Bollywood endorsement biz: Actors earn double of women counterparts

A recent study by consultancy firm American Appraisal reveals that the gap between the remuneration of top male Bollywood celebrities and their women counterparts is widening (in favour of the former). The study pegs the average endorsement fees of the top males stars at Rs 10.5 crore a year, while the leading ladies rake in Rs 5.5 crore a year, which is also lower than the Rs 8 crore a year that sportsmen make in a year.

The research lists the top 15 brand endorsers in India for 2013-14. The list has seven A-list male Bollywood actors, five A-list woman actors and three cricketers.

"While compiling the study, we came to know that formal documentation of the fees of female stars is available only after 2011. The rate of yearly increase in the endorsement fees of female actors is 10 per cent, while their male counterparts have experienced a 20 per cent increase in remuneration," says Varun Gupta, managing director, American Appraisal.

According to the report, Shah Rukh Khan leads the pack with a brand value of $164.9 million (Rs 1,013.8 crore) followed by Ranbir Kapoor at $129.4 million (Rs 795.5 crore). The third place is occupied by team India captain M S Dhoni ($71.9 million or Rs 422 crore). The first female actor makes an appearance at No 7 in the form of Deepika Padukone, with a brand value of $44.4 million (Rs 272.9 crore), followed by Katrina Kaif at the ninth place with a brand value of $33.5 million (Rs 205.9 crore).

However, not a single woman sportsperson makes it to the list. According to Gupta, even a popular face like Saina Nehwal would rank at 20 or thereabouts, if not lower.

"While the choice of the celebrity depends largely on the product or the brand, it is a fact the endorsement space continues to be dominated by males. The perception is that male actors have higher ability to drive consumption patterns," says Gupta.

He adds that while woman-led movies started doing better in terms of volume and returns on investment, these movies are still not mounted at the scale of a male actor-led movie. "While films like Queen and Mary Kom have received critical acclaim and made good money, neither was mounted as a Rs 100-crore film, or made that much at the box office. The scale of the commercial success also plays a big role in deciding the brand value (of actors)," he says.

The report also throws light on the criteria that brands look for while choosing a celebrity endorser and what decides the brand value commanded by a celebrity. In the case of actors, the commercial success of recent projects is one of the main factors, coupled with the visibility of the celebrity in the public space. The age of the actor and his or her digital presence were also considered.

"This explains why Amitabh Bachchan, who is an iconic brand and undeniably one of the biggest names in Indian cinema, figures lower down the list. His age limits the products he can endorse and his recent films have not been huge successes. However, the fact that he anchors Kaun Banega Crorepati gives him visibility for a longer period and his digital presence adds points against his name," says Gupta.

Similarly, the massive success of Salman Khan's movies at the box office (he is the only actor to have seven movies in the Rs 100-crore club), has negated the effect of the controversies he has been involved in. The actor is part of two ongoing court cases - one in relation to a hit-and-run incident and the other, the blackbuck hunting case.

In the case of sportspersons, the visibility, performance consistency and stability form the key factors.