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Celebrity Endorsement

Celebrity Endorsement example

Definition of Celebrity Endorsement

Celebrity Endorsement refers to a marketing strategy whose purpose is to use one or multiple celebrities to advertise a specific product or service. The primary goal, in this case, is to reach a greater audience, represented by the celebrity’s fan base.

Breaking down Celebrity Endorsement

What people love more than celebrities? It’s no secret that big corporations are willing to spend a lot of money in order to cut a deal with a celebrity. This way, they hope to become leaders in their industry. In order to have a better grasp on the topic, here are some examples of successful endorsements:

  • Michael Jordan & Nike – a partnership resulted in the development of a new product line
  • George Clooney & Nespresso – successfully conveyed Nespresso’s image as an elegant and sophisticated brand
  • Beyoncé & Pepsi  – with Pepsi spending up to $50 millions in order to win the deal
  • David Beckham & H&M

These sponsorships not only generated billions of profits for the brands (and consistent paychecks for the celebrities) but they also boosted positive publicity, exposure and engagement.

Therefore, celebrity endorsement can benefit companies in many ways:

  • Direct sales: well, that’s really all a company wants! Imagine a Barcelona fan looking at the newest ads picturing Messi wearing Adidas boots. Perhaps the outdoor board is placed near an Adidas store: the result can be an immediate sale.
  • Awareness: watching a commercial showing a famous celebrity can grasp the viewer’s attention, thus generating brand awareness.
  • Confidence: people trust whoever is famous. Why should celebrities buy a poor quality product? Therefore, endorsement is a technique used to inspire confidence. And in a market where the choice range is wide and the competition high, this can be a huge point of differetiation.
  • Loyalty: being loyal to your favorite basketball player can result in being loyal to the endorsing brand, too. Since companies always strive to achieve customer retention and CLV, celebrity endorsement can help them reach these goals.

Useful Links

Why do companies use celebrity endorsements in advertising?

#CelebrityEndorsement: what are the risks?

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