Category: RESEARCH INSIGHTS

TLGI-WHITE

With the economy becoming more and more competitive with each passing day, having apt knowledge about preferences of your customers has become integral for any business. All marketers will agree that market research is important, because the media landscape is in a constant state of flux and marketers are constantly overwhelmed with business priorities.

Conducting marketing research to measure the right Celebrity fit enables you to focus your marketing efforts on the highest growth opportunities. Very often, Brands tend to shave timelines, do “internal” research, and lose sight of the need for consumer marketing research for their Brand.

DATA-DRIVEN CELEBRITY MARKETING

The influence of Celebrity over Brand perception and purchasing power is undeniable. Engaging Celebrities can be an extremely rewarding process for any Brand. With the hefty investment, Brands & marketers look to strategic market research like The Lumenere Index (TLI) to make Data-driven decisions on which Celebrity to engage.

TLI is an independent attribute ranking report that provides marketers with a systematic approach for qualifying the use of celebrities in their marketing initiatives. Brands, agencies and marketers can now measure and compare the impact of consumer perceptions of Celebrities in specific demographics and markets.

An incredibly valuable tool when finding the right marriage between Brand and Celebrity.

FOUNDATION

TLI focuses it’s research reports on the “match-up hypothesis”. Many Brands traditionally believe that simply throwing an attractive Celebrity into a commercial is common sense marketing, and can only increase the appeal of a brand. However, our studies have shown that attributes like credibility overrules the attractiveness of a Celebrity in certain campaigns. When consumers believe that the Celebrity and the Brand “match up”, recall of the campaign and impact of the marketing initiative increase.

WHAT WE DO

We manage Celebrity and Media market research to help determine a Celebrity’s ability to influence brand affinity and consumer purchase intent. Our direct, consultative approach combined with our rich industry expertise empowers clients to succeed in today’s complex media environment.

DESIGN

We design Brand specific Celebrity research using key brand / personality attributes which are tested on a pre-targeted demographic and sample size. We focus on a maximum of 30 key attributes (peak feedback efficiency before consumer focus fatigue). Sample attributes are listed below:

KEY ATTRIBUTES

TLI KEY ATTRIBUTES

SAMPLE REPORT

We believe that by matching key Brand and Consumer attributes, we can increase the efficiency and impact of the Brand-Celebrity marketing initiative.

Provide details below to request a sample preview of the TLI Report.

RITA_ORA

Successful brands need to convince consumers that they carry a different image and value from other competing products. Today, the use of celebrity advertising for companies has become a trend and a perceived winning formula of corporate image building and product marketing. This phenomenon is reflected by the recent market research findings that 8 out of 10 TV commercials scoring the highest recall are those with Celebrities’ appearances.

Finding the right Celebrity collaboration is as much art as science. The biggest, most familiar names may lend cachet, but they carry a hefty price tag. The character of the trendiest new star is often untested and may prove to be a liability

Industry research reveals and re-establishes that a Brand must always keep in mind that the objective is to build the brand and not the celebrity. As companies invest large sums of money in celebrity endorsement contracts, any celebrity endorsement relationship must contribute to larger marketing strategies. Accordingly, campaigns involving celebrities are believed to bring more positive results if they are properly integrated than traditional non-integrated campaigns.

Studies on Celebrity engagements reveal, consumers form parasocial bonds with favored celebrities who shape their lifestyles, attitudes, and behavior. Driven by the need for achievement and lifetime pursuit, consumer’s aspire to mimic Celebrities as well as live the successful and glamorous lifestyles portrayed in the media. Consumers who desire to be the likes of the celebrities gratify their urges through sub-conscious efforts to build and maintain a relationship with the celebrity. Marketers focus on this.

STRATEGIES FOR SUCCESSFUL CELEBRITY DRIVEN MARKETING

What aspects should Brands keep in mind when working with a Celebrity?

We explore the positive impact of celebrity endorsement on brand image and find out the most prominent factors those play the key role in the success of an endorsement. While analyzing the major factors that are having maximum impacts of successful endorsement, the followings are found out that before any brand signs on a celebrity, they should consider three main aspects.

