Oprah Effect

By
Clay Halton
Clay Halton
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Clay Halton is an Associate Editor at Investopedia and has been working in the finance publishing field for more than three years. He largely writes and edits personal finance content, with a focus on LGBTQ+ finance.
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Updated September 14, 2021
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Timothy Li
Timothy Li
Fact checked by Timothy Li
Full Bio
Timothy Li is a consultant, accountant, and finance manager with an MBA from USC and over 15 years of corporate finance experience. Timothy has helped provide CEOs and CFOs with deep-dive analytics, providing beautiful stories behind the numbers, graphs, and financial models.
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What Is the Oprah Effect?

The Oprah Effect refers to the boost in sales that followed an endorsement on "The Oprah Winfrey Show", which aired on TV for 25 years. A recommendation from Oprah, the queen of talk shows, turned many fashion and lifestyle products into multimillion-dollar companies.

Key Takeaways

  • The Oprah Effect was a boost in sales for companies and individuals featured by Oprah Winfrey, queen of daytime talk shows, on her TV program.
  • Several well-known individuals with talk shows, such as Dr. Phil and health-expert Dr. Oz, received an initial boost to their careers from Oprah.
  • The Oprah Effect was considered powerful because of its authenticity.

Understanding the Oprah Effect

Many businesses and people who were lucky enough to appeal to Oprah Winfrey found overnight success after being promoted on her groundbreaking show—which ran from 1986 to 2011 and was the highest-rated daytime talk show in American TV history.

The Oprah Effect was especially powerful because of her authenticity. Oprah chose products she was genuinely interested in, rather than being paid to promote them. And, unlike typical celebrity endorsements, she supported independent family businesses.

Thanks to Oprah, TV personalities like psychologist Dr. Phil, health-expert Dr. Oz, and TV cook Rachael Ray have all become household names with their own TV shows. She also had a huge impact on publishing. Oprah’s Book Club promoted reading and turned books into immediate best sellers.

Today, Oprah is a billionaire and a media mogul. She launched OWN, the Oprah Winfrey Network, in 2011. And while her 10% investment in WW International Inc. (WW), commonly known as Weight Watchers, in 2015 has proved that not everything she touches turns to gold instantly—the dieting company faces stiff competition from mobile apps and fitness trackers—she still has millions of loyal fans and high approval ratings.

Oprah Effect Examples

While his interior design firm had been around since 1995, Nate Berkus received a major boost to his career after appearing on Oprah in 2002. Thereafter, he appeared regularly on her show and his design firm has thrived on the publicity. Oprah's production company, Harpo, also co-produced Berkus's daytime show.

The Oprah Effect was most pronounced for the publishing industry. According to available statistics, 59 books chosen by Oprah for her book club appeared on USA Today's top ten list and 22 reached the No.1 position. Nobel Laureate Toni Morrison's books are supposed to have received a bigger boost in sales from Oprah's recommendations than from winning the prize itself.

Article Sources

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  1. Oprah. "OWN Unveils Original Programming for January 1, 2011, Launch." Accessed April 24, 2021.

  2. WW. "Oprah Winfrey And Weight Watchers Join Forces In Groundbreaking Partnership." Accessed April 24, 2021.

  3. Oprah. "Harpo, Sony Pictures Television, NBC Local Media to Launch The Nate Berkus Show." Accessed April 21, 2021.

  4. The Christian Science Monitor. "What Oprah Has Done for Books." Accessed April 24, 2021.

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