Celebs still remain relevant though the idea of celebrity has changed: Swati Iyer, Matrix

Swati Iyer, the CEO of Matrix IEC, a celebrity management firm based in Mumbai, began her career in TV marketing with MTV show Roadies. She ventured into India’s burgeoning celebrity management market and set up “Bling Global” along with Piya Sawhney and Shanti Sivaram in 2008. 

After almost 14 years of being in the business, Bling founders decided to merge their venture with another celebrity management firm-Matrix IEC- last November in order. Matrix, founded by Reshma Shetty and Vivek Kamath, represented Indian film actors such as Alia Bhatt, Katrina Kaif, Madhuri Dixit Nene, Priyanka Chopra Jonas, Ram Charan, Shahid Kapoor, Varun Dhawan and Vicky Kaushal, among others. Bling used to represent Vidya Balan, Twinkle Khanna, Dimple Kapadia, Konkona Sen Sharma, Tahira Kashyap and Vasan Bala, among others. 

In an interview with e4m, Iyer explained how the merged entity’s objective is to solidify Matrix's position as a powerhouse in the industry, emphasizing consolidation and synergy in an increasingly competitive market besides expanding the business to other markets. 

She also reflected on the evolution of celebrity marketing, noting significant shifts driven by technological advancements and changing consumer behaviors. 

Evolution of the market

“In the past, celebrity endorsements were limited to major brands, but now there is a democratization of celebrity status, where everyday individuals could command influence. Celebrities, creators, actors, sports people are brands in themselves and they are extremely aware of how equity has to be built on,” Iyer noted. 

It's fascinating to see how the concept of celebrity has evolved beyond traditional definitions, Iyer said, adding, “About 15 years ago, only very big brands would rope in celebrities as their brand ambassadors. The number of brands doing those deals have gone up multi-fold. At the same time, the media has also changed drastically. Earlier putting something on a front page newspaper was a big deal. There are plenty of TV channels as well. Over time and with the advent of smartphones, the fragmentation of the audience has also happened in a big way. However, celebrities still remain relevant though the idea of celebrity has changed now.”

Nowadays, anyone who can engage an audience has the potential to become a self-made celebrity. With the rise of digital platforms, the landscape of advertising has shifted dramatically. Previously, only a fraction of the budget went to digital advertising, but now it constitutes a significant portion, she further said. 

Celebrity endorsement has become a key aspect of Indian marketing evidenced by the fact that close to 50% of endorsements in India feature celebrities as compared to around 20% in the U.S., as per a Kroll report. Film stars currently dominate the endorsement industry with 80% share of the endorsement market, followed by sports persons. 

The market witnessed a 21% growth in share during Jan-Jun '22, and an 11% growth in share during the same period in 2023, compared to January-June 2021, as per TAM data. Matrix is considered among the top five firms in the domain. 

No recent estimates are available to give an idea about size of celebrity endorsement market in India, as per Kroll the overall brand value of top 25 celebs touched USD 1.6 billion in 2022, 30 percent up compared to 2021. 

Entry of influencers and OTT

India has seen an exponential growth in influencer marketing over the past couple of years. The latest report by EY and Collective Artists Network’s Big Bang Social states that influencer marketing in India is expected to surge by 25 per cent in 2024, reaching Rs 2,344 crore, and further expand to Rs 3,375 crore by 2026. 

How has this impacted their business? Iyer quips with a smile, “We now manage creators as well.”

The traditional notion of celebrity endorsement has also changed. Brands are no longer limited to engaging with big-name celebrities; they're now collaborating with influencers and creators across various tiers of popularity, she noted, adding, “This democratization of fame has opened doors for smaller brands with limited budgets to make their mark in the market, she stated.”

Furthermore, the advent of OTT platforms has revolutionized the entertainment industry, providing opportunities for actors across different formats and languages. This has blurred the lines between lead actors and supporting roles, allowing talent to shine irrespective of traditional constraints, according to Iyer. 

In terms of marketing strategies, brands are leveraging digital tools and analytics to tailor their campaigns to specific audiences. However, while data-driven insights are valuable, human intuition and understanding remain crucial in navigating the complexities of consumer behavior and market trends.

Looking ahead, the future of advertising seems to be in short-format videos and innovative technologies like AI and augmented reality. These trends are reshaping the way brands connect with their audience, promising a dynamic and ever-evolving landscape, Iyer said.