Globally the advertisement sector is going through a huge change. Companies are advertising everything from cars to candy. It has been supported by O’Guin, Allen, and Semenik (2009) that manufacturers and companies are leaving no corners untouched to communicate regarding their products and services. Advertising could be defined as a paid medium to pass on the information from the manufacturer to the consumer through media in order to persuade them to use the product or service provided by the company (O’Guin, Allen and Semenik, 2009). Advertising is the major component of marketing strategy since the 18th century where newspaper was the main medium (Tungate, 2007). However trends in advertising need to be dynamic as per the needs and the changing lifestyles. Due to the recent advancement in the technologies, the common trends of advertising are using the diverse mass media sources. Recently celebrity endorsement and sponsorship for the huge events has become popular style of advertising, thus this essay aims to illustrate and discuss the new techniques in advertising recently and will focus mainly on sponsorship and celebrity endorsement. In order to provide a better understanding about sponsorship and celebrity endorsement a brief case study of PepsiCo will be discussed. One of the popular trends of advertising is using the celebrity to endorse a particular product. According to Yeshin (2006) an estimated 30 percent of the all the advertising campaigns use a celebrity to sell their product. The principle aim in celebrity endorsement is making an advert in which a celebrity support a product, and these famous or popular people influence the people that product is excellent and that the consumer should buy it (Muller, 2011). The advertisements are shot in a manner where it convinces the buyer to follow the celebrity and buy the product.
Using celebrity for endorsing a particular product increases the sale of the same products as their presence in that particular advertisement assists in attracting as well as maintaining attention towards a particular product (Yeshin, 2006). However celebrity endorsement can affect the sales of a particular product as well. According to Lea- Greenwood (2012) the sales grow with the growth and popularity of the celebrity but the sales of a particular product can also be affected deficiently if the celebrity does not reach global recognition. Further, Lea- Greenwood (2012) explains the company must keep in mind while selecting a celebrity that their attributes match the product that the company plans to endorse using a celebrity. Additionally, it has been suggested that one must conduct effective explore before choosing a celebrity to endorse a particular brand and prefer a celebrity whose image corresponds to the particular product that the company plans to endorse (Yeshin, 2006). The other drawback of celebrity endorsement is that it is very expensive so the companies with a small budget or whose product is new in market may not be able to afford it (Muller, 2012).
Another form of advertising techniques that is being widely used is sponsorship. Yeshin (2006) explains that sponsorship has attained significance recently as it is considered as a novice way of communicating with the viewers and eases to provide the background of a product. According to Fill (2002) sponsorship is basically a joint favorable business arrangement with defined outcomes among two or more parties. In last 10 years there has been a 12% increase in Sponsorship globally (Hackley, 2005). Previously sponsorship was considered as a public relation component since it supported the main stream advertising and it was not as clear as advertising (Hackley, 2010).There are various forms of sponsorship among which television sponsorship is growing annually. Mintel (2001) estimated that where television sponsorship was worth £183 million other forms of sponsorship...
References: 1. www.pepsico.co.uk
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