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Celebrity Brand Valuation Report 2019

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NEW IS GOLD CELEBRITY BRAND VALUATION STUDY 2019 Contents 01 Foreword 05 02 Celebrity Brand Values 06 03 Celebrity Brand Ranking 07 04 Introduction 08 Media and Entertainment Industry Advertising Industry Segment Highlights Overview of Celebrity Endorsements Current Celebrity Endorsements 05 New Is Gold 21 New Faces New Age Brand Endorsements and New Concepts #starvestors 06 Key Trends in Celebrity Endorsement Space 33 Rise of the OTT Celebrity Consciousness Curve South India: A Tectonic Shift 07 Industry Speaks 45 08 Valuation Methodology 48 09 Valuation Conclusion 52 10 The Pseudo Awards 54 Celebrity Brand Valuation Study 2019 Foreword Dear Reader, It gives me great pleasure to present the fifth edition of our study on India’s most valuable celebrity brands. The theme of this year’s study is “New is Gold”, which recognizes the ascent of millennial celebrity endorsers to the top of our brand value rankings. We witnessed a shift in focus from established celebrities to new faces across the advertising and media industry over the past year. And not just new faces: 2019 also saw the emergence of new brands and new platforms targeting and growing the Indian millennial ecosystem. Be it brand endorsements, films or startups, millennial and Gen Z stars have performed exceptionally well Varun Gupta in the past year. They seem to be the preferred choice for brand endorsements as companies increase Managing Director and their focus on youth, leveraging their new-age personality attributes. Asia Pacific Leader Valuation Advisory Services For an advertiser, being associated with a celebrity who is consistently performing is a key factor in Duff & Phelps assessing the brand potential. Celebrity brand endorsers add value by appealing to their fan following across India and abroad. It helps the brand in building greater awareness and attracting potential consumers. Several studies also suggest that a celebrity endorser generates in higher brand recall than a non-celebrity endorser. Our 2018 report, The Bold, the Beautiful and the Brilliant, recognized Virat Kohli’s reign at the top for the second year in a row, Deepika Padukone’s meteoric rise and the emergence of power couples. The trend continued this year, with Virat Kohli, Akshay Kumar and Deepika Padukone retaining the top three positions in our rankings, and continuing to be the primary choice of product brands to engage and attract consumers. As Akshay Kumar jumped a spot higher to No. 2, the buzzing Gully Boy, Ranveer Singh, also jumped a notch higher, sharing the No. 3 spot with his wife, Deepika Padukone. While established celebrities continue to dominate our rankings, notable millennials also made an entry to the list. National award winner Ayushmann Khurrana, dancing wizard Tiger Shroff and Hitman Rohit Sharma grabbed the No. 10, No. 17 and No. 20 spots, respectively. The overall brand value of the top 20 celebrities in 2019 is estimated at USD 1.1 bn, an increase of 25% from last year. Meanwhile, it has been an exciting year for Duff & Phelps. A global consortium of investors has agreed to acquire the firm for USD 4.2 bn. This marks a massive vote of confidence in the long-term growth prospects of Duff & Phelps. Our India operations are right at the centre stage of this growth. Among other things, we have launched a technology and innovation center at Hyderabad’s HITEC City. The center will focus on software development, automation and innovation, with a team of experienced software engineers, technologists and senior leaders. Earlier this year, we also released the sixth edition of our annual report on brand values in the Indian Premier League. The report was very well received by both our readers and the media. I would like to take this opportunity to thank all our readers and clients for their continued support. We hope you find our analysis interesting, and we look forward to your feedback. Yours sincerely, Varun Gupta Duff & Phelps 5 Celebrity Brand Valuation Study 2019 Celebrity Brand Values 1.Virat Kohli Virat Kohli scores a hat trick as India’s most valuable celebrity with a brand value of USD 237.5 mn Photo Courtesy: BCCI 2. Akshay Kumar 3. Deepika Padukone Akshay Kumar takes the second position, with a brand value of USD 104.5 mn and Ranveer Singh The dynamic power couple, Ranveer and Dabboo Ratnani Dabboo KA Enterprises Deepika, claim the third spot with a brand Photo Courtesy value of USD 93.5 mn each Celebrity Brand Valuation Study 2019 Celebrity Brand Ranking We present the list of top 20 celebrity brands for 2019 below: Celebrity 