Celebrity Marketing

THE FUTURE OF CELEBRITY MARKETING

A Celebrity Intelligence report, in association with Econsultancy, on the new rules of celebrity engagement THE FUTURE OF CELEBRITY MARKETING

A Celebrity Intelligence report, in association with Econsultancy, on the new rules of celebrity engagement

Published June 2016 Celebrity Intelligence UK Celebrity Intelligence USA All rights reserved. No part of this publication may be 4th Floor, Wells Point 350 7th Avenue, Suite 307 reproduced or transmitted in any form or by any means, 79 Wells Street New York, NY 10001 electronic or mechanical, including photocopy, recording London W1T 3QN United States or any information storage and retrieval system, without United Kingdom prior permission in writing from the publisher. Telephone: Telephone: 1-800-680-5773 Copyright 2016 Centaur Communications Limited UK 020 7970 4299 Celebrity Intelligence is part of Centaur Media plc. http://celebrityintelligence.com Contents

Executive Summary: Measuring ROI 1 Key Findings 7 p.4 p.30

2 Introduction 8 Challenges p.8 p.35

Definition of Celebrity Marketing 3 ‘Celebrity’ 9 Budgets p.10 p.38

What Does The Future The State of Hold? Three Key Celebrity Marketing 4 10 Trends p.13 p.41

The Rules of Conclusion 5 Engagement 11 p.15 p.44

Appendix: Key Trends 6 12 Respondent Profiles p.22 p.45 1. Executive Summary

The definition of celebrity, as we know it, is changing. Thanks to the advent of social media and the subsequent rise of online influencers, a new generation of talent has emerged for traditional celebrities to compete with. Over the past year particularly, some impressive brand deals have been won by social media talent. This has undoubtedly changed the name of the celebrity endorsement game.

Take for example major UK charity Comic Relief, which In light of the explosion of social media channels and traditionally works with, and is supported by, A-list rising prominence of social media talent, this Celebrity celebrities. Recently, the charity debuted its first YouTuber Intelligence report, produced in association with appeal with social media star Caspar Lee. He was sent Econsultancy, considers how the rules of celebrity to a health centre in Uganda for his 21st birthday, where engagement are shifting. It will look at how the definition he filmed a heartfelt plea to his 4 million-strong online of celebrity is evolving, and the challenges this is following, asking them to donate instead of sending creating for the industry, and investigate the new ways in gifts. The collaboration was a phenomenal success, and which brands and agencies are selecting and engaging not only did Lee raise $21,000 in a matter of hours, but celebrities to work with. Backed by independent online he’s since boosted the total amount raised to a massive research, the findings demonstrate the impact social $37,500. “The speedy success of this project proves just media is having on celebrity engagement and assess how how powerful the YouTube community can be as a force the future market is shaping up. for good. I’ve never been more proud to be a part of #TeamInternet,” Lee commented afterwards.

But it’s not just social influencers that brands are working with online. For traditional celebrities, too, social media has become a defining factor within most brand collaboration opportunities, and they are increasingly needing to work hard at amassing an engaged online following to make them (just as) attractive online.

So when fashion house Burberry wanted to reveal that British models Kate Moss and Cara Delevingne were the faces of its forthcoming fragrance campaign, it chose to make the big reveal via its Instagram profile. While no details of the fragrance were announced, the photo in itself, shot by Mario Testino, had immense impact, taking advantage of the models’ individual followings on Instagram.

THE FUTURE OF CELEBRITY MARKETING 4 KEY FINDINGS INCLUDE:

Experts interviewed for the report said they’d seen a % trend towards pop-up, or one-hit contracts, over the past 74 year or two. Just 9% of companies and 6% of agency of agency respondents are respondents said they are engaging celebrities as part actively working with celebrities of a long term contract.

Celebrity marketing is a well-established practice. The survey findings show that 74% of agency respondents, and % 69% of companies (representative of in-house marketers 33 who responded to the survey), are currently working of agencies are investing between with celebrities. Additionally, two-thirds of agency and $15,000 and $75,000 in a one-off company respondents say their celebrity engagement strategies have been in place for five years or more. campaign

Spend on a campaign specific contract can be significant, % with 54% of agency respondents spending anywhere 70 between $15,000 and $150,000. Additionally, a third say they are spending in the region of $15,000 to $75,000 on of companies are identifying and one campaign specifically. managing their celebrity contacts Additionally, 40% of agency respondents say they in-house, which is proving a time are spending 10-30% of their budget on celebrity consuming task engagement, and a further 14% are setting aside 30-50%. Around one quarter of companies are spending 10-30% of the marketing pot on celebrity engagement Survey respondents say that 70% of companies and 66% of agency respondents are identifying and managing their celebrity contacts in-house.

Furthermore, 66% of company respondents, and 57% Traditional celebrities remain most of agencies, are relying on manual searches of social relevant, but social media talent is media platforms such as Twitter and Facebook to identify on the rise celebrities that are a good fit for their campaign. This is despite the fact that 66% of company respondents admit identifying the right celebrities to work with can be a hard, When it comes to considering upcoming endorsement time consuming task. opportunities, 50% of companies say film actors would still be most relevant. However, beyond this, the appetite for social talent is growing with 43% of company respondents and 46% of agencies claiming social media Campaign-specific talent would be most relevant to future projects they have contracts on the rise in the pipeline.

To offer some context of how the land lies, 37% of Agencies particularly, are choosing to engage celebrities agencies have engaged with social stars, such as on a campaign-specific basis, rather than a year-long vloggers and Instagrammers, over the past 12 months, contract. This is true of 40% of the agencies questioned as have 28% of companies. and 22% of company respondents. A further 20% of companies and 17% of agencies are using celebrities for one-off promotions, such as a tweet or Instagram post.

THE FUTURE OF CELEBRITY MARKETING 5 Social media promotion is top % priority for 79% of companies 73 because of the results delivered of companies say web-generated traffic is the best measure of When considering the role that celebrities play within success marketing brand strategies, social media promotion comes out on top, by a clear margin. A resounding 79% of company respondents and 75% of agencies say they are Traditional press cuttings and column inches have always currently working with celebrities in this context. been, and remain, an important measure of success within celebrity engagement. But beyond this, online and But not only is social media promotion a top priority, it social media metrics are rising in importance. Within the is also proving extremely effective. An impressive 100% survey findings, web-generated traffic emerges as the of agency respondents say it’s a strategy that is “highly second most important campaign measurement, with 73% effective” or “quite effective” for them, and 98% of of companies and 65% of agency respondents saying companies agree. this is something they track. Additionally, the number of content shares and volume of online mentions seem to be of equal importance, with approximately two-thirds of respondents gathering such data. 40% of agency respondents say celebrity marketing is “very effective”

Attitudes towards the effectiveness of celebrity engagement are extremely positive within the survey findings. 40% of agency respondents say celebrity marketing is “very effective”, with an additional 53% believing it is “quite effective”. One quarter of company respondents echo this sentiment, with a further 58% saying it’s “quite effective” for them too.

% Almost 50 of agencies say budgets will increase in the next 12 months

A sizeable 49% of agencies and 39% of companies say budgets are going to “increase significantly” or “increase moderately” over the next year.

THE FUTURE OF CELEBRITY MARKETING 6 CELEBRITY INTELLIGENCE IS THE ULTIMATE CELEBRITY ENGAGEMENT TOOL.

Celebrity Intelligence is the most comprehensive and powerful online resource to assist with all your celebrity engagement needs.

We are the industry’s only tool providing With Celebrity Intelligence, you can: celebrity contacts, in-depth celebrity profiles l Match the right celebrity to your brand and intelligence, celebrity events information or charity and a live Buzz Index of ‘who’s hot and who’s not’ all in one place. l Dress and gift celebrities on the red carpet l Set up celebrity interviews and plan features Covering film, TV, music, fashion, sport, and l more, we provide everything you need to know Get celebrity contact details to make intelligent decisions about which l Identify entertainment marketing celebrities to work with, when and why. opportunities

Discover more at www.celebrityintelligence.com

THE FUTURE OF CELEBRITY MARKETING 7 2. Introduction

Celebrity marketing is a well-established practice. For years brands have tried their hardest to win the attention of well-known stars, in the hope that they will choose to front their campaigns and endorse their products. Celebrities have always held currency with the general public, having the necessary cut-through and unrivalled ability to sway opinion, and ultimately drive sales. For this reason, competition has typically been fierce within the celebrity engagement space, with the biggest stars and most popular household names being highly sought after. A-listers have been able to command budgets stretching into five or six figures, and so, historically, the brands with the deepest pockets have always won out.