  • Attractiveness of the celebrity:This principle states that an attractive endorser will have a positive impact on the endorsement. The endorser should be attractive to the target audience in certain aspects like physical appearance, intellectual capabilities, athletic competence, and lifestyle. It has been proven that an endorser that appears attractive as defined above has a grater chance of enhancing the memory of the brand that he/she endorses.
  • Credibility of the celebrity:This principle states that for any brand-celebrity collaboration to be successful, the personal credibility of the celebrity is crucial. Credibility is defined here as the celebrities’ perceived expertise and trustworthiness. As celebrity endorsements act as an external cue that enable consumers to sift through the tremendous brand clutter in the market, the credibility factor of the celebrity greatly influences the acceptance with consumers.
  • Meaning transfer between the celebrity and the brand: This principle states that the success of the brand-celebrity collaboration heavily depends on the compatibility between the brand and the celebrity in terms of identity, personality, positioning in the market vis-à-vis competitors, and lifestyle. When a brand signs on a celebrity, these are some of the compatibility factors that have to exist for the brand to leverage the maximum from that collaboration.

Even though these three major principles must be adhered to by companies, practically it might be difficult to find celebrities that satisfy all these three conditions. Depending on the nature of the brand and the kind of product being used, companies can selectively emphasize one factor over the other.

The correct way to choose a famous person is going to depend, first of all, on whether there is a congruency between that person and the brand that you are advertising. This is essential for the strategy to work out.

Credibility, trust and the widespread perception by consumers that the famous person is an “expert” are the key variables for selecting a celebrity representative.

The famous personality must be attractive not only in physical terms but also in terms of his or her level of regard and familiarity [among targeted consumers]. Fame, along with familiarity, lead to a more positive reception by consumers. If the famous person is disliked, the advertising message will lose effectiveness.

The research shows that a famous person is capable of raising the price of the product (Note: Studies have proved that consumers are prepared to spend up to 20% more on the same product as a result of who is representing it.) that he or she advertises when it comes to products that consumers consider to be attractive and appropriate as gifts.

Two main strategies to finding the perfect Celebrity to partner with for your next campaign:

  1. Research your Consumer/Celebrity Fit – Find out who your consumers are, what they like and what their social and buying behaviors are. There are industry consumer and celebrity research services that help streamline this process. Research options like E-Scores, Q-Scores, Davie Brown Index and our very own TL Index (TLI) are incredibly valuable tools when finding the right marriage between Brand and Celebrity. With the hefty investment, Brands & marketers should look to strategic market research to make Data-driven decisions on which Celebrity to engage.
  1. Define your Goals & Budget – We all wish Lady Gaga would tweet about us, but unless you have the budget this will only be a fantasy. The reality is that Celebrity marketing takes revenue, incentives/rewards, time, and energy to coordinate a successful campaign. The influence of Celebrity over Brand perception and purchasing power is undeniable. Engaging Celebrities can be an extremely rewarding process for any Brand. The other main thing is to make sure you define what your expectations are from this campaign. Too often we think of the campaign and all the big ideas, but Brands don’t stop to think… “What do I want out of this?” Once you understand your goals and budget, it will be a lot easier to be realistic with your Celebrity Driven marketing initiatives.

 

RESOURCES:

KNOWLEDGE @ WHARTON

https://knowledge.wharton.upenn.edu/article/celebrity-advertising-what-is-the-roi/

Celebrity Sells book

http://www.ipa.co.uk/Framework/ContentDisplay.aspx?id=2196

A Dummy’s Guide to Celebrity Endorsement

http://www.afaqs.com/news/story/39588_A-Dummys-Guide-to-Celebrity-Endorsement

Havard Business School: The Economic Value of Celebrity Endorsements

http://www.people.hbs.edu/aelberse/publications/Elberse_Verleun_2012.pdf

Branding and Celebrity Endorsements

http://www.venturerepublic.com/resources/branding_celebrities_brand_endorsements_brand_leadership.asp

What are the benefits on the use of Celebrity Based Campaigns?

http://www.millwardbrown.com/docs/default-source/insight-documents/knowledge-points/MillwardBrown_KnowledgePoint_Celebrity-basedCampaigns.pdf

Can small business really afford Celebrity endorsements

http://www.forbes.com/sites/work-in-progress/2013/09/17/can-small-businesses-really-afford-celebrity-endorsements/

Celebrity Marketing Myth

http://www.brandchannel.com/images/papers/522_2011-01_celebrity_marketing_myth.pdf

