Gwyneth Paltrow’s vagina-scented candle might signal that things have gone too far, but can celebrities transform the fate of startups for the better?
Stars are but big exploding balls of gas. Funny as that may sound, you can’t help but look up at them and admire them and even wish upon them as they fall from the sky. Yet, unbeknownst to many, the “shooting star” is, in fact, a meteoroid, not a star falling from the heavens.
Galactic stars might not be all that different from those around us in human form. After all, when stars explode—in a phenomenon known as a supernova—they cause quite a bit of damage. The anthropology lesson aside, many brands have used star power by way of employing celebrities as brand ambassadors. While many have benefitted from the twinkle, others have been on the receiving end of a supernova.
Are celebrity endorsements still all the rage for startups, or is your brand the overlooked star?
The evolving concept of celebrities
Today, a celebrity is not just someone you admire, sitting across a silver screen, but any person who can grab your attention. Social media has widened the playing field, giving any digital user the chance to become a celebrity, sometimes through just one viral video.
The pandemic further accelerated this redefinition, as traditional celebrities who appeared to be too detached from reality lost their appeal. Social media influencers, on the other hand, have captured the throne. Their relatable content made them celebrities for the masses. Moreover, celebrities—both traditional and social media stars—have discovered the true potential of their own star power and are no longer in the business of being just intermediaries between products and people. They are becoming entrepreneurs themselves, departing from being spokespeople for other brands.
The booms and busts of celebrity endorsements
Celebrity endorsements are fraught with both triumphs and tribulations. Amber Heard and her Aquaman movie controversy following the public trials against Johnny Depp. Ye (formerly Kanye) West and his fallout with Adidas after making controversial, racist remarks. Elon Musk’s tweets dissing and promoting crypto, making Bitcoin prices ride the rollercoaster. The downsides of celebrity endorsements are wide-ranging (and widely discussed). However, it’s not all doom and gloom.
Michael Jordan teamed up with Nike in 1984 to launch the Jordan brand.
Image from Nike
Thanks to Michael Jordan’s partnership with Nike, the beloved Air Jordans made up about 11% of Nike’s shoe sales in the U.S. in 2009. In 2021, fast food chain McDonald’s launched a “BTS Meal” that boosted its sales—US$8 million well-spent for the company. In 2020, TikTok star Charli D’Amelio and her successful stint with Dunkin’ Donuts significantly boosted app downloads—a 57% increase—for the brand. These are great examples of times celebrity endorsements that did not disappoint. A study found that, on average, collaborating with an endorser can shoot up a company’s stock price by 4%.
McDonald’s BTS Meal
Image by Fakum Kuliner
Celebrity endorsements make a compelling case for both being and not being included. But—
Does your startup really need a star to be one?
If renowned brands, such as Tesla, Patek Philippe and Patagonia, have taught us anything, it’s that even without celebrity endorsements, brands can go far. Tesla is one of the most coveted brands in the world, which once recorded an all-time-high market cap of US$1 trillion. In March 2023, the Patek Philippe Sky Moon Tourbillon sold for a whopping US$5.8 million, making it the most expensive watch ever sold at an online auction. Patagonia has a host of wins in its arsenal, including the UN Champions of the Earth award and, perhaps, the most crucial: consumer trust.
Moreover, there’s growing evidence that consumer engagement with ads may actually increase in the absence of celebrities. A major reason could be how people are now more critical of the authenticity of celebrity endorsements. This shift suggests that the effectiveness of celebrity endorsements may be waning in favor of genuine brand-consumer connections.
It’s safe to say that stars do not guarantee constellations when it comes to enhancing your startup’s impact. For startups pondering the galaxy of marketing possibilities, whether you need a celebrity depends on your brand identity, competitors, awareness and the value the celebrity would bring to your startup. In the end, the most enduring light may well emanate from the core of the brand itself, shining through authentic engagement and genuine connections with its audience.
Also read:
- Top Celebrity Turned Venture Capitalists
- Top 5 Vegan and Sustainable Beauty Brands from India’s Beloved Bollywood Stars
- 4 Must-Know Fashion Brands Founded by Korean-Pop Idols
Header Image from Ads of the World
