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The Power Of Celebrity Endorsements For National And Regional Brands

Posted by Stacy Jones on July 20, 2021 at 8:30 AM

A Marketing Tactic To Keep In Mind

Before the digital age, celebrities were a brand's most valuable asset. Celebrities had the power to influence audiences through their ability to be seen and heard in mass media outlets such as television, radio, magazines and newspapers. The accessibility of these mediums meant that they could reach large audiences with relative ease - at least until social media came into play.

However, despite the rise of social media as a key marketing tool for brands big and small alike, celebrity endorsement has not disappeared from the marketing landscape. In fact it is more important now than ever before because celebrities have built up strong followings on various platforms that give them significant clout when endorsing products or brands online (e.g., Twitter followers). In this blog post, Hollywood Branded will share what celebrity endorsements can do for your regional business and why they may be the right marketing tactic for your company.


The Power of Celebrity Endorsements for National and Regional Brands


Getting An Edge On Competition

The power of celebrity endorsements for brands is powerful. After all, it's these endorsements that have helped to make the Kardashian family millionaires! And the reason why...is because it works.

Businesses all over the world use celebrity endorsements to grow their customer base. I'm going to share how celebrities can help your company become well-known in your region or give your brand an edge over competitors by attracting new customers. You'll also learn why celeb endorsements may be the right marketing tactic for your company and get tips on how to find the perfect endorsement opportunity.  

In the last decade, celebrity endorsements have become just one tool of many to leverage the power of influencers as a marketing tool. These days, Twitter followers can reach an audience of millions of people in just one hour - something very few celebrities can do on their own as they don't always have massive social profiles. Influencer marketing and celebrity endorsements are not one and the same, and in fact the rise of influencer marketing has made celebrity endorsement more important than ever!


The Emotional Connection + Engagement

You might be wondering, how can celebrity endorsements help grow my business? Well, the answer is simple. We're living in a world that's more connected than ever before and everyday we are all exposed to thousands of messages throughout our day - on billboards, social media ads, TV commercials - so it’s easy for people to become overwhelmed by content and inundated with information overload. That's why when brands use celebrities as endorsers they make an emotional connection with the consumer much easier than traditional advertising methods like banners online.

Truly engaging consumers also means building relationships that matter across your company channels including offline marketing campaigns such as live events which benefit from celebrity appearances just about every time.

Engagement of celebrity endorsement

What does this all mean?

Celebrities still hold significant sway when endorsing brands online thanks to their large followings across different social media channels like Facebook, Instagram and YouTube. For example: If Cristiano Ronaldo endorses Nike products with his 21M+ fans or Taylor Swift talks about Apple Music on her Instagram, these branded moments drive sales.

Celebrities can make an impact on consumers in ways that other forms of traditional advertising cannot, such as the way they use their voice to endorse products, model them, and promote them via social media channels like Instagram posts which create visual representations of their endorsement while also leveraging existing connections between themselves and fans; this allows you to tap into these potential influencers' massive followings without having to pay millions for TV ads. Celebrities can also be leveraged for product placement with the brand receiving valuable exposure in prime time television and on magazine covers.

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Benefits Of Celebrity Endorsement

The list is long on the benefits of celebrity endorsement partnerships for brands, let's take a look at some of the top reasons why this marketing practice is still so popular today.

  • Celebrities can help create an emotional connection with consumers that other forms of advertising are not able too.
  • Gain authenticity: Sponsoring a local celebrity and adding a charity angle or special for a local market is an excellent way to show you care about the community.
  • Stay on top of trends: Celebrities are often surrounded by popular culture, and can help your company stay up with current trends.
  • Leverage their network marketing power: It's not just what they say but who they know that counts in business; sponsored celebrities will have access to a vast number of potential consumers through their followers.
  • Celebrity endorsements help increase brand awareness by increasing purchase intent; they also provide an opportunity for word of mouth advertising. When celebrities promote products on social media channels like TikTok or Instagram Stories, followers click out of curiosity which can help boost sales even more.
  • Celebrity endorsers can introduce your product to a new, younger audience. Younger consumers are more likely to buy something endorsed by a star or athlete they admire and celebrities have the power to influence these potential customers.
  • Celebrities also help connect their fans also already fans of your brand as well. These fans are generally more loyal and provide valuable feedback.
  • A celebrity endorsement can also help market your company in a new, unique way.
    • For example, Nike created the Huarache Free Run to be worn by basketball players and teams like the Chicago Bulls. A great example of this is Michael Jordan’s deal with Nike that made him the face of their Air Jordan line. The contract was worth $20 million a year at its peak in the 1990s which helped make his sneaker one of the most popular on the market, even among people who didn't like basketball or sports. Having Michael Jordan endorse their product made them seem innovative and creative while reinforcing that it was used as an accessory for professional sports uniforms - and if it is good enough for a professional athlete, then it is certainly good enough for your child (or you!)
    • More recently, a great example of this is Oklahoma City Thunder basketball player Kevin Durant’s recent sponsorship with Nike Kobe A.D., which has been touted as one of the most valuable and exclusive deals ever made in sports marketing history. It's estimated that Nike will spend $35 million per year on marketing for KD
  • And something not thought of often, a celebrity's association with your brand can lead to better search engine optimization (SEO) results because it means people will be typing in the name of the celebrity when searching for information about your product which could lead them back to you.
  • Lastly, celebrity endorsements can be good for business because it makes your company seem more accessible and relatable. Celebrities and sports figures who endorse products on social media channels like Twitter, Instagram Stories or TikTok get their followers to click out of curiosity, creating almost a direct response approach, which if done the right way, will ultimately lead to increased sales even more so than if you were just buying ads in magazines or newspapers - and providing long term benefits.

