Very often people get confused between celebrity endorsements and influence marketing; they get mixed up easily if you go by their basic definitions that seem to be similar. Celebrity endorsements rely on a person’s fame, fans of whom gravitate towards buying and recommending the product. Influence marketing focuses on customer engagement through people who have followers and communities in specific niches; YouTube vloggers and internet bloggers are examples.
Pros and cons of Celebrity endorsement
Wide audience- The brand reaches millions of people because of the familiarity of celebrities name and face; sometimes they even appeal internationally like in the case of Roger Federer.
Power- Celebrities can be famous for their looks, athletic skills, business acumen or creativity; they have placed themselves in the upper strata of society. Therefore, they have a tremendous magnetic appeal which will rub off on the brands they endorse as well.
High Expense- Smaller brands cannot afford to pay for celebrity endorsements because just one campaign may cost more than their yearly marketing budget. An often overlooked fact is that it’s not just the celebrity you are paying for, but the whole entourage that includes lawyers, public relation personnel, agents, stylists, etc.
Risks- Even after nearly exhausting the budget, there are certain risks involved, for example, celebrity brand mismatch can be a huge mistake. Also, careless and scandalous behavior of celebs could tarnish the brand image.
Pros and cons of Influence marketing
Targeted marketing- Influencers carve a niche space for themselves using media like YouTube and Instagram, so we can easily connect with our target customers by choosing the right influencer. An example could be of an avid video gamer vlogger endorsing a gaming accessory.
Creators- Influencers are often free thinkers who know what their followers want to hear, so they can position, pitch and market the product in their unique way; thus saving a lot of work for you.
Emerging market- It’s a new industry, and still things are done in trial and error mode, though it looks promising we have to wait and see its full potential to help grow a brand.
Influencer selection- With so many social media platforms and thousands of options, it can be challenging to find the right influencer, even worse scenario is your ideal influencer can be right outside the periphery, and you may not even know.
Choosing the right marketing method to depend on your budget and vision, if you need to be visible everywhere and money is no object; you may go for celebrity endorsements. If you are looking for a more targeted cost-effective marketing strategy and want to learn as you go along, influence marketing is the right choice.