The Halo Effect: Why Customers Trust Newsletter Advertisements
You may have a better chance of getting positive returns on an email newsletter advertisement than you might with more traditional web advertisements like Google AdWords or banner ads. That is due to a variety of reasons, including being able to more closely target people who are interested in the product or service.
It’s also true that one of the other reasons that you may get a better return is the Halo Effect. Customers who subscribe to an email newsletter may have very positive feelings about the person or company running the newsletter. Thus, they may be more positively inclined to buy the product or service advertised, especially if the person or company explicitly endorses the item.
Halo Effect is real
The idea of a Halo Effect in advertising is the reason behind celebrity endorsements of products and services, that if an actor or singer you like appears in a commercial for a product, the celebrity’s fan base will buy such a product. For example, celebritiy endorsements from Katy Perry, Justin Bieber, Jessica Simpson, and others have turned the anti-acne product ProActiv into a must-have product for teenagers, and Derek Jeter’s Halo Effect has undoubtedly helped publicize the Ford Focus.
Yet you don’t need to get a big-named celebrity – or shell out the big bucks – to get somebody who has a fan base to endorse your product. For example, Peter Shankman of Help a Reporter Out is a huge name in the public relations and social media worlds, but he is not exactly a household name. What he did was create a newsletter that would bring together journalists and sources for articles. Shankman has a wildly popular newsletter, which runs three times every weekday and features reporters looking for sources. He has been able to parlay the email newsletter into a lucrative business model — Vocus, Inc. bought HARO in 2010 – thanks in no small part to the ads.
Halo Effect works for newsletters
One of the things that attracted advertisers to his newsletter is that Halo Effect. Shankman’s readers are devoted, and they may be more likely to buy the product or service, especially when Shankman himself may have written the ads. The advertisements also have good placement – right at the top of the newsletter, before the content, so you can’t help but read it. And they reach the right people – those interested in buying the product or service.
There are many such email newsletters out there of varying sizes, with devoted fans, who may be interested in whatever it is you are marketing. The engagement rates can be 5-15 times higher with such newsletters than with traditional web display ads. So why not find what newsletter targets your perfect customer? There are even companies that can help you find the right newsletters for you.
Takeaway: A great way to be effective with email newsletter marketing is to partner with a company that has a “Halo Effect” in which its customers are more likely to consider your product or service because of your affiliation with that business.