Celebrity endorsement in brand building
What is celebrity endorsement?
Every day when consumers turn on the television or go online, they are inundated with commercials for both well-known and obscure brands.
The inability of a brand to establish a distinctive position in the market and attract consumers is hampered by this overabundance of advertising. Celebrity endorsements have been used as a marketing tool to promote brands or products for decades, and as a result, they have grown to play a significant role in modern marketing.
A celebrity endorsement is when a celebrity’s fame and reputation is used to promote a product or a brand. Celebrity endorsement is also referred to as celebrity branding or celebrity advertising.
It is not exclusive to for-profit companies only, even non-profit organisations sometimes make use of a celebrity’s fame to promote a cause or raise money for it.
A celebrity is defined as a widely-known personality who is recognised by a certain group of people. They have some characteristics, such as attractiveness, extraordinary lifestyle, or special skills, thus differing from common people and they enjoy a high degree of public awareness.
Endorsement is a brand communication channel where the celebrity certifies a brand’s position and claim by extending his or her popularity, personality, expertise in the field or stature in the society to the brand and overall acts as a spokesperson for the brand.
Event marketers may also use a celebrity’s notoriety and appeal to build a buzz and a sense of prestige around their events. Celebrities are used by marketers in the hopes that the positive perception of the endorser will spread to the perception of the product or brand.
It’s not really necessary for your chosen celebrity to be a movie star. Excellent branding campaigns have been created by brands using musicians, athletes, social media influencers, or even made-up characters like cartoon characters. Image (does the celebrity embody your values?) and the following are the two fundamental criteria that will determine your choice of celebrity (how large an audience will you reach via this celebrity).
Nike is a prime example of a company that has effectively made use of celebrity endorsement. The sportswear company is known internationally for its high-quality sports gear. Another thing for which Nike is highly recognised is its regular use of famous people as brand ambassadors. In fact, Nike and Michael Jordan’s partnership is one of the most fruitful partnerships between a brand and a celebrity.
The partnership was so successful that Nike and Jordan introduced a new brand variant, the Air Jordan line of athletic footwear. When Nike teamed up with professional golfer Tiger Woods to enter the golf market with its apparel, equipment, and accessories, it accomplished a very similar feat in the sports industry. Nike had no prior golfing experience.
Furthermore, it was widely believed that a company like Nike would not be very successful because golf is a very elite sport.
If Nike had chosen the conventional route to establish its credibility in the golfing industry, this might have likely been the case. But Nike opted to partner with and secure the support of the greatest golfer in the world. As of right now, Nike has had tremendous success in the golf industry.
Why use celebrity endorsement?
Celebrity endorsement, in the opinion of Forbes contributor Steve Olenski, boosts short-term sales and long-term brand awareness. Celebrities can help businesses establish their distinctive position in the market, influence a positive brand image, and influence consumer purchasing intent.
As a result, there is a positive attitude toward the brand and a distinct personality for that brand. An example of successful usage of celebrity endorsement was the luxury brand Chanel and their co-operation with the famous actress Nicole Kidman which had an estimated boost in sales of 30 percent. Previous studies have found a direct link between celebrity endorsements in commercials and rising business profits.
So, to increase the credibility of advertisements and brand recognition among consumers, marketers employ celebrity endorsements. Advantages of brand endorsement include increased attention, image polishing, brand introduction, brand repositioning, and underpinning of global campaigns. If a company has received a negative public reputation, a strategically chosen celebrity connected to the product can give the product and brand its personality and appeal, hence turning the whole situation around.
Advantages of celebrity endorsements
Influence customer buying decisions
Customers’ preferences for particular celebrities can have a significant impact on their purchasing decisions. “If the product is good enough for her, it’s good enough for me,” is a common mentality. This philosophy frequently serves as the inspiration for advertisements for cosmetics, skincare, hair care, and clothing. For instance, customers desire a local celebrity’s wavy hair.
As a result, they buy the brand that the famous person uses to give her hair volume and bounce. Local customers might have a similar soft drink preference to the top baseball player on their team. In essence, a small company’s product gains immediate credibility thanks to the local celebrity’s endorsement.
Increasing brand awareness
Advertising with celebrities increases brand recognition much more quickly than with more conventional forms of promotion. The proportion of people who are familiar with a particular brand is measured by brand awareness. Small businesses invest a lot of money and time in exposure to gradually raise consumer brand awareness. Utilising a local celebrity can significantly improve consumers’ knowledge of and understanding of a small business’ offerings.
Unique brand positioning
Some small businesses position their brands through celebrity endorsements in their advertising. Product positioning involves giving a target audience the best possible impression of a company’s products. For instance, a small investment company might promote a retirement plan for those over 50 using the services of a reputable, retired local disc jockey. The company’s product and message are more credible because the disc jockey is of the same age as the consumers and is well-liked in the neighbourhood.
Bringing in new users
Finding new customers for small businesses’ products is one of their challenges. Advertisements featuring local celebrities are appealing to both current customers and brand newcomers. The latter group may use products from rival brands. However, people who frequently see a local celebrity in advertisements for a particular product might be persuaded to try the product.
Giving a failing brand new life
A failing brand might also benefit from the use of a famous person in an ad. For instance, if production and overhead costs are leaving little to no profit, a small soap manufacturer may consider dropping a brand or product. However, using a celebrity to promote the advantages of the brand could help consumers develop fresh interest and excitement.
Disadvantages of celebrity endorsement
Images evolve
Even famous people make errors. And when they do, it may have an impact on the companies they support. Tiger Woods’ reputation suffered in 2009 when it was revealed that he had cheated on several women, including actresses who appeared in pornography. In order to avoid a bad reputation, Tiger was dropped by General Motors, Gillette, Accenture, and Gatorade. Nike persisted despite losing clients. And without Tiger on the course, the golf industry as a whole experienced a significant decline in revenue.
Brands can be overshadowed
by celebrities
Customers may be more interested in the celebrity than the product. The risk is increased when famous people promote several products at once. Many businesses that David Beckham supports use him prominently in print advertisements. However, the prominence of his image in advertising devalues a number of goods. Do you recall the name of the company or David Beckham?
Celebrities become overexposed
At the height of Tiger Woods’ popularity, he endorsed over ten companies at once. When a celebrity works with so many companies, the celebrity’s credibility may suffer. People may feel that the celebrity will endorse anything to make a buck.
Endorsements cost money
Although it may seem obvious, obtaining a celebrity endorsement usually entails paying a sizeable sum of money. Pepsi decided that the US$50 million, 10-year endorsement deal with Beyonce was worthwhile, but if your business isn’t worth billions of dollars, you’ll need to decide whether the boost in sales and consumer interest outweighs the cost of the endorsement.-ebusinessweekly
