The advertising industry is a vital part of society and an important source of economic activity. It serves as a means of delivering information about upcoming products and services to an audience targeted by the advertising. Celebrity endorsements also form a major part of advertising campaigns.
To leverage celebrities’ popularity and trustworthiness, advertisers use them in their advertisements to increase awareness and effectiveness.
In order to promote a new product or service, celebrity endorsements are one of the most effective tools that are used in commercials. There are millions of industries that utilize this marketing strategy to build trustworthiness, induce dependability, attract consumers, and make them aware of the various brands on the market today.
In order to promote brands, advertisers are mostly relying on celebrity endorsers. They flip through television channels, print media, social media, or radio channels to see different endorsements.
There are many reasons why celebrities are used for advertising purposes, and one of them is that it helps to gain the attention of the audience and gives entrepreneurs a better chance of communicating with the mass media. It also helps consumers to remember the advertisement message and the brand name which the celebrity is endorsing.
By pairing a celebrity with a brand, consumers are able to shape the brand image in their minds, resulting in a brand personality. The beauty and personality of Ananya Panday or Deepika Padukone, who promote LUX beauty soap or LAKME iconic kajal, entice consumers to buy the product.
The media influences and stimulates public behavior, thus. Currently, advertising is dominated by images, voices, newspapers, websites, and television channels, and advertisers steal as much time as possible from the people to inform them about their products and services.
Increasingly, consumers are challenged by the use of media technologies or by celebrity endorsements in advertisements to gain their attention. Consumer purchase intentions (Beauty Soap) may be significantly and positively impacted by celebrity endorsements in the Indian context, according to the results of this study.
Therefore, consumers are likely to be significantly and positively impacted by the entry of new brands into the marketplace.
Why are advertising agencies relying more on celebrity endorsements?
The aim of advertising is to change a consumer’s thinking process about a product or service. The main purpose of advertising is to influence the consumer to purchase the product and make use of it.
In order to achieve this, one must employ unique marketing strategies, which can deliver the message effectively and clearly. Most customers prefer to use products that are portrayed by famous personalities, as they are more likely to buy them.
People are able to identify celebrities the same way they recognize people we know, regardless of whether or not they are real fans.
Consumers are more likely to recall products endorsed by celebrities than products not endorsed by them, according to a study. In this way, consumers who are fans place a higher value on brands endorsed by celebrities – as if they are receiving advice from friends.
When celebrities endorse or promote their products, brands can raise awareness, trust, and familiarity, which play a crucial role in the purchasing decision. When a brand is promoted by a celebrity they admire or relate to, consumers feel more sympathetic toward it.
People subconsciously believe that purchasing a product promoted by a celebrity that they admire will allow them to emulate the celebrity’s desired traits or attract similar people into their lives, which is a simple psychological effect.
In this case, they would associate celebrities with certain products based on their success, beauty, athletic skill, etc.
In another study, consumers (ages 18-24) were found to take an active role in developing their identities and appearance based on celebrity influence. As a result of their exposure to celebrity brand endorsements, they are more susceptible than others to these endorsements.
As a result of the study conducted in 2015, it was determined that different generations differ in their level of trust in advertising formats.
In the survey, it was determined that celebrity endorsements resonate more strongly with Generation Z (ages 15-20) and Millennials (ages 21-34) audiences than with older audiences.
Increasingly, brands are utilizing the social media communities of celebrities in order to promote their products and services.
Consumers, especially those in the younger demographics, have the option of interacting with the celebrities they follow through social media, making social media the place to promote a company or product.
A social media celebrity, such as Kim Kardashian, Justin Bieber, or others, can earn $20,000 for a single 140-character tweet.
Although these kinds of product placements disguised as regular posts can be seen as deceptive forms of marketing, efforts are underway to identify them as ads. In general, celebrity endorsements are seen as a viable way to increase brand awareness, build credibility, and promote products.
In the US, 14-19% of advertisements featured celebrities who endorsed products and brands. In other markets, the number is even higher. According to Marketwatch, a simple announcement that a brand has signed a celebrity or athlete can cause stock prices to rise and increase sales by 4% on average. Nike alone spends $475 million annually on athlete endorsements.
As a result of Chanel’s signing Nicole Kidman in 2003, it was reported that global sales of Chanel’s perfume increased by 30% after the deal. In 2000, Nike’s market share went from 0.9% to 4% in six months after Tiger Woods and Nike signed a sponsorship deal.
Nonetheless, Nike suffered a loss of $1.7 million in sales and 105,000 customers as a result of keeping Woods despite his highly publicized scandal, which led Nike to lose $1.7 million in sales.
