If you are knowledgeable and smart with your budget you can get a celebrity that is the right fit for your campaign.
Identifying a celebrity that is affordable can be a frustrating experience.
Celebrities are expensive enough without adding to their cost by making mistakes.
Before you create a list of potential celebrities, you need to determine how much you are willing to spend for a celebrity marketer.
Roughly 5 percent of your total media spend is a good place to start. This ballpark fee should be enough to secure the right celebrity that will appeal to your brand’s best audience.
For instance, if your brand invests $10 million in media, you should initially plan your budget around $500,000 for the celebrity fee.
This 5 percent usually lessens as brands spend more on media. There are other ways to reduce the fee and still be successful.
Here are five tips to lessen your cost and avoid some expensive pitfalls:
1. Focus on budget then celebrities
I’ve seen agencies and brands burned by focusing on celebrities first and budget second. Usually, there will be a number of celebrities who fit your campaign.
Dont’ waste time on celebrities who aren’t close to your budget. Resist temptation and let your budget drive who you select not vice versa.
2. There can be a big cost difference for similar celebrities
You may be surprised how similar celebrities are priced so differently. If you vet enough of them you can save up to 75% on the fee.
For example, a $100,000 celebrity could be a better fit for your brand than a similar celebrity costing $400,000. Celebrities let demand overly influence fees creating a buying opportunity.
I’ve vetted as few as five celebrities and as many as one hundred. Each brand is different.
3. Use non-traditional media to save money
Bypassing traditional television advertising is a way to drive down cost, reducing service days and removing the most expensive part of the fee.
I would also suggest focusing more on social media, digital marketing and PR. This approach costs much less than television and could provide a better return on your marketing investment.
4. Know how the popularity of your industry changes cost
Celebrities are concerned a bigger offer may be right around the corner and once they commit to a brand, they’ll lose the ability to work with another.
That means that the more popular beer category, for example, is going to have to pay a lot more than the lawn mower category for the same celebrity.
5. Never ask “how much” and overpay
You certainly don’t want to offer your entire budget in the initial offer, as you will almost always overpay. Nor do you want to make a ‘lowball’ offer leading to an immediate rejection.
Do your homework and initially offer a fee that is slightly below fair market value and negotiate smartly from there.