For years, the number one objective of brands looking for celebrity backing or endorsement has been to secure those valuable column inches in magazines or newspapers. An A-list celebrity has always been able to make headlines, and if a photo opportunity is on offer, that’s been seen as the silver bullet of celebrity marketing success.

But the impact of traditional media is no longer what it used to be, and social media has never been more prevalent. Today’s generation Z, or those who are now 18 and under; our consumers of tomorrow, are interacting with brands, celebrities and entertainment in a very different way. Consulting firm Wildness, owned by DreamWorks, refers to this generation as ‘culture collaborators’, who seek out partners that co-create, connect and reward them. In a recent study, it found that 31% of Gen Zers watch their favorite brands on YouTube, 30% follow their favorite brands and view their posts on social media, and nine out of 10 watch YouTube daily. Their media engagement outpaces even Millennials’ who spend roughly 18 hours of their day taking in content in one way or another.

THE FUTURE OF CELEBRITY MARKETING 8 This change in media consumption is having a Contributors phenomenal impact on the celebrity world as we know it, and has given rise to a new breed of social media- born talent and influencers, who are making a name for The report features in-depth opinions from talent agents, themselves across YouTube and other social platforms. publicists, charities and artists, including Comic Relief, Social stars enjoy a very different relationship with their Gleam Futures, East of Eden, CAN Group, Cole Kitchenn audience and following, being more readily accessible and Tallia Storm. than traditional celebrities. Above all else, their audience Interviews were carried out over the phone and by email values their honesty and authenticity, which sits in sharp in May 2016. contrast to the idolatry that we typically associate with movie stars or A-list celebrities. Nowadays it’s not unusual for social talent to have online follower numbers that outstrip those of traditional TV or movie stars. Methodology But it’s not all about audience reach. Experts interviewed This is the first ‘The Future of for this report all stressed the growing importance of Celebrity Marketing’ research active engagement, and the impact this is having on celebrity campaign work. report, published by Celebrity

“Celebrities may have millions of followers, but they Intelligence in association may not be as engaged with them. Today it’s all about with Econsultancy. engagement as a human being, and being truthful,” explains Nick Ede, CEO of charity-specific campaigns There were 355 marketing specialists who agency, East of Eden. “The definition of celebrity in itself responded to the research request, which took is getting more and more diluted”. the form of an online survey. Respondents included in-house brand marketers, agencies, Consequently, the celebrity landscape is shifting, and consultants and media owners. the rules of engagement are changing. As rising social talent begins to attach itself to the celebrity engagement Detailed breakdowns of the respondent profiles space, this Celebrity Intelligence report, produced in are included in the Appendix. partnership with Econsultancy, investigates how celebrity If you have any questions about the research, culture is changing, and looks at how brand collaboration please contact Centaur Marketing’s content with artists and stars is continuing to evolve. Using marketing manager, in-depth industry research, it brings to light emerging Priyanka Mehra Dayal by emailing trends, assesses what’s working best, and offers informed [email protected]. predictions for how the celebrity engagement space is shaping up for the future.

THE FUTURE OF CELEBRITY MARKETING 9 3. Definition of ‘Celebrity’

There’s no denying that social media has changed what it means to be a celebrity. Historically, unless someone was lucky enough to find fame through their lineage, individuals became famous for their talent or accomplishments. There was a prescribed path to follow which involved honing their skill or ambition, networking with the right crowd, securing an agent, and ultimately getting their first big break. From that point, fame would hopefully be achieved.

But the celebrity world experienced a dramatic shift in the early 90s with the explosion of reality TV, led by technology advances and the advent of non-linear editing particularly. TV shows such as MTV’s The Real World, The Osbournes, Newlyweds and Big Brother hit our screens, leading to the emergence of stars such as Paris Hilton, Nicole Richie and Kim Kardashian, who found media attention through reality TV, as well as their social circles, and sometimes the celebrity status or achievements of their parents.

But over the past couple of years particularly, there’s been a further shift in celebrity culture, and we’ve seen social stars such as Zoella, Chiara Ferragni, Marcus Butler and Caspar Lee make the leap from YouTube to mainstream TV, with other more niche, less recognizable names in social media gaining phenomenal levels of influence. These individuals have found stardom through non-traditional methods and channels. Some have been catapulted to fame, if not for talent, for their x-factor quality, which for one reason or another translates very well onto platforms such as YouTube, and has been successful in capturing a mass audience following. Michelle Phan, for example, started her beauty YouTube channel back in 2006. She now has more than 7.7 million subscribers, her own makeup line, a book, and a lifestyle network called Icon. Her best known video, where she transforms herself into Barbie, has 64 million views.

THE FUTURE OF CELEBRITY MARKETING 10 The Debate However, not all experts agree. Ultimately it’s up to the marketer to assess what the brand is potentially trying to achieve, be it reach or engagement with its audience. Seventeen-year-old R&B singer Tallia Storm, who has 142,000 followers on Instagram and almost 80,000 Lucy Lendrem, group talent manager at Gleam Futures, followers on Twitter, owes much of her success and who represents well-known social talent such as the blossoming music career to social media. “Celebrities Pixiwoo sisters (Samantha and Nicola Chapman) and and influencers are the exact same thing now,” she Tanya Burr, believes the distinction between celebrity and claims. “Whether you’re Instagram famous or a social stardom remains very separate. Hollywood movie star, the reality is you both have the “For me, the term ‘celebrity’ means the same as it’s same pull on Instagram. To a brand they present the always meant, because although you can view the kind same opportunity.” of talent we represent as celebrities, and they have many Alex Segal, talent agent at Cole Kitchenn, who works similar attributes, their relationship with their audience is with more traditional artist talent, shares a similar very different to a traditional celebrity,” she explains. “So view, claiming social media has overhauled our a traditional celebrity is put on a bit of a pedestal and understanding of celebrity: their audience look at them and everything they’re doing from afar. But it’s a much flatter playing field for social “The last three to five years has seen the definition talent, and to their audience they’re not really perceived of celebrity evolve dramatically. It is almost as celebrities, as they’re more like friends.” unrecognizable to what I would say a celebrity was six years ago. Not only are there more celebs than ever Nick Ede, CEO of charity campaign agency East of Eden, but they’re also growing at a rate of knots and there has achieved great success with work involving social seems to be a new celeb every five minutes, coming stars, but believes such talent is far from attaching itself from a range of genres and platforms. Celebrity no to the traditional celebrity engagement space. “I look longer needs to mean country-wide. Not everyone at social media stars and see them as a completely needs to be aware of someone for them to be a celeb. separate entity, because traditional media doesn’t know There are a number of celebrities out there who I have who they are. If a brand wants its campaign to reach never heard of; it’s hard to keep up with who’s who. Six Hello or Grazia etc, social talent will still very rarely years ago I would have known who everyone was, but penetrate that space. But a traditional celebrity will nowadays I spend my life Googling these people. This always make the headlines or a dent in newsprint or in change has been rapid and it is only going one way.” a magazine.”

THE FUTURE OF CELEBRITY MARKETING 11 The Crossover A Numbers Game

Ultimately, while the definition of celebrity may remain The industry is seeing individuals with strong social open to debate, anyone who has an engaged following profiles having increasing appeal over celebrities who are and the ability to influence an audience, across traditional arguably more famous. Traditional celebrities who wish or social media, is getting a shot at brand collaboration to remain in the game have no choice but to be active on opportunities. Where the lines have become really social media, if they aren’t already. “The first thing any blurred within the field of celebrity engagement is when brand asks me when they’re wanting to know more about we see traditional celebrities appearing in social media a client I represent is what are their social media stats, campaigns, or when social talent makes its way into how many followers do they have, how many views do mainstream media and brand campaigns. For example, their videos on YouTube get, etc,” explains Alex Segal. fashion and beauty vlogger Zoella appeared in The Great “The question always used to be what are they up to at Comic Relief Bake Off which aired on BBC1 last year, and the moment, but that’s not relevant anymore. The first YouTuber Marcus Butler has been confirmed for Celebrity question now is always are they relevant online?” MasterChef this summer. It’s clear that social media has become the defining factor Last year, Calvin Klein executed a phenomenally for any individual wishing to work on brand campaigns. successful social media campaign, which was fronted by While celebrities undoubtedly boast a strong reach, Canadian singer Justin Bieber. The campaign included successful collaborations demand an engaged audience. several shots of Bieber posing with Dutch model Lara Stone and, within 48 hours of the launch, #mycalvins had generated 1.6 million Twitter mentions. The campaign also became one of the top Facebook trends, and the Bieber-Calvin Klein Underwear Spring 2015 video has amassed more than 10.5 million views. The apparel brand also reported a spike in sales following the Bieber collaboration.

