I remember a popular debate in my post graduate days on advertising and its role and responsibilities and even now I hear this being a group discussion topic while recruiting talent. Since then a lot of debate has transpired on the role of advertising as a sales tool, responsible advertising, promotion techniques, brand ambassador / celebrity endorsements etc. and what happens if a product fails. Who is responsible and accountable and what part of accountability lies with the brand ambassadors? Celebrities who influence masses to buy a product, based on their brand power and accomplishments in their fields, should they not be held responsible to some degree for the failure of a product?
This controversial point of debate in Indian advertising context has seen a new development with the parliamentary committee suggesting that celebrities who endorse products, which mislead consumers, should be prosecuted. It aims at making celebs accountable for endorsing any brand.
This holds relevance especially in real estate, which is arguably the costliest asset for retail consumer. There is no denying that the celebrities have a mass appeal and their association with any product enhances its credibility and sale. Therefore it is inferred that customers do decide on a particular home buy influenced by the celebrity endorsements. One such incident that is fresh in memory owing to extensive media coverage is of MS Dhoni endorsing a real estate developer in NCR.
In my opinion last few years this trend has increased. As the reducing income effect in the hands of the buyers slowed the residential sales and the slowdown gripped the sector, it has not only reduced primary sales it has also delayed timely delivery. Maybe it is the lack of brand pull and good word of mouth from previous buyers that also forces some builders to hire celebrities. The timing of beginning and rise of brand endorsement in real estate suggest that when realty players have struggled to sell or failed to live up to the commitments made to homebuyers, realtors have had no option but to enhance their brand image and the best way to do that was to hire celebrities as brand ambassadors. Certainly as a sales promotion tactic it does succeed as the cost of endorsement is recovered with the increase in short term sales. The larger issue remains; delivering on the home promise in a timely, compliant and cost effective manner. It is the lacklustre performance on delivery which has drawn this recommendation from the committee.
But if the parliamentary committee?s recommendation is implemented, then going forward the image consultants, brand managers, PR consultants, legal counsels etc. of celebrities will have to find a way of balancing the income; with the promise of project delivery; with the potential penal action. In the near future it is likely that few will come forward to endorse any realty brand, but as the market improves, who knows. So this beckons the question ?Is the era of celebrities in real estate over??