In the case of companies without existing brand-licensing programs, licensors or their agents must create ad-related licensing efforts from scratch. The same is true for licensors with existing programs that involve very different product categories than would be relevant for commercial icons. For example, Taco Bell had previously licensed products to be used for cooking and serving Mexican foods--categories that are not a natural fit for the Chihuahua.

Susan Eisner, vice president of licensing for Leisure Concepts, Duracell's licensing agent, says, "It's a challenge working with a packaged goods company. Their focus is really on getting their products out." She adds that while a corporation may want to catch the wave while its ad campaign is popular, its attention is focused on other aspects of its business, especially if it does not have in-house personnel dedicated to licensing.

"At Taco Bell, licensing is still new," remarks Bill O'Rourke, director of brand licensing at Hakan & Associates, the company's licensing agency. "We are in a hothouse type of environment. We have to get their comfort level up."

An example of an animated ad character with longevity is Pillsbury's extensively-merchandised Pillsbury Doughboy.© The Pillsbury Co.

"No one creates a campaign for its licensing potential," says Seth Siegel, co-chairman of The Beanstalk Group, licensing agent for Wendy's during the "Where's the Beef?" craze. Siegel points out that the overall objectives for the brand do not necessarily match licensees' objectives. When Wendy's discontinued the "Where's the Beef?" campaign after four months to avoid burnout, licensees were left with excess inventory. In retrospect, however, Siegel believes that the decision to end the commercials was the right one from the point of view of the brand. "What business are you [the corporate licensor] in?," he asks. "The business of creating a new cultural icon or of advertising your brand?"

Some licensors consider advertising imagery to be part of their overall property portfolio. The commercial icons are used as additional graphics over time, rather than licensed separately as short-term phenomena. For example, Pillsbury extensively merchandises the Pillsbury Doughboy, and Campbell's Soup the Campbell Kids as components of their overall licensing strategies.

Goldman reports that, while Coca-Cola incorporates most ad graphics into its broader licensing strategy, there are occasional exceptions. A Diet Coke ad in the early 1990s, which starred a hunky construction worker named Lucky, became popular among women aged 25 to 35. "This was not going to become a long-term enduring icon of the Coca-Cola company," admits Goldman. Still, the company authorized a select line of products, including mouse pads and calendars. Despite the challenges, there are benefits to licensing commercial images. Licensing ad-related graphics and phrases generates ancillary revenue for the company. It also spreads awareness. "Licensed products are a means to extend the brand advertising message beyond the :30-:60 TV commercial spots," says Pfneisel. (Licensing may also be necessary for trademark protection.)

The popularity of ad-related images can boost the success of corporate-logoed products as well. "We feel that the overall awareness of Budweiser licensing has risen in the consumer's mind as a result of the popularity of the ad-related licensed merchandise," Pfneisel reports, noting that in 1995, after the introduction of Frogs merchandise, the total Budweiser licensing program grew more than 50%, with 21% of total revenue coming from Frogs merchandise.