Star Power
NPD's new Celebrity Influence Study tells you just how much star power celebrities and sports figures hold

Maybe you’ve gone back and forth about the benefits of using a celebrity in your advertisements or as a spokesperson for your brand. But how much does this affiliation really affect consumer decision-making? Do consumers even remember if celebrities are in an ad? More importantly, do they report a particular celebrity maks them more – or less – likely to buy a particular product?

NPD’s Celebrity Influence Study explores the consumer perspective on 87 entertainment and sports celebrities who have appeared in advertising or commercials in the past year.

For more information, or to purchase a copy of this report, please contact your account representative or 866-444-1411, or e-mail contactnpd@npd.com.

How Much Do Celebrities Really Matter in Marketing?
While a celebrity alone may not sell a product, the right celebrity can grab the attention of some consumers who may have otherwise not noticed a product.

Most consumers say celebrities they see in endorsements or advertising don’t influence the products they choose to buy. In fact, over 80 percent of consumers agreed they would buy the products they like, even if they didn’t have celebrities in their ads. Of course, that also means for nearly 20 percent of consumers, having a celebrity associated with a product may tip the scale in favor of your brand or product.

“Sometimes, it is an unseen influence that triggers the consumer’s attention or encourages a product purchase. A celebrity-associated product can be a very powerful, subliminal purchase influence. In some cases, it may even be the reason a consumer recognizes a brand or product, just based on the mere fact a celebrity is associated with it,” said Marshal Cohen, NPD chief industry analyst.

Although Tiger Woods had the highest overall awareness of the celebrities evaluated in the study, George Foreman had the highest recognition as being seen or heard in advertising for any product/any brand past three months). More than half of all consumers age 13 and older said they’d seen or heard the former boxer in advertising. There was no difference in ad recognition based on gender, with women just as likely as men to report seeing Foreman in advertising.

Consumers aware of television personality Ty Pennington gave him the highest positive influence score when it comes to making them more likely to purchase; in fact, one in three said that his endorsement of specific products makes them more likely to buy. Only four percent said it makes them less likely to buy a product.

A Question of Believability
Many consumers said they like seeing celebrities whom they think really use the products – especially if the ad is funny. As one consumer commented, “I just like seeing them in the ads, and if they actually had a hand in designing the product that really makes me want to try it.”

Consumers clearly associate many of the celebrities evaluated in the study with categories and products the celebrities actually endorse or promote. Tiger Woods ranked highly for being associated with automobiles, George Foreman with small kitchen appliances, and Martha Stewart with home décor. However, in many cases the recognition of the celebrity didn’t actually translate to specific recall of particular brands.

Choosing the “right” celebrity isn’t necessarily about overall recognition levels, though. Perceived “fit” between the product/service and the celebrity may be just as important to consumers.

When evaluating whether or not to use celebrities in product/service ads or endorsements, it’s clear certain celebrities and sports figure have almost universal recognition levels. Tiger Woods, Michael Jordan, Britney Spears, Martha Stewart and Donald Trump ranked highest on overall awareness (all over 90%), but they are not necessarily remembered the most as endorsing products or rated highest as celebrities that consumers ‘like’ seeing in ads.

Recognition’s Double Edge
Many consumers said celebrities can capture their attention. But marketers should exercise caution when selecting celebrities: some may overpower the brand – garnering recognition and recall for the celebrity, but not enhancing brand awareness or purchase interest. Worse, some associations can actually have a negative effect on purchase interest in the brand.

“Celebrities appearing in endorsements or advertisements for a product can be a double-edged sword. They can cut through the clutter of competition, but they can also cut the brand power in half. If the wrong celebrity is used, then their association with a brand can backfire. Marketers need to choose wisely, since today’s hot celebrity can become tomorrow’s marketing nightmare,” Cohen said.

For example, among consumers who had seen Martha Stewart endorse a brand in the past three months, 23 percent reported they like to see her in ads. Among those who had seen Martha Stewart in an ad during the past 12 months, however, 18 percent said seeing Stewart in an ad would make them less likely to buy a product, compared to the 16 percent reporting a Martha Stewart association would make them more likely to buy.

About NPD’s Celebrity Influence Study
This study is based on an online survey sent to a nationally representative sample of 11,000 adults
and teens ages 13+ selected from NPD’s online consumer panel. The analysis included data from
3,241 surveys completed in September 2005.

For more information, or to purchase a copy of this report, please contact your account representative or 866-444-1411, or e-mail contactnpd@npd.com.