Celebrities in Advertising - a Guideline 2009 2 Foreword

CELEBRITIES IN ADVERTISING - A GUIDELINE 2009 2 FOREWORD Dear Reader, The use of well-known personalities in advertising enjoys a long tradition. Although spon- soring and usage of testimonials has become an established and powerful communication tool for emotionalizing brands, there continue to be very few agencies that offer sufficient experience in this area. In the United States, every fourth TV commercial features a celebrity, while in Germany, a slight but continual increase has been observed. The potential of well-known personalities to differentiate a brand and make it desirable is a far from exhausted resource. With over 150 successful cooperative efforts in recent years, we consider ourselves to be the right partner for companies and agencies when they are selecting the right personality to support their business objectives. Therefore, we feel it is our responsibility to make our work transparent. That’s why we have produced the following guideline. Pleasant reading! Peter Olsson CEO 3 4 CELEBRITIES IN ADVERTISING TABLE OF CONTENT CHAPTER 1 CELEBRITIES IN ADVERTISING 8 A history of personality marketing 9 Luxor soap advertising - example from post-war europe 10 Changing circumstances CHAPTER 2 OBJECTIVES AND OPPORTUNITIES WITH CELEBRITY ADVERTISING 14 Why are celebrities used in advertising? 18 Marketing and communication objectives 19 Requirements for success 20 Survey of advertising experts CHAPTER 3 FREQUENTLY ASKED QUESTIONS ABOUT CELEBRITY ADVERTISING 24 Basic tenets for effective use of celebrities in advertising CHAPTER 4 SELECTING THE RIGHT CELEBRITY TO DEVELOP A PARTNERSHIP 32 Celebrities in advertising – selection criteria for a successful partnership 33 The three cornerstones for maintaining the value of a celebrity CHAPTER 5 TALENT MANAGEMENT/PERFORMANCEPLUS AT WORK 36 How do The Performers position the personality effectively? 37 3-phase model 38 Excerpts from Michael Ballack's master plan 40 Service and support 42 Representative cases 52 Agency 53 Legal overview 54 References 5 6 CHAPTER 1 CELEBRITIES IN ADVERTISING "Celebrity advertising and celebrities themselves are an increasingly hot topic. There is even an exhibit on "Celebrity advertising in Germany" opening today at the Haus der Geschichte in Bonn." Johannes Röhr, Celebrity Advertising, 2001 7 A HISTORY OF PERSONALITY-DRIVEN MARKETING What does celebrity mean? Meyers Lexikon associates the term with people who "DUE TO THEIR PUBLIC OFFICE OR PROFEssIONAL REPUTATION ENJOY SPECIAL RECOGNITION AND ARE CONSIDERED REPRESENTATIVE ELITES IN SOCIETY." Napoleon filet or Bismarck herring? Celebrity advertising is not only a modern phenomenon. It can be traced back to the 19th century. At that time, millions of plaster busts of Mozart, Beethoven, or Napoleon were produced and distributed. The notorious claim of Franz Liszt, "I am the concert," is proof that the effect of an artist is as much determined by his personality as by his ability. Even Goethe lamented the trivialization of his person: "I am to be found like old Fritz on pipe bowls and teacups." The Koblenz-based company Deinhard & Co. used the visits of Kaiseress Augusta in 1875 and Kaiser Wilhelm II in 1897 to its cellars to advertise for its wines; and not long after his retirement, the portrait of the "Iron Kaiser" Otto von Bismarck became a popular motif that is still used today. Whether on perfume bottles, snuffboxes, mugs, or restaurant signs; even Fürst Bismarck, Kornbrand at that time many businesses used recognizable names for advertising purposes. of the princely Bismarck distillery As monarchs, the aristocracy, and statesmen were used for advertising purposes in the 19th century, sports, music, film, and entertainment starts are sought after today. 8 LuXOR SOAP ADVERTISING - EXAMPLE FROM POST-WAR EUROPE Beautiful woman and strong man – the soap magic of post-War Europe During the 1920s in the United States, advertising with celebrities increased dramatically. Unilever called on American film stars like Joan Crawford and Ginger Rogers to introduce its "Lux toilette soap.