2019 Brand Rank Brand Value (USD Mn) 2018 Brand Rank1 Virat Kohli 1 237.5 1 Akshay Kumar 2 104.5 3 Deepika Padukone 3 93.5 2 Ranveer Singh 3 93.5 4 Shah Rukh Khan 5 66.1 5 Salman Khan 6 55.7 6 Alia Bhatt 7 45.8 8 Amitabh Bachchan 8 42.5 7 Mahendra Singh Dhoni 9 41.2 12 Ayushmann Khurrana 10 40.3 New Hrithik Roshan 11 38.9 10 Varun Dhawan 12 35.2 9 Priyanka Chopra 13 32.2 19 Ranbir Kapoor 14 27.0 16 Sachin Tendulkar 15 25.1 14 Aamir Khan 16 24.9 11 Tiger Shroff 17 24.2 New Anushka Sharma 18 23.9 13 Kareena Kapoor Khan 19 23.7 17 Deepika Padukone Rohit Sharma 20 23.0 New and Ranveer Singh USD 1.1 Bn 1 Previous rank as determined in the fourth edition of this report titled “The Bold, the Beautiful and the Brilliant”, published in January 2019 Duff & Phelps 7 Celebrity Brand Valuation Study 2019 Introduction If India were a cocktail event, celebrities would be the ones The celebrity is considered based on the identity and who make the most heads turn. So it’s no surprise that personality of the brand and what it aims to depict to its target celebrities continue to play matchmaker between buyers and audience. Before analyzing the celebrity endorsements space sellers. Association of a product brand with a celebrity not only and key trends therein, we begin by discussing an overview generates a higher brand recall but also increases the credibility of the larger Media & Entertainment Industry followed by the of the product. Celebrity brand ambassadors add value to the Advertising Industry. product’s brand image and positioning by influencing consumer purchase decisions, creating awareness, attracting potential customers and increasing the likeability of the associated brand. “For a star-struck nation as ours, celebrity endorsements increase a product’s attractiveness and aims to build the right perception for it. Market size for digital as a percentage of films increased from 47% in FY16 to 95% in FY19. Given this unprecedented growth rate, digital is expected to soon overtake films to be the third largest segment in the media and entertainment space. Resultantly, celebrity endorsements, have witnessed a greater push towards use of digital advertising as a means of focused communication.” Vibhor Nayar, CFA Vice President, Valuation Services Duff & Phelps Duff & Phelps 8 Celebrity Brand Valuation Study 2019 Media & Entertainment Industry Over the previous decade, India has become a highly attractive According to KPMG’s report, India’s Digital Future: Mass of media and entertainment (M&E) market, driven by favorable Niches, the Indian M&E industry is expected to grow at a demographic and economic factors. In 2019, the M&E industry compound annual growth rate (CAGR) of 13.5% between reached a size of INR 1,631 bn, a growth of 13% over the past FY19 and FY24, with advertising revenues expected to grow at year. While TV continued to be the largest segment in absolute a CAGR of 14.5% during the same period. terms, the digital segment saw the fastest growth rate. M&E Industry - Market Size (INR Bn) 800 700 600 714 652 500 595 552 400 300 333 319 308 200 228 183 173 100 159 145 62 137 121 44 34 32 88 28 26 29 32 86 23 24 26 28 74 17 65 11 13 14 62 0 53 TV Print Films Digital Animation Gaming OOH Radio Music & VFX • FY 16 • FY 17 • FY 18 • FY 19 Source: KPMG India’s Digital Future: Mass of Niches Report 2019 Duff & Phelps 9 Celebrity Brand Valuation Study 2019 Advertising Industry The advertising industry, which is considered the fuel that heavyweight TV at 12.1%, followed by radio at 6.2%. Both print drives the M&E industry, also saw a substantial growth in the and out-of-home (OOH) advertising recorded minuscule growth past year. Digital saw the maximum growth in FY19 of 37.6% of about 5% due to consumers’ increasing preference for data over the prior year. The second spot was retained by the consumption through digital platforms. Advertising Industry - Market Size (INR Bn) 300 250 251 200 224 221 211 204 203 192 184 150 180 160 160 100 116 86 50 65 47 34 32 28 29 26 23 24 23 22 0 20 TV Print Digital OOH Radio • FY 15 • FY 16 • FY 17 • FY 18 • FY 19 Source: KPMG India’s Digital Future: Mass of Niches Report 2019 Duff & Phelps 10 Celebrity Brand Valuation Study 2019 According to a 2019 report on celebrity endorsements issued The average endorsing ratio by male and female celebrities by TAM Media Research, more than 50% of the ads endorsed for the top 10 sectors was 51:49. The leading sector, Personal by celebrities were dominated by three sectors: Personal Care/ Care/ Personal Hygiene, was dominated by the female Personal Hygiene, Food and Beverages (F&B), and Hair Care, celebrities with a 68% share.
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