That's why companies like this type of sponsorship or having brand ambassadors. It's because the fan base of these celebrities is also becoming their potential market so, for them, it's the true power of marketing that the others are also going to benefit from hiring or signing them with a contract. But this is one of the most expensive ways of advertising.
Indeed but in terms of effectiveness especially if the promoters is a well-known personality the said target venue can be penetrated and earn interest even from those who doesn't know or who doesn't need whatever you are offering, they just gain that interest because of the person who's promoting the product.
Expensive but there's studies that can identify the potential and in terms of business there's always a risk that's needed to take and needed to consider.
Yeah, that's what these companies are paying for. The fame of that endorser/promoter that they've hired to model or advertise their product means a lot to them because they're garnering the fans of it and converting them into potential customers and sales. The expansiveness of this type of advertisement and marketing is worth it for most of them. And that's why we see celebs that are always chosen by big brands because they know how wide the influence that they have and at the same time, they're getting more potential customers and not just that, could be repeat customers.