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Will you buy what Mr Bachchan endorses?

April 22, 2008

The Mahatma, it seems, was right. The elaborate survey's findings thread together a dismal conclusion. To modify the catch line of Orbit White's Dr Bhatawdekar (about whom, more later): "It's not working".

About 78 per cent of the people surveyed think quality is the most important factor in buying a product, 9 per cent are led by the price and a meagre 3 per cent consider celebrity as the most important factor. The survey covered 2,109 people across age groups, social class and gender in the metros, mid-sized cities and small ones.

That is not good news for many. A research report by Adex India, brought out by TAM, says there has been 49 per cent growth in celebrity advertising volume in 2007. Since 2003, celebrity endorsement volume on television has increased by more than six times.

The story, much hackneyed, bears retelling in the light of a recent survey on celebrity endorsements. A survey done by market research firm IMRB International in association with IPAN has thrown up the wake-up finding that more than half the respondents -- 51 per cent, to be precise -- do not think celebrities use the products they endorse.

Expectedly, the advertising money spent on celebrities has gone up, too. In 2001, only 25 per cent of advertising money went into well-known pockets. This has grown to almost 60 per cent, according to Percept Talent Management, which handles many celebrity accounts.

On an average, companies are spending 0.7 per cent of their annual brand sales volume on celebrity endorsements and a whopping 35 per cent on media buying.

Image: Kareena Kapoor, brand ambassador of Lux, poses during the launch of the Celebration Range of personal wash products. | Photograph: Indranil Mukherjee/AFP/Getty Images

Also read: Why is Ambani buying cinemas in the US?
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