In a society that seems to continually and increasingly worship celebrities getting one to endorse a service or product would seem to be a great way to increase sales and exposure to the world. As long as there have been famous people, there have been companies that are willing to pay money for an endorsement of their product. This can provide a real boost to a small business if the right relationship can be developed with the right celebrity.
Measure the Return on Investment
Many business owners are blinded by celebrity and they hire famous people to endorse their product or business without measuring the potential return on that investment, ROI. This should be the number one determining factor in deciding if working with a famous person will increase business. Often time that marketing budget might be better spent in more conventional ways.
The list of celebrities also seems to be growing in leaps and bounds as there are more traditional Hollywood and athletic celebrities along with those that are created by the internet and reality television. If there needs to be an introduction of your celebrity then they probably aren’t popular enough to bring a positive ROI to your endeavor. This can be very difficult to do as the impact of a celebrity endorsement is largely conceptual. However it would seem that strict records of sales and profits before and after the campaign would reveal the actual effectiveness of the celebrity in promoting your product or service.
The Dangers of Celebrity
Of course there are some significant dangers of using a celebrity because your business will be linked with their behavior good and bad. For example for many years the LiveStrong campaign earned a lot of money for cancer research, but when Lance Armstrong was found to be using performing enhancing drugs the program was destroyed.
Celebrity endorsements can help businesses but there are a lot of potential problems to be aware of and it often won’t bring a positive return on your investment.