Top 20 celebs have brand value of $877 mn; Kohli retains top rank: Duff & Phelps
MUMBAI: The total value of the top 20 celebrity brands stands at $877 million, with the top 10 contributing more than 75% of the total value, as per the fourth edition of Duff & Phelps report on celebrity brand valuation report.
The report titled ‘The Bold, the Beautiful and the Brilliant’ also noted that Indian cricket captain Virat Kohli has retained the top position for the second consecutive year. His brand value rose by 18% to $170.9 million in 2018.
Bollywood actor Deepika Padukone has jumped to the second position with a brand value of $102.5 million. Akshay Kumar (third) and Ranveer Singh (fourth) have moved up by a rank each with a brand value of $67.3 million and $63 million respectively.
Shah Rukh Khan has dropped to the fifth position from second in 2017. His brand value stands at $60.7 million. Salman Khan has retained his sixth rank with a brand value of $55.8 million.
At $41.2 million, Amitabh Bachchan is at the seventh position followed by Alia Bhatt ($36.5 million), Varun Dhawan ($31.6 million), and Hrithik Roshan ($31 million).
Aamir Khan and Mahendra Singh Dhoni are at the eleventh and twelfth position with a brand value of $28.6 million and $26.9 million followed by Anushka Sharma ($23.4 million), Sachin Tendulkar ($21.7 million), PV Sindhu ($21.6 million), Ranbir Kapoor ($21.1 million), Kareena Kapoor ($20.1 million), Katrina Kaif ($18.3 million), Priyanka Chopra ($18.2 million), and Shraddha Kapoor ($17.1 million).
Commenting on the rise of the endorsement market in India, Duff & Phelps MD, Asia Pacific Leader for Valuation Services Varun Gupta said, “The celebrity endorsement market in India has matured from vanilla endorsement deals to full-fledged partnerships through innovative routes such as equity deals and strategic partnerships.
“On the other hand, rising internet penetration, varied formats of content consumption and a burgeoning middle-class with increasing disposable incomes is boosting media spend for traditional and digital advertisements through celebrities. Millennial celebrities continue to be the first choice for brand endorsements as companies want to have a greater focus on the youth segment fuelled by demand in sectors such as e-commerce, retail, FMCG and smartphones, among others.”
Per data from ESP Properties, over the past decade, celebrity-led endorsements increased in number from 650 in 2007 to 1,660 in 2017, representing a steady CAGR of 10%. Further, TV ad spends with celebrity endorsers rose from Rs 15.5 billion in 2007 to Rs 66.6 billion in 2017 at a CAGR of 16.1%. TV ads with celebrity endorsers represented close to 24% of the total TV ad spends in 2017, which represents a 5% uptick from 2007.
Duff & Phelps MD Aviral Jain said, “While Bollywood celebrities dominate the rankings of the top 20 celebrities, sportspersons provide tough competition. Virat Kohli, Sachin Tendulkar, M. S. Dhoni and P.V. Sindhu collectively contributed almost US$241 million, which is over 27% of the cumulative brand value of the top 20 celebrities pegged at $877 million.
“Brands are also increasingly going regional in their endorsement strategy to cater to the heterogenous peculiarities of Indian states. They are leveraging the equity that local celebrities enjoy. Product brands are also looking for better returns on their investment through a step up on regional markets and have started coming up with region-specific commercials featuring regional celebrities like Mahesh Babu and Tamannaah”.
Further, the report focuses on the rising trend of power couples. By tapping into a power couple’s reach and impact, brands can target each partner’s unique following and voice. The coming together of a power couple creates a larger platform that brands want to leverage to target the youth. This year, power couple Virat Kohli and Anushka Sharma have endorsed around 40 brands together such as Head and Shoulders, Manyavar, Pepsi, Celkon, Boost, Audi, Fastrack, Goinee, Wrogn, and Polaroid.
Celebrities are also increasingly being leveraged to create social media buzz. A celebrity’s hold on social media is now a major determinant of the influence that he or she can have over a brand campaign. Duff & Phelps sourced data from Meltwater, the vertical leader in online media intelligence solutions, on the top celebrities and their social media presence, engagement and influence index.
Commenting on the power of a celebrity’s social media influence, Meltwater area director – India and Middle East Christo van Wyk said, “Like marketers, celebrities are continuously building their brand, and those that are aware of current trends and of the difficulties in breaking through the clutter, recognize that social media is a unique opportunity to stand out above the crowd. Celebrities with well-crafted social media strategies are able to maintain relevance, build more intimate relationships with fans and garner real-time feedback on their work. Much like a corporate brand’s, a thriving social media presence can serve as a reflection of a celebrity’s public desirability.”