The term endorse has recently become very popular, especially for product promotion on social media. As we know, product promotion is very important so that the product is easily recognized and in demand by consumers. Many business people such as MSMes, individuals, and even brands that have a high reputation choose endorsement as a way to increase their sales.
According to The Economic Times, the meaning of the word endorse or endorsement is a form of promotion or advertisement using famous figures or celebrities who have the trust, respect, recognition, and so on of many people.
In this booming era where the need for social media is very high, the meaning of a famous figure or public figure is not limited to well-known celebrities. Examples such as film players, actors, singers, and others. However, those who have a large number of followers can also be categorized as public figures and are commonly called Influencers.
Example of Endorsement
Various products can be used as promotional materials or endorsements. Usually, the products that people are most interested in are products related to lifestyle or those that can support their daily needs. This is because followers tend to follow the behavior of their favorite influencers.
Here are some examples of endorsements on social media:
Promoted products are usually used by influencers to be photographed and posted on their accounts.
Type of Endorsement
1. Paid Endorsements
Paid Endorsement is one type of endorsement that is widely used in the promotion of products or services. In this paid endorsement there is a fee and an exclusive contract from both parties.
In addition, the contract clearly states the limitations and how to promote the product. Payments made can be in the form of money, products, or a combination of the two.
2. Unpaid Endorsement
Unpaid endorsements or other names referred to as covert endorsements are a form of promotion in which influencers or celebrities use a product because they like it.
Many brands often use this promotion to get positive reviews from influencers or public figures. For example, beauty products such as skincare or make-up.
How Much Does It Cost For Endorse?
Each influencer from various social media puts up different endorsement rates, depending on the agreement between the two parties. Generally, the more followers there are, the relatively high rates apply. There is also a tariff depending on what products will be promoted later.
To find out the exact amount of influencer rates, you can ask through the contact person or contact listed on the influencer account page of your choice.
Engagement Rate
Engagement rate is a measure of the success of endorsed ads which is calculated through the percentage of the number of followers who are actively socializing with the related account. This means that there is an interaction that occurs between Influencers and followers.
This is what determines the success of endorsed advertising. Generally, the number of followers and the closeness of many influencers can help get a high engagement rate rather than a small number of followers. Make sure you take these points into account before choosing an influencer.
Benefits of Endorsement in the Business World
Endorsements have several benefits that you can consider. Among them are:
1. Spreading Product Information
Disseminate as well as introduce product information to consumers or the general public, so that the product is easily known in the community.
2. Building Awareness
Through endorsements, your products can get a positive image in the eyes of the public. Of course, this makes your product easy to remember which then becomes an option to use.
3. Attracting Consumers
One of the main benefits of having an endorsement is that it is hoped that the product that has been promoted can attract customers. Of course, with the help of promotions that explain the advantages and benefits of your product.
4. Increase Sales
Through endorsements, existing followers will be invited to use the promoted product. This action has the potential to increase sales and keep existing customers to continue to use your product.
5. Maintain Sales Stability
The next goal is to maintain sales stability. This is very important in order to maintain the continuity of production and even increase the number of products produced.
The Deficiency of Endorsements
1. The Popularity of Influencers Can Change Over Time
Bad things can happen during the promotion period. For example, if your chosen influencer experiences a scandal then it has the potential to affect the image of the product.
It's a good idea to research several influencers before settling on one choice. Choose influencers with loyal followers and have a positive account image.
2. Shadowing Products
An influencer or public figure does not only advertise one product. This will have an impact on your product. An example is competition between the products being promoted. It could be that the influencer is promoting a similar product in the near future.
3. Promotional Ads Don't Last For Long
The high demand for the Engagement Rate is widely used by influencers to open promotional slots. This makes the duration of existing promotions relatively short and existing posts will be deleted.
4. Endorsement Rates end to be expensive
There are no definite rules for what the standard rates are set by influencers. This makes the existing rates very diverse and can be very high, depending on the influencer. The term used for endorsement rates is usually called a rate card.
Tips for Choosing Influencers
1. Followers
The number of followers is important for you to consider. The reason is, that with a large number of followers, the opportunity for the audience to see your product will be even greater. Even so, you also have to be selective in choosing influencers because accounts with many followers do not necessarily have real followers. In other words, followers are not active.
2. Engagement Rate
This point is very important because the engagement rate determines how much interaction occurs between influencers and followers. If the engagement is good, your product has the potential to be accepted by the general public. Currently, there are several tools that you can use to check the engagement rate of an account.
3. Persona
Each influencer account has its own persona. There are accounts that are famous for their healthy lifestyle, parenting, fashion, and others. Make sure you choose influencers who have a persona that aligns with your product.
4. Rate
As previously explained, the rates or rate card endorsements vary widely. Choose influencers with rates that suit your budget.
Easy Solution to Get Your Business Capital
You can take advantage of the high need for social media access as a business opportunity. There are many business ideas that you can try. The capital does not need to be large.
For those of you who need fast and safe capital, BFI Finance is ready to help you. We also offer a variety of loan options that you can choose according to your needs. Among them are:
Disbursement of funds up to 85% of the value of the vehicle and a tenor of up to 3 years.
Loan funds with a fast process and a maximum tenor of up to 18 months.
Low interest starting from 0.9% with a long tenor of up to 48 months.
Keep up with our articles about finance, loans, lifestyle, and more on BFI Blog. Updates every week with a variety of interesting articles!
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