What is an endorsement and how does it work?

In today’s digital era, the term endorsement or commonly abbreviated as endorse is increasingly heard, especially in the context of product promotion on social media. This has become an important marketing strategy for many modern businesses.

The reason is because endorsement is known as one of the effective ways to increase product visibility and attract consumer interest. That is why many business people, from SMEs to big brands , choose this as their marketing method.

Understanding Endorsement

So, what exactly is an endorsement and how does it work? Basically, an endorsement is a form of promotion or advertising that involves a famous figure or celebrity to promote a particular product or service.

This promotional method takes advantage of the trust and recognition held by celebrities or public figures to influence their audience.

The concept is simple. As you know, people tend to follow the things done by their idols or figures they like. For example in terms of clothing style, make up , lifestyle, and so on.

Likewise, regarding the use of certain products or services. Someone will tend to be more easily attracted to a product/service if they see their idol also using it.

That’s why according to data, 40% of people decide to buy a product after they see a famous figure using the product on Instagram, Twitter, or YouTube.

In the era of social media, these famous figures are not only limited to celebrities such as actors or singers, but also include social media celebrities (commonly referred to as selebgrams or influencers ) who have a large following on platforms such as Instagram and TikTok.

Benefits of Endorsement for Business

Based on the explanation related to what endorsement is , maybe now you have an idea of ​​what the benefits are like. To understand better, here are some examples of the main benefits:

You can personalize the communication with each user of digital, it helps advertisers to effectively communicate with their audience, understand their finland phone number library needs and deliver key messages to individual users which further helps in achieving the brand objectives. Companies use various forms of marketing and advertising to promote their products or Tell people about the service. It is used in: Direct selling: Sales representatives sell products directly to customers. E-commerce: Customers can buy products directly through online stores.

1. Increase Product Visibility 

One of the most obvious benefits of endorsements is increased product visibility. When a celebrity or influencer endorses your product, it will be seen by thousands to millions of their followers.

For example, McDonald’s promotional campaign with Travis Scott on Instagram managed to reach over 426 million impressions in a short time, due to Travis’ high number of followers (over 73 billion).

This visibility is important because it can introduce the product or service being promoted to an audience who may have never heard of the product before.

2. Building Trust and Credibility

One of the main reasons why celebrity endorsements are effective is because consumers tend to trust recommendations from people they admire or respect more than direct advertising from brands.

When a reputable influencer or celebrity recommends a product, it can increase the credibility of the brand in the eyes of consumers. So, consumers feel more confident to try and buy the product.

3. Increase Sales

With increased visibility and trust, it is no wonder that endorsements also have great potential to increase sales.

In fact, data shows that influencer marketing strategies can provide an ROI ( return on investment ) of up to $6.50 for every dollar invested, which in rupiah is equivalent to IDR 100 thousand ROI per rupiah of endorsement costs.

There are actually many other benefits of celebrity b2c phone list endorsement for businesses. Such as expanding the target audience, increasing brand awareness , and increasing engagement rates . Learn how to check Instagram engagement rates for more info.

Examples of Successful Endorsements

Still not sure about the success rate of endorsement strategies ? As an example of evidence that has occurred in the marketing world , here are some examples of successful endorsement campaigns :

1. McDonald’s and Travis Scott

In this collaboration, Mcd promotes Travis Scott’s favorite menu for 1 month, accompanied by the launch of a merchandise line inspired by McDonald’s, such as denim shorts , t-shirts , and hoodies .

As mentioned earlier, this promotional dominican-republic mobile numbers list campaign was a huge success as it managed to increase sales and strengthen the McD brand through 426 million impressions on social media.

2. Coca-Cola and Selena Gomez

In 2016, Coca-Cola partnered with Selena Gomez on the “Share a Coke and a Song” campaign. The campaign featured Coca-Cola bottles with lyrics from Selena Gomez’s songs and promotional videos featuring her.

This endorsement example finally succeeded in generating millions of views , likes , and shares on social media, while also increasing sales and loyalty to the Coca-Cola brand .

3. HelloFresh and Thousands of Micro Influencers

HelloFresh is America’s largest weekly meal kit delivery company that originated in Germany. They sometimes partner with celebrity influencers .

However, one of their most successful campaigns was by attracting thousands of micro-influencers from various fields on Instagram. Moreover, the cost of endorsement by celebgrams is also more affordable than celebrities, so it is more efficient in terms of cost.

Tips for Choosing Influencers for Endorsement

So, how do you choose the right influencer for your endorsement project ? Which is better, a celebgram or a celebrity? Check out the following guide:

1. Consider the Number of Followers

First of all, it is important to look at the number of followers they have. Influencers with a large following have the potential to reach a larger audience.

However, keep in mind that a large number of followers does not always guarantee good results. You should also check the quality of those followers, whether they are active and real accounts or not.

2. Pay attention to the Engagement Rate

Influencers with high engagement rates show that their followers actively interact with the content they create. Because, it is useless to have many followers if most of them are passive (rarely giving likes or comments).

With a high engagement rate , this means that the message conveyed through the influencer has a greater chance of being noticed and responded to by the audience.

3. Match Influencer Persona to Your Brand

Every influencer has a unique persona or characteristics. So, make sure to choose an influencer whose persona matches your brand or business.

For example, if you sell beauty products, look for influencers who are known for their beauty content. The alignment between the influencer’s persona and your brand will make your promotional campaign feel more authentic and relevant to your audience.

4. Check Endorsement Rates

Next, don’t forget to adjust the rate card or endorsement rate of the public figure to the business budget. It should be noted that the cost of endorsement of celebgrams on social media is certainly different from that of celebrities or famous artists.

Additionally, the cost can also vary depending on the number of followers, engagement rate, and reputation of the influencer . So, don’t hesitate to negotiate to get the best price deal for both parties.

5. Evaluation of Collaboration History

Finally, before deciding to work together, it is a good idea to review their history or track record with other brands or businesses. Check how their advertising campaign results and how they promote their products/services.

If the track record of the famous figure is positive, then there is a big chance that you can get good results. Also, it is better to avoid influencers who are often involved in controversies or scandals to maintain the brand image .

In addition to tips for choosing influencers , you can also learn the right steps in using celebrity endorsement services so that the results are more optimal. If you need further assistance, contact us to use the Digital Marketing Campaign service from Dreambox .