There is no doubt that technology has played a huge part in celebrity endorsements. With the advent of Facebook, Pinterest and Twitter, celebrities can now be paid to positively mention products or services in just a few keystrokes. (Celebrities and Social Media Endorsements)
Khloe Kardashian reportedly makes $13,000 for every endorsement Tweet she makes, while Kim Kardashian is said to be making as much as $200,000 per Tweet. That’s a little over $1,400 per character!
With the number of followers on Facebook and Twitter in near astronomical ranges, the bottom line is that is pays to have followers. Kim Kardashian has over 34 million Twitter followers.
Traditionally celebrity endorsements were limited to TV and print advertising, but that is was the past and this is now. Now in the click of a mouse button, a celebrity can reach millions of followers in an instant. The upside for the company using the celebrity endorsement is that they can skip the advertising agency, the set, the hair, the makeup, and everything that went with traditional media.
This can make endorsements on social media a much more cost effective method of advertising.
Now a celeb can Tweet or Facebook a few nice words about a product while in their pajamas if they want to. Convenient, quick and effective.
The beauty of social media endorsements is that it provides a glimpse into the everyday life of the personality and can create a sense of shared reality with the celebrity. Social media can make endorsements seem more believable and genuine just based on the fact that the celeb is using the same social media outlets as everyone else.
In the mind of the consumer, a Tweet or Facebook post is more spontaneous and more down to earth than a staged photo or a commercial. Tweets and Facebook posts seem to have the allure of being more bona fide and therefore, credible.
In a culture where brand loyalty is built on trust, the legitimacy of an endorsement can be based on a few word Tweeted by a celeb.
This is a perfect way to create brand awareness in a market that is competitive for the attention of the consumer. The announcement of an endorsement deal alone can sometimes send the price of stock up. According to marketwatch.com “A new study, conditionally accepted for publication at the Journal of Advertising Research, looks at stock market valuation and sales data for a raft of athlete endorsements. The authors, Anita Elberse and Jeroen Verleun, find that while stocks go up roughly a quarter of a percentage point, on average, with a celebrity endorsement, sales for products endorsed by athletes go up by an average of 4%. What’s more, these sales boosts can be recharged by a career triumph — a Grand Slam for Roger Federer, an Olympic Gold Medal for Michael Phelps.” In short, celebrity endorsements do work.
Link: http://www.marketwatch.com/story/do-celebrity-endorsements-work-1300481444531
Lastly, a word to the wise. No matter what type of celebrity endorsement deal you might make, be sure and have all of the specifics laid out in a contract and checked by lawyers on both sides of the deal.
It is especially important that compliance with Federal Trade Commission guidelines are adhered to in order to avoid making a costly blunder.
“Always make sure your endorsement tweets are in compliance with federal rules and regulations. The Federal Trade Commission (FTC), whose mission is to prevent business practices that are anticompetitive, deceptive or unfair to consumers, regulates the phrasing of endorsements on social media platforms. If a celebrity is compensated to advertise or promote a product or service, the FTC requires that the endorser disclose the nature of the endorsement.
Disclosure must be clear and conspicuous and should be placed as close as possible to the claim they qualify. To ensure compliance, the FTC recommends endorsers use such hashtags as #ad or #sponsored in conjunction with endorsed tweets. Stress the importance of these rules to your celebrity endorser.”
http://www.entrepreneur.com/article/232460
Celebrity endorsements on social media is a relatively painless method of marketing and reaching a target audience. For more information on how to best use the power of celebrities and social media, you can call us at 1(888)359-4521 or visit CelebrityCred.com to find out more.
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