The Impact of Celebrity Marketing

Whether splashed across bigger-than-life city billboards or embroidered on trendy clothing, celebrities’ names and images are critical to many top brands’ marketing efforts. NPD’s Industry Experts find celebrity marketing’s imprint in nearly every corner of the marketplace, from kitchen appliances to prestige fragrances. What purpose does celebrity marketing serve, and which industries really stand to benefit?

Celebrity marketing is one of the leading fashion industry trends for 2005 and beyond. Beyond, because it is a trend that is only beginning and is sure to build tremendous momentum. Today, consumers get most of their product direction from celebrities, musicians, athletes and entertainment artists. Whether by associating their names and images with particular products, standing behind products as owners or designers or simply promoting their own awareness of a brand, celebrities seem to welcome the opportunity to show they are multi-dimensional and more than ‘just’ a performer or athlete. Likewise, consumers are jumping at the chance to connect themselves to star power by purchasing, wearing or using the products and brands their favorite celebrities endorse. Today and well into tomorrow, celebrity influence on consumer purchasing will continue to grow, driving sales and product development efforts in a wide range of categories.
Marshal Cohen, NPD chief industry analyst/NPD Fashionworld

In the housewares, small appliance and home improvement industries, the influence of celebrity marketing is significant. From chefs, fashion designers and home improvement gurus to the ‘domestic diva’ herself, the number of celebrities backing products is plentiful and rather common in today’s marketplace. Success stories run the gamut in this industry as far as celebrity marketing is concerned, with some of the most notable examples seen in the cookware, dinnerware and paint categories. Products are offered at various price points, which provides extra assurance that regardless of what consumers want to spend, there is a slice of the celebrity pie for all who are interested.
Peter Greene, vice president and general manager, NPD Houseworld

Prestige fragrance manufacturers are hoping to replicate the success of J. Lo's Glow (Coty/Lancaster), which launched in September 2002 and earned a coveted position within the women's prestige fragrance top ten (#9) in 2003, according to U.S. department store sales. Since the classic success of the White Diamonds fragrance by Elizabeth Taylor has become a Mother's day favorite, celebrities are increasingly making their presence known within the fragrance industry, either as designers or co-designers of the fragrance itself or by signing on as a spokesperson for a fragrance's advertising and marketing campaign. Following in the footsteps of Jennifer Lopez and Celine Dion, fragrances from Britney Spears, Sean "P. Diddy" Combs and Antonio Bandaras are expected to debut this fall. Similarly, Beyonce Knowles and Scarlett Johansson have lent their celebrity images to Tommy Hilfiger ("True Star") and Calvin Klein ("Eternity Moment"), respectively, becoming spokeswomen for the designers' latest fragrances, also due this fall.
Timra Carlson, president, NPD Beauty

Electronics companies are not above using celebrities in their advertising campaigns, but we rarely see a specific product or product line associated with a celebrity. In a world of short product life cycles, rapid price changes, low margins and intense competition, electronics companies prefer to build their own brands over time rather than relying on the brand of a celebrity. The additional incremental cost of celebrity branding is simply not sustainable in these low margin businesses. Electronics products are identified by consumers with their brands or by their specifications and the addition of a celebrity endorsement doesn't alter the consumers’ fundamental buying decision.
Stephen Baker, director of industry analysis, NPD Techworld

Can Spider-Man, Harry Potter, Nemo and James Bond be considered celebrities? If sales of video games featuring these fictional heroes are any indication, the answer is yes. These “character” video games have sold-through a combined nearly 18 million units since 2002 in the U.S. In the video games business, fictional characters often take on the marketing roles reserved for ‘real-life’ celebrities in other industries. We’ve seen significant growth in the popularity of movie-related video games over the past three years. If a movie was compelling to watch, a related video game may enjoy the same positive audience reaction and benefit from cross-marketing efforts. And while movies may feature star actors, in video games, it’s not as important for characters to portray a movie star’s likeness. Still, many in the video games business would argue that a game character’s physical and voice similarity to a movie actor may be a tremendous boost for game sales.
Richard Ow, director of games, NPD Funworld