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:
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.
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.
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”.
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.
The benefits of Celebrity driven marketing, can be represented using – the four Qs:
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)
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.
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.
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.
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.
For Van Ness Wu, dance has always been a part of American-born actor-singer. Named by his father after the street they used to live on in Los Angeles, California, Van Ness started breakdancing at an early age on the streets where he grew up. His love for dance led him to being cast in Run DMC’s video ‘It’s Like That’, as one of the male breakers involved in a showdown with a group of girls.
Upon the suggestion of friends and family, he went to Taiwan to try his luck in the entertainment industry. Soon after, Van Ness was casted as one of the leads in the Taiwanese Hit television series, Meteor Garden. In the series, the 4 male leads played a group named F4. Meteor Garden was a hit in Taiwan in 2001 and turned the leads quickly into superstars. This launched the music career of Van Ness Wu as part of the phenomenally successful boyband, F4.
Over time, F4 became popular in Asia – mobbed in Chinese-speaking countries such as Hong Kong and Singapore and idolized in the Korea, Philippines, Thailand and Indonesia and finally in Japan in April 2005. Since the success of Meteor Garden, F4 has gone on to release 3 albums and starred in the sequel to 2001’s Meteor Garden, Meteor Garden II. In 2007, F4 was selected by the Taiwan Tourism Bureau to act as their spokesperson for Taiwan tourism.
In between his hectic schedule as part of F4, Van Ness managed to release 2 solo albums – Body Will Sing in 2002 and V.Dubb in 2007 – which showcased his love for hip hop and dance. In around mid-2006, he collaborated with Korean singer Kangta (who is a member of the now-defunct Korean boyband H.O.T.) to release their collaborative album Scandal. They debuted their first single of the same name at the 2006 MTV Asia Awards in Thailand to a rousing response. His other collaborations include a duet with Coco Lee entitled ‘Hip Hop Tonight’ which was the first single off her album Wow! Coco! and the Asian remix of Beyonce’s ‘Crazy in Love’ available on Beyonce’s Asian edition album. Rounding off 2008 with a collaboration performance with Kaney West’s Glow in the dark tour Shang Hai as the 2 mega stars performed Kanye’s Hit single Good Life.
Drawing on his acting experience starring in Meteor Garden, Van Ness continued growing his acting career starring in other TV series that proved to be successful such as Peach Girl as well as starring in several movies such as Star Runner with Korean actress Hyun-joo Kim; Dragon Squad with Shawn Yue, Sammo Hung, Maggie Q, Michael Biehn and Li Bing Bing; and Kung-Fu Fighter with the cast from Steven Chou’s Kung-Fu Hustle.
The latest installment to his acting performances is 2009’s #1 top rated tv drama Autumn’s Concerto. He it the Male lead in the drama, along side with Ady An.
Most Recently, Van Ness is one of the Celebrity judges on the hit TV show, Asia’s Got Talent.
Van Ness will be in Asia in 2015 for marketing opportunities, do reach out to us at: firstname.lastname@example.org
The spectacular concert by David Foster and his famous friends finds the songwriter and hit producer gathering together the best tracks from his bottomless well of hits and inviting some talented folks to come along and help perform them. Not only are the songs magical, the performances are just as enchanting, including appearances from Boyz II Men, Natalie Cole, Ruben Studdard, Peter Cetera and Katherine Jenkins. Spotlighting #1 hits, award-winning songs, and other favorites – all but one originally penned and/or produced by the Hit Man Foster himself.
This is an example of the FULL FORMAT with band, audio visual etc.
David Foster and Friends
David Foster & Friends: Earth,Wind & Fire – September After – The Love Has Gone
David Foster and Friends
David Foster & Friends: Peter Cetera – Medley
David Foster and Friends
Andrea Bocelli and Katharine Mcphee – The prayer (Live 2008) HD
David Foster & Friends are open to adding more corporate dates & sponsorships.
For more information about the sponsorship of the star-studded event, do reach out to us at: email@example.com
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.
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
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.
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.
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.
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:
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
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)
KNOWLEDGE @ WHARTON
Celebrity Sells book
A Dummy’s Guide to Celebrity Endorsement
Havard Business School: The Economic Value of Celebrity Endorsements
Branding and Celebrity Endorsements
What are the benefits on the use of Celebrity Based Campaigns?
Can small business really afford Celebrity endorsements
Celebrity Marketing Myth
Celebrities in Marketing
Celebrity Power: Can less be more?
How Celebrities sell in China
Why Celebrity Sells: A Dual Entertainment Path Model of Brand Endorsement
Celebrity Endorsements builds Brands