Starring role in licensing for celebrities and influencers
A man is eating a bag of chips while watching Carlos Alcaraz beat Novak Djokovic in the men’s tennis final at Wimbledon.
So what? Lots of other people were munching on snacks. But the reason we know about this particular individual… it was Brad Pitt, and he was caught on camera. The image featured in the TV montage at the end of the championship, leaving the press to speculate about the flavor and brand.
A small example of our fascination with the lives of movie stars and celebrities, and how this can drive demand for use of their name, image, and likeness to promote a variety of products, and even create new product ranges and brands. This type of endorsement has been utilized in advertising campaigns for many years, but how is this changing today?
Rise of the influencers
The arrival of social media and smartphones has brought with it a new wave of celebrities – influencers. These tech savvy, up-and-comers have been able to secure lucrative marketing deals, becoming familiar faces to many around the globe.
YouTube, in particular, has grown into a platform abundant with influencers capable of making an impact on the success of a product, range, or brand. A young boy from Texas amongst them. He has earned millions of dollars by reviewing toys and games on his YouTube channel… Ryan’s World. Ryan’s Huge Eggs Surprise Toys Challenge attracted more than two billion views and was one of the 60 most-viewed YouTube videos ever. Apparently, Ryan was motivated by seeing other toy review channels featuring children and wanted to give it his own personal spin, and the rest is history.
The power of the influencer is increasingly being recognised as a way of selling products and, as with movie stars, pop icons and sports stars, success depends on whether the public believes that the celebrity is enthusiastic about the product and not just a puppet of the brand.
The famous and their brands
So, a famous face or name printed on a product will help you sell anything, right? Unfortunately, it’s not quite that simple. The role of a Business Manager in this type of activity is vital in helping to make sure that their celebrity clients secure the best opportunities for them. Something that fits with their past, present, and future. For the licensee, credibility is crucial – will consumers be more likely to buy a product that is endorsed by this person? And can I trust that they will not do anything that may damage my brand?
Licensing agreements with celebrities
There are many issues to consider in drawing up a celebrity licensing agreement. One is how much time the celebrity is expected to spend on promotional appearances, the forms they will take and how much notice they will receive. The licensee will need to establish permission to use television advertising, shopping channels and website links.
The level of payment to a celebrity for their endorsement activities needs to be thoroughly defined. Once this is done it is advisable to have proper communication channels between the celebrity’s team and the licensee’s team for the duration of the contract.
Finally, the licensee will want to have the right to terminate the contract if the celebrity is involved in criminal activity or derides the product they are meant to be endorsing.
We never did find out what flavor and brand of chips Brad Pitt was enjoying at Wimbledon. The bag was too far out of shot. Was that intentional? Or a missed opportunity?
If you’re exploring licensing agreements with celebrities and need help managing agreements, royalty reporting, and approvals, Dependable Solutions can help. Contact us today!
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