Tiger, Twilight and Britney: A New Moon for celebrity PR?
13/11/09: 'Tiger, Twilight and Britney: A New Moon for celebrity PR?' - Paying a celebrity to promote a brand or product is always a risky business. They have the ability to boost or destroy a company's image in a matter of days.
Take the triple whammy that's rolled into town this week: Tiger Woods, Britney Spears and the second Twilight movie, New Moon - out on November 19.
Each in entirely separate industries, they are mammoth, global, money-spinning promotional juggernauts.
Tiger Woods has broken Australian records in terms of the cost to get him here ($3.3 million), and the sheer magnitude and media attention generated by his visit to Australia - all sponsored by JB Were – who no doubt are grinning from ear to ear.
But I wonder how Sony is feeling right now? After much hype Britney Spears - in her $50million production - has been accused of lip syncing and deserting the stage mid-performance.
Years of bad publicity don't seem to have hurt Britney's bankability so far, but it will be interesting to see how record sales stack up after all the negative publicity.
Meanwhile, Twilight's cross-generation appeal – luring grandparents, parents, teens, tweens and littlies – has been snapped by the other family wagon – Volvo amongst others.
At first glance, it may be a struggle to put vampires in the same sentence with Volvo cars. Safety versus bloodsuckers perhaps?
But Twilight is a great example of the new rules of promotion.
The film was made on the cheap by Summit Entertainment – with a total spend of $37 million - but the producers set aside around $30 million more to market the movie - an extraordinary set of figures.
Tiger, Britney and Twilight are micro-industries in themselves, and they form great case studies of what can work and what can’t in terms of brand alignment and promotional power.
Plus, they demonstrate the power of modern celebrity to generate massive revenue opportunities for themselves and those associated (or not!) with them.
But are they worth it - elite sportspeople and artists alike?
Over 7000 people turned up to see Tiger unload his irons and have a practice swing – not even play a proper game.
In his first visit since 1998, he will be glad to be back, having pocketed the staggering $3.3million appearance fee for a few days fun – plus some prize money if he wins.
Already his sponsors JB Were are claiming his visit a success early this week and his schedule had only just started.
“The arrival of Woods has ignited interest in golf, with sponsors' marquees and grandstands springing up like mushrooms at Kingston Heath Golf Course," they bragged.
The tournament was the first ever Australian golf championship to sell out - and is being televised on free to air TV – Nine Network - between 12 and 5 each day for FOUR days!
Many will have jumped on the bandwagon this week - new or improved versions of past cottage industries will pop up and make their fortunes – from t-shirts, to memorabilia, to newly launched sporting ranges.
As we emerge from the GFC maybe the light is again brightening for corporate sponsorship and brand building and with renewed rules.
After their acquisition this month of National Australia Bank, golf sponsor JBWere, who manage approximately $10 billion investment funds, could be driving a reverse trend that's seen major companies cut back on their sponsorships in the last 18 months.
JBWere is betting that sport's top draw can help entertain clients at this week's tournament in Melbourne.
"It's a coming together of timing and opportunity,'' Paul Heath, JBWere's chief executive officer, said in an interview.
''A group of clients will get to play with Tiger – in the opportunity of a lifetime.''
JBWere guests will mingle and dine with Woods and 2006 US Open winner Geoff Ogilvy at a $600-per-head dinner at the city's biggest ballroom before the tournament, said Heath who declined to disclose the investment by JBWere.
The sponsorship, which runs through to May, is worth $2 million, according to press reports.
Woods' involvement and the tournament's timing will lift JBWere above the ''clutter'' that has other brands aligned to 46 professional football teams - competing for the attention of Australia's 22 million people, according to Ben Crowe of Gemba, which advises sports and governing bodies on sponsorships.
In the US, companies have spent $US1.31 billion ($1.4 billion) this year on sponsoring professional and amateur golf tournaments, governing bodies and related events - compared with $US1.36 billion last year, according to IEG, WPP Plc's sponsorship research unit.
Clearly some corporations think certain celebrities are worth it. So is this a sign that business confidence lifting?
Are you, or is your company, planning to spend more on marketing and promotion in the next six months?
Or is it still too much of a gamble – as business confidence remains fragile - to rely on the success or image of one celebrity to promote a business?