There are other benefits of partnering with celebrities including increased brand awareness, access to exclusive content or events, higher engagement on social media channels which drives more sales conversions.  Celebrity endorsements are a great way for brands to engage with a new community and stay relevant.

If you're thinking about working with celebrity endorsers, there are many benefits to consider, but it's important to weigh the risks as well.

celebrity sales success video


The Risks To Be Aware Of With Celebrity Endorsements

Brand managers should take into account celebrity endorsers have certain risks involved as well as benefits before making a final decision about whether or not to use them. Here's a few considerations to keep in mind...

  • What if it doesn't work? Brands may invest a lot into sponsorship deals only to see them fail miserably due to unrealistic expectations or poor vetting process if the campaign is poorly managed.
  • The celebrity may not buy in to the partnership at the level many brands seem to expect - only providing the services down to black and white minutia of the contract. But this is the reality - while everyone wants authentic relationships, a celebrity is going to typically do that which they are contracted for, and only that.
  • Another issue is that if not done well, the endorsement may be seen as too corporate and lacking authenticity, which ultimately drives down customer confidence.
  • Celebrity endorsements are expensive because celebrities usually charge a very high premium for their time. It's not only based on what they are doing specifically for you - but what your campaign is keeping them from doing in the future with another brand. No competitor brand is going to want to work with the celebrity after your brand has - not for quite some time.
  • A celebrity's fame doesn't always translate into credibility with consumers--people might not believe that person really likes the product you're selling but rather it was just an easy paycheck. This could also cause people to feel betrayed by influencers who recommend products knowing full well they were never going to buy them themselves; after all, they're not the consumer. That's why authenticity is so important.

Celebrities can make your product more recognizable and are a powerful way to drive sales for any company - but there's no such thing as free advertising or guaranteed success with celebrity endorsements.

In order for these partnerships to work well, brands should keep an open line of communication with these celebrity influencers and ensure basics like a thorough understanding of your brand exists as the base to the partnership foundation.

Risks of celebrity endorsement

 


Celebrity Endorsements And Regional Brands

We also recommend using celebrity influencers for more niche audiences to open up your brand potential and make it available to a wider audience.

And good news for smaller brands or those in local markets - since regional celebrities are often more well-known in their markets than nationally, you can achieve an exclusive celebrity endorsement by tapping into a regionally recognized figure who is relatable to your product target audience.

There is a 'celebrity' option for all brands of any size. Even well-known local community members can serve as 'celebrities' and influencers on a more scaled down, and affordable, level. These partnerships are less costly than national celebrities, with the same benefits (or even greater).

Local celebrity endorsements have a huge upside for brands in marketing. They can be more affordable, and often times they will offer better ROI for your company because the celebrity is already well-known to their target audience. The beauty of local celebrities is that there are options at all levels - even if you're not big enough (yet) to afford national celebrity endorsers!

Celebrity endorsements are an effective way to engage with your community and boost visibility. I'm sure you've seen celebrity product placement all over - from sports teams wearing jerseys of their sponsors, or a TV show where the main characters wear clothes that were paid for by specific companies in exchange for advertising space on screen. These types of partnerships can work well if they're targeted toward the right audience. Local celebrities offer better ROI because they live in close proximity to potential fans and have strong connections within local communities - plus just smaller fan bases overall, making them more affordable.

Your first step? Identifying which type of celebrity endorsement opportunities best suit your needs; regional celebrities are usually most effective when paired with small niche audiences who want products related specifically to them. This maximizes the reach while still driving traffic back to sites where customers with specific interest can find what they need within an aligned culture.


Ready To Dive In Even More?

Celebrity endorsements are more effective than you may think! Check out these blogs on celebrity endorsement deals for brands:

Want to listen to this blog post on our Marketing Mistakes podcast? Check it out!

I've shared the benefits and risks that you can prepare yourself for when creating celebrity endorsements. Our team is always here to help, no matter the campaign size. We have DIY classes at https://learn.hollywoodbranded.com as well as are at the ready to take lead and help ensure success!

To learn more about the power of celeb endorsement, download our complimentary video on how celebrity endorsement deals drive sales today!

Celebrity Endorsement Deal Case Studies That Made Sales Happen Video

Topics: Celebrity Endorsements