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15 Apr

Celebrity Endorsements Are Here to Stay but Changing in

There was a time when celebrities signed a contract to publicize a brand and got paid a handsome paycheck to accomplish that.

They talked with reporters and writers in regards to the brand, posted Instagram photos of themselves wearing a product and appeared in promoting campaigns. It caught consumers’ interest.

Now these celebrities are usually not only creating buzz about company products but are considering of investing in products they promote or starting their very own brands to reap an even bigger reward.

“They’re like, wait. I got paid $2 million and this company had a $400 million exit,” said Allison Statter, chief executive officer of Blended Strategy Group, a Los Angeles creative marketing and communications agency. “The talent, especially the large talent, have caught on.”

Statter was one in all 4 speakers on the WWD LAB Forum to debate the evolution of the celebrity beauty model.

She explained the three primary areas of branding that celebrities can participate in. One is the standard pay-to-play model where someone receives a paycheck for an endorsement and act as an influencer. The second area is where a star invests in a product and endorses it in exchange for a percentage of profit. The third is where the celebrity owns the mental property right and sets up his or her own brand, an area that has seen an explosion within the last two years. “Everyone thinks that appears easy, however the people who find themselves within the throes of it understand how hard it’s,” Statter said.

Courtney McHugh, vp and head of name management at UTA Ventures, said she sees numerous celebrities who’ve been promoting beauty brands for years and need to develop their very own products because they see a spot not addressed by existing corporations.

They’re like many consumers who feel they will develop a much-needed product higher than a big corporation. “A whole lot of the talent is like, I’ve been on this industry and have gained the permission to have my very own thoughts,” she said. “I need a product that solves X.”

Sherry Jhawar, who cofounded Blended Strategy Group with Statter and is the corporate’s president, said that many musicians and celebrities gravitate to starting their owns brands or products because they’re business-oriented. They’ve spent numerous time constructing their very own image as a widely known celebrity. “It’s of their DNA to need to do something entrepreneurial,” she said.

Despite all these business models, what is vital to promoting a brand is pairing the best product to the best celebrity partner. “When talent is related to a brand, it becomes greater than only a product, greater than authentic storytelling. You have got to have a look at the chance factor [of selecting the right person],” said Shaun Neff, cofounder of Los Angeles-based brand builder Beach House Group, who noted that the corporate vets a whole bunch of celebs and has partnered with just 4. “You must partner with great people, smart people.”

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