Retailer John Lewis also recently revealed vlogger Jim Chapman, who boasts two million Instagram followers and 2.5m YouTube subscribers, as its inaugural menswear Style Curator. The engagement is a brave one, as his name is unlikely to resonate with every John Lewis customer, but arguably the appointment is designed to attract a younger crowd.

THE FUTURE OF CELEBRITY MARKETING 12 4. The State of Celebrity Marketing

74% of agency respondents are actively working with celebrities

Celebrities have long been a part of the marketing landscape, and so it comes as little surprise that 74% of agency respondents and 69% of company respondents are currently working with celebrities (see Figure 1). A further 18% of company respondents are planning to embark on a celebrity engagement strategy over the next 12 months, as are 12% of agencies. This leaves just a small majority who have no plans to undertake celebrity endorsement work over the coming year.

Figure 1: Do you currently work with celebrities?

80%

70% 74% 69% 60%

50%

40%

30%

20% 18%

10% 13% 14% 12%

0% Yes No, and we have no plans No, but we are planning for it over the next 12 months over the next 12 months

Company respondents Agency respondents

Additionally, celebrity engagement strategies are well-established and have been in place for five years or more for approximately two-thirds of agency and company respondents (see Figure 2). Just 10% of company and 6% of agency respondents say their celebrity work is in its first year.

THE FUTURE OF CELEBRITY MARKETING 13 EXPERT VIEW

Luke Harris, artist relations officer, Comic Relief

“Comic Relief has been going for 30 years and we have always had a very loyal support network of talent, such as Lenny Henry, Davina (McCall) and David Tennant, who come back most years... Our mission is positive change through the power of entertainment, and so celebrities have been there from the start. The value comes from well-known individuals putting themselves out there, doing something risky or making a fool of themselves, such as David Walliams swimming the Thames. It’s them going above and beyond, which really resonates with people and gets the public motivated and inspired. They recognize they have currency with the general public and they want to use their influence and voice in a powerful way.”

Figure 2: How long have you had celebrities as part of your marketing strategy?

70%

60% 59% 60%

50%

40%

30%

20%

10% 12% 10% 9% 8% 7% 7% 6% 6% 6% 2% 5% 4% 0% Less than 1 year 2 years 3 years 4 years 5 years More than 12 months five years

Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 14 5. The Rules of Engagement

70% of companies identify and manage celebrities in-house

Celebrity engagement has always been a relationship While there are myriad specialist agencies representing game, and based on survey findings, continues to be. As traditional celebrities and artists, those that specialize in Figure 3 highlights, 70% of company and 66% of agency social talent particularly are few and far between. Quite respondents are identifying and managing their celebrity often, social stars are used to managing themselves, contacts in-house. The role that specialist agencies play and are reluctant to have their content edited. This goes in the selection process is minimal it seems, with just some way to explaining why businesses and agencies are 13% of companies and 10% of agencies turning to their identifying and managing social stars themselves. expertise for the identification of suitable celebrities and artists to work with and management of the relationship. Lucy Lendrem at Gleam Futures explains, “We get approached 10 times a day by potential talent who want A further 2% of companies and 7% of agencies are representation. We took on maybe three new clients using specialist agencies for just the selection and last year. We keep our eyes open always for new and recruitment process, with the relationship then being interesting talent, who maybe bring something different to managed in-house. our roster.”

THE FUTURE OF CELEBRITY MARKETING 15 Figure 3: How do you currently identify and manage celebrities when using them as part of your marketing strategy?

We identify and manage 71% celebrities in-house 66%

We identify celebrities in-house, 15% who are then managed by a specialist agency 17%

We use a specialist agency to 13% identify and manage celebrities 10%

A specialist agency identifies 2% celebrities, who we subsequently manage in-house 7%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Company respondents Agency respondents

56% of companies are undertaking in-depth celebrity research to ensure a good match

The survey found that 56% of company and 49% of Justin Bieber, for example, was just a kid singing on agency respondents are undertaking in-depth research YouTube, before he hit the mainstream music scene. themselves to ensure the celebrities they work with Nowadays he’s often referred to as the first YouTube reflect the core brand values of their campaign (see superstar who found recognition through the music Figure 4). While spending time to find the perfect match videos he uploaded. Keeping on top of emerging talent is undoubtedly the right way to go, manual research can is increasingly critical for brands that wish to remain sometimes be a waste of time, given the amount of data relevant, and relying solely on established connections online and the sheer scope of social media. could be extremely short-sighted and limiting.

While social stars have certain metrics and stats available online relating to their engagement and influence, not all information is publicly available. Such research is likely to be less effective for traditional celebrities who may not be active on social media, or have the same level of data available on them. Brands therefore need to get smart about their approach.

It’s interesting to see that 49% of companies and 44% of agencies are continuing to select celebrities based on personal contacts and connections. Historically this has been the nature of celebrity engagement work, but it’s questionable whether this approach remains relevant in today’s social media climate, as it doesn’t necessarily consider what’s ‘hot’ and trending.

THE FUTURE OF CELEBRITY MARKETING 16 Figure 3: How do you currently identify and manage celebrities when using them as part of your marketing strategy? EXPERT VIEW

We identify and manage 71% Luke Harris, artist relations officer, Comic Relief celebrities in-house 66%

We identify celebrities in-house, 15% “Our marketing team holds lots of focus groups during the summer when we’re who are then managed by a planning our campaign, and they speak to a wide range of the public, tapping into specialist agency 17% what they’re watching and which people they’re liking, and we build a picture of We use a specialist agency to 13% who’s of the moment and who’s really relevant... We’ve become a lot more aware of identify and manage celebrities 10% emerging social talent over the past few years, and we’ve been thinking about how

A specialist agency identifies we use vloggers on YouTube, Vine and Snapchat, to appeal to a younger audience, 2% celebrities, who we subsequently and help make our brand more cool and relevant. We’re using the artists we have manage in-house 7% at the moment to nurture and bring on board this next generation of talent, but we 0% 10% 20% 30% 40% 50% 60% 70% 80% have to make sure that these individuals are committed to the cause.”

Company respondents Agency respondents

Figure 4: Which methods are you currently using to choose celebrities as part of your marketing strategy?

We undertake in-depth research 56% to ensure celebrities reflect core brand values 49%

We choose celebrities based on 49% personal contacts/connections 44%

Our decisions are based on a 38% gut feel for who we think will resonate with audiences 44%

We tend to base our decision 32% on celebrities that are currently in the news 34%

We regularly speak to our 17% customers so instinctively know the right celebrity 15%

None of these – we don’t 8% have a specific method for choosing celebrities 8%

0% 10% 20% 30% 40% 50% 60%

Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 17 66% of companies are manually searching social media to identify celebrities

It seems surprising that 66% of company respondents, allocation, but in return they are likely to offer a wealth of and 57% of agencies questioned, are relying on manual up-to-the-minute data, enabling businesses to save time searches of social media platforms such as Twitter and in their research and make a better informed decision Facebook to identify celebrities that are a good fit for their about celebrities who will be a good match to the brand campaign (see Figure 5). This can be a laborious way to or cause. research, often relying on keyword and hashtag searches and limited engagement data. As Lucy Lendrem explains, “Social talent can offer an abundance of analytics and data, which allows a brand What’s revealing is that 59% of companies and 54% to be much more strategic in its decision making. They of agencies are depending on recommendations from know when they’re going to be working with someone friends, colleagues and peers in the industry. While this is pretty much exactly who they’re going to be talking to, accepted practice, experts interviewed expressed the view which isn’t always the case when selecting a traditional that it’s beginning to feel a little outdated; as the celebrity celebrity.” space is becoming so saturated, it’s no longer possible to keep track of who’s who through personal connections. Additionally, 23% of companies and 17% of agency respondents are making use of free social media tools Approximately one third of survey respondents are such as Hootsuite and Klout, while a small proportion utilizing specialist celebrity engagement tools such as are paying for premium social monitoring tools such as Celebrity Intelligence. Specialist tools require budget Radian6.

Figure 5: Which tools or methods do you currently use to identify celebrities when using them as part of your marketing strategy?

