Feb Branding and Celebrity Endorsements Nike is known around the world for being one of the most iconic brands. They think that if the celebrity likes a brand they do, that they should like the celebrity too. Whereas once there were only the three traditional methods, they are no longer utilized as much.
At the end of the day, a brand must let consumers know why to buy their products, not the celebrity. Should celebrity endorsement be the principal channel of brand communications? Social media is a way for consumers, in particular those of younger demographics, to engage and build intimate connections with the celebrities they follow, making it THE place for these celebrities to plug a company or a product on their personal Social media accounts.
Celebrities start to overshadow brands. Nike is also very well known for another aspect and that is its consistent use of celebrities to endorse the brand. Disadvantages[ edit ] Image change: 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.
Imagine the effect of a celebrity posting an endorsement across all of their social media, Facebook, Instagram, Twitter, Snapchat, etc. New consumers arise as they follow the celebrity. Known for her youthful complexion, she has been endorsing Smart Water since Furthermore, the principle analyst at eMarketer Debra Williamson states that these celebrities influence teens and young adults when it comes to making a purchase, firms can reach out to people through Instagram that otherwise would not be reached.
Consumers would already have specific connotations and personal views on the celebrity after negative news about them has surfaced, which would consequently directly affect that same consumer's image of the company.
Celebrity endorsement is just a channel: Imagine the effect of a celebrity posting an endorsement across all of their social media, Facebook, Instagram, Twitter, Snapchat, etc. If the brand does something deemed unacceptable by consumers, the celebrity can also be seen in this light.
Cons[ edit ] Using celebrity endorsement has its risks as well as its benefits. Celebrity endorsements have considerable influence in sales when promoting a product and brand, as they can supply information, which is focused on the benefits and remarkable features of the product in an unbiased and standard form, which has a great effect on the business revenue Popescu, G.
Before any brand signs on a celebrity, they should consider three main aspects.
The celebrities involved are not expressly mentioning the Beats product within their music videos, but their presence amongst these celebrities convey the message of it being a high-quality product associated with those of a high social class, particularly those who are industry leaders in music Advantages[ edit ] Celebrity endorsements can build brand equity.
By partnering with one of these celebrities, businesses are already reaching an engaged and targeted audience of 30 million people. Conclusion The important aspect that companies must note is that celebrity endorsements cannot replace the comprehensive brand building processes.
If a celebrity loses followers by becoming less popular, which could be done through negative actions the brand will also lose popularity with that market.A growing number of small firms are boosting sales thanks to securing celebrity endorsements, but doing a deal with a famous figure doesn't necessarily guarantee success.
Branding and Celebrity Endorsements Nike is known around the world for being one of the most iconic brands. Init was ranked as the world’s 16th most valuable brand in terms of its brand value – USD billion – by the annual Forbes ranking of The World’s Most Valuable Brands. Our goal, however, is not to explicitly analyze endorsement fees and costs, but rather concentrate on the net present value of a celebrity endorsement, which accounts for all cash flows associated with it, and should be manifested in announcement-day stock returns.
value, and signiﬁcantly greater effects for endorsed ﬁrms than for non-endorsed ﬁrms. As the authors point out, however, with celebrity endorsements—and how to allocate other marketing resources accordingly.
Finding answers to these questions. The nature of celebrity endorsements is changing, and high-profile celebrities are no longer out of reach for small companies, says Evan Morgenstein, chief executive of US-based firm Celeb Experts. Celebrities advertising products is nothing new, in fact it has been part of our lives for years.
The first celebrity endorsement dates back to the ’s, when the term “brand” still hadn’t been coined jimmyhogg.com Wedgewood, a British entrepreneur, created a tea set for Queen Charlotte.Download