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Celebrity branding
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Celebrity branding
Celebrity branding or celebrity endorsement is a form of advertising campaign or marketing strategy which uses a celebrity's fame or social status to promote a product, brand or service, or to raise awareness about an issue. Marketers use celebrity endorsers in hopes that the positive image of the celebrity endorser will be passed on to the product's or brand's image. Non-profit organizations also use celebrities since a celebrity's frequent mass media coverage reaches a wider audience, thus making celebrities an effective ingredient in fundraising.
In the 1700s, Wedgwood, producers of fine chinaware, used royal endorsements as a marketing device to show value in the company and promote their product. In 1882, London socialite and West End stage actress Lillie Langtry became the poster-girl for Pears Soap, making her the first celebrity to endorse a commercial product. In the late 1800s, trading cards were introduced, a card with an image of a celebrity and a product description which was either given to the customer or inserted in product packaging. Cigarette companies gave away baseball cards as part of a customer loyalty scheme, and the increased demand to buy cigarettes in order to collect entire sets of baseball players was exploited by marketers. Early endorsements of this kind didn't always have the permission of the celebrities to use their image. In the 1930s the trend was toward athletes, such as with Babe Ruth's paid endorsement of Red Rock Cola. By 1945, the trend changed to movie stars. In 1965 when color television was introduced, television personalities and entertainers became the celebrity endorsers. In the 1980s, companies started making products around celebrities, for example Nike using Michael Jordan.
In the 1970s, with the advent of free agency, the value of celebrity endorsements escalated, and correspondingly the pay of the athletes by their teams. By 1989, 75% of all sports-related products were using athletes for endorsements, and by the 1990s sports endorsements were being announced with press releases. This led to celebrities becoming spokespeople and brand ambassadors for companies, and a corresponding increase in the value of endorsement contracts.
Celebrity endorsements surged during the early 21st century, with elite athletes emerging as among the most sought after.
Brand recognition is a huge part of celebrity branding. Brand recognition is where the general public is able to establish a brand from its attributes. It is most successful when a brand is exposed without a company name and is then recognized by the customer through the visual signifiers such as logos, slogans, and colors. An example of this is Coke whereby their signature color is red and consumers acknowledge that. Brand recognition is extremely effective in promotional campaigns. To measure brand recognition and the effectiveness it has on promotional campaigns, companies will conduct experiments on study groups for results. If brands are equal in quality similar products brand recognition will always have an advantage of higher sales.
Celebrity endorsements may be designed as explicit, implicit, or both. An example of explicit endorsement can be seen through Beyoncé's sponsorship deal with PepsiCo. In 2012, Beyoncé and PepsiCo sat down and penned a partnership deal that is estimated to be worth approx. $50 million, that embraces the standard Pepsi print and TV commercials that Beyoncé will appear in, as well as a more unorthodox 'creative fund' for any future projects Beyoncé chooses to take on. This is an effective explicit endorsement because not only does Beyoncé have incredible reach, being one of the world's biggest female pop stars, but also the term "partnership" feels more genuine for consumers which may make them more likely to believe that Beyoncé is endorsing the Pepsi product because she believes in the product and the company behind it, rather than some celebrity endorsements which feel forced, or where consumers see through the endorsement and assume it is just a business decision on behalf of the celebrity to make some extra cash.
An example of implicit endorsement can be explained by noticing the growing number of Beats by Dre portable speakers that have been appearing in pop and hip-hop music videos, (such music videos include Lady Gaga, Miley Cyrus, Nicki Minaj and Britney Spears). 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.
Celebrity endorsements can build brand equity. An example of this is Nike. Prior to Michael Jordan, Nike mostly sponsored tennis and track athletes and decided to expand their market, which increased sales to become a multibillion-dollar company.[citation needed] Celebrity endorsement is used as an advertising strategy, by using celebrity status and image, to promote a brand's recognition, recall, and differentiation.
