Kate Upton selling Carlos Jnr burgers.
Gwyneth Paltrow selling N.A.S.A unapproved healing stickers.
Kim Kardashian selling nude lipstick.
Spot the differences in endorsements.

Using celebrity and other high profile influencers to spread the word of a brand is becoming more and more potent in today’s marketing environment. This is largely down to the advent of social media and smart phones. In today’s marketing climate, an iPhone can be the most powerful PR tool a brand can utilise. The capability to reach millions of viewers via one app and one device has truly shifted how the modern marketing landscape operates. However, choosing the right celebrity or high profile influencer for the right brand is a make or break decision.

Matching Your Celebrity to Your Brand

A celebrity or high profile influencer needs to be treated like a distribution channel for the content of the brand. Similar to any other channel, the key to success is making sure the right content, is on the right channel. This being the case, not just any influencer will ‘fit’ when looking for a brand endorser. An example of the optimal situation when it comes to celebrity influencers is that of Kim Kardashian selling lipstick. Putting the brand of Kim Kardashian and a lipstick brand side by side;

  • The target audience is similar and overlapping;
  • The theme and message behind both brands, and the content or products each brand produces are similar;
  • The content, or product in this case is a match; and
  • How the influencer goes about endorsing the product, in this case via social media posts, is appropriate.

When all of the factors are combined, a successful endorsement is formed and a beneficial relationship begins.

Not Matching Your Celebrity to Your Brand

However, an issue arises when the product doesn’t match the celebrity or high profile influencer.  A meta-analysis study found that using sex to sell only aids in building awareness of the product, rather than inspiring any meaningful action. The conclusion reached from this study can be viewed through the angle that using sex to sell implies that the only connection between the product and influencer is the sexual allure used to capture consumers’ attention. This leaves no room for the influencer to have an overlapping or meaningful connection to the brand.

Sex does not sell on its own, or aid in facilitating or influencing action in the audience, because the disconnect and lack of congruency between the two brands is too great. This being the case, the inference can be made much like with Kate Upton selling fast food, the danger of mismatching an endorsement may be an ineffective investment, that may work to build the brand awareness of the influencer rather than the product itself.

Image of Kate Upton selling Carlos Jnr burgers

Damaging Brands

This is the worst-case scenario for both the brand of the influencer and of the product. The real danger is, if either brand produces negative content or stimulates negativity regarding their own brand, damage to both brands may occur. Therefore, a great degree of care and research needs to be done before entering in such a relationship.

Example 1: Gwyneth Paltrow and her healing stickers. This product was so bad NASA even came out to denounce the stickers.

Example 2: Bentley attempting to distance themselves from Paris Hilton, which had become an unintended celebrity endorsement. In this case Bentley stated that in terms of brand vs brand, Bentley and Paris is not a match, and potentially having Paris Hilton publicly driving around in a pink Bentley is damaging to the brand.

Abercrombie and Fitch

A leaf may have to be taken out of Abercrombie and Fitch’s’ book when it comes to dealing with unintended, potentially negative celebrity endorsements. A&F go as far as to publicly ask celebrities not to use their branded products in ways deemed inappropriate.

In closing

Whatever action is taken by a brand relating to their influencers, or unintended influencers, the decision must not be taken lightly. Care and respect are paramount for two brands to enter into such a powerful relationship.

Image of a group of practitioners using social media across multiple devices in a strategy session, focussed on understanding the customers

“Retain the best and grow the rest” – Adam Posner (CEO of Directivity)

Loyalty programs have been in the marketing landscape for many years. It is rare to find a large brand that has frequent customer interactions that does not have a loyalty program. Looking to Coles and Woolworths, whose loyalty programs amass a huge fifteen million members, and talking to marketing specialists about what makes a successful program tick, one can begin to unpack the method behind designing a successful and valuable loyalty program.

Loyalty Programs are Good for Customers and Businesses

Loyalty programs are not just a take, take, take for customers of a brand. A well-oiled loyalty programs is more like a value exchange between the brand and its community base. The flow of value to the customer is in the form of rewards from the brand. The brand, of course, is rewarding the loyal community member for time spent, money spent, points accrued or all the above. However, very interestingly, the flow of value in return is split into a tangible and an intangible flow. Tangibly, the brand starts collecting mountains and mountains of important consumer data that can be sold. This data relates to intent to buy, helpful segmentation data, online behavioural data, personal details; all of which is highly valuable to the marketing industry as well as to the business itself. Intangibly, the relationship, loyalty and connection a brand can develop with its community by rewarding members for interacting the business is immeasurable. The reward program can help augment behavioural patterns in customers, build resonance and affect a real emotional connection with the brand.

