Celebrity branding is a form of marketing strategy which involves using a celebrities fame and influence to promote a business's product or brand. Associating a product with a well-respected celebrity allows companies to build credibility, increase brand awareness and influence customers. Celebrity branding has become increasingly popular in recent years, predominantly due to the vast reach celebrities have on social media outlets. For example, a simple promotional Instagram post by Cristiano Ronaldo would be viewed by his 192 million followers. In the upcoming article, we are going to discuss why celebrity branding is essential for entrepreneurial success.
###1). Establishes Trust
There's no doubt about it, people trust their favourite celebrity icons. Through utilising a celebrity endorsement, companies can build trust with their clientele and emphasize the high-quality nature of their product/service.
Through using a celebrity endorsee, companies can stand out from their competitors both physically and online. A single tweet from a well-known celebrity can prove extremely lucrative for a company, exposing the brand to a large-scale demographic.
Celebrity endorsements allow companies to reposition their brand and target specific demographics. For example, George Clooney endorsing Nespresso allowed the company to target the 'sophisticated over-50s.' David Beckham's endorsement of H and M allowed the company to target sporty 20-30-year-olds.
More and more customers are using companies that reflect their own morals and ethics. By selecting a celebrity with similar values, a company can propagate their values and beliefs to their target audience. It's therefore essential for companies to carefully select an endorsee who acts as a positive brand ambassador.
When selecting a celebrity marketeer, companies must consider 4 main criteria:
Reputation-Celebrity branding is about connecting a celebrity's status with a brand/product. The higher the celebrity's reputation, the better the product/brand appears.
Familiarity-The more famous a celebrity is, the bigger outreach they will have. This allows them to influence more demographics and reach more potential customers.
Relevance- The chosen celebrity must be relevant to the product they are endorsing. The higher the relevance, the greater the trust amongst customers.
DifferentiationUsing a niche celebrity endorsee allows companies to stand out from the crowd. It helps differentiate a company's product/service from its competitors.
Commitment- Celebrity endorsements are long-term, strategic investments. The celebrity branding campaign should be viewed as a long-term marketing commitment. The longer the campaign, the greater the relationship between endorsee and company.
The brand comes first- It's essential to choose a celebrity whose status is similar to that of the company's. If a small-scale company chooses a Hollywood legend, the company is at risk of being overshadowed by the celebrity.
Contractual Framework- Companies should hire their chosen celebrity on legal terms, ensuring the celebrity does not endorse similar brands or products.
Monitoring- It's important for the company to monitor the public actions of their chosen celebrity. Negative press or public outrage could detrimentally affect the brand.
Financial Analysis- Companies should monitor the effect celebrity branding has on their sales and react accordingly.
For more information regarding celebrity endorsements, please get in touch with our Customer Services Team today. Our team of industry professionals will be happy to answer any questions regarding celebrity branding for businesses of all sizes.