Manually searching social 66% media platforms and forums 57% e.g. Twitter, Facebook

Recommendations from friends, 59% colleagues or peers in the industry 54%

Specialist celebrity engagement 36% tools e.g. Celebrity Intelligence 32%

Free social media monitoring tools 23% e.g. HootSuite, Klout 17%

Physically attending specialist 22% events and conferences 20%

Paid for social media monitoring 7% tools e.g. Sysomos, Radian6 11%

6% Other 6%

0% 10% 20% 30% 40% 50% 60% 70%

Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 18 Having the ‘right look’ remains a critical factor in celebrity engagement

For celebrity engagement to be effective, it’s critical As Alex Segal explains, “Social media stars have a real the chosen individual is a good fit for the campaign. As head start, in this respect. They no longer need to be a Figures 6 and 7 highlight, having the right look remains Peter Andre or Katie Price to get branding deals, as it’s a crucial part of this, with 79% of companies and 84% of not about that anymore; it’s about how many people can agencies citing this as “critical” or “very important”. be reached. These people online can reach millions in one fell swoop.” In terms of additional attributes brands are looking for most in celebrities, boasting a sizeable social following is rapidly Share of voice within a particular sector or field is a becoming paramount, and likely to be even more vital further priority, with 65% of company respondents and over the next year or so. Within the survey findings, 67% of 68% of agencies ranking the attribute as “critical” or company respondents and 71% of agencies said the size of “very important”. the celebrity’s online audience was of utmost importance.

Company respondents

Figure 6: Which attributes are most important in a celebrity you are looking to work with?

Has the right look for our brand 50% 29% 17% 5%

Boasts a sizeable social 33% 34% 30% 3% community and online following The ability to sway opinions and prompt action by talking, 27% 39% 25% 9% promoting a particular topic Talent – top of their 25% 39% 28% 7% game/profession A thought leader and active participant in discussions that 23% 30% 33% 14% relate to particular topics/industry

Popularity – global celebrity status 21% 51% 24% 4%

Share of voice, has a high degree 16% 49% 27% 9% of participation in a certain area

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Critical Very important Quite important Not important at all

THE FUTURE OF CELEBRITY MARKETING 19 Additionally, popularity, or global celebrity status is of particular importance to companies, with 72% saying it is “critical” or “very important”. It’s an attribute that’s of less importance to agencies, with just over half of respondents citing it as being significant.

Tallia Storm, R&B musician “Some brands are very clever and know they want to go for someone like me who’s at the beginning of their career. Then people can tell that it’s real. Brands are increasingly into working with up – and-comers as they know they can grow with the artist, and reap the rewards when their career really takes off.”

Figure 8: Which channels do you think are the most effective when engaging a celebrity for the first time? Agency respondents

Via publicist/PR team 65% 67% Figure 7: Which attributes are most important in a celebrity you are looking to work with? Introduction via mutual 45% acquaintances 39% 39% Email 46%

Has the right look for our brand 50% 34% 12% 4% Events 29% 23% 23% Boasts a sizeable social Instagram 38% 33% 23% 6% 32% community and online following Phone call 23% 32% Talent – top of their 27% 38% 31% 4% Via influencers’ own blog 16% game/profession 16%

The ability to sway opinions and Twitter 15% prompt action by talking, 23% 39% 27% 11% 27% promoting a particular topic Facebook 10% 16% Share of voice, has a high degree 22% 46% 26% 5% of participation in a certain area Snapchat 9% 7%

LinkedIn 3% Popularity – global celebrity status 22% 37% 33% 8% 3%

Google+ 2% A thought leader and active 1% participant in discussions that 19% 41% 23% 17% Forums 1% relate to particular topics/industry 1% 5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Other 9%

Critical Very important Quite important Not important at all 0% 10% 20% 30% 40% 50% 60% 70% 80%

Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 20 Two-thirds say engaging a celebrity via their publicist or PR is the most effective way

The majority of businesses prefer the traditional You need legal expertise, commercial knowledge, and method of going through a celebrity’s publicist or PR for not just for brand work but also for the growing number connecting with them directly for the first time. Two-thirds of approaches by media networks, etc.” of respondents cited this as their favored approach, while 45% of companies and 39% of agencies questioned The survey reveals that Instagram is the most popular say they continue to find introductions via mutual social media platform for approaching celebrities acquaintances most effective (see Figure 8). Email also directly, above Twitter and Facebook. According to remains an important channel for making contact. findings, 23% of companies and 32% of agencies say the photo sharing platform an effective channel for making This explains why social talent in particular are first contact with a celebrity or talent. “My Instagram is my increasingly seeking agency representation, particularly own magazine, and a barometer of my social identity,” since the number of brand opportunities has exploded. says singer Tallia Storm, who engages with brands and “Most talent want representation in some way or her audience directly via her Instagram profile. another,” explains Lucy Lendrem. “It would be naive of a talent to manage themselves beyond a certain point.

Figure 8: Which channels do you think are the most effective when engaging a celebrity for the first time?

Via publicist/PR team 65% 67% Introduction via mutual 45% acquaintances 39% 39% Email 46%

Events 29% 23%

Instagram 23% 32%

Phone call 23% 32%

Via influencers’ own blog 16% 16%

Twitter 15% 27%

Facebook 10% 16%

Snapchat 9% 7%

LinkedIn 3% 3%

Google+ 2% 1%

Forums 1% 1% 5% Other 9%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 21 Figure 9: How do you generally work with celebrities when using them as part of your marketing strategy?

50% 49%

40% 40% 6. Key Trends 37% 30%

20% 22% 20% Campaign-specific contracts are rising in prominence 17% 10% Owing to the shift in celebrity culture and the infiltration of social talent, survey findings reveal that agencies particularly 9% are choosing to engage celebrities on a campaign-specific basis. This is true of 40% of the agencies questioned and 22% 6% of company respondents (see Figure 9). Nick Ede at East of Eden supports this approach, saying, “Today they’re amazing, 0% tomorrow they could be in jail. So my advice for anyone is to just use celebrities for a specific campaign.” As part of a Campaign specific As a one-off Varies long term contract contract For example, shareholders of Nike, Gatorade and other Tiger Woods EXPERT VIEW Company respondents Agency respondents sponsors lost a collective $5bn to $12bn as a result of the scandal involving Alex Segal, talent agent, Cole Kitchenn his extramarital affairs, according to a study by researchers at the University of California, Davis. “Total shareholder “There’s a real spike in one-off tweet, or losses may exceed several decades’ worth one-off Instagram campaigns. There’s no of Tiger Woods’ personal endorsement income,” said Victor Stango, a professor exclusivity and no really tangible connection of economics at the UC Davis Graduate to the brand. It’s just that initial hit that the School of Management and brands want. If they do the same thing with 10 co-author of the study. different celebrities and make sure everyone Apart from the reputation risk linked with posts on the same day, they can create a celebrities, social media has also made campaign-specific collaborations more trend and a talking point for one day maybe. achievable. As a result, the practice of That one day can have 100,000 hits on their engaging celebrities on a one-off basis is rising in prominence, and this view was website, as opposed to a full brand campaign, reflected in many of the expert interviews which they don’t really see as being relevant carried out for this report. anymore. We still have some big exclusivity Within the survey data, one fifth of deals which last for a year, but the quick hit companies and 17% of agencies questioned we’re seeing consistently on a daily basis now, said they are generally working with celebrities in this way. Just 9% of and it has just crept in over the last two years.” companies and 6% of agency respondents said they are engaging celebrities as part of a long term contract.

THE FUTURE OF CELEBRITY MARKETING 22 Figure 9: How do you generally work with celebrities when using them as part of your marketing strategy?

50% 49%

40% 40% 37% 30%

20% 22% 20% 17% 10% 9% 6% 0% As part of a Campaign specific As a one-off Varies long term contract contract

Company respondents Agency respondents

Interestingly, the rise of social talent and one-off campaigns has also created a need (and space) for traditional celebrities to differentiate themselves and have more meaningful relationships with brands. According to a Google research report, many A-list celebrities are now wanting more than a brand endorsement deal, and are increasingly seeking some sort of business collaboration opportunity as well. The search giant warns marketers that when selecting the right celebrity or individual to work with, they need to be thinking about the long haul:

“We’re seeing a trend of celebrities, when becoming the spokesperson or “face” of a brand, taking on titles like investors, creative directors, and advisors that imply a much deeper level of involvement than simply being in a cosmetics company’s ads. Lady Gaga isn’t just the poster girl of camera brand Polaroid, she’s its “creative director,” brought on board to bring the struggling yet nostalgia- rich company some new clout among the millions of “little monsters” who follow her religiously, mostly on digital platforms; likewise, in December, actor and singer Justin Timberlake was named creative director of golf brand Callaway.”