Celebrities in Marketing

http://johnmichaelmorgan.com/how-to-use-celebrities-in-your-marketing/

Celebrity Power: Can less be more?

http://www.millwardbrown.com/docs/default-source/insight-documents/points-of-view/MillwardBrown_POV_CelebrityPower.pdf

How Celebrities sell in China

http://www.businessoffashion.com/2015/01/op-ed-celebrity-sells-china.html

Why Celebrity Sells: A Dual Entertainment Path Model of Brand Endorsement

http://www.coms.hkbu.edu.hk/~kineta/files/JA_Entertainment_Aug20_2013_Final.pdf

Celebrity Endorsements

http://usdrinc.com/downloads/Celebrity-Endorsements.pdf

Celebrity Endorsements builds Brands

http://www.marketwired.com/press-release/research-shows-celebrity-endorsements-build-brands-and-boost-direct-response-online-1238525.htm

Marketing with Celebrities

http://www.marketing-schools.org/consumer-psychology/marketing-with-celebrities.html

The Rise Influencer Marketing

http://traackr.com/why-invest-influencer-marketing/

Measuring Impact of Celebrity Endorsements

https://www.questia.com/library/journal/1G1-344154938/measuring-the-impact-of-celebrity-endorsement-on-consumer

Tag-Heuer-Leonardo-DiCaprio

Anna Rumschisky, a marketing professor at the IE Business School in Madrid, has demonstrated that using celebrities in advertising has a measurable impact on the prices companies can charge for their products. According to the study:

  • Consumers are prepared to spend up to 20% more on the same product as a result of who is representing it.
  • Celebrities can help focus and retain consumers’ attention on the advertising.
  • Using a Celebrity improves the reception of the branding message, helping it to overcome the “noise” in the communications process.
  • A famous personality brings with him a meaning that contributes clarity to the message. This approach saves advertisers time when it comes to conveying that message to the consumer.
  • Other researchers in this area believe, that when consumers use products tied to famous personalities, they derive added value in terms of imaginative aspiration and entertainment. This can be enough to tilt the scale in favor of the brand rather than its competitors. The famous person becomes a model — a “standard” guiding the consumer, who wants to be and look like that person.


MEN
For men, famous people have a direct impact [based on their fame alone] of 8% on the price of the product, as well as an indirect impact [based on their personal attributes] of 11%. So the total value that the famous person contributes, among young men, is to raise the price [these men are willing to pay] by more than 19%.

Men believe that a product which is suitable as a gift is worth an additional price of 8.6%, and one that is fashionably attractive is worth an additional 7.6%. Nevertheless, when men identify themselves with the product or consider that the personality who advertises it is someone “modern,” there is a greater impact on price increases — 14.6% and 11.1%, respectively.

WOMEN
For women, the impact is not as great, but it is nevertheless significant: For watch prices, for example, the direct impact of the famous person is 5.4%. There is also an indirect impact of slightly more than 8%…. As a result, the total value that the famous person contributes among young women is to raise the price [that those women are willing to pay] by more than 13.4%.

Women raise their price by 4% when the product is suitable as a gift and by 6.2% when they think that the product makes them look stylish. The variable that has the most influence on women when it comes to increasing the price of the watch is whether they consider it to be “sexy”; that raises the price by 10.1%. There is less impact [on price] — only 5.8% — when women have confidence in the personality who advertises the product.

CELEB_ADS_LIFT

WHY CELEBRITIES WORK?

Most brands start a life without personality. Let’s be honest, a brand by itself will never walk, talk and get photographed. But by tying it with a celebrity, the name of a product or a company can take on instant glitz, glamour, charm, sex-appeal and aspiration.

Malcolm Gladwell states in his book, Tipping Point that The Law of the Few contends that before widespread popularity can be attained, a few key types of people must champion an idea, concept, or product before it can reach the tipping point. Gladwell describes these key types as Connectors, Mavens, and Salesmen. If individuals representing all three of these groups endorse and advocate a new idea, it is much more likely that it will tip into exponential success. Celebrities check off all types in one. “The success of any kind of social epidemic is heavily dependent on the involvement of people with a particular and rare set of social gifts”.

