The Halo Effect: Marketing’s Not-So Magic Trick

Bite-size: Our brains prefer efficiency over effort—rather than analyzing every attribute independently, we rely on existing impressions to guide our judgments. One heuristic you can use is ‘The Halo Effect.’ One domain (context of the ad) will spill over into the other (your brand or product) unconsciously and without objective assessment.

Full-size:
You see a new commercial and while you don't recognize the brand, you like the dancing monkeys. You might not realize it but a positive association is being developed by brand you know nothing about. One domain (context of the ad) spills over into other domains (the new brand) unconsciously and without objective assessment. This is known as The Halo Effect— a mental shortcut where our brains use a single positive trait to fill in the blanks about other unrelated characteristics. 

Using celebrity endorsement is a popular choice—In 2024, more than 68% of Super Bowl commercials featured at least one celebrity (source). But using a celebrity can be risky and almost always is VERY very expensive. (IMO it’s a bit played out) Creating a brand personality is a more creative alternative that can be more effective and give you the marketer more control.

Coca-Cola has spent decades crafting an image associated with happiness, nostalgia, and togetherness through its marketing. But not all brands have the luxury of time or mountains of marketing dollars. A great recent example of the halo effect in action is Oatly, the Swedish oat milk brand that has rapidly gained popularity in the U.S. market by positioning itself as more than just a dairy alternative—it crafted a brand identity around being quirky, sustainable, and health-conscious. Its minimalist packaging, playful tone, and environmental messaging created a strong emotional appeal, making consumers associate the brand with being cool, progressive, and better for the planet.

The incumbent competitor in the space, Silk brand, stood no chance. Even with bigger budgets, celebrity endorsements, and an iconic ad rip-off of epic proportions (Goodby, Silverstein & Partners would like to have a word).