Until the pandemic, the celebrity endorsement business was one of the most trendy, high-volume, and lucrative industries on the planet. The Indian M&E sector is likely to fall by 20% in FY21 to INR 1,402 billion, according to a KPMG analysis titled “A Year Off Script,” with industries like TV, print, and cinema is the hardest hit.
This paradigm shift has had a significant impact on the burgeoning celebrity endorsement industry. According to the survey, the Indian celebrity endorsement area is anticipated to witness a 15% to 20% decrease in overall valuation due to reduced advertising and marketing expenditure.
Why There Is A Loss In Value?
In terms of valuation, 2020 was the very first year in which the overall number of sponsorship deals for India’s top 20 celebrities fell by 3-4 percent. The number of endorsements has been increasing at a rate of 15-16 percent a year in recent years.
Again for the Indian entertainment sector, Covid-19 has been a Black Swan event, bringing substantial upheaval across the board. Due to the closure of production studios, no traditional content was produced in the first quarter, prompting businesses to look for other ways to promote themselves.
Shift To Social Media:
Significant changes in the way people consume media occurred in the year 2020. The audience’s consumption patterns shifted as internet screen durations increased as consumers spent more time on social media, often seeking advice from experts during this era of confusion and upheaval.
Advertisers rose to the occasion by enlisting the help of celebrities in new media. Celebrities abandoned their old methods and were regularly spotted communicating with their followers on social media platforms. Brands experimented as well with the social media marketing plan, and with fewer marketing budgets, they were more likely to engage with existing and growing celebrities.
Even though the pandemic slashed organizations’ overall marketing costs, it also brought the insight that the “one size fits all” approach would no longer be necessary to stay visible and current.
Even while certain A-list celebrities will continue to be enlisted for greater mass reach, influencers’ ascent and expansion will become a key element of the total marketing plan.
When compared with the traditional A-list or mid-tier ‘celebrity,’ affiliation with influencer marketers not only provides proper product publicity but also comes at a significantly lower cost.