“ The brand competition did not heat up in Germany until the econo- mic miracle of the 1950s. Consumer demands were no longer oriented around the necessary – but the desirable. BECAUSE PRODUCTS WERE HARDLY DISCERNABLE IN TERMS OF QUALITY AND PRICE, IT WAS ESPECIALLY DIFFICULT TO ATTRACT CONSUMERS TO A PARTICULAR PRODUCT. Philips campaign with Max Schmeling, 1950s STARS ARE NEEDED TO TRIGGER THE IMPULSE TO BUY A CERTAIN BRAND. And so advertising strategists increasingly used the glamour of the film industry to appeal to consumers. MARLENE DIETRICH WAS THE FIRST GERMAN MOVIE STAR TO BE USED IN ADVERTISING. Katja Flint as Marlene Dietrich in the 50s Luxor advertisement Joseph Vilsmaier film with Marlene Dietrich 9 CHANGING CONDITIONS Brand competition in the 21st century is fueled by extraordinary media spending (the Push Principle: for traditional media alone, 20 billion EUROS were spent). The number of annual TV commercials has increased five-fold since 1992. Not all of this is perceived as positive by consumers. Quite the opposite, nowadays a large part of the population goes out its way to avoid advertising. A popular daily newspaper today now contains as much information as a person in the 16th century received in a lifetime. BY THE AGE OF 35, THE TYPICAL CONSUMER HAS SEEN NEARLY 150,000 COMMER- CIALS, NOT TO MENTION COUNTLEss ADVERTISEMENTS AND BILLBOARDS. In order to be noticed among the 2,000 advertisements that reach German citizens every day, companies are seeking new ways to position their brands as emotional orientation guides. This is leading to increasingly sharp competition for the attention of the consumer. The right deployment of a personality within corporate communications can support this objective. To be sure, competition is exacerbated by an increasingly divided media landscape. SELECTION CRITERIA FOR CELEBRITIES Image 87 Authenticity 86 Affinity with the target group 84 Sympathy 83 Awareness 80 Reliability 71 Media presence 69 Affinity with the product 67 Success in the job 66 job sector 47 Character/intelligence 46 Humor 43 Attractivity/Look 39 Sex 36 Age 34 Amount of advertising contracts 29 Eloquence 27 share value in % Private situation 24 target group: top 500 advertising companies base: brands using celebrities Polarising personality 21 Internationality 20 source: tns-emnid institute 10 Against this background, testimonials can effectively serve as "the face of a brand" and make a significant contribution toward guiding consumers. As familiar and likeable brand representatives, celebrities have a direct path for transporting brands into the "hearts" of consumers. THE HUMAN FACTOR IS PRESENT AT ALL LEVELS OF COMMUNICATION. Due to the convergence of content among various media as well as the amalgamation of media corporations, celebrities are becoming a factor in a growing number of media out- lets. For brand experts, this is an opportunity to transport their message across a broad communication spectrum. However, integrated, trans-media concepts that bundle communications from disparate channels are required in order to present a consistent relationship between brand and testimonial so that the message is anchored in the public awareness. IN 2000 OVER 40 MILLION SECONDS OF ADVERTISING (6,700 COMMERCIALS A DAY) WERE BROADCAST IN GERMANY. TO WATCH ALL OF THEM CONSECUTIVELY, ONE WOULD NEED 75 YEARS! Uschi Glas, Ruth Maria Kubitschek, and Ilja Richter pitch for Jägermeister (1970s) 11 12 CHAPTER 2 OBJECTIVES AND OPPORTUNITIES WITH CELEBRITY ADVERTISING "Today's advertising doesn't need convincing arguments for products. The products are virtually interchangeable. Advertising needs to attract attention, and this is achieved by celebrities." Peter Wippermann on the future of celebrity advertising, Nov. 2001 13 WHY ARE CELEBRITIES USED IN ADVERTISING? Advertising is increasingly dependent on key stimuli in this age of information overload. The use of celebrities serves as an eye catcher because their appearance is associated with a high degree of entertainment value. Of 1,000 spots, approximately 50 percent enjoy above- average effectiveness. Whereas 67 percent of commercials featuring celebrities reach this threshold – closely followed by fantasy stories and erotic ads, which both come in at 57 percent. We regularly select products when we at least recognize the brand or packaging. WE ALWAYS PREFER THE IDENTIFIABLE OVER THE UNKNOWN. Michael Ballack and Oliver Bierhoff and Bitburger Eva Padberg for Astor Cosmetics adidas 14 If this mechanism was necessary for survival in the past, today it primarily serves to sim- plify decisions. ESPECIALLY WITH DAILY CONSUMER PRODUCTS, OUR PURCHASES "FUNCTION" ON THE PRINCIPLE OF "I RECOGNIZE IT; I BUY IT." CELEBRITIES STIMULATE BUYING SIMPLY BY PROMOTING ADVERTISING AND BRAND RECOGNITION. IMAS surveys reveal that celebrities can facilitate a definite buying preference – especially among their fans. When selecting a celebrity for advertising, it is important to examine what degree of popularity the star enjoys within the prescribed target group. Katja Flint for Neutrogena, tv commercial 15 The advantages of using a well-known personality are undisputed. They function as multi- pliers that can be deployed in all areas of the communication mix. Celebrities help achieve rapid brand recognizability and establish a desirable image. THE MARKET RESEARCH INSTITUTE IMAS RECORDED AN 8 PERCENT ADVANTAGE AT SPONTANEOUS BRAND RECOGNITION WHEN TV COMMERCIALS FEATURE

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