Celebrities in advertising and Brand Strategies Used by Agencies

I am going to write about a couple of series of the Blog post in strategic advertising and research that I have done in the past. It will be an example for you to understand the way media agencies are using strategies and celebrities to endorse Brands.

Every day more companies choose to utilize celebrities as endorsers, in their marketing campaigns. That strategy has grown more popular than ever companies trying to attract middle class. The celebrities used are mostly movie stars and athletes. The purpose of this research is to gain a deeper understanding of a Business choice of celebrity endorsement as part of its promotion strategy. To achieve the goal, I stated three research questions: why companies choose celebrity endorsement as a promotion strategy, how companies select their celebrities, and how companies address the investment return on celebrity endorsement.

To accurately achieve the purpose and answer the research questions, telephone interviews are conducted on it. I chose to do a case study for the Swedish company J. Lindeberg to obtain thorough information within the area. The gathered data from this case is discussing, analysed and then used to conclude.

The overall conclusions from this thesis are that J. Lindeberg uses celebrity as endorsers because it brings the brand more media exposure than other forms of endorsers. The company’s selection of stars is more based on feelings and intuitions then systematic models or methods. Finally, I concluded that the company does not use any specific calculations to address the investment return of the celebrity.

Background Analysis

Advertising was playing an active role when it came to the development of the society in the economy in the early 1930s. Celebrities acted as mediator, to advertise and promote products, services and ideas. Those celebrities came from the art scene, modelling, sports and the movie industry (Kambitsis, Harahousou, Theodorakis & Chatzibeis, 2002).

The first advertisers used celebrities as pioneers to dictate trends. When the British actress Lillie Langtry appeared on a package of Pears Soap in 1893, she became the world’s first celebrity endorser (ibid).

A Tellis (1998) point out endorsers is dividing into three broad groups: experts, lay endorsers, and celebrities. An expert is a person who is considering as having specific knowledge in the particular area that is to promote.
Typical experts are selecting because of their knowledge, which they have gathering assembling through examinations, preparing or encounter (Ibid). An illustration is a point at which a toothpaste organisation utilizes a dental practitioner in business to underline the validity of the item.

Example of the Board Groups

According to Tellis (1998), lay endorsers can be real or fictitious and are (initially) unknown individuals or characters. These individuals and characteristics attributes are chosen to be like the external portion, which makes it feasible for the objective fragment to relate to the endorser and the message. The unknown voice-over in video and sound ads is frequently that of a lay endorser. Shimp (2003) raises another type of underwriting (ordinary individual endorser) that is equivalent to Tellis’ lay-endorser.

Shimp (2003) says that the run of the individual mill endorser is more affordable than utilising VIPs in the advertising.

Run of the mill individual endorsers can keep away from the potential reaction from utilizing “lovely individuals” who may not appreciate for having a typical physical attractiveness or other different characteristics. Shimp (2003) carries on by saying that many advertisements that portray typical-person users include multiple persons rather than a single individual. The act of representing more than one person seems to increase the likelihood. An ad will produce more elevated amounts of message association and correspondingly, more prominent message elaboration.

Using Celebrities endorsement

That raises the odds that strong message arguments will favourably influence attitudes (ibid).

Celebrity endorsement is defined as: “any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement” (McCracken, 1989, p.311).

Today, TV stars, motion picture on-screen characters, acclaimed competitors and even dead identities are broadly used to support items. By definition, a superstar is an outstanding identity (performing artist, performer, or competitor) who is known to people in general for his or her achievements (Shimp, 2003). As indicated by Kambitsis et al. (2002), the present employment of big names in promoting methodologies is winding up increasingly advanced and confused.

From 1979 to 1997 the ubiquity of utilizing VIPs in promoting in the USA expanded from 15 to 25 per cent. These days more than 20 per cent of all TV plugs include stars (Belch and Belch, 2001).

The magazine, Forbes (2004) records the best 100 famous people by estimating the amount they procure, squeeze clips and TV/radio appearances. The central superstar was the performer Jennifer Aniston, trailed by Eminem and Dr Dre, both in second place and in third place, golfer, Tiger Woods (Forbes 2004). Today these VIPs have restrictive underwriting contracts, e.g. Tiger Woods $105 million contracts with Nike (Forbes 2004).

Celebrities in Advertising and Consumers Behavior

According to Martin (1996), organisations burn through a great many dollars every year for the support of their items by competitors. Significantly littler organisations with limited spending plans are starting to utilize games and competitors to advance their issues. As a byproduct of the enormous uses of supports, competitor endorsers are required to achieve a few targets.

These include: catch the consideration of customers, fortify review of the brand name, strengthen the picture of the Brand. Also, give the message validity, increment preferring and analysis of the promotion and improve the probability of procurement.

Today both hypothesis and practice demonstrate that they use of superstars in advertising generates a lot of publicity and attention from the public (Romanian, 1991). A recent example is Nike, which is 2004, plans to spend 192 million dollars on their upcoming celebrity endorsement campaign.

Branding Strategies Used by Agencies for Campaigns

Jagdish and Wagner (1995) state that celebrities make advertisements believable and enhance message recall.

Furthermore, celebrities aid in acknowledgement of brand names, make inspirational demeanours towards the brand. Then establish a particular identity for the embraced mark. The utilisation of celebrity supports is a publicising system that should improve. The negligible estimation of notice uses and make mark value utilizing the “auxiliary relationship” of a celebrity with a brand.

Till (1998) states organisations can utilize big-name endorsers either sporadically or astutely. The impulse of the customer or the office. Payback on the interests in the VIP underwriting originates from using the big name routinely after some time. The reiteration fortifies the cooperative connection for those purchasers officially mindful of the celebrity underwriting. It additionally builds customers who start to turn to become cognizant of the relationship between the brand and the celebrity. Marketers unwilling to commit to consistently using the chosen star. Weaken the benefit expected to derive from the endorser. You may wish to rethink the appropriateness of using a celebrity (Till, 1998).

An example is Nike’s consistent use of Michael Jordan. This symbiosis has encouraged customers to think about Nike when considering Jordan and vice versa. That guarantees that Nike and Jordan have progressed toward becoming a piece of each other’s affiliation set.

As to the above exchange, it can be costly to utilize a big name when publicising an organization’s item. However, then again, it can be useful.

As per Jagdish and Wagner’s (1995) investigate, the average effect of these declarations on stock returns is sure and proposes. Celebrity support contracts are seeing as a beneficial interest in publicizing. In any case, organizations ought not to disregard the potential danger of this sort of advertising effort.

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