THE FUTURE OF CELEBRITY MARKETING 23 Traditional celebrities are still most popular, but social media stars are catching up

As Figure 10 highlights, singers and musicians are The attractiveness of social talent is easy to understand. currently the most popular genre of celebrity for brands As Alex Segal at Cole Kitchenn explains, “Social stars can to work with, with TV actors running a fairly close second. assess their demographic within minutes. They have real According to the survey findings, 40% of companies and online statistics: who’s watching their stuff, what age they 37% of agencies questioned have worked with a music are, where they’re from, etc. These are things that brands talent in the past year. are craving to find out about influencers and who they’re influencing. Influencers have suddenly become a really What’s particularly revealing is the number of respondents attractive proposition because you know what they are who’ve recently hired social talent, such as vloggers and about. They are relatable to the public. They know the Instagrammers. More than a third (37%) of agencies have platform and how they can get the brand out there.” engaged with social stars, and 28% of companies have done so in the past 12 months. This accounts for a larger proportion than those who’ve hired sports personalities or reality TV stars, for example, which goes to show how prolific it’s becoming.

Figure 10: Which of these types of celebrities have you worked with in the past year?

Singers/musicians 40% 37%

Film actors 35% 31%

TV actors 33% 35%

Models 32% 27% Social media stars e.g. vloggers 28% such as Zoella and Instagrammers 37% such as Patrick Janelle

Sports personalities 21% 22%

Reality TV stars 20% 31%

Other TV personalities, 16% e.g. TV chefs 25%

Journalists/newscasters 14% 7%

Authors/writers 10% 8%

Royals 8% 2%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 24 Half of company respondents and 39% of agencies say film actors still most relevant to their forthcoming strategy

According to the survey, half of company respondents That being said, there is no denying that social clout and 39% of agencies said film actors would be most will be a critical differentiator in brands deciding relevant to their forthcoming celebrity engagement between which celebrity and social talent to sign on. strategy. Singers and musicians also continue to be an This is because brands are keen to collaborate with attractive proposition. individuals boasting a strong social following and level of engagement, whether that’s a traditional celebrity or This is because, when it comes to big-budget campaigns, rising social media star. As Figure 11 illustrates, 43% of there’s still some reticence (from traditional media company respondents and 46% of agencies say social particularly) when it comes to working with social talent. media talent would be most relevant to the upcoming Luke Harris, artist relations officer at Comic Relief explains, endorsement work they have planned. “In the past we’ve had some challenges convincing stakeholders about working with social talent. With TV Alex Segal, talent agent at Cole Kitchenn, shares that, audiences getting older, there is worry that viewers won’t “In terms of the big branding deals incorporating quotes, recognize younger stars. Thankfully I think the industry media interviews, photo shoots and billboards etc., one of has woken up and realized the power and influence of the key aspects of the whole deal is always going to be social talent as they become household names. The social media now. I have some clients who aren’t even on success of Zoella taking part in Bake Off demonstrates social media and it’s a massive talking point.” this; it had a huge effect on our campaign” Figure 10: Which of these types of celebrities have you worked with in the past year?

Figure 11: Thinking about upcoming endorsement work you have planned, which types of celebrities would be Singers/musicians 40% the most relevant to your particular strategy? 37%

35% Film actors 50% 31% Film actors 39% Social media stars e.g. vloggers TV actors 33% such as Zoella and Instagrammers 43% 35% such as Patrick Janelle 46% 38% Models 32% Singers/musicians 27% 30% Social media stars e.g. vloggers 28% 28% Models such as Zoella and Instagrammers 31% 37% such as Patrick Janelle TV actors 25% Sports personalities 21% 31% 22% Sports personalities 22% 21% Reality TV stars 20% 31% Other TV personalities, 15% e.g. TV chefs 20% Other TV personalities, 16% e.g. TV chefs 25% Reality TV stars 11% 21% Journalists/newscasters 14% 7% Journalists/newscasters 8% 10% 10% Authors/writers Authors/writers 8% 8% 7%

Royals 8% Royals 7% 2% 3%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 0% 10% 20% 30% 40% 50% 60%

Company respondents Agency respondents Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 25 Social media promotion is top priority for celebrity engagement

When considering the role that celebrities play within months after launch, and the closure of The Independent. brand marketing strategies, it’s revealing to see that social Everything’s moving online, and social media promotion media promotion comes out top, by a clear margin (see is really important. Brands are choosing to work with Figure 12). A resounding 79% of company respondents celebrities who boast a good level of social media and 75% of agencies say they are currently working with engagement, as that’s where they are getting the traction.” celebrities in this context. Content promotion and distribution ranks as the second It’s a finding that’s unlikely to surprise, as experts most popular role that celebrities are being engaged for, interviewed for this report talked of the increasing with 42% of companies and 49% of agencies questioned requirement to fulfil this sort of social media brief. Robin saying it’s a priority. This is a function that is likely to Gandy, head of publicity at CAN Group, says it’s a trend resonate particularly well with social talent, who are he’s seeing more and more. “When we’re approaching experienced at producing and editing their own content. brands or they’re approaching us, we’ve very much talking about the social impact and the celebrity’s engagement Product launch and product placement remain a high rates, etc. It’s what everyone is focused on nowadays. priority role, which have historically been a big part in Newspapers are declining, and we’ve seen that with celebrity engagement. Just over half of agencies cite the launch of the New Day which collapsed just two these tactics as being important still.

Figure 12: What roles do celebrities currently play in your marketing strategies?

Social media promotion 79% 75% 42% Content promotion and distribution 49% 38% Product launch 52% 32% Product placement/gifting 51%

Digital advertising e.g. display 31% 33% 27% Events/webinar production 26% Newspaper and magazine 24% advertising 34% TV advertising 19% 18%

Corporate communications 17% 18% 10% Radio advertising 16%

Outdoor advertising 9% 12% 4% Crisis management 2%

Benchmarking exercises 3% 3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 26 Social media promotion is proving a highly effective strategy

Not only is social media promotion a top priority, but the public and build anticipation that something it is also proving extremely effective. The full 100% of big was happening. The enlisted celebrities showed agency respondents say it’s a strategy that is “highly up at university campuses across the country as effective” or “quite effective” for them, and 98% of substitute teachers. Multiple videos and social posts companies agree. were created as part of the #BestDayEver campaign, featuring Alec Baldwin dressed up as Abraham Last year, US car brand Chevrolet launched its Lincoln, for example. Within 24 hours, the social media #BestDayEver social media campaign, featuring five posts had attracted 1.5m organic likes and shares, well-known celebrities including Ian Somerhalder, and that doesn’t include the mass of user-generated Alec Baldwin, Nikki Reed, Norman Reedus, and content that was created as a result. Olivia Wilde. The goal was to create buzz among

EXPERT VIEW

Lucy Lendrem, group talent manager, Gleam Futures

Figure 12: What roles do celebrities currently play in your marketing strategies? “Social talent campaigns can be enormously successful. Zoe Social media promotion 79% 75% [Zoella] did a partnership with 42% Content promotion and distribution 49% Topshop a few years ago, when 38% Product launch 52% she had just joined Gleam. She 32% had a 37% click-through rate to Product placement/gifting 51% Topshop.com from the link in the Digital advertising e.g. display 31% 33% description of her video, which 27% Events/webinar production 26% had half a million views, which Newspaper and magazine 24% at the time was huge. To get that advertising 34% 19% level of click-through when you TV advertising 18% compare to banner ads, etc., Corporate communications 17% 18% was phenomenal. Topshop was 10% Radio advertising 16% thrilled with the results. But it

Outdoor advertising 9% was the perfect storm of the right 12% 4% talent, the right brand, the right Crisis management 2% brief, all coming together and the Benchmarking exercises 3% 3% results are really clear.”

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 27 Company respondents

Figure 13: How effective are celebrities as part of these marketing strategies?

