Is it worth to spend money with famous celebrity to gain more sales volume?

“93% of customers expect companies to have a presence on social media” (Bedgood, 2015).

This illustrate, customers access information through social media even more in nowadays and use social media to engage with other people all around the world with no barrier. Company can sell their product and service worldwide and expand their local market into global market or niche market into mass market. An important point is that they can expanding market into foreign countries. Sound nicely but we should know how to access to those customers through social media channels. There are example of social media channels list below.

List of social media channels.

Facebook-128 Facebook

• Twitter-128 Twitter

• YouTube-128 YouTube

• Linkedin-128 LinkedIn

• Google_Plus-128 Google+

• Pinterest-128 Pinterest

• Instagram-128 Instagram

1111

Figure 1: 2015 B2C Content Marketing Trends-North America: Content Marketing Institute/MarketingProfs

According to the above figure shows, Facebook is the most popular social media platform that customers really use. Interestingly, all of them except Instagram have over 50% usage between business and customers. Then choosing social media platform to be one as your promotional channels is a good choice.

After we know which social media channels we will promote in. Let’s find what will make customers recognise the brand among various competitors? 

To my knowledge, customers always make a decision to purchase the product and service according to the trust in brands or how much credibility the brands have. Moreover, brand awareness is also the most major factors that make customers recall the brand from their memory and gain the trust with them. In this case, we should have representative to connect with the brand image.

Presenter is the one who represent the brand image and help customer recognise it easier.

“As statistical proof, Nike golf balls, since the company signed Tiger Woods in 1996, have seen a $ 50 million revenue growth.” (Mukherjee, 2009).

TigerWoods

Figure 2: 2015 B2C Tiger Woods Net Worth

Net Worth: $640 Million

Surprising that Tiger Woods net worth was $640 Million and his earnings in 2015 was $50.6 Million. Can you image how much Nike offer money to make Tiger Woods signs the contract? Nike has Tiger Woods as the brand ambassador which represent that Nike be the professional brand in golf line. Customers will be motivate to purchase Nike’s product by recognising the brand ambassador. This is an great example for choosing celebrity as presenter to increase brand image, brand awareness, and sale volume. From my point of view, it comes as no surprise that it worth to invest huge money with celebrity to increase sale volume.

How do you think, about engaging follower in social media by using famous celebrity as a presenter, can really increase revenue?, is it worth to spend money with celebrity ?

Let’s me know your idea about this topic. Hope you enjoyed this post 🙂


Reference List: 

1. Bedgood L. (2015). 4 Ways to Increase Revenue with Social Media. [online] Available at: http://www.business2community.com/social-media/4-ways-increase-revenue-social-media-01236612#JROMUFkrvQv5Q282.97 [Accessed 25 Oct. 2015].

2. Mukherjee D. (2009). Impact of Celebrity Endorsements on Brand Image. [online] Available at: http://usdrinc.com/downloads/Celebrity-Endorsements.pdf [Accessed 25 Oct. 2015].

Figure Reference List:

Figure 1: Beechler D. (2015). 11 New B@C Content Marketing Benchmarks for 2015. [online] Available at: http://www.exacttarget.com/blog/au/11-new-b2c-content-marketing-benchmarks-for-2015-3/ [Accessed 25 Oct. 2015].

Figure 2: TheRichest, (2015). Tiger Woods Net Worth. [online] Available at: http://www.therichest.com/celebnetworth/athletes/golfers/tiger-woods-net-worth/ [Accessed 25 Oct. 2015].

Cover Photo:

1. Cheaptravelcodes.com, (2013). Ethical Marketing and “Brand Ambassadors” | cheaptravelcodes.com. [online] Available at: http://cheaptravelcodes.com/ethical-marketing-and-brand-ambassadors/ [Accessed 25 Oct. 2015].

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22 thoughts on “Is it worth to spend money with famous celebrity to gain more sales volume?

  1. Jananun says:

    I think it depends on the product or services being offered. Customers’ buying decisions on different products are driven by different factors.

    I am sure for a fashion industry, having celebrity will draw attention from customers. Matching the right celebrity with the right product is the key. Because, for me, celebrity is a brand character and brand positioner. So putting them in the right campaign will surely help increase revenue.

