Celebrity Endorsement - It is worth it but not always

“There is strong evidence that suggests celebrity advertising delivers a premium in terms of impact and memorability”, says John Philip Jones editor of The Advertising Business. “However if not done correctly, then in all aspect it is only a billion rupiah video file sitting idly in a barren hardisk.”

The quote aptly summarizes a common dilemma facing marketers, whether or not to rope in the hottest actor, musician or sportsman to endorse a new or existing product. Needless to say, famous people make great endorsers and it is a common practice in the marketing industry to hire a celebrity endorser to boost sales or raise awareness.

Choosing a celebrity however is the tricky part. Not only do they come at a premium price, choosing a wrong celebrity can sometimes ruin a brand image.

 

Our “Instant Survey”

A recent market research survey done by MarkPlus Insight reinstates that celebrity endorsement in Indonesia is here to stay.  The research included 162 respondents from major cities in Indonesia, majority of them aged between 20 and 24 years. The research highlights that almost 70% of the respondents have had actually purchased a product due to the influence of a celebrity featuring in the ad, see Figure 1.

Figure 1. The Importance of Celebrity Endorsement

Source: MarkPlus Insight Instant Survey, December 2014, 162 respondents across Indonesia

The research also discovers how celebrity endorsement is particularly effective for some product categories, while not being so for others. As shown in Figure 2, celebrities featuring in face and body products have the highest influence on buyers. A possible insight from this observation could be that the products which require higher involvement and consideration from consumers demonstrate lower effect from celebrity endorsers. On the other hand, daily use items, which require low involvement from consumers, are greatly affected by celebrity endorsers.

Figure 2. Effect on Intention to Purchase Caused by Celebrity Endorsement

Note: Scale of effect from 1 -10; 1 being not effected and 10 being greatly effected

Source: MarkPlus Insight Instant Survey, December 2014, 162 respondents across Indonesia

 

Indonesian consumers, in general, appear to be most strongly influenced by celebrity endorsements when buying face and body products.  Also, interestingly, when it comes to male endorsers for face and body products, both male and female respondents share the same preferences, Al Ghazali. But when it comes to females endorsers for beauty products, male and female respondents had different preferences, with males preferring Agnes Monica and females choosing Dian Sastro.

Here are the results of the Top 3 Most Chosen Celebrity Endorsers based on our instant survey.

About MarkPlus Insight Instant Survey:

An online survey based on MarkPlus Insight Online Panel, www.kataanda.com. Instant survey is one of the quickest and cheapest ways to gather data. The Brand Endorser Survey will be conducted periodically for various figures, such as models, politicians, athletes and comedians, etc. The Brand Endorser Survey series also aims to uncover the habits & behavior, needs & wants, and anxieties & desires of Indonesian consumers, especially with regard to the marketing and promotional activities involving endorsers.

Click here to join The Brand Endorser survey.

For more information on the research findings on Brand Endorser Survey or our instant survey, please contact MarkPlus Insight Chief Operations, Levina Yulianti at Levina.Yulianti@markplusinc.com or +62-21-57902338

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