Do brands really need celebrities?

http://app.emaze.com/@aowqtioo/celebrity-endorsementspptx#3

The chart above shows us that brands don't always need the use of celebrities. With TV advertisements the data shows us that people are more likely to pay attention to the advert if it is an unknown face as to an already known celebrity/athlete.


http://adage.com/article/cmo-strategy/celebrities-ads-lead-greater-sales/148174/

The above charts also illustrate that the celebrity advertisements scored very low in comparison to those without celebrities. This suggests that consumers prefer to see non celebrities for advertisements.


According to this article, online engagement between celebrities and the public regarding the specific product or service, is more successful than an advert. http://www.addthis.com/blog/2014/07/30/do-celebrity-endorsements-create-online-engagement/#.Vyvqqyz2bIU This could be an effective method of using celebrities for the future.

To answer the question whether celebrities are necessary, this cannot be generalised. I think that many companies could save their money and invest into other channels to have better overall results and brand performance. However, there definitely still is something special when the endorsement fits and the brand and celebrity share the same values which are promoted to the public. Bigger brands should use celebrities if they can find the right one! Smaller companies should save their money.

Are there gender differences?

http://opendorse.com/blog/top-10-athlete-endorsement-earners-by-gender/ This webpage shows exactly how much the top male and female celebrity endorsements are valued at. There is a significant difference wit men almost tripling their women counterparts in earnings. This suggests that women generally endorse less products for brands than men.

In sports the main difference between men and women is the inequality of prize money. Many sports such as football, cricket, golf, darts continue to pay unequal amounts of prize money to different genders. Sponsors say that the audiences are not big enough for many events, therefor there is not enough cash generated. If there is not a wide enough audience this could impact a sponsors decision on endorsements with certain players/athletes.


'Tennis players rule the list with seven individuals. Tennis is the one sport that generates significant revenue on both the men’s and women’s side. The result is near equal prize money in tennis and widespread TV coverage, which attracts sponsors who want athletes getting exposure. Tennis’ demographics are also strong with tennis fans wielding high disposable incomes to spend on equipment, apparel, watches and cars.'
http://www.forbes.com/sites/kurtbadenhausen/2015/08/12/the-worlds-highest-paid-female-athletes-2015/#7e25c00c7b11

This may encourage brands to also think about the sport, rather than just the celebrity athlete.

Maria Sharapova was the highest paid female athlete for 11 years running, until she failed a drug test and lost a lot of her endorsements.

Here is a link for a video of Maria Sharapova admitting to drug use whilst competing professionally.
http://money.cnn.com/video/news/2016/03/07/maria-sharapova-failed-drug-test.cnnmoney/

 

Tiger Woods is another example of being one of the highest earning sportspeople to lose their endorsements.  http://www.washingtonpost.com/wp dyn/content/article/2010/02/19/AR2010021902442.html )


With regards to sports, there are few sports where women earn as much in endorsements as men do so I would say that there are gender imbalances. However, there are certain cases where this would not be applicable.

Failures - Broken Relationships

In contrast to the Nadal and Federer, Andy Murray demonstrates that there are limitations depending  on your looks. Because competition is high and celebrities make a significant sum of their earnings through endorsement, some superstars just don't possess the natural beauties to be selected in the top tier of the endorsed.

 ( Source 10: http://www.brandingstrategyinsider.com/2009/07/when-the-brand-appeal-just-isnt-there.html#.Vy33XqT2aP8 ) Here is a quote on the webpage: "Yes, and the bullshit is plentiful. Despite predictions that Brand Murray will soon be worth £100m a year, the harsh reality is that Murray is a fine tennis player, but a hopeless prospect as the next Beckham, no matter how advanced the brand strategy applied to his future career."

