Box office failure is likely to erode the star’s brand value | Techno Glob

New Delhi : A series of box office failures, if not reversed soon, Bollywood stars like Akshay Kumar, Ranveer Singh and Ayushmann Khurrana will have to settle for lower brand endorsement fees, as they are used to doing. .

Brand consultants say A-listers who charge anywhere in between 3 crores and 6 crore for a one-year certification could see a 20-30% reduction in fees in the coming months.

While Akshay Kumar’s Bachchan Pandey, Samrat Prithviraj and Rakshabandhan didn’t work, Khurrana’s Chandigarh Carey Aashiqui and Aneek also failed at the box office. Ranveer Singh’s Jaish Bhai Jordaar and even the sports drama ’83 came under par.

While many companies base their endorsement fees on social media followings, box office collections provide important indicators for measuring the brand value of stars. Some Bollywood stars need a hit, so they’re also up against rising competition from young and popular social media influencers and southern stars who are increasingly attracting brand deals for national campaigns.

Akshay Kumar will soon be seen in the epic drama Ram Sethu this Diwali and Khurrana’s comedy-drama Doctor will release next week. Ranveer Singh’s Circus is scheduled for Christmas weekend.

“No matter how many endorsements an actor has, their brand value results from successful films. While most brands don’t just drop their current celebrity deals, they will renegotiate contracts or box office. waiting to catch up,” said Mitch Cothrie, co-founder and chief creative officer at digital agency White River Media.

“The growing popularity of digital stars and influencer content is also something that brands will consider when developing new propositions.”

As southern stars continue to create national hits, brands have started turning to them, added Kothari. “We have already seen South stars replacing Bollywood stars with popular products like Coca Cola, Red Bus, Bow Eat etc. Brands have started to think beyond geographic boundaries and move in sync with changing trends by giving opportunities to regional actors to become national brand ambassadors,” he said.

Atul Hedge, chief executive officer and co-founder of YAAP, a digital content marketing and design company, agreed that the brand deals of South actors like Samantha Prabhu, Vijay Devarakanda, Rashmika Mandana and Allu Arjun proved it was a short-lived fad. Not like them. have become national stars. In addition, competition from social media influencers who are widely used by various brands is added, creating influencer-marketing. 1,500 crore industry is growing at 25 percent, Hegde added.

The concept that makes for celebrities and superstars is also constantly evolving, so unlike the last decade, the next one will be more about YouTube than Bollywood stars, Amit Mandal, Founder, Pulpki – An Influencer The agent-marketing company said.

“Brands will invest where the attention span is there. When a brand wants to reach across the country, they go for Bollywood stars, but for a niche in metro cities, they choose OTT stars and influencers. These people spend most of their time online, so it’s good,” Mondal said.

Apart from uncertainty at the box office, there are other reasons for the waning enthusiasm to onboard celebrities from Hindi films. Arushi Sethi, Business Head, Poland [Zoo Media]an influencer marketing agency, said, “It’s tiring to see the same face endorsing multiple brands for years.

There is a lack of relevance and trust as the same faces are endorsing different brands with sometimes completely opposite brand values ​​that create a disconnect. Recently, brands have started to see greater value in competing with new-age content creators and OTT stars as well as A-listers,” said Sethi.

According to the Celebrity Brand Valuation Report 2021 released by Duff & Phelps (now Kroll), with a brand value of $139.6 million, Kumar moved from second to third place in the list of top 20 celebrities for 2021 last year. Khurrana dropped from sixth to ninth place with $49.3 million.

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