  • Connectors are the people in a community who know large numbers of people and who are in the habit of making introductions. They are essentially the social equivalent of a computer network hub. They usually know people across an array of social, cultural, professional, and economic circles, and make a habit of introducing people who work or live in different circles. They are people who “link us up with the world…people with a special gift for bringing the world together”.
  • Mavens are “information specialists”, or “people we rely upon to connect us with new information”. They accumulate knowledge, especially about the marketplace, and know how to share it with others. “A Maven is someone who wants to solve other people’s problems, generally by solving his own”. Mavens are really information brokers, sharing and trading what they know
  • Salesmen are “persuaders”, charismatic people with powerful negotiation skills. They tend to have an indefinable trait that goes beyond what they say, which makes others want to agree with them.

Celebrities are rare breeds that encompass  the key traits of a Connector, Maven and Salesman all in one. Amplifying the efficiency and the potency of the marketing message being transmitted.

021209_y1_1024x768

The benefits of Celebrity driven marketing, can be represented using – the four Qs:

  1. Quick saliency: It gets cut through because of the star and his attention getting value.
  1. Quick connect: There needs to be no insight but the communication connects because the star connects.
  1. Quick shorthand for brand values: The right star can actually amplify a brand message fast without elaborate story telling.
  1. Quick means of brand differentiation: In a category where no brand is using a Celebrity, the first that picks one up could use it to differentiate itself in the market.

LOCAL VS INTERNATIONL

 TESTING ROI IN A CELEBRITY CAMPAIGN

There is no standard practice to measure ROI or gauge the direct effect of celebrity endorsement on the brand’s sales. However, some brands have a few parameters in place that help them judge consumers’ response to a celebrity. For example, the number of times consumers mention/tag the celebrity’s name along with the brand name on social media, etc. Some brands also conduct audits from time to time to justify the celebrity usage. At the end of the day, a brand manager has to pool in his/her experience and gut instinct to get this one right.

 Most programs are impression-based, so tracking a solid ROI is possible, but tracking becomes more problematic in the gray area of branding. If a celebrity is utilized to increase brand awareness beyond impressions, then polling a core demographic after the celebrity engagement may give the business indications of a viable ROI. In general, most companies expect that not everything in a celebrity-centric deal can be evaluated using traditional metrics.

 

(NEXT MONTH: CELEBRITY ENDORSEMENT STRATEGIES)

 

RESOURCES:

KNOWLEDGE @ WHARTON
https://knowledge.wharton.upenn.edu/article/celebrity-advertising-what-is-the-roi/
Celebrity Sells book
http://www.ipa.co.uk/Framework/ContentDisplay.aspx?id=2196
A Dummy’s Guide to Celebrity Endorsement
http://www.afaqs.com/news/story/39588_A-Dummys-Guide-to-Celebrity-Endorsement
Havard Business School: The Economic Value of Celebrity Endorsements
http://www.people.hbs.edu/aelberse/publications/Elberse_Verleun_2012.pdf
Branding and Celebrity Endorsements
http://www.venturerepublic.com/resources/branding_celebrities_brand_endorsements_brand_leadership.asp
What are the benefits on the use of Celebrity Based Campaigns?
http://www.millwardbrown.com/docs/default-source/insight-documents/knowledge-points/MillwardBrown_KnowledgePoint_Celebrity-basedCampaigns.pdf
Can small business really afford Celebrity endorsements
http://www.forbes.com/sites/work-in-progress/2013/09/17/can-small-businesses-really-afford-celebrity-endorsements/
Celebrity Marketing Myth
http://www.brandchannel.com/images/papers/522_2011-01_celebrity_marketing_myth.pdf
Celebrities in Marketing
http://johnmichaelmorgan.com/how-to-use-celebrities-in-your-marketing/
Celebrity Power: Can less be more?
http://www.millwardbrown.com/docs/default-source/insight-documents/points-of-view/MillwardBrown_POV_CelebrityPower.pdf
How Celebrities sell in China
http://www.businessoffashion.com/2015/01/op-ed-celebrity-sells-china.html
Why Celebrity Sells: A Dual Entertainment Path Model of Brand Endorsement
http://www.coms.hkbu.edu.hk/~kineta/files/JA_Entertainment_Aug20_2013_Final.pdf
Celebrity Endorsements
http://usdrinc.com/downloads/Celebrity-Endorsements.pdf
Celebrity Endorsements builds Brands
http://www.marketwired.com/press-release/research-shows-celebrity-endorsements-build-brands-and-boost-direct-response-online-1238525.htm

 

The “celebrity” label has become engrained in the marketing conversation. While these individuals can generate tremendous buzz –and often play a pivotal role in humanizing a brand – their influence is only as successful as it is believable.

