Product Placement & Celebrities - “Caution” Or “Currency”?

Product placement is very common, and is all around us nowadays. Look at our movies, television or OTT serials, entertainment or even the industry events. You can see various products and their brand logos visible from the backdrop screen to the “branded menu card” or the “specially packaged water from source of world’s oldest glacier” at the sit-down event table to the return-gift hamper bags to the “lucky-draw” coupons that would generously give away the products (being placed). In our Indian movies, having a specific car or SUV brand being used by the Hero (or that rare movie where Heroine is the protagonist) is now common. The vehicle brand pays a premium to the movie producer to use the vehicle in the movie. If we go back 20-25 years, those movie producers actually had to rent the car or buy a car with their own budge,  for the movie shoot !

Many years ago, I did hear from a sports commentator friend that many start sports stars seem to have “itchy scalp” or “itchy ear lobes”. Wait a second. That helps them scratch their head or massage their ear lobes. And in that process as well as that picture-perfect moment, all you can see on the TV screen is “that” branded watch ! After all, “smile, you are on camera”. Naughty me wondered if any dandruff-shampoo brand would sign up the competing sports star to say “no to itchy scalp”. 

If brands, that too global brands, use such celebrity-product-placements, it is with a reason. It surely does tell us about the huge consumer pull and commercial power that these celebrities wield. Based on their life story (more tougher it was, better the brand-appeal), personal appeal, a grit-to-rich theme can be presented for public consumption. These celebrities indeed have a great influence on brand recall and purchasing decisions.  

The New BDSM

This is despite the fact that most of those followers won’t even meet or have two-way-interaction with their celebrity-idols, even once in their lifetime. (Enough research material are available on this topic). 

The ubiquitous presence of social media in our lives and ever-evolving new social-digital-platforms has changed the way society interacted. It has also emboldened newer voices, which in physical world would not have spoken out or even shared a “like”. 

For a non-millennial & non-digital (older) native, this seems to be the new “BDSM” culture - “Being Digital, Social, Memes” culture. 

Without having any moral or other compass to judge this aspect of our society, we must accept and acknowledge the presence of large communities on the likes of Facebook, Instagram, Twitter and many more which would emerge; they have radically changed our ways of living and socialising. The catchy-theme that resonates across these platforms seems to be “Narcissism & Voyeurism”. As a society, we want to let the others know what we do and we are mighty curious about what others are upto. Add this to our neat-obsession with celebrities. It’s a potent potion that advertisers / brand marketers love to brew.

Indeed this is a golden opportunity for advertisers to reach audiences through pictures, memes, jokes, videos, tweets, “that ha moment” message by celebrities, etc. While you may not be curious about any celebrity, that makes you a significant minority in the larger societal scheme. People are curious about the lives of celebrities, and love following up on social media on what they are doing, driving, dining, and even whom they are divorcing !

Cut to Coke-Celebrity Controversy

Few days ago, the demi-God footballer Cristiano Ronaldo's gesture towards Coca-Cola during Portugal vs Hungary press conference in Euro 2020, has had adverse effects on the beverage company's brand valuation. As Ronaldo sat down at Portugal's press conference, he spotted two bottles of Coca-Cola in front of him and decided to remove them from the camera angle altogether. The Portugal captain is a renowned health fanatic and made it clear what he thinks of the carbonated soft drink.  He followed it by holding up a bottle of water, before saying “Agua” (water in Portuguese).

This incident did “water down” Coke’s market cap temporarily. As one of the sponsors of Euro 2020, Coca-Cola has the “rights” to have its products placed strategically in many locations including the table where the team captains & team managers address the media. Coca-Cola put in a statement after this incident, saying: “everyone is entitled to their drink preferences” as people have different “tastes and needs”.

Yet Ronaldo, who in the past has endorsed the same cola brand, had no trouble with change of heart in moving to endorsing healthier lifestyle. As critics quickly pointed out, even as late as 2013, he has also endorsed Fried chicken meal for KFC Middle East. Ronaldo is an icon and has nearly 300 million followers on Instagram.

Just wondering how many young kids & teens have seen this video and accept that water is healthier choice for sportsters. His words, actions, gestures, non-verbal communication has implications, even off the field. That’s true of any celebrity who has a large following. The point is that product placement works, even if it’s an unintended action by a celebrity.

Questions to ponder 

While these type of acts may temporarily impact the market value of the associated brands, the long term impact on the brand is not clear. In marketing terms, this might be a  temporary blip in market cap and not impact potential revenues ! 

Larger question is: Can the celebrities have change of heart or even ideology, when they grow larger in stature and have more fan-following ? Will they have to explain their change of position ? Who are they answerable to ?

Also think of the sponsor; Where should a sponsor get branding for their product ? Especially when their products don’t necessarily match with the public posturing of those celebrities. The objective being that the sponsor should not land up in a situation, where they pull down their own stock. Many Brand managers claim they use only their own company products. Or would rather be seen only with those. In this social media era, how would they react if their family is seen using competing brands ? Would they claim freedom-of-expression for those individuals or try to stifle the narrative ?

The reality is that celebrity gazing, social-media influencers, product placements are here to stay. Social media narrative makes true that “perception is the new reality”. Despite incidents like the cola snub, we are star-struck and will continue with our follower-ships ! Well, on that note, one of the subsequent press conference at Euro 2000, had similar celebrity-snub moment with a beer on the table ! Nothing happened. If at all, more beer would be consumed during the game viewing. Cheers to that !