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The Halo Effect
in Advertising
HAT MEDIA
1300 551 905
L1, 15 The Corso
Manly
NSW 2095
In general, the halo effect occurs when a
single element or aspect dazzles people and
affects general perception of the overall
picture. It is a term used to explain the bias
shown by consumers toward certain products
due a favourable experience. It is mostly
driven by brand equity.
While marketing and psychology are two different
things, they are closely related. Psychology refers
to the systematic study of the human psyche,
while marketing focuses on the study of human
behaviour in the marketplace. The halo effect
works in both marketing and psychology.
For instance, appealing or good-looking people
are considered more intelligent, successful, and
popular. When they are used as brand
ambassadors in advertisements, they can affect
how people perceive the product or even the
entire company. The first success of the product
can also positively affect the next product
produced by the same company.
The ‘halo effect’ has long been used in the world of advertising. This happens when a
business or product achieves marketing success due to an association with a recognisable
element. Used properly, the effect allows a company or business to save money on
marketing. They can use the previous momentum to promote their product better and
reach more of their target audience.
Understanding Marketing Psychology
Advertising in television is known to create a halo effect across a brand or
different range of products. Celebrities or well-known personalities are often
hired to endorse products by making a commercial. The connection between the
endorser and product does not always have to be obvious to be effective.
The halo effect may stem from the marketing value gained in associating the
product with the popularity of the celebrity. This can give a new product or
company the attention it desires, which can contribute to a significant increase
in sales. The effect, however, is still dependent on the reputation or fame of the
endorser.
Television and Commercials
The only problem with celebrity endorsement is if the celebrity gets
involved in a scandal like a drug arrest or domestic violence. This
can negatively affect the consumer’s perception of the product or of
the company. The association of the product and celebrity can
remain in the mind of consumers even when a new personality is
hired for another campaign.
Resources:
http://hatmedia.com.au/tv-advertising/
http://www.business-standard.com/article/management/the-halo-effect-
113092200709_1.html
http://www.iptv-news.com/2014/05/still-your-television-tv-remains-most-effective-
way-to-advertise/

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The Halo Effect in Advertising

  • 1. The Halo Effect in Advertising HAT MEDIA 1300 551 905 L1, 15 The Corso Manly NSW 2095
  • 2. In general, the halo effect occurs when a single element or aspect dazzles people and affects general perception of the overall picture. It is a term used to explain the bias shown by consumers toward certain products due a favourable experience. It is mostly driven by brand equity. While marketing and psychology are two different things, they are closely related. Psychology refers to the systematic study of the human psyche, while marketing focuses on the study of human behaviour in the marketplace. The halo effect works in both marketing and psychology. For instance, appealing or good-looking people are considered more intelligent, successful, and popular. When they are used as brand ambassadors in advertisements, they can affect how people perceive the product or even the entire company. The first success of the product can also positively affect the next product produced by the same company. The ‘halo effect’ has long been used in the world of advertising. This happens when a business or product achieves marketing success due to an association with a recognisable element. Used properly, the effect allows a company or business to save money on marketing. They can use the previous momentum to promote their product better and reach more of their target audience. Understanding Marketing Psychology
  • 3. Advertising in television is known to create a halo effect across a brand or different range of products. Celebrities or well-known personalities are often hired to endorse products by making a commercial. The connection between the endorser and product does not always have to be obvious to be effective. The halo effect may stem from the marketing value gained in associating the product with the popularity of the celebrity. This can give a new product or company the attention it desires, which can contribute to a significant increase in sales. The effect, however, is still dependent on the reputation or fame of the endorser. Television and Commercials
  • 4. The only problem with celebrity endorsement is if the celebrity gets involved in a scandal like a drug arrest or domestic violence. This can negatively affect the consumer’s perception of the product or of the company. The association of the product and celebrity can remain in the mind of consumers even when a new personality is hired for another campaign. Resources: http://hatmedia.com.au/tv-advertising/ http://www.business-standard.com/article/management/the-halo-effect- 113092200709_1.html http://www.iptv-news.com/2014/05/still-your-television-tv-remains-most-effective- way-to-advertise/