Actors earn more from endorsements than films

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)

26 June 2011  

https://economictimes.indiatimes.com/news/news-by-industry/services/advertising/actors-earn-more-from-endorsements-than-films/articleshow/9000378.cms

 

MUMBAI: If you see more of Katrina Kaif , Deepika Padukone or Genelia D'Souza on TV and in glossy magazines than on the big screen, there is a reason. The same reason prompts the Khan quartet of Aamir, Shah Rukh, Salman and Saif to hop from one advertising frame to another. Endorsements, frankly, earn all these artistes more money than films.

The trend of brand endorsements by Bollywood actors has reached a new peak. Most of the top actors are raking in more money from ads than from films. Consider Aamir Khan's business plan: at Rs 14 crore per brand, trade pundits say he pockets around Rs 60 crore a year in endorsements. ``It is clearly much more than what he earns by acting in one film,'' said a trade analyst.

``Katrina Kaif earns in six days of shooting for a product as much as she does in three months of shooting for a film,'' said another source. Insiders insist that 60% of Deepika's and Katrina's annual earnings, and 90% of Genelia D'Souzas, come from endorsements.

Branding is as serious a business as acting. Maybe even more serious. Every major star shoots to promote a brand for at least 30 days a year. In some cases, the time spent can go up to 90 days. Kareena Kapoor said, ``At present, I am endorsing about 14 brands and am getting paid what I deserve. Besides, each of my endorsements goes with my personality.''

Not surprisingly then, celebrity management firms are emerging as integral parts of the stars lives. Atul Kasbekar, CMD of Bling, a celebrity management company, said, ``We make all-out efforts to keep our celebrity clients perennially interesting. We build up their persona in a way that will appeal to the public and advertisers alike, and work independently of whether their movies are successes or failures.''

Shailendra Singh, of Percept Profile, an agency that manages star endorsements, said, ``Its only recently that stars started earning more out of their endorsements than films. But this trend is limited to a few top actors. By default or by design, these stars have managed to make brands out of themselves.''

Singh cited the example of Shah Rukh Khan, who has managed to create two separate identities one as Shah Rukh the actor and the other as SRK the brand. ``Brand managers are always trying to match the brand versus celebrity strength. Unlike Hollywood, we have few film stars who are consistently on top in terms of brand image,'' he added.

Saif Ali Khan is credited with starting the trend of earning more out of ads than from films. An industry source said, ``About 65% of his income had come from endorsements. Unfortunately, his position in the endorsement market has slipped because he signed for some low-range products and bigger brands then dropped him.''

Further proof of the branding trend is the fact that four of the top five actors including Aamir Khan, Shah Rukh Khan, Hrithik Roshan and Ranbir Kapoor on the average do only one film a year, though this helps them focus on delivering quality movies. Anirban Blah, of Kwan entertainment and marketing, said, ``Every leading actor needs to focus on doing quality movies, because it is the movie that defines their brand. Aamir set this template. Today, at least 70% of their incomes come from endorsements.''

Shah Rukh, who endorses more brands than Aamir, earns around Rs 75 crore a year from ads. Hrithiks endorsements are in the range of Rs 35 crore a year.

The women are no less busy. Katrina allots about 35 days a year for endorsements. A source said, ``Actresses get very little for films as compared with actors and, at times, they have to compromise on their pay if they get a chance to work with a big star or a banner. So their focus is more on endorsements.''

A youth icon like Deepika Padukone is a favourite in endorsement circles, so 65% of her earnings coming from advertising.

Industry sources said there can also be fierce competitions for ads. ``A top actress signed up for a product just to take it away from another actress. She did it by dropping her market price from Rs 3 to 4 crore to less than a crore. Artistes may even reduce their price to retain a brand.''

However, there is a flip-side to celeb endorsements. Punitha Arumugam, CEO, Madison Advertising, said, ``Using a celebrity to promote a brand does not always gives one a good return. If communication with the public is good, you don't really need a celebrity to promote a product.'' There is also the fear of a celeb being identified with too many products. ``An actor could be doing an ad for a telecom firm but the public might mistake the product for a soft-drink he also endorses, and vice-versa. Of course, some segments, like the DTH one, have used only celebrities to promote the services.''