South stars’ endorsement fees rise 30-50% post blockbusters

For decades, Indian cinema has been synonymous with Bollywood. The spotlight is now dramatically shifting. Movies in Tamil, Telugu, Malayalam, and Kannada are experiencing unprecedented rise in popularity, commanding nearly half of India’s box office earnings in 2024. According to an Ormax Media Report, Telugu films claimed 20% market share, Tamil 15%, Malayalam 10%, and Kannada 3% — compelling evidence of South cinema's growing dominance.

The meteoric rise of South Indian cinema has turned stars like Allu Arjun, Rashmika Mandanna, Samantha Ruth Prabhu, Ram Charan, Yash, Prabhas, Dulquer Salmaan, Jr NTR and Nayanthara into household names across the country. The phenomenal success of recent films like Pushpa 2: The Rule, Kalki 2898 AD, Devara - Part 1, The Greatest of All Time, Amaran, Vettaiyan and Manjummel Boys has created new pan-India celebrities who are increasingly bagging bigger endorsement deals from brands across sectors.

According to industry experts, when the top stars from South India headline advertising campaigns, brands tend to experience significant increases in engagement, typically between 20-30%. It underscores the deep trust these celebrities command, making them invaluable for brands seeking lasting consumer impact, they say.

“After a successful film, top South Indian actors see their endorsement fees increase by about 30-50%, depending on box office performance and online engagement. Rising stars also see a boost in their market value following a hit, indicating their escalating influence,” says Shudeep Majumdar, Co-founder & CEO, Zefmo.

He further explains its impact on strategic brand partnerships: “FMCG and consumer goods sectors often secure long-term agreements with these actors in anticipation of future successes, while luxury and technology sectors prefer short-term, high-impact campaigns to leverage the post-release buzz. Automobiles are also a high-impact sector.”

Blockbuster successes at the box office and an increasing number of Bollywood movies becoming true pan-India movies have led to a notable shift in advertising investments over the last two years, with brands increasingly allocating budgets toward South Indian stars. Their appeal is more expansive, with a stronghold in their respective regions and newfound stardom in the Hindi-speaking markets. Their cultural significance is particularly resonant with younger demographics in industries such as gaming, fintech and D2C markets, experts say.

Majumdar highlights, “Brands are innovating with limited-edition products and co-branded merchandise launched post-release, achieving conversion rates more than 20% higher than standard campaigns, underscoring the stars’ ability to not only capture attention but also drive tangible outcomes.”

“In less urban areas, South Indian celebrities are preferred for their regional authenticity and relatability, enhancing the effectiveness of localised marketing campaigns,” he adds.

When brands capitalise on the buzz around a movie, it has a direct impact on commerce across objectives — an increase in footfall, a spike in product trials and more merchandise sales. It’s about funnelling people’s obsession with a star into endorsements that drive results across the funnel, from awareness to tangible results.

“A blockbuster release doesn’t just entertain audiences; it creates a marketing frenzy around its lead actors,” says Neelesh Pednekar, Co-Founder & Head Of Digital Media at Social Pill. He explains that when a South Indian movie becomes a massive hit, it doesn’t just dominate the box office — it elevates the star’s brand value and endorsement fee dramatically overnight.

“When fans are deeply invested in a star post-blockbuster, they are far more likely to trust their endorsements. I’ve seen brand campaigns featuring these actors get higher engagement, more shares, and stronger recall, just because audiences are emotionally connected to them at that moment,” he adds.

Pednekar shares that in his experience, endorsement fees for top South Indian actors jump by at least 30-50% after a major hit. In cases where a movie becomes a nationwide phenomenon, the increase is even more staggering. “I’ve seen actors double their fees overnight,” he says.

One of the most striking examples is Allu Arjun after the success of Pushpa. According to sources, his endorsement fee went up from Rs 35 lakh to about Rs 4 to 6 crore per day. Similar hikes were experienced by stars like Jr NTR, Ram Charan and Yash after their big hits, who now command between Rs 3.5 to Rs 7 crore for each endorsement.

Pednekar contextualises the commerce of such deals: “After a hit, it’s almost a given that the star’s team will renegotiate contracts with brands. If they were charging Rs 5 crore for a campaign before, they could be asking for Rs 7-8 crore now. Brands are happy to pay because they know that post-success, the star’s impact on consumer behavior is much stronger.”

He explains that brands often significantly increase their marketing budgets to accommodate the rising endorsement fees. “They don’t always get extra funds approved overnight, but what I do see is a reallocation of marketing budgets. If a brand wants to sign a newly successful South Indian superstar, they’ll often cut back on other influencer spends or reduce secondary ad campaigns to focus on securing that one major deal,” he explains.

Industry observers say that big brands in FMCG, fintech and e-commerce sectors tend to increase their budgets by 10-20% to lock in high-profile South Indian actors after the commercial success of their films. In some cases, like a global campaign or a major product launch, the numbers can even go up to 30% or more.

Pednekar shares insights into a recent conversation where the marketing head of a beverage brand indicated a need to stretch the budget as the actor they wanted to onboard was too big to ignore at the moment. “That’s the reality — when an actor is trending nationwide, brands don’t want to miss out, even if it means adjusting budgets on the fly,” he adds.

“The surge of pan-Indian films from the south during COVID-19 and in the last 24 months has transformed South Indian actors into national icons, significantly influencing brand deals, commerce, and audience engagement,” states Yousuf Rangoonwala, Founder at Kakkoi Entertainment, adding that brands are leveraging the expanded appeal of these stars to engage diverse audiences throughout India.

The transformation can be felt not just in the bigger ad films but also across social media posts. “These actors' social media following has grown a lot, raising their digital influence. Brands use this by crafting integrated campaigns that merge online and offline engagement, ensuring extensive reach,” he adds.

It’s fascinating how an increasing number of South Indian stars are now leading national campaigns, even in traditionally Bollywood-heavy categories, remarks an industry expert, adding that it’s proof that brands are not only investing more in these endorsements but also betting big on the rising influence of the regional film industries in the south.

However, South Indian cinema is not just one industry. Each of the regional cinema industries — Tollywood, Kollywood, Sandalwood and Mollywood — have nuances that make them as distinct as Bollywood. Each of them comes with varying but distinct levels of celebrity influence.

“The south cluster is not all homogenous. While it’s a norm for Telugu, Malayalam and Kannada stars to be celebrity endorsers, it’s not the same in Tamil. In fact, it’s the straight opposite in Tamil, where almost none of the top stars endorse any brands,” says Anirudh Sridharan, Co-Founder and Head of Product at HashFame.

In a year, Malayalam industry actors tend to have 3-5 movie releases, with the top stars having at least 1-2 movie releases — the sheer volume is unparalleled compared to other industries. So, the fluctuations in endorsements are not so steep in the Malayalam industry.

He adds, “The Telugu industry celebrities are having a dream run, more so thanks to their box office success in the recent years. The box office collection, along with the rise of Telugu-dubbed movies through YouTube channels like Goldmines Telefilms, means the Telugu celebrities are seeing their market values increase by 30-120% in certain cases.”

The trend is expected to continue, helping the Telugu movie industry soar further in 2025, especially with Jr NTR being cast opposite Hrithik Roshan in War 2.