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Celebrity branding
Celebrity branding or celebrity endorsement is a form of advertising campaign or marketing strategy which uses a celebrity's fame or social status to promote a product, brand or service, or to raise awareness about an issue. Marketers use celebrity endorsers in hopes that the positive image of the celebrity endorser will be passed on to the product's or brand's image. Non-profit organizations also use celebrities since a celebrity's frequent mass media coverage reaches a wider audience, thus making celebrities an effective ingredient in fundraising.
In the 1700s, Wedgwood, producers of fine chinaware, used royal endorsements as a marketing device to show value in the company and promote their product. In 1882, London socialite and West End stage actress Lillie Langtry became the poster-girl for Pears Soap, making her the first celebrity to endorse a commercial product. In the late 1800s, trading cards were introduced, a card with an image of a celebrity and a product description which was either given to the customer or inserted in product packaging. Cigarette companies gave away baseball cards as part of a customer loyalty scheme, and the increased demand to buy cigarettes in order to collect entire sets of baseball players was exploited by marketers. Early endorsements of this kind didn't always have the permission of the celebrities to use their image. In the 1930s the trend was toward athletes, such as with Babe Ruth's paid endorsement of Red Rock Cola. By 1945, the trend changed to movie stars. In 1965 when color television was introduced, television personalities and entertainers became the celebrity endorsers. In the 1980s, companies started making products around celebrities, for example Nike using Michael Jordan.
In the 1970s, with the advent of free agency, the value of celebrity endorsements escalated, and correspondingly the pay of the athletes by their teams. By 1989, 75% of all sports-related products were using athletes for endorsements, and by the 1990s sports endorsements were being announced with press releases. This led to celebrities becoming spokespeople and brand ambassadors for companies, and a corresponding increase in the value of endorsement contracts.
Celebrity endorsements surged during the early 21st century, with elite athletes emerging as among the most sought after.
Brand recognition is a huge part of celebrity branding. Brand recognition is where the general public is able to establish a brand from its attributes. It is most successful when a brand is exposed without a company name and is then recognized by the customer through the visual signifiers such as logos, slogans, and colors. An example of this is Coke whereby their signature color is red and consumers acknowledge that. Brand recognition is extremely effective in promotional campaigns. To measure brand recognition and the effectiveness it has on promotional campaigns, companies will conduct experiments on study groups for results. If brands are equal in quality similar products brand recognition will always have an advantage of higher sales.
Celebrity endorsements may be designed as explicit, implicit, or both. An example of explicit endorsement can be seen through Beyoncé's sponsorship deal with PepsiCo. In 2012, Beyoncé and PepsiCo sat down and penned a partnership deal that is estimated to be worth approx. $50 million, that embraces the standard Pepsi print and TV commercials that Beyoncé will appear in, as well as a more unorthodox 'creative fund' for any future projects Beyoncé chooses to take on. This is an effective explicit endorsement because not only does Beyoncé have incredible reach, being one of the world's biggest female pop stars, but also the term "partnership" feels more genuine for consumers which may make them more likely to believe that Beyoncé is endorsing the Pepsi product because she believes in the product and the company behind it, rather than some celebrity endorsements which feel forced, or where consumers see through the endorsement and assume it is just a business decision on behalf of the celebrity to make some extra cash.
An example of implicit endorsement can be explained by noticing the growing number of Beats by Dre portable speakers that have been appearing in pop and hip-hop music videos, (such music videos include Lady Gaga, Miley Cyrus, Nicki Minaj and Britney Spears). 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.
Celebrity endorsements can build brand equity. An example of this is Nike. Prior to Michael Jordan, Nike mostly sponsored tennis and track athletes and decided to expand their market, which increased sales to become a multibillion-dollar company.[citation needed] Celebrity endorsement is used as an advertising strategy, by using celebrity status and image, to promote a brand's recognition, recall, and differentiation.