The Advertising Business in India
Celebrity Endorsements
Why brands pay film stars and cricketers to endorse products, what research says about their effect, and the risks and rules for endorsers.
Indian ads are full of celebrities.
Why brands use stars
- Attention: famous faces stand out.
- Trust and aspiration.
- Association: a star’s image transfers to the brand.
- Signalling: paying a big star signals the brand is serious.
Big endorsers
Cricketers like Virat Kohli and MS Dhoni and actors like Shah Rukh Khan and Amitabh Bachchan endorse many brands, earning crores per deal.
Does it work?
Research suggests endorsements can raise sales and stock prices, but effects depend on the fit between star and product. Overexposure, where one star endorses dozens of brands, may reduce impact.
Risks
- Scandals can hurt brands.
- Poor performance of athletes.
Rules
- The Consumer Protection Act, 2019 allows penalties on endorsers for misleading ads.
- CCPA guidelines (2022) require endorsers to have used or verified products.
- Endorsing gutka or online betting through surrogate ads drew criticism, and some stars withdrew.
A cricket captain signs a multi-year deal with a sportswear brand. The brand's sales rise as fans want to wear the same shoes.
Effects depend on fit, and overexposure can reduce impact.
- Brands use celebrities for attention and trust.
- Top stars earn crores per endorsement.
- Research finds effects depend on fit.
- Endorsers can be penalised for misleading ads.
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