After reading this article that Andy Murray, a co-tennis superstar, Pat Cash reckons that Murray is not even in the same league. This seems a bit shallow, but it shows how important physical attractiveness is when endorsing a celebrity, which ultimately creates the celebrity.


http://www.bing.com/images/searchq=ugly+murray&view=detailv2&&id=540FBD40FC73E08A1E938820EBE63D37434B90BE&selectedIndex=9&ccid=TjANTV5k&simid=608029883906458272&thid=OIP.M4e300d4d5e64a37c461bd17ba1f1c11co0&ajaxhist=0

One negative example of a celebrity endorsent is Kerry Katona. She signed a contract with Iceland after she had won ‘I’m A Celebrity, Get Me out of Here’. The public liked the campaign as they thought Kerry was 'down to earth,' however soon after it surfaced in the media that she was a drug addict. Iceland no longer wanted Kerry to be associated with the brand and got rid of her from the campaign. http://blog.simplymarketingjobs.co.uk/blog/blog/celebrity-endorsements-and-marketing/ ) This illustrates that poor lifestyle choices and negative press can ruin the relations between the brand and celebrity and it seems that the celebrity comes off worse.


http://www.bing.com/images/searchq=drug+kerry+katona&view=detailv2&&id=DD62F6456D1316125B418E8B7C11555661198D44&selectedIndex=17&ccid=M1JIv15m&simid=608048781765247033&thid=OIP.M335248bf5e662aaf8912d653e2693584o1&ajaxhist=0

Tiger Woods is another prime example of endorsements not working out.He has been dropped by sa number of his endorsements since his public sex scandal hit the headlines (these included Pepsi, Accenture and US telephone giant AT&T.) Others, including Nike, have continued to sponsor him so this says a great deal about him as an athlete. Nike the largest global sports brand are still willing to keep the contract after all of the bad publicity. 'A succession of well-known celebrities, including Kate Moss, Wayne Rooney have been dropped by sponsors in the past following revelations about their private lives.' http://www.theguardian.com/media/2010/dec/24/tiger-woods-dropped-by-Gillette

This is the risk that companies will take and many have rule lists or guide lines as to how the celebrity should act for example to resonate the true brand values.




http://www.bing.com/images/searchq=sad+tiger+woods&view=detailv2&&id=85331EF79FCAB50BF58656BA44AACDAB6E4A5316&selectedIndex=3&ccid=xWzmT4Y2&simid=608023961138236182&thid=OIP.Mc56ce64f86364dcb4178094bc0bd25d1o0&ajaxhist=0

Successes stories - Brands and celebrities

The following info-graphic below shows us some of the most popular and used faces in the marketing world. They have made millions in endorsement deals and this just demonstrates that major global brands will do what they can to get the best ambassador.
http://www.marketingmagazine.co.uk/article/1337508/behind-endorsements-prolific-celebrity-brand-ambassadors )

Here is a small article about some of the largest athlete endorsement deals:
(http://finance.yahoo.com/news/5-biggest-athlete-endorsement-deals-175832878.html)
Just to get a feel for the amount of money being eraned by the top celebrities, I will pick out a few:

Dereck Rose - $260,000,000 endorsement deal with Adidas
Rory McIlroy - $250,000,000
David Beckham - $161,000,000 endorsement deal with Adidas


To begin with we will focus on the success of Rafael Nadal and Richard Mille. Richard Mille state, 'The partnership between Rafael Nadal and Richard Mille has led to a string of successes on the courts for the Majorcan tennis champion, notably most recently with his 9th successive victory at the French Open (first player ever to win the same Grand Slam tournament) and in haute horlogerie for Richard Mille with the Rafael Nadal collection.'
http://www.richardmille.com/company/partners/
They seem to be taking partial credit for his performance on court and success in tennis tournaments. This is making the bond stronger for consumers between the watch, and Nadal's tennis. In an article, Mille says, 'the "interest has been very strong" from its clients. As for Nadal, he not only wears the $690,000 watch during every match but says he can't imagine playing without it.' http://www.cnbc.com/id/101008071

Nadal not only endorses the watch brand, but shows consumers that he genuinely cannot live without it. Nadal is known for his precision on and off the court with very specific routines. These qualities also resonate in the brand and therefore make it easy to understand and attractive to potential customers.


Roger Federer is also an extremely successful endorses. His campaign for is even called 'The Perfect Match.' Because Federer is one of the older players on the tennis circuit within the top 20, his brand conveys a 'classy gent' smooth image, more knowledgeable, more mature than the other players, his name is treated with respect and I believe that for these reasons he is so successful with connecting with luxury brands.

