“Pepsi” (CC BY 2.0) by JeepersMedia
When it comes to advertising strategies, few are as popular and engaging as celebrity endorsements.
Although not every company utilizes celebrity endorsements, in the same way, the basic logic of employing such strategies is usually the same. After all, many of us idolize celebrities and so if our favorite famous people use or love something that we too can get our hands on, we are more likely to try the product as well. In addition to this, as a collective audience, we are exposed to approximately 3,000 advertisements a day, so Adidas adverts featuring Kanye West and Coca-Cola billboards depicting Taylor Swift are sure to stand out.
Of course, brand-celebrity partnerships are not restricted to one-off advertisements or short campaigns. Some brands go a step further and their celebrity partner is given the title of brand ambassador, though it is difficult to cast a broad net over what this relationship consists of. For example, George Clooney is the Nespresso brand ambassador and works with them to help South Sudan while also advertising their product, but this is probably different to most other ambassadorial responsibilities.
One industry that tends to hire brand ambassadors quite often is iGaming or more specifically online casinos like bgo, a company that has previously worked with Paris Hilton. Currently, Verne Troyer of Austin Powers fame is the celebrity ambassador for Vegas slots at bgo, appearing on their website, hosting promotions and featuring in television advertisements. From what we can tell, it is Verne’s job to make sure bgo has that little something extra that other casinos may lack, be that a Hollywood edge or some lighthearted competitiveness. After all, there are plenty of fun online casinos on the web from Rizk to Roxy Palace, so it was a smart move for bgo to hire ambassadors in order to stand out.
If the logic behind celebrity endorsements and ambassadorial positions isn’t convincing enough, then perhaps we should let the numbers speak for themselves. According to Marketwatch, one celebrity endorsement can immediately lead to sale increases of at least 4%. Meanwhile, Ad Age has claimed in the past that simply signing a contract with a celebrity can lead to business stocks rising by around .25 once the news is released to the public.
Clearly, businesses would not want to pass up on the opportunity to employ celebrities willing to endorse their goods or services and thus influence the brand’s audience. However, the celebrity endorsement is not the ultimate brand saver that you may assume it is, which you will probably agree with after watching the following video.
For instance, when it comes to customers remaining loyal to a brand following a celebrity-fronted campaign, one study named “Impact Of Celebrity Endorsements On Consumer Brand Loyalty: Does It Really Matter?” claims that there is little impact. This is another reason why companies that employ ambassadors rather than endorsers are making a wise decision.
In addition to this, celebrity endorsements do require more thought and accuracy than simply hiring anyone to promote anything. For instance, you wouldn’t have a typically masculine basketball player advertise lipgloss for young teenage girls, because that would be incredibly odd and uncomfortable for all involved. Instead, our imaginary basketball player would probably have a bigger impact promoting sports equipment, protein shakes and other products that connect him with his career and fans.
If a brand has managed to create a solid image for themselves or fill a niche within the market, then picking the right celebrity needn’t be too challenging. The studies above prove that hiring a celebrity endorser can have an immediate on the success of your business and so it is highly recommended as long as the cost does outweigh the reward. For the best celebrity strategy though, companies need to think long term to keep their audiences interested, either by employing a number of celebrities or by employing a full-time ambassador.
That’s all for now, but let us know your thoughts in the comments below. Are you persuaded to invest in a company or product if they feature your favorite celebrities? What are the worst celebrity-product combinations you can come up with? Write us in the comments below.
Co-founder at zenruption
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