    Liked by 1 person

    • Of course, selecting the right celebrity to the right campaign is persuaded customers to make a right decision on the product.

      I have some question to ask you.

      Do you ever purchasing the product which have presenter attached on it?

      How do you feel when you own that product?

      Like

  2. According to How do you think, about engaging follower in social media by using famous celebrity as a presenter, can really increase revenue?
    ——–
    I think first it made me know about the product and their brand. When I stayed in thailand, I know which brand is good, which one is not. So, presenter can’t engage with me. While I just moved in UK, I don’t know many things, then I would buy the product which I heard the name before. So, it has an effect with me. Famous celebrity leads to grab attention of viewers. In this era, there are too much of information, including video. So, if it is not interesting within 3-5 sec, viewers will skip it. Sometimes I think famous celebrity is good idea and worth for making your brand look great! but content is also important. Although you use famous celebrity but content is worse, you cannot get money from me.

    Liked by 1 person

    • While I lived in UK, I always do the same things as you does. Just pick up the things that I have heard and familiar with, such as H&M, Zara, Mc Donald, and Burger King. Sometime I want to try new brand instead of the brand I known too.

      Do you ever trying other new brand that you never heard about it? @ts1m14

      Like

  3. For spending huge budget on using celebrity as a presenter in order to gain the follower on social media – I am still doubting that it is worthwhile or not. But I can say that it is very worth to spend money with the celebrity in order to increase the sale volume – in the case of that celeb must relate to the product itself and won’t draw a negative impact to your brand. Just like the case you mentioned about Tiger Woods with Nike. I love the brand itself but I personally don’t like Tiger Woods because of his behaviour towards his wife. So, that stop me to buy Nike for a while… However, when it comes to Kate Moss, one of my favourite model. Once I heard the ad about Kate Moss was involving in the Topshop designing team. I didn’t hesitate to go to grab ones of those collections. In fact, I didn’t even care the fact that whether she is involved in the designing team for real or not. But it did grab my attention right away. Why? Perhaps I am a type of consumer that use emotional rather than rational when it come to clothes and fashion, which I have passionate about.

    Thus, I personally think it is worth to spend on the celeb but you as a brand marketer has to choose the presenter wisely…

    Liked by 1 person

    • The brand should carefully consider to choose celebrity who will not create negative image to brand, I’m sure that in some bad situation which happens to the brand ambassador were not easily to solve the problem.

      I think the reason why Nike keep signing contract with Tiger Woods because they might not focusing on celebrity’s background but focusing more in “image”, which Tiger Woods is professional golfer.

      In my case, I have purchased Nike because they were professional in producing sportswear line and because of brand awareness I’m familiar with them. So brand ambassador may effect to who didn’t know much in brand, but just only consider with the brand image like which brand professional mostly wear and follow celebrity’s fashion.

      Like

      • I agree with the Nike case, yeah… that might be one of the reason, perhaps Nike try to focus on golfers as its main target.

        However, have you ever come across about the difference between “Brand Ambassador” and “Presenter” in term of meaning. Choosing the wrong Brand Ambassador would cause a nightmare for the company. From my experience, this could lead to a negative images that people look towards your brand as well, and this case was happened before in Thailand, but I could not mention the company name though. The result was proved by the research company. So yeah as you mentioned… we are as a marketer need to make the decision wisely; or else ask them to sign the contract in order to behave in a very good way for the period of time. What do you think about this idea?

        Liked by 1 person

      • I think signing a contact is a good way of solution. Law and regulation will lead contractor to behave well and it also protect company from any worst situation that cannot be expected.

        Like

  4. If we are talking about fashion and beauty industry they affect teenagers. They use psychological tricks. I think that it’s not so ethical. Also brands affect women who dream about the same shapes and looks as celebrities have. They affects men, who want to be so powerful and cool as celebrities. Within this manipulation people live with illusions. Thankfully I don’t buy goods because of brands ambassadors. I think that I don’t. However, all those things influence on us subconsciously.

    Liked by 1 person

    • Almost, in beauty brand use celebrity and top model as brand ambassador. This worth to do that. Psychological marketing strategies can convince customer behaviour but there are only one factor to influence customer decision. There also have other environment factors. Customers should not be trick by relying on the ads only, they should have consumer knowledge to judgement their decision.

