Ever wondered how people like Lady Gaga, Jennifer Hawkins and LeBron James score huge sums of money to publicly champion certain products or brands?
Melbourne Business School associate professor Mark Ritson explains in an article on BRW today.
According to Ritson, there are three factors that drive a brand’s selection of a celebrity endorser:
1. The Q factor, which looks at the proportion of the target market who know and feel positive about the celebrity.
Ritson highlights IGA’s selection of comedian Anh Do as an example: “He resonated so widely and so positively with [IGA’s] local target markets.”
2. How well the celebrity’s associations fit with the brand’s positioning.
Gok Wan’s deal with Target is an example; Target MD Stuart Machin has described the English TV presenter as “everything we want Target to be”.
3. How much the celebrity costs.
Ritson highlights David Jones’ recent selection of Jessica Gomes over Miranda Kerr, noting that the latter was “too expensive for a brand like DJ’s, which … does not have the global scale to afford such a huge global star”.
There’s more on BRW.
Business Insider Emails & Alerts
Site highlights each day to your inbox.