Eyewear brand Lenskart recently rolled out a TVC which has made everyone take notice mainly because the film features company CEO Peyush Bansal and filmmaker Karan Johar. The ad created by Tanmay Bhat has gone viral generating more than six lakh views and hundreds of reviews within hours of its upload on YouTube. 

Syed Aftab Ambani, CEO and co-founder of Gozoop, too has been part of an advertisement in 2018. Although it was for DELL, the plot allowed him to advertise Gozoop as well. 

https://www.instagram.com/p/BhGCaP7DJnT/?igshid=YmMyMTA2M2Y%3D  

Many in the ad industry believe that Dharam Pal Gulati, the chairman of Mahashian Di Hatti Ltd (MDH), did it first, at least in India. Gulati remained the official mascot of MDH for decades, even after his death in 2020. 

Business leaders across the world have shown the penchant for appearing in their own brand advertisements for decades. This includes Hilton’s Paris Hilton, Perdue’s Frank Perdue, Dave Thomas in Wendy’s and Samuel Adams Beer CEO Jim Koch. 

What lies behind the strategy? 

People wonder whether the strategy to have a founder or CEO in the company’s ad is about authenticity, economics, self-obsession or something else? Opinion is divided. 

Advertising veteran Ramesh Narayan says, “After all, it's far better for me as a founder to make a statement about my company than hire someone to do so. Yes, the person I hire may have a huge following which I may not have but if my product or service needs a credible testimony who better than the owner to make one.”

Many leaders desire for personal branding and fame which drive them to appear in the ad. Oftentimes they believe they are the best brand ambassadors of their ventures, say industry observers. 

“It is their self-belief that they are the best representation of the brand as well as the true ambassador so why depend on borrowed equity,” Manas Lahiri, Managing Director of Havas Group, feels. 

While Sandeep Goyal, MD of Rediffusion, believes that its self-obsession mostly, though sometimes it's for authenticity. But Shradha Agarwal, CEO and Co-founder of Grapes, disagrees. According to her, CEOs’ primary objective behind doing an ad is to establish direct connection with the consumers, to surprise them and create a sense of trust among them. “It breaks clutter because generally you see only good looking celebrities in the ads. But when you see a CEO or founder of the company in the ad, it feels like he or she's more responsible. Credibility is higher when the message is coming from a senior person within the company,” Agarwal explains. 

It can be more cost-effective for a company to have the CEO appear in their own ads rather than hiring a professional actor or model, especially during economic headwinds, some ad experts opine. 

Traditionally, CEOs have taken to the ad front in times of crisis. Even Iacocca’s TV appeals and his line, “If you can find a better car, buy it!" came when Chrysler Corp. was near bankruptcy. Similarly, when PepsiCo India was facing allegations of pesticides in colas in 2006, chairman Rajeev Bakshi tried to prop up the firm’s flagging credibility through a TV ad. 

“I think it’s purely based on economics. Besides, being in front of the camera has more benefits. You move a step closer to becoming a celebrity,” remarks Dilip Kadam, a film and ad film maker. 

It could be a mix of authenticity, economics and using their personal brand image to take their brand to another level, especially when the owners-CEOs are already celebrities. Top sportspersons, film stars and influencers have been promoting their ventures themselves. 

“The aim is to leverage their own personal image for the benefit of the business. Col Sanders of KFC lives on even after his death,” says Sajal Gupta, CEO, Kios Marketing. 

Does it help the brand? 

CEOs and founders are at the helm of an organization, chalking out strategy, overseeing execution, and roping in investors. Does their presence in an advertising campaign indeed make a good marketing strategy? 

According to 2011 research conducted by Ace Metrix, the answer in many cases is “Yes.” The research shows that usually ads featuring CEOs had considerably higher on “Desire,” “Relevance,” and “Information” scores versus other ads in the same category.  

Lahiri explains, “Some people might term them as self-obsessed or fame hungry but there are enough examples in the industry to prove that this has worked in specific cases such as MDH spices and Trivago.”

According to a 2019 research paper, even print ads that include a company’s less known founder or chief executive can be more effective than alternatives that feature celebrities if they leverage the right approach. Moreover, founders as endorsers were found to be more effective for new products and CEOs were better for existing products. 

However, not all CEOs and founders are born communicators and camera-savvy. CEOs who are shy, boring, or fail to positively communicate, could damage the image of the company if they are part of the campaign. 

“Ad agencies are often put in a difficult position when a dull CEO pushes himself to be in the campaign. It takes a lot of effort to make them understand that consumers are looking for brand ambassadors who are interesting, relevant, and truly understand consumer desires,” an ad agency head quips.