The direct impact of celebrity endorsements on consumers’ purchasing decisions is inconclusive, even though they certainly help to attract consumers.
According to a study, 85% of people surveyed said celebrity endorsements made them more confident and preferred a product, but only 15% said celebrities affected their purchase decisions.
With 51% of consumers stating that celebrity endorsements have little to no impact on their purchasing decisions, even consumers are unsure about the influence of celebrity endorsements on their purchases.
Keep your eye on the products you sell
The blind faith in celebrity endorsements is a warning as consumers become better educated and have access to more information. Consumers will be attracted to a brand due to a celebrity link, but will quickly move away if the product does not perform.
Consumers are more aware of what they are buying than ever before – despite David Beckham telling us how good long johns look and fit at H&M.
Many people have follow-up questions and want to know if the product being sold to them by a celebrity is actually good. Will their money be well spent? Are there better alternatives? Is it the right product for them?
When brands lose their rationality, emotional value, and visual and cultural image, and continue to push products with no substance, they distance themselves further from their original brand image.
Instead of solely relying on real-life Barbie dolls, athletes, or pop culture icons, brands need to tell consumers why a product makes sense and why it can solve a problem for them. As a result of this, their products will lose value over time, and consumers will be the first to abandon them if this isn’t done.
A literature review
Advertising is a form of communication regarding a product, idea, or service. Advertisers use several marketing techniques for advertising purposes, including celebrity endorsements. Individuals who are considered celebrities (such as actors, sports figures, entertainers, etc.) are well known for their achievements and not for the products they endorse.
Known for their appeal and appearances, they are easily recognized by the general public because they are people of fame. As advertising has changed over the past several years, marketers are increasingly turning to celebrities to promote their brands and influence consumers to purchase their products.
In advertising or marketing, endorsements are used by companies. It involves celebrities promoting a product, or service, or even raising awareness using their social status and popularity.
Commercials that use celebrity endorsement strategies have a significant impact on Indian consumers. A commercial today intends to attract attention and influence the mind of viewers, encouraging them to purchase the goods and services advertised.
A celebrity endorsement strategy helps to build trust among consumers by conveying information effectively and efficiently. It is a basic promotional tool used to increase a company’s profit.
Consumers are more likely to purchase goods or services from celebrity endorsers because they are honest and credible. By purchasing those products, they try to copy their favorite stars, thus increasing sales.
When a product like Navaratna Cool Tel is endorsed by favorite celebrity Amitabh Bachchan or Nerolac Paints is endorsed by Shah Rukh Khan, the whole family becomes inspired to use them and starts using them as soon as possible.
As a result, consumers gradually begin to depend on products endorsed by celebrities and this leads to an increase in their purchasing intentions.
A celebrity endorsement can also increase the consumer’s willingness to purchase because it engenders dependability among consumers. When consumers understand the value of money and the benefit of a product, they decide to purchase it.
In addition to enhancing consumers’ attractiveness through their skills and performance, celebrity endorsement also motivates consumers to increase their product purchase intention through their endorsements.
As a result of this strategy, a brand can become unique, facilitate instant public awareness, and increase consumer willingness to purchase. A brand is a given name or symbol used, that distinguishes one product from another.
In other words, it is a collection of descriptions and insights that indicate a product or service. It helps create customer association because a customer can recognize the brand immediately when he sees any characteristic.
When a brand delivers its messages well, it ensures the trustworthiness of the brand, pursues buyers to purchase the product, creates loyalty, and emotionally attracts target customers.
In order to be successful, it must meet the customer’s needs and remain on the market for a long period of time. A celebrity endorsement is therefore a powerful tool for increasing brand awareness among consumers, which in turn increases their intent to purchase the product.
The use of celebrities in commercials is a great way to raise loyalty to a product, encourage consumer purchases, and help spread awareness among the general public.
The purchasing intentions can also be influenced by factors such as perception, belief, amount of information, preferences, and how the product appears in the consumer’s mind.
The goal of the study was to explore the consumer’s attitude towards commercials and intervening consumer influences as well as brand attitudes.
In an age where everyone spends most of their day on social media, there’s no doubt that celebrities have an impact on our lives. Depending on the person, there may be more or less.
The values of marketing have also changed over the years. From once using a product’s attributes as the key point of selling to involving celebrities, today it’s mainly about how well a company manages to educate consumers about the personal values, benefits, and quality of a product.
It’s about being less transactional and more personal. A brand must provide tools to help consumers validate that a product or service is suitable for their specific needs. What may work and look great on Beyoncé might not necessarily do so on her fans.
And most consumers know it. It’s up to brands, not celebrities, to explain why consumers should purchase their products. They are the ones that need to advise, convince and help shoppers decide, not the celebrity.