Social media promotion 77% 21% 2%

Product launch 48% 41% 11%

Product placement/gifting 48% 35% 17%

Content promotion and distribution 45% 49% 6%

Digital advertising e.g. display 42% 41% 18%

TV advertising 40% 41% 20%

Events/webinar production 38% 44% 18%

Newspaper and magazine advertising 31% 46% 23%

Corporate communications 29% 41% 29%

Radio advertising 28% 32% 39%

Outdoor advertising 23% 48% 30%

Benchmarking exercises 13% 44% 43%

Crisis management 13% 27% 60%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Highly effective Quite effective Not effective at all

Survey findings vary somewhat between agency and company responses. It’s insightful to see in Figure 14 that digital advertising is proving effective within celebrity engagement for 91% of agency respondents. Newspaper and magazine advertising is also continuing to hold its ground and being a worthwhile approach for 89% of agencies.

THE FUTURE OF CELEBRITY MARKETING 28 Agency respondents

Figure 13: How effective are celebrities as part of these marketing strategies? Figure 14: How effective are celebrities as part of these marketing strategies?

Social media promotion 77% 21% 2% Social media promotion 72% 28%

Product launch 48% 41% 11% Product launch 64% 31% 5%

Product placement/gifting 48% 35% 17% Content promotion and distribution 52% 40% 8%

Newspaper and magazine Content promotion and distribution 45% 49% 6% advertising 51% 39% 10%

Digital advertising e.g. display 42% 41% 18% Product placement/gifting 46% 43% 11%

TV advertising 40% 41% 20% TV advertising 41% 40% 19%

Events/webinar production 38% 44% 18% Events/webinar production 38% 42% 20%

Newspaper and magazine Digital advertising e.g. display advertising 31% 46% 23% 38% 53% 9%

Corporate communications 29% 41% 29% Outdoor advertising 20% 58% 22%

Radio advertising 28% 32% 39% Corporate communications 19% 53% 28%

Outdoor advertising 23% 48% 30% Radio advertising 16% 46% 38%

Benchmarking exercises 13% 44% 43% Crisis management 9% 35% 56%

Crisis management 13% 27% 60% Benchmarking exercises 7% 51% 42%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Highly effective Quite effective Not effective at all Highly effective Quite effective Not effective at all

THE FUTURE OF CELEBRITY MARKETING 29 7. Measuring ROI

Campaign measurement is moving beyond press cuttings

When it comes to measuring return-on-investment (ROI), press coverage is still important, and emerges as the primary indicator of success within the survey findings. As Figure 15 shows, approximately three quarters of company respondents and 80% of agencies say they continue to use press coverage generated off the back of a campaign to judge a celebrity’s impact.

However, it’s evident that online and social media metrics are rising in importance. The beauty of a campaign involving social media promotion is the array of data potentially available for collection. Web-generated traffic Figure 15: How do you measure the success of campaigns where celebrities have been used as part of the strategy? emerges as the second most important metric, with 73% of companies and 65% of agency respondents saying Press coverage received 76% this is something they track. Additionally, the number on the back of it 80% of content shares and volume of online mentions seem

to be of equal importance as a measure of success. 73% Web traffic generated Approximately two-thirds of respondents appear to be 65% gathering this form of data. 64% Number of times content shared It’s reassuring to see revenue generation appearing 64% midway down the table, with just over half of respondents saying they use this to measure the success of a 64% Number of online mentions campaign. Until recently, this metric would have seen 61% higher prominence, but increasingly brands are realizing 55% the value of social media promotion for its brand building Revenue generation and audience engagement, so that it’s not all about sales 51% and shifting product. 24% Lead referrals 28%

6% Other 5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 30 EXPERT VIEW

Luke Harris, artist relations officer, Comic Relief

“Sometimes I think it’s easy to focus on the money raised but elements like brand value and public engagement are just as important. With social media becoming a much more dominant part of our campaigns, measuring ROI has become a lot more advanced. At Comic Relief we focus on building strong, long-term relationships so when working with artists it’s crucial for us to continually evaluate how we are working with them to make sure they feel valued and inspired by our work.”

Figure 15: How do you measure the success of campaigns where celebrities have been used as part of the strategy?

Press coverage received 76% on the back of it 80%

73% Web traffic generated 65%

64% Number of times content shared 64%

64% Number of online mentions 61%

55% Revenue generation 51%

24% Lead referrals 28%

6% Other 5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 31 Content shares have become an important measure of success

Figure 17: How effectively are you able to measure the success of campaigns where celebrities have been used as part of a strategy? standardization of social media measurement has been an to be a “very effective” or “quite effective” measure of ongoing debate for years, and it’s therefore encouraging to success. In addition to press coverage, which is working see that survey respondents are finding their measurement well for 99% of company respondents and 96% of of celebrity engagement work pretty effective. agencies, social media metrics such as content shares Number of times content shared 61% 35% 4% and online mentions are also proving to be fruitful Figure 16 shows that for the majority of metrics listed, measures of success. more than 90% of survey respondents are finding them Web traffic generated 60% 33% 7%

Press coverage received 59% 38% 3% on the back of it Company respondents Number of online mentions 54% 43% 4%

Figure 16: How effectively are you able to measure the success of campaigns where celebrities have been used as part of a strategy? Lead referrals 40% 44% 16%

Press coverage received Revenue generation 36% 53% 11% 56% 43% 1% on the back of it

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Number of times content shared 56% 41% 3%

Very effective Quite effective Not effective at all Number of online mentions 55% 39% 6%

Web traffic generated 52% 42% 7%

Revenue generation 38% 41% 21%

Lead referrals 36% 52% 12%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Very effective Quite effective Not effective at all

Furthermore, metrics involving web-generated traffic are also effective for 94% of company respondents and 93% of agencies.

THE FUTURE OF CELEBRITY MARKETING 32 Agency respondents

Figure 17: How effectively are you able to measure the success of campaigns where celebrities have been used as part of a strategy?

Number of times content shared 61% 35% 4%

Web traffic generated 60% 33% 7%

Press coverage received 59% 38% 3% on the back of it

Number of online mentions 54% 43% 4%

Lead referrals 40% 44% 16%

Revenue generation 36% 53% 11%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Very effective Quite effective Not effective at all

THE FUTURE OF CELEBRITY MARKETING 33 40% of agencies say celebrity marketing is a “very effective” strategy

Celebrity engagement has historically been able to every $1 spent in paid media campaigns. Social media achieve great cut-through with the general public, and is reshaping how brands approach celebrity it’s encouraging to see that in light of the shift towards engagement, particularly as audience engagement social media, it’s still a successful strategy. As Figure 18 levels can be so much higher. With social talent, illustrates, 40% of agency respondents say their approach there is a direct link to the audience, and so they’re to celebrity marketing is “very effective”. One quarter of becoming the new brand publishers. company respondents echo this sentiment, with a further Nick Ede at East of Eden has found marked success 58% saying it’s “quite effective” for them. working with social talent. He shares, “I developed a Just 18% of companies and 7% of agencies questioned campaign called Style for Stroke, and for it created a admit celebrity engagement is “not effective at all” t-shirt called ‘Famous last words!’. I decided to launch for them. and promote it via social media, and involved Zoella, Niomi Smart, Tallia Storm and the Lean Machines. The There’s no denying that social media, and its emerging cut-through and sales were higher than the sales for talent, has opened up new opportunities for celebrity a mainstream celebrity. Zoella’s sold out in about 10 marketing. In 2015, brand collaborations with social minutes, as her social following was an immediate link influencers were proven to yield at least $6.85 for to actual purchase.”

Figure 18: How effective is your organization’s overall approach to celebrity marketing?

70%

60% 58% 50% 53%

40% 40%

30%

20% 24% 19%

10%

8% 0% Very effective Quite effective Not effective at all

Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 34 8. Challenges

More than three-quarters say budget is the biggest challenge

Celebrities have always commanded big budgets for brand endorsement work, and social media seems to be having little impact on this. As Figures 19 and 20 highlight, the cost of working with celebrities and budget restraints are proving the biggest challenge for 75% of companies and 83% of agency respondents. Within the survey findings, just over half of respondents agree with the statement that the rise of social media has made working with celebrities or social influencers more affordable.

Lucy Lendrem at Gleam Futures explains, “There is a perception that social talent is cheap, which it isn’t, because the market is so oversaturated with brands wanting to do something with the talent, that actually, they can pick and choose what they feel is the best Figure 18: How effective is your organization’s overall approach to celebrity marketing? fit, or the best brief, around what else they have in the schedule. It’s not cheap media anymore.”

