Microsoft Deadmau5

The celebrity effect: more winners than losers (Column)

Endorsements can benefit all parties involved, but go in with your eyes open

It’s TIFF time in Toronto again. The 40th edition of the Toronto International Film Festival is in full swing and the city is awash in boldface, to the point that a girl can’t swing by Starbucks without walking straight into the arms of Johnny Depp. Okay, I made that last part up, but it’s my column; let me have my dream.

What is true, however, is the enduring power of Hollywood celebrity when it comes to amping up a marketing campaign. Movie, rock and film stars have been used to help shill product since Keith Richards was a schoolboy, and for good reason. But, much like fire and electricity, celebrity power must be carefully harnessed lest marketers end up scorched, shocked or both.

While working in New York, I was part of the Hennessy issues team that managed Kanye West’s Grammy diss of Taylor Swift. Did anyone happen to notice that he walked up carrying a bottle of Hennessy? Hell, yeah. Did it help or hinder the brand when he later apologized for his rant explaining that he had a “little sippy-sippy” before the production? The court of public opinion certainly called him out on his vicious tone. Celebrities lashed out in droves on Twitter, including Pink, who had to be escorted away from the rapper by security.

Regardless of the original strategic brilliance of Hennessy’s relationship with Kanye as a spokesperson, insolence in public is never good for a brand — especially an alcohol brand.

Still, there are more positive examples of celebrity endorsements than negative ones. If a celebrity authentically appears to have a connection to the brand, the outpouring of interest and uptake for the campaign can be unmatched. Think of how effective Matthew McConaughey has been for Lincoln Motors. Or what about Amy Poehler and Old Navy? And don’t even get me started about David Beckham for H&M. In a culture that rates celebrities six times more influential than anyone else, (scary, but true) you can’t ignore the power of third-party endorsement from someone who walks the red carpet. Or fights aliens. Or pretends to be a news anchor. Or shows off their sub-human eight pack in their skivvies.

And whether you are a fan of celebrity endorsement or not, the data should make you a believer. According to Ace Metrix Study (2010), 27% of purchase intent is influenced with a brand ambassador. There is a 73% recall rate with a famous speaker. Advertisements and PR campaigns with a celebrity are 17% more efficient than without one. And expect 111% brand awareness with a famous ambassador attached to a campaign.

Ideally, celebrities self-select as fans before the brand engages and pays them. That is the best example of how influence and passion intersect in an authentic way to draw consumers in emotionally. A little over a year ago, we had the privilege at Veritas of working with Deadmau5 on the launch of the Surface 2. Deadmau5 was a self-identified Microsoft and Surface fan (and a man of few words) so, we leveraged his electronic music awesomeness to create a Canadian concert for millennial fans. A month later, Surface 2 was the #1 seller at Best Buy during Black Friday.

The old PR adage still rings true. If chosen wisely, celebrity can arouse the senses and titillate even the most skeptical of media and consumers — and can even cull considerable financial returns. Consumers are wildly attracted to the aspiration of celebrity and the positive halo that it creates around a brand. However, if chosen or executed poorly (think southern fried cooking chef Paula Dean’s endorsement of a type 2 diabetes medication), it can go over like a lead balloon. Or worse, if the celebrity ends up in his or her own hot water (as Ms. Dean did at a later date), the aftermath can have longer-term trust implications for a brand that are not only unfair and unwarranted, but can prove to be financially disastrous.

So marketers and buyers beware. When thinking about engaging a celebrity for a campaign, I say go for it, but go for it with your eyes wide open. Research the heck out of who you are thinking of engaging and why. Make sure they are on equity for today and tomorrow – even if you only want to engage them for one gig. Stay pragmatic and stoic in your terms. Negotiate like you expect the worst and hope for the best so that you remove as much risk as possible from a short-term stint or a long-term, fruitful relationship. Think of it as a pre-nup with a payoff, regardless of whether you ever have to cash in.

And leave the notion of fairy tales and happy endings where they belong: in the movies.

Krista Webster is president of Veritas Communications. Follow@VeritasComm

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