It comes down to who can tell the best story, generate the most interest among consumers, and create the best new thinking – in an authentic way.

First of all, make sure you’re clear on the difference between a celebrity endorsement and celebrity branding.  An endorsement is the traditional paid statement sort of advertising, where the celebrity is paid to say nice things about your product.  This can still be effective, although as audiences continue to become more and more jaded you might want to look into other approaches.

ALICIAKEYS

Celebrity branding, on the other hand, is all about using a celebrity’s position of prominence to start a conversation.  It’s meant to make your product more visible, to get people talking about it and genuinely considering its merits.

A vast array of people can take on a brand’s influencer role, a role that is crucial in a new world of marketing where the line separating marketers from consumers is rapidly diminishing.

This is what most celebrity placements look like on the internet these days.  With the fragmentation of markets and the spread of social media, consumers are quick to recognize and discount a paid endorsement.  A conversation starter from a celebrity to a large group of dedicated followers, though, is guaranteed to generate some serious interest in your product.  To put it more simply, celebrity endorsement is the 20thcentury; branding is the 21st.

Serena Williams

From a marketing perspective, the value they generate lies within the influence they inspire. The people most valuable to a brand are the ones creating the most influence, those who come across as the most authentic brand ambassadors by embodying the same things as the brand itself.

Big established brands are usually trying to maintain or expand their market share with already-successful products. Usually they find that they get a lot more bang for their buck with a few carefully-placed celebrity gifts than with a huge blanket advertising campaign.

On the other hand you have the small guys, the little boutiques trying to break into the market.  They don’t have the cash for a big advertising blitz, but that’s okay―they do have a great product. A successful placement can be huge for the little companies, opening up other venues for distribution―online stores, brick-and-mortar retailers, etc.

One of the more successful placements was a jeweller who included a beautiful, un-mounted gemstone on a prong in each gift package along with a personal note: “Bring this stone by our shop and we’ll mount it for you”.

Influence is what’s driving the new world of marketing. To create this, brands need to move from a transactional mindset to one of looking at partnerships that create movements. If an authentic relationship between a celebrity and brand develops organically, it can lead to strategic partnerships that engender brand relevance in pop culture.

SOURCES: (FORBES)
http://www.forbes.com/sites/onmarketing/2013/06/05/how-superstar-marketers-put-their-brands-in-the-spotlight/
http://www.forbes.com/sites/kevinharrington/2014/08/18/celebrity-branding-is-making-a-comeback-tips-for-success/

Is the silver screen the only place where brands can incorporate entertainment marketing? Not at all. Actually, television took home the award for most utilized platform by brand and agency marketers (52%)—surpassing other A-listers like digital (43%), events (38%), print (31%), and film (29%). Celebrity endorsements, music, and gaming are still trying to edge their way into the spotlight with 23%, 20%, and 11%, respectively, of brand and agency marketers deeming each their most utilized platform.

InfographicWeekly0220

http://www.dmnews.com/entertainment-marketing-gets-cast-in-a-leading-role-infographic/article/399188/

Insights on how Celebrities can help your Brand gain a marketing advantage

The world is obsessed with celebrities. Our society is fascinated by them. For decades brands have leveraged celebrities to promote and endorse their products. The right celebrity endorsement can put a brand on the map in a big way. The use of celebrities in advertising, has been on the rise in recent years, and the trend shows no sign of abating. According to Hamish Pringle, author of the book Celebrity Sells, the proportion of ads featuring a celebrity stands at one in five, an increase of almost 100 percent over the past 10 years.

