Do We Need to Worry About Celebrity Crypto Endorsements?
Do We Need to Worry About Celebrity Crypto Endorsements? Endorsement compliance is not a new thing in the United States. The Federal Trade Commission’s (FTC) Guides Concerning the Use of Endorsements and Testimonials of Advertising is a set of guidelines designed to help advertisers meet the standard of truthfulness. Celebs endorsing brands from the 19th century Endorsements are a broad component of marketing. Notorious brands secure a large percentage of their budget for endorsements. Allegedly, 28% of Nike’s marketing budget goes to athletes to lock in their endorsement deals. Celebrity endorsements are not a marketing innovation that came along with the rise of social media. In fact, it has been a well-established marketing strategy since the late 19th century. Many studies have shown that consumer attitudes and behaviour are modified by celebrity endorsements. Social media influencers have taken it to another level. For example, Kim Kardashian gets paid $250,000 per photo endorsing a product on social media posts. Brands are in an ongoing race. As technology advances, so does marketing. For example, many famous brands jumped right into the Metaverse to connect with the gen z audience. You can read more about it here:‘How the metaverse is helping Gen Z connect with their favourite brands’. This is not unusual if we take into account how consumer behaviour is changed by celebrity moves. For example, Snoop Dogg bought a piece ofvirtual real estate at the Sandbox Metaverse and got neighbours in no time who paid a lot of money to virtually live next to him. Charles Randell, chair of the U.K.’s Financial Conduct Authority, stated that social media influencers are routinely paid by scammers . Let’s go back to basics now and explain this strategy. The key element of the brand endorsement marketing strategy is a public declaration from a person or organisation in support of a product’s quality, features, benefits and similar. That public declaration changes everything – most importantly, it brings profit to the table. A decade of crypto endorsements Endorsement marketing is a two-way street; similar to brands, celebrities are well known for jumping on the latest trends, whether it is a trendy diet, TikTok dance, clothing or cosmetics. Many of them are also perceptive investors, pushing their very own brands through their popularity. Since celebrities promote all types of products, crypto wasn’t an exception. The first celebrity to endorse a cryptocurrency was comedian Drew Carey who tweeted about being unable to pay for his meal in Bitcoin back in 2013. Many other endorsements came along after Carey couldn’t pay for his breakfast with crypto. Bitcoin prospered in 2021 when multiple NFL players converted their whole salaries to crypto and the endorsement trend continued. Snoop Dogg and Bjork took upon the Bitcoin craze as well and accepted Bitcoin as payment for album purchases. Paris Hilton auctioned a digital painting of her pet which sold for $17,000 worth of Ethereum. Finally, Kanye West publicly stated that the vision of the Bitcoin community could lead to a true liberation of humanity. Whether it is about paid endorsement or new revenue streams, it is logical why artists praise crypto. Digital assets hold the potential forrevolutionising the music industry. Popular projects backed by celebrities While a part of the celebrity community wants to pay in crypto and trade crypto assets, other celebrities have decided to endorse whole cryptocurrency projects. There is a long list of celebrity endorsements so let’s mention a few of them.
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29 Nov 2023
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