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In Episode #409, Eric and Neil discuss why you ought to pay for celebrity endorsements. Tune in to find out how to make celebrity endorsements possible and the potential gains you can receive by investing in them.
Time Stamped Show Notes:
- 00:27 – Today’s topic: Why You Ought to Pay For Celebrity Endorsements
- 00:35 – “Anytime you have a celebrity on your landing page, your conversion rate will go through the roof”
- 01:02 – Celebrity endorsements work well
01:11 – Beats currently has Kylie and Kendall Jenner, Lebron James and other celebrities endorsing them
- 01:46 – They’ve increased their target market size
01:55 – The question is: if you’re already spending so much on paid ads, can you get a celebrity endorsement for $30-40K?
- 02:04 – The answer is “yes”
- 02:16 – There are micro influencers that you can connect with and help you promote your business
- 02:36 – Micro influencers have at least 20K followers
- 02:52 – In Shoe Dog, Phil Knight talked about using celebrities to endorse products
03:23 – Neil’s friend owns Binary Options and they got Conor McGregor to endorse them after he lost his first fight
- 03:52 – Binary Option’s conversion rate went up and they paid McGregor quite a low rate
04:45 – Marketing School is giving away a free 1 year subscription to Crazy Egg which is a visual analytics tool
- 05:44 – Go to SingleGrain.com/giveaway for multiple entries
- 05:55 – That’s it for today’s episode!
3 Key Points:
- Celebrity endorsements work well and is a sure-fire way to boost your conversion through the roof.
- If you’re spending a lot on paid ads, you might want to consider building a relationship with a micro influencer instead.
- Celebrity endorsements aren’t just the Michael Jordans and Kylie Jenners, reach out to those who have influence and can give you a lower rate.
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Full Transcript of The Episode
You're listening to Marketing School with your instructors, Neil Patel and Eric Siu.
Eric Siu: Welcome to another episode of Marketing School. I'm Eric Siu.
Neil Patel: And I'm Neil Patel.
Eric Siu: And today we're going to talk about why you ought to pay for celebrity endorsements. So, Neil, you have some thoughts around this. I'm curious to get what you're thinking.
Neil Patel: Any time you have a celebrity on your landing page, your conversion rates go through the roof. Paid ads will always cost more. It's going to be more and more difficult to get search traffic. Celebrity endorsements skyrocket conversion rates.
You've all seen those ads saying, "Lose weight, Dr. Oz recommends Acai berries," or I don't know, whatever he's recommending these days. Or Oprah recommended that you do X, Y and Z or Dr. Phil does or whatever it may be, but celebrity endorsements convert really well.
What's that company that Apple bought because of celebrity endorsements?
Eric Siu: Beats.
Neil Patel: Beats?
Eric Siu: Beats by Dre.
Neil Patel: And what did you see on every single one of their TV commercials?
Eric Siu: I didn't see their TV commercials.
Neil Patel: You don't watch TV?
Eric Siu: No.
Neil Patel: They had celebrities like Kim ... Not Kim Kardashian. I think it was the girls in the Kardashian family, the younger ones like ... I don't know their names.
Eric Siu: Kylie.
Neil Patel: Kylie and some other one.
Eric Siu: Kendall.
Neil Patel: Kendall, there you go. In addition to that, there was LeBron James. I saw the basketball players. There's tons of athletes and musicians. The cool part about it is everyone was repping Beats by Dre that it became the hip thing. It was so popular that they increased the market size of how many people were actually buying headphones. It just shows you celebrity endorsements are powerful.
The real question is if you're spending a lot of money on paid ads, can you get a celebrity endorsement for 30, 40 grand and improve your conversion rates and arbitrage the difference? In most cases, I believe you can.
Eric Siu: Yeah. In a previous episode, most of you listening, when you think about celebrities you are thinking about the Michael Jordans or the Kobe Bryants of the world, but we talked about micro-influencers and how to find them and how you can actually build relationships and leverage those relationships.
It's a similar concept here when you're thinking about up and coming celebrities that can help you out and it has been proven, there's a lot of case studies out there, that working with influencers, celebrities are influencers but also smaller scale, micro-influencers too. And micro-influencers are people that have maybe 20K, at least 20K followers or more. Or in some cases maybe it's something new that's starting out and it's smaller.
But what I will say is, I remember when I was reading the book, Shoe Dog, which is the biography of Phil Knight who is the founder of Nike, he talked about pioneering actually using celebrities to endorse things and that's where things took off. I don't know if it's Nike or maybe it was his competitor at the time, but I do know with shoes, that was the one that first started to happen. So, I do recommend, as a side note, to read the book Shoe Dog to learn about his entrepreneurial journey and get some ideas from that.
Neil Patel: Yeah, I have a buddy who owns a binary options company, which is you buy stocks and you just say it's going to down or up. It's pretty much another form of gambling. You lose money when you play binary options or most people do and my buddy ... You know Conor McGregor, the UFC guy?
Eric Siu: Yeah.
Neil Patel: Right when he lost his first fight, he wasn't worth as much because he lost the first fight. Everyone was like, "Ugh, this guy lost." So, he got him to sponsor his "binary options." And I kid you not, his conversion rates went up and he paid pennies on the dollar for Conor McGregor, like it was not expensive. A lot of you guys listening to the podcast could afford it.
Eric Siu: How much did he pay?
Neil Patel: I can't talk about it because it's so easy to find out which company it is, but it's so affordable. So many people spend way more on pay-per-click. Without getting into your pay-per-click numbers, you spend more on pay-per-click in one month than what it would cost to get him to sponsor, for a sponsorship, and the conversion rates went through the roof. He says like, "Oh, this is a steal."
Conor McGregor is a fighter. He has nothing related towards financial businesses like a stock trading company, yet his conversions went up.
Eric Siu: There you go. So, yeah, if you're looking to get started, start with micro-influencers or you can try and go for Conor McGregor. Now, you see him. He's going to go fight Mayweather and that's going to be a huge thing.
Anyway, before we go, we have a special giveaway. This is a one-year annual subscription to Crazy Egg and before I tell you about that ... Well, this is worth $1200, close to 1200, first of all, but before I give you the details, Neil, what is Crazy Egg?
Neil Patel: Crazy Egg is a visual analytics tool. When you log into Google Analytics, you see all these numbers, these data points and you're probably like, "What do I do with all of these?" Well, Crazy Egg shows you what to do with it. It helps you visualize everything. It shows you where people click, where they don't, where they're dropping off. Is it a specific step on your checkout page or is it that you have 10 fields within your form field or lead generation box and the fifth form field is the one that no one wants to fill out.
Crazy Egg will show all of that plus more, even video recordings of users and how they engage with your website. You can make changes to your website from a design and a marketing and a text perspective all within Crazy Egg using the WYSIWYG editor and you can run A/B tests within the same platform as well.
Eric Siu: So, if you want to get in on this, we're giving away one every single week. Just go to SingleGrain.com/giveaway to learn more and the cool thing is you can actually get multiple entries. Once again, go to SingleGrain.com/giveaway and we will see you tomorrow.
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We'll see you in class tomorrow right here on Marketing School.
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