      Mostly, young people don’t concern much in this fact and be influence by the advertisement. So Adult should give advice and take care them carefully.

      Thank for sharing other side of idea, it’s inspired me a lots.

      Liked by 1 person

  5. For me, I do not buy a product because of the brand ambassador. I just buy the product that I want and necessary for me no matter who is a brand ambassador.

    In term of a business, it is important for them to promote their product in order to let’s people recognize their brand. So the brand ambassador or celebrity could be a great idea for them. But the company should be considered about their budget too. It would not good, If they save their money on a quality of a product to use in the brand ambassador.

    Liked by 1 person

    • Evidently, using brand ambassador is only one factor the effect customer awareness, the company have to consider another strategy to deal with customer demand. It would be bad if company spend lots of money in the brand ambassador and ignore the quality. They should balance and match the perfect strategy to suit the range of product and know their brand position in the market.

      It’s good for you that you can realise the value of the product rather than external factor of the product.

      Like

  6. I think brand ambassadors are good for luxury products or world brands or famous brands because I think these companies have money enough to pay them. Most of world brand companies actually have good reputations and high brand value. Their customers also have high expectation toward their ad campaigns. They want to see something stunning or cool from them. So, celebrities can help them at this point because celebrities can create high awareness and grab attention from many customers and tend to give companies back high revenue.

    Liked by 1 person

    • Personally, it’s true that high-end brands, their customers alway have high expectation on new arrivals and extremely value in ad campaigns. High-end brands have to have strong brand image toward customers who have high perceived value in the product and service. They are concerning in high quality and having higher income elasticity to purchase luxury items. Obviously, select the right brand ambassador will enhanced you brand image and rise brand awareness to your brand.

      Like

  7. Ana Violante says:

    I like this topic! I think choosing the right brand ambassador for a company can increase the brand’s revenue and popularity. In my opinion brand ambassadors work only in certain industries like beauty, fashion and sports but for example not for the pharmaceutical branch/ medicine products. The only risk I see is the reputation of the brand ambassador. For example Tiger Woods, had a big scandal (for cheating on his wife multiple times) in the press in the past years and this negative press can damage the brand. Nevertheless brand ambassadors can be very positive for the company. especially in the fashion and beauty industry. If a company chooses a famous fashion blogger, the target audience will trust this brand ambassador and the market share and the brand’s credibility will increase.

    Liked by 1 person

    • In beauty industries, brand ambassadors seem to be more necessary because I know female customer interesting in appearance so have a nice model is a great idea to attract in this target market.

      I agree with you about pharmacy industry that there no need to have brand ambassador because most of medicine brand like to advertise the whole picture of what you will be in the future and focusing more in the ingredient that combined in the product rather than who really eat it. In my opinion, when I purchase any vitamin, first I always watch a review on internet be make a decision.

      Like

  8. For my aspect, I am a customer who are not pay attention with famous people. I will focus on branding of product, quality and worth for my money. For Facebook and IG platform, I love to see what is not present by celebrity because I think it fake and too official. So, I love to find ,y product on hashtag more than anything.

    Liked by 1 person

    • Concerning more in product’s value is wonderful thing that customer have to make the decision. I also saw plenty of shop in IG hired pretty girls to be their presenter, even though those girls didn’t really use that brand. For this issue make younger customers who were not have enough decision level, can be easier influence by this advertisement.

      Like

  9. I think if we are able to justify the link between Celebrity and the brand he/she is endorsing then we are more likely to purchase the product or at least have positive feedback toward the Advertisement. But sometimes celebrities endorse products that are in no way related to their profession or specialty, in that case viewers will have negative reaction to the Ad.
    My point is, It makes sense that a sports figure advertises sports wear or sports equipment, but it doesn’t make sense for a famous Chef on TV advertise the same thing!

    Liked by 1 person

    • As in lesson on Marketing in the 21st Century, our lecturer give example to James Bond, actually in his real life he didn’t wear that luxury watch as in the advertisement. I think company just want to enchant brand image through James Bond look.

      Like

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