70% Identifying celebrities that are a good fit for the brand is an ongoing challenge, and continues to be a hard, time-consuming task. This is true for 66% of companies 60% and 58% of agencies, who say they “agree” or 58% “strongly agree” with the statement. 50% 53%

40% 40%

30%

20% 24% 19%

10%

8% 0% Very effective Quite effective Not effective at all

Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 35 What has been the biggest challenge in working with celebrities?

Company respondents

Figure 19: Please record your level of agreement/disagreement with the following statements.

Celebrities are expensive for brands with 41% 34% 14% 9% 2% budget constraints

Identifying the right celebrities that are a fit 25% 41% 14% 19% 1% for your brand is a hard, time consuming task

Measuring ROI on influencer/celebrity 21% 46% 17% 14% 2% marketing is a challenge With digital media, working with celebrities/digital influencers has become 16% 35% 29% 17% 4% more achievable/affordable Influencer marketing is the same as 10% 25% 23% 38% 4% celebrity marketing

When it comes to celebrity engagement, 9% 20% 29% 36% 6% reach is more important that context

A one-off association with a celebrity is as 16% 7% 25% 19% 36% 13% effective as a long-term partnership

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Strongly Agree Neither agree Disagree Strongly agree or disagree disagree

Identifying the right celebrity to work with is a hard, time consuming task

As Figure 19 and Figure 20 illustrate, identifying the Additionally, 47% of agencies said they agree that right celebrities that are a good fit for the brand is an a one-off association with a celebrity is as effective ongoing challenge. Two-thirds (66%) of companies and as a long-term partnership. A smaller proportion of 58% of agencies say they “strongly agree” or “agree” companies, equating to around a third, concur with it’s a time consuming task, and one of the biggest this sentiment. challenges they face.

THE FUTURE OF CELEBRITY MARKETING 36 Agency respondents

Figure 20: Please record your level of agreement/disagreement with the following statements.

Celebrities are expensive for brands 43% 40% 11% 6% with budget constraints

Measuring ROI on influencer/celebrity 16% 49% 27% 5% 4% marketing is a challenge

Identifying the right celebrities that are a fit 18% 40% 24% 16% 3% for your brand is a hard, time consuming task With digital media, working with celebrities/digital influencers has become 17% 38% 22% 19% 4% more achievable/affordable When it comes to celebrity engagement, 12% 30% 22% 31% 5% reach is more important that context

A one-off association with a celebrity is as 8% 39% 24% 22% 7% effective as a long-term partnership

Influencer marketing is the same 16% 9% 21% 24% 40% 6% as celebrity marketing

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Strongly Agree Neither agree Disagree Strongly agree or disagree disagree

THE FUTURE OF CELEBRITY MARKETING 37 9. Celebrity Marketing Budgets

40% of agencies are allocating 10% to 30% of their budget to celebrity engagement

When considering the budget that’s being allocated to celebrity marketing, findings are fairly diverse, particularly between companies and agencies. An impressive 40% of agency respondents say they are spending 10-30% of their budget on celebrity engagement, and a further 14% are setting aside 30-50%.

Around one quarter of companies are spending 10-30% of the marketing pot on celebrity engagement.

Figure 21: How much of your overall budget is currently spent on influencer/celebrity or entertainment marketing?

70%

60% 64%

50%

40% 40%

30% 32%

20% 24%

10% 14% 13% 10% 2% 1% 0% Less than 10% 10-30% 30-50% 50-75% Over 75%

Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 38 Almost a half of agencies say budgets will increase in the next 12 months

Just under a half of agencies and 39% of companies And the need for content and to be across more say budgets are going to “increase significantly” or platforms is just growing. Is it better to produce fewer “increase moderately”, over the next year. pieces of better quality content, or just lots of content? That’s what we’re trying to discover at the moment to Based on the expert conversations carried out for this see what works best.” report, it’s highly likely this increased budget will be allocated to content, and specifically video, creation. Reassuringly, only a tiny minority expect budgets to decrease, which could be down to factors facing As Luke Harris at Comic Relief explains, “We work the business, and not the impact of celebrity with the BBC which makes a lot of our content, engagement specifically. but everything we do ourselves, we have to fund.

Figure 22: In the next 12 months, your budget for influencer/celebrity or entertainment marketing will:

6% Increase significantly 11%

33% Figure 21: How much of your overall budget is currently spent on influencer/celebrity or entertainment marketing? Increase moderately 38%

70% 53% Remain the same 46% 60% 64%

8% 50% Decrease 5%

40% 40% 0% 10% 20% 30% 40% 50% 60%

30% 32% Company respondents Agency respondents

20% 24%

10% 14% 13% 10% 2% 1% 0% Less than 10% 10-30% 30-50% 50-75% Over 75%

Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 39 33% of agencies are investing between $15,000 and $75,000 in a one-off campaign

Figure 23 shows that spend on a campaign specific For companies, the most popular cost of a campaign contract can be significant, with 54% of agency contract falls in the ballpark of $7,500 to $15,000, which respondents spending anywhere between $15,000 and is true for 23%. However, 45% of company respondents $150,000. Additionally, 33% say they are spending in the are spending upwards of $15,000 on a campaign-specific region of $15,000 to $75,000 on one campaign. contract.

EXPERT VIEW

Alex Segal, talent agent, Cole Kitchenn

“The amount of money spent on social media work is huge. I have a client who is doing three posts for a brand soon, and it’s upwards of £5,000 ($7,500) just for that. For me that’s an average deal, as I know there are people out there who are very active, are being paid £10,000 to £15,000 ($15,000 to $22,500) per one post or tweet, and that is extortionate. You might be more famous in the outside world, but if you don’t have the social clout and you don’t engage, then the social media work which is booming will not come your way.”

Figure 23: What budgets do you invest as part of a campaign specific contract?

35%

33% 30%

25%

23% 20%

18% 18% 18% 15% 14% 13% 13% 10% 9% 9% 9% 8% 8% 8% 5%

0% Less than $750- $1,500- $7,500- $15,000- $75,000- Over $750 $1,500 $7,500 $15,000 $75,000 $150,000 $150,000

Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 40 10. What Does The Future Hold? Three Key Trends

It’s easy to think of social media marketing, and its rising generation of talent, as something relatively new. But the fact is that YouTube celebrated its 10th birthday last year, and much of the vlogger talent that it’s nurtured has been there since the beginning. While social talent is just beginning to make its way into the mainstream, crossing into more traditional forms of media, there’s no doubt these names will only become more recognizable in the future.

The impact this is having on celebrity culture is transforming many of the rules of celebrity engagement as we know it, some of which are discussed above. However, in the future we’re likely to see three key trends become a firmly established part of celebrity engagement...

1. Authenticity and truth will Figure 23: What budgets do you invest as part of a campaign specific contract? be critical, to prevent the dilution of celebrity 35%

33% The sort of relationship that a social star enjoys 30% with their audience is inherently different to that of a traditional celebrity. Social media has broken down the 25% barriers of stardom, creating a more level playing field between a social talent and their public, and celebrities 23% 20% of all genres are increasingly being called to the same standards. Audiences no longer care about the shampoo 18% 18% 18% 15% brand a celebrity is being paid to endorse, for example; 14% instead they would prefer to know the hair products a 13% 13% 10% celebrity is genuinely spending their money on. This is 9% 9% 9% the way influence is heading, as consumers get savvier 8% 8% 8% 5% than ever about the promotions that are paid-for, and those that are genuine. 0% Less than $750- $1,500- $7,500- $15,000- $75,000- Over $750 $1,500 $7,500 $15,000 $75,000 $150,000 $150,000

Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 41 While some traditional celebrities have embraced this with dementia, as part of a wider campaign entitled change, sharing everyday moments of their lives on Dementia Diaries. “It was a great way of talking about Instagram for example, others are continuing to resist an issue we fund,” explains Luke Harris. “This year it. Moving forward, celebrities will have no choice but Fern Britton led a campaign about maternal mental to get more real with their social profiles particularly, if health called #MumTalk. It was very low key and they hope to scoop the big branding deals and contracts genuine, involving a video of Fern filmed in her home moving forward. with her. There was nothing flashy about it. It was all led on social. Natasha Hamilton and Fearne Cotton Comic Relief has recognized for some time the need did some support work on social too. It really hit our to make its brand more real and relevant, to appeal target market of mums at home, and really got the to social media audiences particularly. Earlier in the debate going. It got cut-through and did very well, year, it gave up its social media feeds to individuals because of its honesty.”

