Are you still in doubt of the power of being a public figure? Are you still in doubt of how powerful the followers of a personality such as Cristiano Ronaldo could have on a product? Then you may not understand the importance of celebrity endorsements.
Yesterday, TheNewsBeam reported that Portuguese Star, Ronaldo rubbished Coca-Cola’s carbonated drink by pushing it away in the presence of the media to take a bottle of water.
This act did not just confirm Ronaldo’s high regard for his health and disgust for carbonated drinks. But reportedly cost Coca-Cola $4bn fall in its market value.
According to the Guardian, “Coca-Cola is one of the official sponsors of Euro 2020. The company’s share price dropped from $56.10 to $55.22 almost immediately after Ronaldo’s gesture, a 1.6% dip. The market value of Coca-Cola went from $242bn to $238bn – a drop of $4bn.”
How is this Possible?
Undoubtedly, Ronaldo is the most popular footballer in the world today, with a total followers of 517.98 million on social media as of June 2021.
On Facebook, he has 125 million unique followers. On Twitter, Ronaldo has 92.2 million followers, 299 million followers, and 1.78 million subscribers on YouTube.
Being the first sport personality to make over 500 million followers on social media, every action and statement he makes in public spaces moves faster than you can ever imagine.
Brands and organisations tap into this influence to sell their product wide publicity. This is termed celebrity endorsements or celebrity branding.
Celebrity endorsement is an effective marketing strategy that has been proven viable in the advertisement industry. According to Champions Celebrity Talent Agency, “Using a well-respected, high-profile name to endorse your products or services is a relatively simple, but hugely effective marketing strategy.
“With the right celebrity endorsement, you can build brand awareness, influence consumers into purchasing your products and turn potential customers into valuable brand advocates.”
Now, you know why celebrities such as sports personality, entertainment stars and many more make huge revenue from brand endorsement. Simply put, a celebrity with large followership on social media has control over the purchasing power of a Brand’s product. Hence, can make or mar a product’s purchasing power.