Katy-Perry

In 2001, 25% of all advertising dollars were spent on ads carrying celebrities. In 2008, that percentage has gone up to 60% of all ad dollars spent. There has been a 49% growth in celebrity endorsement advertising volumes on just TV during the year 2007 as compared to the previous year. There were in total 745 celebrity endorsements in 2007 as against 499 in 2006. Today, the celebrity endorsement industry is worth USD$11 Billion and is growing at high double digit growth rate ranging between 60- 80%. High levels of recognition and passion that people have for their favorite athletes and celebrities is what makes endorsement marketing perform so well

JustinBieber

There are hundreds of well known examples of celebrity endorsements, most of which were hugely successful due to proper endorsement strategy. Italian luxury brand Versace has used music icon Madonna and Hollywood stars Demi Moore and Halle Berry in its print adverts between 2005 and 2006. Likewise Julia Roberts appears in Gianfranco Ferres adverts, Sharon Stone in Dior and Jennifer Lopez, Scarlett Johansson, and Uma Thurman in Vuitton ads. Non-luxury brand Gap has used television star Sarah Jessica Parker to promote its brand in the recent past. Catherine Zeta Jones for T-Mobile, Emmitt Smith for Just For Men, Jason Alexander for KFC. In India, the first ad to cash in on star power in a strategic, longterm, mission statement way was: Lux soap. A brand which has been among the top three in the country for much of its life-time.

Jennifer-Lawrence

CASE STUDIES

  • In the UK, Barclaycard used the popular comedian Rowan Atkinson during the 1990s in a highly successful campaign for Barclay’s. It was hugely enjoyed and well recalled, and it communicated the intended messages. Barclay’s share of new cardholders rose from 15 percent to 25 percent in five years.
  • Jamie Oliver for Sainsbury’s: ROI of 27:1, £1.12 billion in incremental revenue.
  • Ian Wright/Martin Luther King/Kate Moss/Elvis/John McCarthy/Yuri Gagarin for One2One: ROI of 5.4:1, £199 million in incremental revenue.
  • The Simpsons for Domino’s Pizza: ROI of 5.3; incremental revenue of £13 million.
  • Martin Clunes, Caroline Quentin, Jonah Lomu, Caprice, Jonathan Ross for Pizza Hut: ROI of 3:1; incremental revenue of £55 million.
Category of Celebrity Ads

Category of Celebrity Ads

CELEBRITY DRIVEN MARKETING ROI

An extensive industry study determines that ad campaigns featuring (video and still) images of athletes were tested against the same ads with no endorsement. The new research finds that celebrity athlete endorsements deliver significant brand lift and direct response results.

  • A 180% increase in unaided brand awareness, highlighting the ability of endorsement ads to fundamentally “register” with consumers;
  • A 56% improvement in message association, where participants correctly absorbed the attributes of tested products and services;
  • A 39% improvement in brand favorability, demonstrating how positive associations about an athlete carry over to brands;
  • A 27% increase in purchase intent, a measure that speaks to brand and behavior goals.

 Increase

(Source: http://www.marketwired.com/press-release/research-shows-celebrity-endorsements-build-brands-and-boost-direct-response-online-1238525.htm)

Recognition

WHEN BIG IS BEAUTIFUL

Many major brands have been well-served by celebrity strategies. On a global basis, Pepsi has effectively used superstars from the sports and entertainment world to convey the sense of being the most current, most relevant brand for each new generation. Advertising in the United States has, over the years, featured the latest, hottest pop idols such as Michael Jackson (1984), the Spice Girls (1997) and Britney Spears (2001).

 As statistical proof, Nike golf balls, since the company signed Tiger Woods in 1996, have seen a $ 50 million revenue growth. Nike’s golf line grossed more than $ 250 million in annual sales. In 2000, he re-negotiated a five-year contract estimated at $ 125 million. The Jamie Oliver deal with Sainsbury was said to have resulted in an extra £1 billion in sales. Gary Lineker and assorted celebrity chums pushed Walkers Crisps profits up by 105%. Indian Titan Watches used another leading Bollywood icon Amir Khan to endorse the brand. The campaign helped Titan achieve a growth of 45% in volume sales and 52% in value.

Tiger-Woods

A study of athlete endorsements finds there is a positivbe pay-off to a brand’s decision to sign an endorser. The endorsements are associated with increating sales in an absolute sense and relative to competing brands. Sales and stock returns jump noticeably with each major achievement by the athlete.

Celebrities serve not only to create and maintain attention but also to achieve high recall rates for marketing messages in today’s highly cluttered marketing environments.

