To be sure, Fluence is just one of the many companies busy signing up deals with celebrities—film actors, sports stars and musicians, among others—and growing the nascent industry of digital media rights management. Recognizing the importance of digital celebrity rights, more and more brands are keen to sign them up for their products and services.
A month ago, this column spoke of how brand ambassadors are becoming influencers mintne. It is in fact digital media that plays a big role in turning them into influencers. For starters, digital rights mean anything and everything which is not mainstream media, that is, a television commercial or a print ad.
Unlike in television and print, digital rights offer the option of bite-sized celebrity endorsements especially for social media—maybe a tweet, a video blog or other content.
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Companies like Fluence also offer their celebrities for gaming rights and for programmes for over-the-top platforms. Assigning their digital rights to an expert helps the celebrities grow their influence in the social media sphere. The strategic inputs on what to tweet and put online helps them increase their followers. The agency, which becomes the repository of their digital rights, grows both their social media presence and their equity with brands that need them for endorsements.
Brands benefit—they get exposure and traction—when these celebrities post about them on their pages. They are the influencers. Bachchan has 40 million followers across social media. Khan has 42 million. Fans listen to them and like what they say.
A number of film actors, for instance, tweeted about the recently concluded Flipkart sale that benefited the e-commerce platform. Getting your product used by a famous figure can help to raise your brand profile and boost your bottom line. But how do you go about it? The business benefits, he says, are both tangible and intangible.
As Hunter points out, the value lies, not in product endorsement - Ford has a career long policy of not endorsing products - but in media exposure. The long term benefits are brand recognition and awareness that the product exists. This creates a brand identity as consumers begin to relate the celebrities' characteristics with the brands.
How to grow your business by getting celebrity endorsements
Celebrity branding can take several different forms, from the appearance of a celebrity in advertisements for a product, service or charity, to a celebrity attending PR events, creating his or her own line of products or services, or using her name as a brand. Some singers, models and film stars have at least one licensed product or service which bears their name.
For example, sales of Nike golf apparel and footwear doubled after Tiger Woods was signed up on a sponsorship deal. Celebrities also provide voice-overs for advertising. Some celebrities have distinct voices which are recognizable even when faces are not visible on a screen. This is a more subtle way to add celebrity branding to a product or service. An example of such an advertising campaign is Sean Connery 's voice-over for Level 3 Communications.
The Economic Value of Celebrity Endorsements
Celebrity branding is a global phenomenon and it assumes paramount importance in countries like India, [ citation needed ] where the public may treat celebrities as virtual demi-gods. There is a certain correlation [ which? More recently, [ when? However, in some cases the celebrity did not give permission to be associated with the brand and was wrongly attributed to the brand.
Paid endorsement or overt endorsement involves a contract between the brand and the celebrity to represent the brand in an advertising campaign. The contract may involve some restraints on the celebrity's act; such as cutting their hair or endorsing a direct competitor. The celebrity will generally gain a sum of money for endorsing the brand but also have a few guidelines to follow. Advertisements can include television advertisements, radio, billboards, or magazine posters showing the celebrity in the brands advertisement to help increase the products image.
The celebrity could be seen using the product, or the main character, as being seen in the advertisement can help viewers associate them with the brand. Celebrities used for voice-overs or radio advertisements generally have a distinct voice that viewers will recognize like Morgan Freeman's voice.
Brands use events for the celebrity to be seen at, as it helps show their support or association with the brand. Having photos taken of the celebrities at the event makes the viewers associate them with them supporting the brand, making the viewer associate a positive connection. This can be done through celebrities hosting the brands event, like Victoria Secret Show , using celebrities to perform on the catwalk.
Celebrities promote the brand using social media using social media, like Instagram, Facebook or Snapchat. This helps the brand target the celebrities' followers to create an association between the two. The advantages of using celebrity endorsements on social media is the large reach that celebrities have.
The hiring of a spokesman or celebrity has increased as a digital marketing technique. Celebrities have been endorsing products and services of businesses on television and print media for decades. However, the social networking site Instagram is now often used as a platform for businesses to market products or services either through a third parties page, such as a celebrate, or directly through their own Instagram page.
What is special about Instagram is the fact that it encourages electronic word of mouth , which exist solely on the concept of sharing. Companies can simply tag the username for the businesses Instagram page to allow other potential consumers to browse through that Instagram account in just one click.
The culture of advertising on Instagram came naturally when businesses realized that celebrities have a direct means of communication to their target demographic. According to the Telegraph , the ten most popular Instagram accounts are all celebrities who all have around 30 million followers. By partnering with one of these celebrities, businesses are already reaching an engaged and targeted audience of 30 million people. Many of America's top-earning celebrities Instagram accounts are continually promoting products such as health supplements, vitamins and detox teas.
These aren't spontaneous proclamations, but rather posts paid for by brands to advertise products to the celebrities' sizable following. One of the celebrities that is most well known for promoting brands on her Instagram page is Kim Kardashian. Global brands are expanding the use of digital communication via social media. Companies who use Instagram as a form of digital communication include, high fashion brands such as Christian Louboutin and Chanel. Both have been known to send products to influential users in return for an Instagram post and acknowledgement.
Puma SE have recently increased their digital marketing campaigns through the use of sponsored adverts and endorsements on Instagram. This makes these forms digital marketing communication an attractive bet for advertisers seeking millennial eyes. Furthermore, the principle analyst at eMarketer Debra Williamson states that these celebrities influence teens and young adults when it comes to making a purchase, firms can reach out to people through Instagram that otherwise would not be reached.
As Instagram has transformed into one of the most influential forms of mass communication, the rules surrounding Instagram advertisements have been developed overtime to ensure that institutions do not misuse the platform. Unpaid endorsement or covert endorsement occurs when a celebrity wears or uses the product of a certain brand because they like it.
Lots of beauty companies use this to get YouTube reviewers to review their product so they get free advertising. Sometimes a celebrity is given merchandise by a brand to use or wear in public where there is maximum exposure, such as an event. This is called "gifting"  and the celebrity might endorse the brand by taking a photo of the gift and putting it on their social media account for their fans and followers to see. Whilst the "gifting" may appear to be unpaid, costs are associated with this endorsement, as the brand does not have any contract in place with the celebrity and will have little or no protection against what happens during the unpaid endorsement.
They could be seen wearing the product in public or in photos on social media. This is 'free advertising' for the brand. A disadvantage of this is the brand has no control over what message or image the celebrity associated with the brand is portraying. When companies are selecting a celebrity to endorse their brand, they must match a certain criteria that they wish for the brand to be associated with.
The celebrity must fill the gap between the consumer and brand when one is present. Celebrity endorsement also affects the celebrity.
The brand itself can have a positive and negative influence on the celebrities' image showing a reverse effect of the celebrity endorsing the brand. Celebrity branding has become a marketing strategy to help appeal a brand to new consumers.
- How Brands Can Use Celebrity Endorsements to Connect With Customers Online;
- Influencer Endorsements: What Every Small Business Should Know — YFS Magazine!
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