EXPERT VIEW

Tallia Storm, R&B singer

“A celebrity is an influencer; someone you go to and know they are wearing a t-shirt they genuinely like and bought themselves, for example, and haven’t been paid to promote it. If it’s genuinely something I’m wearing, or something I’m already doing, then I’d be happy to promote it. I love keeping it real. My following and my fan base know this. The consumer can tell the moment you have a big pay cheque in your hand – they’re so savvy nowadays... Traditional celebrities need to realize that you’ve got to move with the times and get onboard social media. Everyone’s starting to wear a little less makeup, be a bit more honest, it’s not all about the glitz and the glam and the paparazzi anymore.”

THE FUTURE OF CELEBRITY MARKETING 42 2. Engagement will win out over other attributes

It can be very hard to engage with an audience Within interviews, experts frequently referred to the successfully through YouTube, for example, and so those importance of engagement figures, and a celebrity’s who manage to have a defining factor about them which ability to capture the attention of an audience at volume would be almost impossible to replicate. Increasingly, online. Lucy Lendrem at Gleam Futures explains: having the ability to engage a large audience, particularly through social media, will be the attribute that brands look “You have people with millions of subscribers, but their for first, above audience reach or having the ‘right’ look. views are really low, or vice versa. The Michalaks, It just happens that social talent seems to be particularly a family on our roster for example, have 233,000 good at engagement, but there is no reason why traditional subscribers, but they get more than 100,000 views per celebrities can’t command the same level of interaction video. They have an unbelievable engagement rate with their audience, if they’re committed to doing so. which means people really care about what they are doing, and will tune in every week to see their latest As Nick Ede explains, “I want to work with celebs who content. A brand endorsement from talent like this will you ask to do two tweets, but by the end of the campaign instantly become more powerful as it’s coming from they’ve done 22, because they’ve become so involved someone who has a highly engaged and interested in it and their audience has been so engaged in the audience, providing it’s the right fit.” discussion. That’s success to me.”

3. Appealing to the ‘right’ audience will become a crucial differentiator

In previous years, brands working with an A-list celebrity or household TV star thought they’d hit the jackpot! But increasingly, celebrity engagement is no longer about scooping the biggest name in Hollywood, but rather, scooping names that genuinely resonate with the brand values and with its overall online (and offline) community. If this person also happens to be a famous celebrity, then it is a win-win for the brand. If it happens to be a social media star, so be it.

Additionally, if it’s a traditional celebrity relationship, getting the audience right becomes even more critical, in order for the collaboration to be relevant and authentic. As Nick Ede shares, “We launched Pixie Lott’s collection for Lipsy, which was quite innovative at the time and one of the biggest celebrity collaborations seen in this space. It utilized film, Pixie’s music and her love for fashion. She actually designed and worked on the collection. When you have a celebrity who is truly engaged in what they’re creating and the product, and it taps into a clearly defined audience, then you usually have a much more prolonged relationship, and with the fans.”

THE FUTURE OF CELEBRITY MARKETING 43 11. Conclusion

The growing shift in media culture and consumption, particularly among the rising generation of consumers, has made brands increasingly hungry for social media-led campaign work and promotions. Over the coming 12 months, and assuming budgets rise in line with survey findings, we’re likely to see brands mixing things up a little more, working with a blend of traditional celebrities and rising social media stars.

As Nick Ede at East of Eden advises, “For visibility In line with these changes, it seems likely that more I would go with a traditional celebrity, and for traditional celebrity management agencies and cut-through, I would go with a social media star. publicists will find ways to add rising social media Depending on the demographic that you want to talent to their roster. appeal to, I would hopefully combine the two and come up with a happy medium, utilizing both a In the meantime, celebrity engagement is likely to be traditional celebrity and a social media star”. characterized by an increasing number of one-off, flash- in-the-pan collaborations. Arguably this will become Without a shadow of doubt, social media has already commonplace for the next year or so, as brands and made a significant impact on the celebrity landscape, companies work out the most effective way to undertake with social talent scooping opportunities that their social media promotion. would previously have been awarded to traditional musicians, models or movie stars. While opinion Finally, the biggest trend that seems likely to stay within is divided over whether social stars can truly be celebrity engagement is the shift towards authenticity categorized as celebrities, the lines are blurring, and within brand endorsements and campaigns. Brands will traditional media will increasingly come to recognize need to get wise about only collaborating with stars some of the biggest faces in social media, in the way who have a true affiliation with their brand or products that it’s come to know the likes of Chiara Ferragni, to achieve any real impact. The celebrity engagements Tanya Burr and Zoellas of the world. Currently there’s that are led by gifting and generous pay checks, and a bit of resistance while social talent needs to prove are lacking in honesty, will get caught out, particularly it can command the same audience attention across across social media. Additionally, less social media savvy more traditional media platforms such as TV, and not celebrities will need to think carefully about their presence all will be capable of doing so. But those who can on social media moving forward, and decide whether they will soon be competing on the same playing field as want to be in it for the long haul. Their authenticity will be traditional celebrities. critical in determining how their audience receives them.

THE FUTURE OF CELEBRITY MARKETING 44 12. Appendix: Respondent profiles

Figure 24: Which of the following best describes your company or role?

47%

53%

Client-side (part of an in-house team)

Agency / vendor / consultant

THE FUTURE OF CELEBRITY MARKETING 45 Figure 25: What best describes your job role? Figure 27: Are you more focused on B2B or B2C marketing?

35% 60%

30% 40% 50% 50% 36% 25% 40% 43% 20% 39% 36% 30% 15% 20% 19% 18% 17% 10% 20% 13% 10% 18% 5% 9% 9% 14% 6% 10% 1% 1% 2% 0% Board level / CMO / Manager Junior Analyst Consultant Other 0% business owner director / VP executive B2B marketing B2C marketing B2B and B2C (equally)

Company respondents Agency respondents Company respondents Agency respondents

Figure 26: In which country / region are you (personally) based? Figure 28: What is your annual company turnover / revenue?

70% 60%

66% 63% 60% 50% 51%

50% 40% 39%

40% 30% 33%

30% 20% 22%

25% 16% 20% 10% 13% 21% 10% 6% 2% 5% 0% 4% 0% 10% < $1.5 million $1.5 - $15 million $15 - $75 $75 - $225 $225 million - More than million million $1.5 billion $1.5 billion 5% 5% 2% 2% 1% 1% 2% 3% 0% 3% 0% Company respondents Agency respondents UK North America Europe Asia Middle East / Australia Other (please (non-UK) North Africa specify)

Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 46 Figure 25: What best describes your job role? Figure 27: Are you more focused on B2B or B2C marketing?

35% 60%

30% 40% 50% 50% 36% 25% 40% 43% 20% 39% 36% 30% 15% 20% 19% 18% 17% 10% 20% 13% 10% 18% 5% 9% 9% 14% 6% 10% 1% 1% 2% 0% Board level / CMO / Manager Junior Analyst Consultant Other 0% business owner director / VP executive B2B marketing B2C marketing B2B and B2C (equally)

Company respondents Agency respondents Company respondents Agency respondents

Figure 26: In which country / region are you (personally) based? Figure 28: What is your annual company turnover / revenue?

70% 60%

66% 63% 60% 50% 51%

50% 40% 39%

40% 30% 33%

30% 20% 22%

25% 16% 20% 10% 13% 21% 10% 6% 2% 5% 0% 4% 0% 10% < $1.5 million $1.5 - $15 million $15 - $75 $75 - $225 $225 million - More than million million $1.5 billion $1.5 billion 5% 5% 2% 2% 1% 1% 2% 3% 0% 3% 0% Company respondents Agency respondents UK North America Europe Asia Middle East / Australia Other (please (non-UK) North Africa specify)

Company respondents Agency respondents

THE FUTURE OF CELEBRITY MARKETING 47 THE FUTURE OF CELEBRITY MARKETING

A Celebrity Intelligence report, in association with Econsultancy, on the new rules of celebrity engagement

Published June 2016 Celebrity Intelligence UK Celebrity Intelligence USA All rights reserved. No part of this publication may be 4th Floor, Wells Point 350 7th Avenue, Suite 307 reproduced or transmitted in any form or by any means, 79 Wells Street New York, NY 10001 electronic or mechanical, including photocopy, recording London W1T 3QN United States or any information storage and retrieval system, without United Kingdom prior permission in writing from the publisher. Telephone: Telephone: 1-800-680-5773 Copyright 2016 Centaur Communications Limited UK 020 7970 4299 Celebrity Intelligence is part of Centaur Media plc. http://celebrityintelligence.com