In promotion and of advertising, a testimonial or show consists of a written or spoken statement, sometimes from a person figure, sometimes from a private citizen, extolling the virtue of some product. The term "testimonial" most commonly applies to the sales-pitches attributed to ordinary citizens, whereas "endorsement" usually applies to pitches by celebrities. See also Testify, Testimony, for historical context and etymology. Testimonials can be part of communal marketing.
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Advertisers have attempted to quantify and qualify the use of celebrities in their marketing campaigns by evaluating their awareness, appeal, and relevance to a brand's image and the celebrity's influence on consumer buying behavior.
For example, Omnicom agency Davie Brown Entertainment has created an independent index for brand marketers and advertising agencies that determines a celebrity’s ability to influence brand affinity and consumer purchase intent. According to the Wall Street Journal, the so-called " Davie-Brown Index" will "enable advertisers and ad-agency personnel to determine if a particular public figure will motivate consumers who see them in an ad to purchase the product advertised."
Celebrity endorsements have proven very successful in China where, due to increasing consumerism, it is considered a status symbol to purchase an endorsed product. On August 1, 2007 laws were passed banning healthcare professionals and public figures such as movie stars or pop singers from appearing in advertisements for drugs or nutritional supplements. A spokesperson stated: "A celebrity appearing in drug advertising is more likely to mislead consumers, therefore, the state must consider controlling medical advertisements and strengthen the management of national celebrities appearing in medical advertisements."
Testimonials from customers who are not famous have been effectively used in marketing for as long as marketing has existed. A past or current customer will present a formal "word of mouth" testimonial that a business can use in marketing and to build trust with future customers. Though testimonials are incredibly effective when believed true, a challenge lays in having the audience believe that testimonials presented by a business are given by real people, and not fabricated by the business itself. Even so, testimonials, reviews, and case studies are still considered by most marketing experts to be the most effective means of marketing and gaining brand trust by small- and medium-sized businesses.
The FTC (Federal Trade Commission) in fact found that in US businesses an alarming number of testimonials were in fact fictitious and misleading that in Dec of 2009 they introduced a new set of rules governing testimonials. (They have set up an FAQ about this on their website here.) In essence it is now illegal to use testimonials that "...mislead consumers and affect consumers' behavior or decisions about the product or service." However, despite new regulations, online consumers often view testimonials with a high degree of skepticism. Companies from the private sector have begun to offer testimonial verification services to help consumers verify the authenticity of displayed testimonials.