & Eastern Europe Latin America North America Western Europe This includes other key measures too. Some regions, notably the US, and Central and Eastern Europe, find celebrity slightly more involving; but in other regions, particularly where celebrity are more common, this is not the case. Overall, branding levels tend to be similar. For some long running campaigns, particular celebrities have, over time, become synonymous with the brand: for example, William Shatner and Priceline in the US, Gary Lineker and Walkers in the UK, Carina Lau and the cosmetic brand SK-II in China. The following example shows the gradual build of one celebrity brand cue over 15.

4 OVER CONFERENCE PAPERS AND MAGAZINE ARTICLES Celebrities can wear in as brand cues What happened in the advert to help you know that it was for Brand X? Overall, the effect of the fame of the celebrities differs by country: for instance, in the US and UK, well known celebrities can help slightly with Branding. However, in China (Shanghai) there is little difference in key measures whether the celebrity is well recognised or not. Celebrity brand cue Well known celebrities in China Shanghai have little effect on the overall impact of the ad China Shanghai Recognition of celebrity IMPACT Above Below 2 AI A B C D E F G H I J K L M N O BASE (164) (117) (81) (126) (2) (85) (67) (6) () (161) (154) (14) (161) (128) (126) Source: Kantar Millward Brown Link (15 executions over time) Salient Enjoyment Involvement In Japan, however, branding scores are slightly lower for with celebrities possibly due to the celebrities endorsing too many brands. Ads featuring celebrities are no more likely to be seen as conveying new, relevant, credible news than others; so, unsurprisingly, they are no more persuasive than other. THREE KEY QUESTIONS FOR EFFECTIVE USE OF CELEBRITIES Given that using a celebrity does not guarantee a successful campaign, what are the guidelines for getting it right? We d suggest there are three key questions you need to answer. Who is the celebrity? Where the celebrity is central to the core idea, it s important to establish how well known they are among your target audience. In the US, a lipstick brand was launched using a British model. Among those who recognized her, communication, enjoyment and purchase intent were much stronger. However, less than a quarter of the audience recognized her, severely limiting the effectiveness of the campaign. Branding Understanding Base: Ads containing celebrities Is the celebrity well liked? While it isn t essential for a celebrity to be liked, this can have a significant impact on the emotional response to an ad. A snack food brand in Turkey wanted to explore whether to use celebrities in their campaign. They researched two with us, both with and without celebrities. The presence of a (much liked) celebrity made a slight difference to the first ad, improving its enjoyment and impact; but the celebrity in the second ad was perceived to be pretentious and arrogant, and had almost no effect on the ad s performance; both versions performed poorly. The effectiveness of likeable celebrities is more similar across countries: enjoyment is higher when the celebrity is liked, in all countries. In the US, UK, China and India salience is also higher. Branding is higher in India, Russia and the UK when the celebrity is liked, and understanding in the US and India. All countries tend to see higher scores across persuasive measures and overall Power Contribution when the celebrity is liked.

5 132, BRAND REPORTS Likeable celebrities in the UK can help with overall saliency, branding and enjoyment UK Likeability of celebrity Above Below Suitable celebrities in Shanghai, China can help with overall saliency, branding, enjoyment and understanding of the ad China Shanghai Suitability of celebrity Above Below IMPACT IMPACT AI Salient AI Salient Enjoyment Involvement Branding Understanding Enjoyment Involvement Branding Understanding Base: Ads containing celebrities Base: Ads containing celebrities In particular the likability of the celebrity needs to be assessed among the target audience. In one project for a cereal brand in the UK Millward Brown asked about celebrities who were considered positive role models. One particular male TV and radio presenter was rated highly; but this ranking was driven by the 4+ age group. When we researched an animatic version of an ad for the brand featuring him, he was dismissed by the younger target respondents as being too old and old fashioned. In the ad he played with a younger woman s hair; a scene which respondents found disturbing and uncomfortable. The ad was not produced. What does the celebrity represent? It s important to understand how well the celebrity fits with the brand, or with where you want to take the brand. When the celebrity is perceived to be appropriate, communication can be enhanced. The right fit celebrity can enhance key measures; take celebrity we ve researched in Shanghai as an example: One automotive brand in India came to us for advice on the right celebrity to use to represent its brand values and aspirations. Millward Brown explored which celebrities were best known across India, which were most popular on Twitter and Facebook, and how many brands they each already endorsed. But we also explored their personalities, to establish which was the best fit with the brand. The client followed our recommendation, and saw an almost immediate improvement on brand health and sales. Potential pitfalls Unlike an animated character, celebrities are human, and subject to human failings. So there are a number of ways in which a celebrity could become a liability to the brand. The Chinese athlete Liu Xiang was in the London Olympics, but had apparently disguised an injury; the injury flared up and he had to pull out. Chinese public opinion turned against him for his perceived dishonestly, and a year later was still far from recovering.

6 , ADS Perceptions of Liu Xiang in China Dishonest - Liu Xiang Dishonest - Norm But experience suggests that this tends to be more an issue of ad structure than the fame of the celebrity. Testimonial, for example, with their clear focus on the brand, rarely suffer this problem. But the celebrity needs to come across as likeable and genuine, or the endorsement may lack credibility Alternatively, the celebrity may just be a poor choice. In the UK, two were tested for a brand. They had identical scripts, but one featured a genuine former pop star, while the other featured an actor playing the part of an old pop star. The version with the actor was preferred. The celebrity was considered inappropriate and weakened the credibility of the ad 4 London Olympics Source: Kantar Millward Brown CelebrityZ Personality Results The celebrity weakened credibility What was put across about the brand was believable With celebrity Without celebrity 27 UK average 26 Other examples of celebrity activities potentially damaging a brand include: OJ Simpson, the face of Hertz, being charged with murdering his ex-wife, Nicole Brown Simpson; Whoopi Goldberg, failing to lose weight while endorsing Slim-Fast; following the media exposure of his adulterous affairs, and a public divorce from his wife, Tiger Woods lost five major endorsements. Brands are quick to distance themselves from such issues. In early 216, when Maria Sharapova failed a drugs test, brands she had promoted such as Nike, Tag Heuer and Porsche all distanced themselves from her within 24 hours. Agree strongly Agree slightly Neither/nor Disagree slightly Disagree strongly Mean score: (+5 to +1) Base: () (8) (>278 ) In addition, there is always the risk of a celebrity becoming the hero of an ad, rather than the brand. A new campaign was developed for a tea brand in India, featuring popular movie actors. Millward Brown researched two versions of the in animatic forms; one with the celebrities, and one without. The research showed that, in the versions with the celebrities, the message takeout was weaker; the celebrities were drowning out the communication. And while the celebrities were intended to help gain attention, the versions without celebrities were just as impactful. The client went ahead and filmed and aired versions without celebrities. Source: Kantar Millward Brown Link However, the right celebrity, used in the right way, can be a powerful brand asset; in any country, in any category.