Jessica Simpson, Justin Bieber, and P. Diddy are the secrets to Proactiv's success. Forbes reports that the company is on track to making $800 million this year— that's just how powerful celebrity endorsements are. Although most consumers know that these stars are being paid to promote the product, perhaps they tend to trust the brand more after seeing their idol gushing about the item.
The ultimate example of how well celebrity endorsements work is the Oprah Effect. I must admit, while I was watching Oprah’s Favorite Things, I marveled at her ability to make people emotional over mac and cheese. I’m guessing that Oprah is a public figure who people trust, which is why her stamp of approval works like magic. I’m wondering, does a celebrity endorsement of a product make you want to buy it or does it not matter?