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The 7 Pillars of Digital Marketing Blog

Best practices, training and innovations in Digital Strategy.

Poll: Celebrity endorsement in advertising… It does not always work!

November 26, 2012 – 1:34 pm
Cristiana
 

Luxury brands are spending every year millions of dollars hoping to be able to engage as many fans as possible in as many ways as possible via as many channels as possible.

For instance, the famous Louis Vuitton brand had a $10 million advertising agreement with Angelina Jolie. With such a powerful celebrity endorsement, everyone would expect to automatically be an amazing success. But it depends on the way this tactic is approached.

The first question that everyone should ask himself is if the celebrity endorser is credible for a given product or category. Angelina Jolie is quite credible for Louis Vuitton – she is an icon of fashion and glamour and it’s not too hard to imagine her wearing Vuitton products by choice. James Gandolfini would be credible for cigars – it doesn’t require a whole lot of imagination to see the Tony Soprano actor smoking a Montecristo. Now if we change the roles, there will not be any relevance into this approach. So…is the celebrity endorsement cost-effective? Campaign budgets vary, and the situation is the same for celebrity price tags. But as a general matter, the kind of celebrities that could make a difference are not cheap at all.

To find out an answer to the question stated above, Adweek/Harris Interactive recently conducted a poll about celebrity endorsements in advertising, and the results are as follows:

  • 77% of respondents claimed that “when a sports star, movie star or other celebrity endorses a product” they are no more or less likely to buy it.
  • 14% stated they are less likely to buy.
  • Only 4% stated they are more likely to buy. What’s more, these results were remarkably consistent across age groups and gender.

Of course, this poll, as any other opinion survey takes into consideration three big assumptions:

a) that respondents are aware enough of their, often subconscious, mental processes to assess their reaction
b) that they will openly admit  their views; and
c) that their stated views are predictive of their actual behavior

In other words is the celebrity endorser credible for a product category? The answer is simple: not always. For instance, if we take into consideration categories such as perfume, liquor or fashion, celebrity endorsements can bring a lot in terms of credibility while if we refer to financial services, a Hollywood star will never have a positive impact simply because he is not a finance specialist and second because he does not represent the portrait of a potential customer who may need such services.

So, what marketers should do first is to analyze the advertising tactic from different perspectives and be very cautious regarding who is going to endorse the respective product or service because the category and the celebrity are chosen wrongly, then even if the company spends $10 million it may not bring any brand capital.

The following infographics speak for themselves:

 

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How Important is Industry (Domain) Knowledge in SEO?

September 10, 2012 – 3:20 am
Arman Rousta
 

Think back to some of your favorite Mad Men episodes.  Like the ones where the creative team sits around a boardroom to brainstorm on a strategy for their presidential client, Richard Nixon.  How truly knowledgeable were those marketers on politics.  Not very (knowledgeable) in my opinion.  Now, while things might have changed quite a bit, with the level of specialized industry research, and access to information via the Internet, enabling “smart marketers” and niche agencies to become domain experts, the question still arises amidst marketers at all levels – “How much (previous) domain knowledge is necessary to be effective on a specific project?”

Take an SEO project for example, on an esoteric field, like Quantum Physics, that nobody within a particular agency has any prior experience with.  If you were the CEO, how would you tackle this challenge, keeping in mind budgetary limitations as well as client satisfaction?  Here are your choices:

  1. Utilize the best, most adaptable SEO Specialist that you have on board, and have him (or her) dive in, increase his industry knowledge (which will take him hours of additional time, outside of the project scope – because no client wants to pay you to learn about their industry), ask the client tons of questions during the Discovery process and in general “fake it til he makes it”.
  2. Recruit an industry-trained, freelance copywriter or author (at your own cost), that has at least some prior SEO experience; the copywriter, being a domain expert, will work hand-in-hand with your SEO team, to fill in the gaps.
  3. Express your concerns to the client, and let them know about these two options, soliciting their input and possibly, additional budgeting, to accommodate the need for greater domain expertise from the SEO team.  Given their natural knowledge about Quantum Physics, perhaps the client can allocate someone from their own staff to fill in the “domain knowledge gap.”
  4. Other – I’m sure there are other ways about it; feel free to leave ideas and suggestions in the Comments of this post, and I will try my best to give my thoughts on them.

Many problems arise in Scenario 1, when attempting to go with a top-notch tactical expert, who has to dig into pages of content that are on a foreign, technical topic.  Meanwhile, Scenario 2 can also be quite hard, especially if the domain expert is a novice SEO practitioner, that will require a lot of training and hand-holding.  In reality, you see a mix of all three noted approaches (above) in response to “new territory” client opportunities.  In a future post, I’ll go deeper into the Pros and Cons of each.  There is no one right answer for all situations.  This topic comes up across the board, on the SEO front, as well as Social Media, Content Marketing and Web UX Design fronts.  It is quite a hot topic in the agency world, especially when it comes to regulated industries, such as Financial Services and Healthcare.  Although industry specialization has evolved quite a bit since the Mad Men era, it continues to present unique challenges, including business strategy questions, ethics, the need for greater professional development, HR issues and margin pressure.

This question is also quite important for marketers as individuals, from a career development standpoint.  Should you go deeper into a particular industry, to create a nice for yourself (ie. “Travel & Tourism SEO Expert”) or remain as broad as possible, taking on different projects and diversifying your domain knowledge?  We’re going to leave it there for now.  Hopefully, I’ve given you something meaningful to ponder!

 

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