The Keys to Success

Understanding what your loyal customers expect from your program is key to having a successful loyalty scheme. A Loyalty Point study in 2014, found that a primary reason a member is likely to leave a loyalty program is due to a lack in timeliness of being rewarded. Also finding new ways to engage your community is an excellent way to make your loyalty program a success. For instance, Myer One has an interactive app that allows users to download digital rewards and see their current level of points, thus, engaging their community base on multiple channels. Jamima White, Myer One’s general manager, also puts down the program’s success to simplicity and as few barriers to sign up as possible.

Screw Listening!

Qantas on the other hand did more harm than good to their loyalty program when they overhauled it in 2015. The issue Qantas was trying to solve was the elevated level of competition in the airline market. Geoffrey Thomas told Fairfax media:

“Two to three years ago, Qantas didn’t have any competition in business class of full service economy, but they now face very real competition from Virgin Australia. Today, many people are members of both Qantas and Virgin Australia loyalty programs, and they can make choices to swing one way or the other if one is annoying them. Passengers don’t think of it as points; they think of it as dollars. Let’s not beat around the bush, brands need to retain their customers more than ever before. One way to get them to stay is a loyalty program. But f**king it up by upsetting members, going in too hard and fast, or being fiddly with rewards could break that established trust.”

Co-Created Content is the Future

With over 88% of Australian consumers now a part of a loyalty program in some form or another, more and more businesses are getting behind the idea. In today’s modern marketing environment, more value can be exchanged and co-created content can flow because of well run, trusted and successful loyalty programs, much like the Coles, Myer and Woolworths examples.

Image of a rural road with the words 'the end', representing the proliferation to the new medium of online video content

The right content.
The right channel.
The right time.

Content is king in today’s marketing environment. Content distribution and connecting with the right audience is now a major focus when it comes to the online advertising space. This idea is reflected in the industry’s shift from repurposing television advertising content for online purposes, towards a complete brand integration of content for online audiences. This concept was discussed by Emma Mackenzie in a recent article in a B&T publication. However, why did this shift occur?

Online platforms determine who your audience is and content expectations

Different audiences live on different platforms. Expectations of what content audiences demand per platform also change. For instance, an ad that features on a traditional television format will be viewed in a different way, especially with the advent of the multiple screen generation, in comparison to a Facebook ad, or a YouTube ad.

Viewer attention span on various social media formats have significantly lowered, with most research showing that brands have on average around seven to ten seconds to grab the attention of its audience. Whereas, how these adverts are consumed on non-traditional channels is also a factor. Traditional television is largely consumed in a living room. In contrast, online media can be consumed almost anywhere – in the bedroom, whilst commuting, on breaks and even in the bathroom are all high ranking.

Effectiveness of purpose of traditional television ads versus online ads

These days it is difficult to garner any sort of meaningful relationship with your audience on a traditional platform like television. The new media is an alternative to the rigid structure of time slots and the ritual waiting for an entire week to satiate your curiosity, within traditional medias. This is taking away from the channels ability to engage and captivate a viewer’s attention.

Unless your target audience are retired, or you have ungodly amount of money to burn, the efficacy of using television ads alone to communicate your brand message is absurd. In contrast, online ads can be targeted, timed, interactive, and designed to be engaging to a much greater degree.

Online ads can reach highly targeted audiences as they go about their day-to-day habituations online. A person is browsing YouTube, and what a coincidence, here is an ad that directly relates to the content you are viewing. Not only that, but a clear call to action is just one click away. Browsing Facebook, wow, here is a short, attention grabbing ad that relates to the content you are already scrolling through and interacting with.

A brand’s power to reach its audience through these online platforms is huge, and therefore, the content that is created for these channels need to be differentiated and respected.

Evidence of this shift

The shift towards these non-traditional, online media sources is rapidly taking pace, and can be viewed through two lenses. Firstly, from the lens of audiences and content consumers themselves. Online content viewing is trending compared to traditional television viewing. Broken down demographically, the trend is exponential. As the audience becomes younger, the trend towards online media become steeper and steeper. As such, online is now the preferred source of media for most content consumers. Secondly, this trend can be viewed through the lens of advertisers and brands themselves. The growth of the online shift can be seen through the trend of advertising expenditure, which is growing at a much faster rate than television advertising expenditure.

Conclusion

In the future, expect more tailored and integrated online video content from your favourite brands. Online advertising is pivotal for brands in today’s marketing environment, as it gives even the smallest brand the greatest ever power to reach their audiences online. As John Filippis from MediaMath’s states:

“Video is powerful tool for increasing brand awareness and tells a meaningful, multi-sensory story that resonated deeply with consumers. It also operates successfully as part of an integrated campaign, combing digital channels such as displays, social media and mobile to create a seamless brand message – which is critical for marketers looking to maximise their presence across all media channels.”

 

Additional sources for further research:

John DeFilippis articles
Sensis Social Media Report 2017
The State of Traditional TV