[Moto_Hill]

I always wondered whether celebs pay for the cars they own. I even thought that some big stars might be getting paid for using a particular brand of car. After all, auto companies spend hell lot of money advertising their products and this is one relatively cheaper promotion option.

Here's the Report Link of Times of India showing the discounts celebs enjoy on luxury cars.

While junior cricketers or soap stars get a mere 20% off, a Bollywood or sporting biggie typically gets 50-60% off. The unstated trade-off is that the celeb will then tweet or put on Instagram pictures of himself and the vehicle and thus act as unofficial brand ambassador

There are several ways in which luxe car marques utilise their celeb customers. Sometimes celebrities barter a car in exchange for a certain number of appearances over a period of time. These include presence at events, photo opportunities, social media updates and pushing the brand through their social commitments. The trade-off here is that the company offers a vehicle in lieu of payment for tweets, Instagram feed, Facebook updates, appearances, et al, that the celebrity commits to

All of these scenarios are different from a formal agreement with the celebrity where the company offers a vehicle for marketing purposes on the basis of a legal contract with terms and conditions laid down in black and white. “These contracts are signed on the basis of remuneration decided before an event, appearance or endorsement,“ said the luxury brand marketer. “This maybe one-time appearance based on an investment for a special launch, event or a party.“

[Porcupine]

This is more than believable. We live in a world where social media marketing is everything. Even lesser known celebrities earn upwards of a lac per Tweet or Instagram post, so the biggies posting photos of their cars definitely lends them a certain desirability. I know of a couple of cases where 7 series owners allude to Shah Rukh Khan owning one, as an answer to most questions about their rides. I also believe the Audi Q7 benefitted a lot when bollywood chose to help it become the 'unofficial - official' ride of the stars!

[dass]

Not at all surprising. Not just the cars and bikes, I think everything that a celebrity endorses, either they get it for free or get paid to do it.

The question though is, how much of a homework do the celebrities do before they endorse a brand? Their reputation is directly linked to the brands reputation and I wont be surprised if people cite them in cases where things have gone down hill.

[SmartCat]

Originally Posted by dass

The question though is, how much of a homework do the celebrities do before they endorse a brand? Their reputation is directly linked to the brands reputation and I wont be surprised if people cite them in cases where things have gone down hill.

On other side of the equation, some brands don't do enough homework either. Here is Sania Mirza tweeting about how much she loves OnePlus 3T smartphone - using an iPhone



http://www.hindustantimes.com/tennis...B21bVmWOK.html

[libranof1987]

Wow; 50-60% is quite an amount for the buyer.

Although I feel, these companies are still getting a bargain.

Here's what Kohli charges now: 5 cr/day or 20 cr/year.

http://economictimes.indiatimes.com/...w/57926993.cms

Right about now, let's assume 20 celebrities have the Q7; imagine the tremendous advertisement at roughly 40 lakhs/car for at least a few years that the celebrity will have the car.

If you look at a typical celebrity instagram page, they have millions of followers and with all those hashtags, they are very capable of sending a particular message (or advertise a brand).

[Rehaan]

3 related Team-BHP threads:

1) Bollywood Stars & their cars

2) Cricket Stars & their cars

3) South Indian Movie Stars & their cars

[GTO]

60% of a car is pocket change for car companies. Think about it - celebrities typically drive 1 crore cars. Paying 60 lakhs for guaranteed placement in so many press photos, TV coverage, websites etc. is cheap. Plus, someone like Amitabh or Virat driving your car lends a certain coolness factor to it. Some will even give it at no cost (e.g. Audi gifting Salman a Q7).

I know many manufacturers simply give cars free for celebrities to use. What's 1 or 2 years with a high end SUV? The company can claim depreciation on it and when it's returned, just give it off to a senior manager as a perk.

[bhaskaracs]

And more importantly these celebrities are part of a clique which can afford such cars, and mind you a lot of celebrities own more than one luxury car. So, it is likely that they will draw tangible sales to these brands through an 'eye-candy' display of their new possessions at various parties/promos attended by other celebrities. It eventually comes down to gaining greater celebrity wallet share by giving a 'referral bonus' to celebrities who own their brand and are agreeing to do tacit promotion.

[Moto_Hill]

Originally Posted by dass

The question though is, how much of a homework do the celebrities do before they endorse a brand? Their reputation is directly linked to the brands reputation and I wont be surprised if people cite them in cases where things have gone down hill.

That is the whole point here. This isn't official branding where their reputation takes a hit for promoting an inferior product. They won't be directly linked to the product's marketing. A mere selfie with their ride posted on social media can have mass circulation and eventual advertisement.

I even think that companies pay separately to media for posting pictures and making it a news, like Mr. X arrived in his premium sedan for the concert.

It's win-win for both, as companies spend much lower and celebs are also not bound by any contract.

[invidious]

I know of a retired cricketer - quite big back in the day, who was signed on by Samsung. But he was so used to using LG cell phones that while pocketing the cash, he refused to switch brands even when Samsung offered to give him their latest phone. But he had to relent as they didn't want him to be seen with an LG logo in public. So he put small Ganesha photos on the LG logo.

[GTO]

Originally Posted by bhaskaracs

So, it is likely that they will draw tangible sales to these brands through an 'eye-candy' display of their new possessions at various parties/promos attended by other celebrities.

Very true. Saw that with all the bollywood favourites - Pajero, Landcruiser, Q7 etc.

Just surprised that Jaguar isn't that popular in the film circles, considering how sexy the brand & its styling are. Maybe Tata needs to crank up the discount lever for celebrities .

Originally Posted by Moto_Hill

I even think that companies pay separately to media for posting pictures and making it a news, like Mr. X arrived in his premium sedan for the concert.

Off-topic, but related. The Times of India won't name the brand - they'll just say 'premium SUV' or 'event at a suburban 5-star hotel'. Reason being, they don't want to provide free branding to companies. Caught this in an excellent article on Caravan.

Originally Posted by invidious

But he had to relent as they didn't want him to be seen with an LG logo in public. So he put small Ganesha photos on the LG logo.

. Interesting story, thanks for sharing.