MARKETING DIRECTOR’S INSIGHTS

Top marketing directors were asked their opinions on campaigns involving Celebrities. They said:

  • “Celebrity endorsement increases the attention paid to an ad”.
  • “Celebrities are generally attractive, which helps persuasion when consumers are worried about social acceptance and others’ opinions or when the product is attractiveness”.
  • “Celebrities may be credible sources if they have expertise in a particular area, such as an athlete endorsing or a beautiful model endorsing make-up”.
  • “Celebrities are often well-liked, possibly leading to identification and consumer persuasion in an attempt to seek some type of relationship with the celebrity”
  • “Our analysis showed that the ads featuring the celebrity performed better on key measures than those without the celebrity. The celebrity had also become a strong branding device. We were able to estimate that the Celebrity was worth over $5 million per year to the client. Since the contract cost considerably less than this, the client continued the relationship”

BradPitt

A POTENT MARKETING TOOL

Celebrity endorsement is recognized as a potentially potent tool in communications, with celebrities viewed as more powerful than anonymous models and campaigns tending to verbalize the meaning of the celebrity in relation to the brand

  • For the manufacturer, brands offer a means of identification for ease of handling and tracking, legal protection and the ability to be distinctive. In addition, branding is a sign of quality and can be used to secure competitive advantage and increased financial returns and high customer loyalty.
  • For the consumer, the brand functions as a means of identification, reduces search costs, effort and perceived risk, thereby facilitating a shortcut in decision making, and represents a guarantee of quality and reliability.

Brands/Advertisers pursuing this approach seem bigger than ever, as fame and infamy can spread in a matter of days or even hours through cyberspace.

The use of celebrities in advertising varies enormously around the world. It’s highest in Japan and Korea, where over 40 percent of TV ads feature celebrities, and lowest
in Ukraine, Sweden, and Canada, where the proportion is under 5 percent. It is 10 percent in the U.S., and 12 percent in the UK. China makes the greatest use of international celebrities in Asia; while foreign celebrities lack familiarity, particularly in tertiary cities, they are more likely to be viewed as different and as trend-setters.

Celebrity endorsement is a highly effective strategy to gain consumer interests and brand loyalty in a cluttered marketplace.

(NEXT MONTH: WE BREAKDOWN THE NUMBERS BEHIND CELEBRITY DRIVEN MARKETING)

Jennifer-Anniston

RESOURCES:

KNOWLEDGE @ WHARTON

https://knowledge.wharton.upenn.edu/article/celebrity-advertising-what-is-the-roi/

Celebrity Sells book

http://www.ipa.co.uk/Framework/ContentDisplay.aspx?id=2196

A Dummy’s Guide to Celebrity Endorsement

http://www.afaqs.com/news/story/39588_A-Dummys-Guide-to-Celebrity-Endorsement

Havard Business School: The Economic Value of Celebrity Endorsements

http://www.people.hbs.edu/aelberse/publications/Elberse_Verleun_2012.pdf

Branding and Celebrity Endorsements

http://www.venturerepublic.com/resources/branding_celebrities_brand_endorsements_brand_leadership.asp

What are the benefits on the use of Celebrity Based Campaigns?

http://www.millwardbrown.com/docs/default-source/insight-documents/knowledge-points/MillwardBrown_KnowledgePoint_Celebrity-basedCampaigns.pdf

Can small business really afford Celebrity endorsements

http://www.forbes.com/sites/work-in-progress/2013/09/17/can-small-businesses-really-afford-celebrity-endorsements/

Celebrity Marketing Myth

http://www.brandchannel.com/images/papers/522_2011-01_celebrity_marketing_myth.pdf

Celebrities in Marketing

http://johnmichaelmorgan.com/how-to-use-celebrities-in-your-marketing/

Celebrity Power: Can less be more?

http://www.millwardbrown.com/docs/default-source/insight-documents/points-of-view/MillwardBrown_POV_CelebrityPower.pdf

How Celebrities sell in China

http://www.businessoffashion.com/2015/01/op-ed-celebrity-sells-china.html

Why Celebrity Sells: A Dual Entertainment Path Model of Brand Endorsement

http://www.coms.hkbu.edu.hk/~kineta/files/JA_Entertainment_Aug20_2013_Final.pdf

Celebrity Endorsements

http://usdrinc.com/downloads/Celebrity-Endorsements.pdf

Celebrity Endorsements builds Brands

http://www.marketwired.com/press-release/research-shows-celebrity-endorsements-build-brands-and-boost-direct-response-online-1238525.htm