Celebrity endorsements do pay off

By DITA DE BONI

If you immediately think of Carlos Spencer's washboard stomach when you reach for a Toffee Pop, you are proof positive that the teaming of two great female fantasies is a marketing coup without rival.

You have also been privy to the power of celebrity combined with consumerism, one of the most important tools of modern marketing.

If getting consumers to recall a brand is the most critical task a marketer faces, that task is undoubtedly made easier by the brand's association with a high-profile sporting, political or entertainment darling.

Of course, if you are hitched to a comet, you can also be hitched to its fizzle. The challenge for marketers is to ensure that a contract with a celebrity is well considered, legally water-tight, and adaptable to change should either party take a tumble from grace.

In the US, around 20 per cent of all ads feature celebrities. In Japan, the figure is higher, with several US celebrities crossing the Pacific to make ads in that country for exorbitant sums without "cheapening" their image back home.

New Zealand ads do not have quite the same rate of celebrity usage, but the use of sporting heroes in particular is perennially popular. Jonah Lomu gave might to the McFeast burger, and Sean Fitzpatrick worked wonders for tool company Makita - playing on both his popularity as an All Black and his roots as a builder.

Even more successful are companies that choose international stars, creating ads that have a better chance of global branding success. Bendon's use of Elle Macpherson over ten years has arguably kept that company alive through wavering fortunes in its other, non-knicker divisions and has provided continuity for its push into the UK and Australia.

Debbie Tawse of Celebrity Speakers NZ says she sees a huge demand for celebrities to front campaigns, most commonly in the area of real estate, because it seems "the general public thinks that if a well-known personality that they can relate to and respect owns a property within the development, then it must be good."

Her contracts - covering all media including the internet - range from just a few thousand dollars to "hundreds of thousands of dollars," with sponsorship campaigns particularly detailed, she says.

One local endorsement success story has been ex-PM David Lange's starring role for NZ Credit Union ads. Ian Halsted, of advertising agency Hedley Byrne, who devised the campaign, says there was a need to present credit unions as viable banking alternatives to big banks, which were often perceived as too big, too powerful and foreign owned.

"The solution was to find a personality who would be trusted ... someone who meant what they said [and] was recognised as an advocate for the average New Zealander."

Other celebrities were considered for the role, says Mr Halsted, but Mr Lange was the final choice.

The ads started rolling in July 1999, and while fees and returns are not disclosed the ads "[have] paid off in terms of both membership and awareness," to the extent that Mr Lange's contract has been extended.

In terms of non-profit, John Bowden, national cross-country rep and brother of wacky cricket umpire Billy Bowden, has organised the Physically Disabled and Able Bodied Association Charity Golf Tournament for three years and says celebrities are usually willing to participate in worthy causes, "although you still have to 'sell' your organisation to them."

Mr Bowden works his contacts to ensure a good mix of celebrities attend the golf tournament each year, ensuring that corporate sponsorship follows.

"The celebs are valuable in gaining prizes/refreshments for the tournament - we gained prizes from over 60 companies this year thanks to the involvement of celebrities [like Fleur Revell, Hamish Carter and Simon Dallow]."

The use of other types of celebrities may give consumers pause for thought. An example of a slightly more cerebral consumer/product linkage was Singleton, Ogilvy & Mather's use of maverick MP Winston Peters to plug Choysa tea.

SO&M's Robin Powell says it was the agency's idea to use Peters. It wanted "someone with a reputation for seeking the truth and being forthright. We also wanted someone who fitted with our target audience, and Mr Peters does this admirably."

Considering Mr Peters' showing in the last election, one could still be tempted to ask: when choosing a celebrity, is any publicity better than good publicity? Certainly some media mileage has been squeezed out of the Peters tea campaign, but not all controversy helps a brand.

Pepsi's use of Madonna in the late 80s lasted about two weeks before the ad featuring her Like a Prayer video - complete with fantasy scene of burning crosses and her making love in a church to a black Jesus - was pulled in a hail of public outrage.

Auckland University Business School marketing lecturer Dr Brett Martin says controversial celebrities might grab attention, but can also distract the audience, causing them to think about the celebrity's peccadilloes and reducing the impact of the brand's message.

"The truism about all publicity being good publicity generally doesn't hold for advertising. In essence, the reputation of the celebrity and what they stand for rubs off on the brand. This is particularly the case for new brands where people are forming their first impressions."

Celebrities who sign on while they are hot and then "go bad" (think Michael Jackson, O. J. Simpson, or Mark Todd) are a corporate nightmare, one which legal experts agree should be guarded against with a solid agreement allowing either party to exit the partnership, and a firmly agreed "morality clause."

On the whole, Dr Martin says, a celebrity's main use in advertising is to buttress consumer attitudes.

So how does a company ensure it gets the best value for money out of a celebrity? Entertainment law specialist for Russell McVeagh, Mike Cronin, says while celebrity endorsement in New Zealand continues to be a growth area, contracts drawn up between parties can show a varied level of sophistication.

He suggests the following key provisions be included in a legal contract:

* Make sure the company has all the rights it needs to carry out campaigns, including images, endorsement rights, biographical details etc. Rights to use endorsements on the internet need to be spelled out.

* Rights to repeats of ads, and extent of exclusivity, must be specified.

* A "pay or play" type provision, where the company's only obligation is to make a payment - not necessarily run an ad campaign.

* A withdrawal clause to allow both parties to pull out if there is a major controversy.

* A clear statement that the company owns the intellectual property in the images created.

* Extent and nature of appearances need to be clearly spelled out, including celeb's appearance at staff training sessions, public appearances etc.

* If the person provides services through a company, there needs to be an accompanying inducement agreement signed by the celebrity giving an assurance he or she will turn up and perform.