It takes a very rare and unique individual to fit perfectly the brands and products. That's a lot of the faces that we see in the media are the same ones. A perfect match up does not happen easily though, here is another example of a good match-up:

 

The final success story is the case of Jeremy Meeks:

Jeremy Meeks, 30, 'offered $30,000 modelling contract with Blaze Modelz'
Jeremy is a convict whose mug-shot went viral so social media sites. Our culture reveals just how physical attractiveness can actually override morals. There is an article on Jeremy Meeks talking about how his prison mug-shot went viral and soon after modelling companies were trying to recruit him regardless of his criminal record. This says a lot about the forces of beauty and the extent companies will go to get the right fit.http://www.dailymail.co.uk/news/article-2677731/Jeremy-Meeks-lands-30-000-LA-modelling-contract-THAT-mugshot-went-viral.html#ixzz47ypyRHBA )

If the top brands want to have a successful venture with their endorsements, then they need to consider the physical attractiveness and whether their appearance also link to the image of the brand.

The 'in's' and 'out's' of Celebrity Endorsement

After reading the following online article: http://www.frog-dog.com/the-advantages-and-disadvantages-of-celebrity-endorsements/

I decided to first establish the 'in's' and 'out's' of celebrity endorsements.

The following benefits of successful celebrity endorsements have been depicted by Frog-Dog.com:

• 'Build brand equity. Prior to Michael Jordan, Nike primarily sponsored tennis and track athletes. Nike wanted expand into new markets. Michael Jordan is one of the most popular athletes of all time and since the partnership, The Nike-Jordan has grown to a multibillion dollar subsidiary company.'

 

http://www.bing.com/images/searchq=nike+jordan+michael&view=detailv2&id=606E6C5A321AC92B2713AF3DC1B3A5908E21F9F2&selectedindex=1&ccid=hcKp7j7g&simid=608032452298998059&thid=OIP.M85c2a9ee3ee095d4343ca4c6188bf42ao0&mode=overlay&first=1

 

• 'Help to remember advertisements. Celebrity endorsements can improve ad recall, according to researchers Jagdish Agrawal and Wagner Kamakura. When people would see or hear Dennis Haysbert on the show “24,” they associate his voice with Allstate.'
• 'Make people believe the product contributes to superstar status. Mobile One uses NASCAR superstar Tony Stewart to endorse its brand, which leads consumers to believe that Motor One oil contributes greatly to the performance of his car—and his success.'
• 'Stand out. Research from Charles Atkin and Martin Block suggests that “celebrities may help advertising stand out from the surrounding clutter.” People like watching George Clooney or Natalie Portman more than local dentists and attorneys.' http://frog-dog.com/the-advantages-and-disadvantages-of-celebrity-endorsements/#sthash.3MmHZs4U.dpuf

Selecting a Celebrity for a Brand

Companies must choose celebrities who resonate both the image and mission of the brand. Not all will fit! That what the cxase for “Sex and the City” star Sarah Jessica Parker. 'She bound a contract to be the face of Gap. However, Parker was so closely associated with her show’s haute couture style that the association didn’t resonate with consumers. In 2005, Gap replaced her with Joss Stone and Keith Urban, who are more likely to wear Gap-style clothing in the public eye. Since then, Gap has continued to use celebrities who align better with their brand, such as the Avett Brothers and Kaki King.' http://frog-dog.com/the-advantages-and-disadvantages-of-celebrity-endorsements/#sthash.3MmHZs4U.dpuf

This illustrates how particular companies must be in order to invest in a worthy celebrity who lives the brand as well as endorsing it.

The following are risks associated with celebrity brand endorsements.



https://www.google.co.uk/searchq=risks+of+celebrity+endorsements&espv=2&biw=1366&bih=667&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjYLK7k8zMAhWlJsAKHQtuDNwQ_AUIBygC&dpr=1#imgrc=EJ5ds-n6V9JEM%3A

To make a successful partnership and campaign, companies should assess and eliminate all risks when investing in celebrity endorsement.

So what exactly is a celebrity? After reading the following article (http://www.bbc.co.uk/news/business-30392829,) I came to understand that "The world we live in now is about influencers, and that's all a celebrity really is," says Mr Morgenstein.

The value of the 'influencers' can be enormous, however they first must have influence over the public before they try to endorse a brand. If the individual has not had a particularly influential life, it could in fact harm their reputation. It is very important then to create a good match up between brands and celebrities.( http://www.bbc.co.uk/news/business-30392829 )


It doesn't always work out well for the company though, if they select somebody who doesn't fully understand the brand values or if they do not 'love' the brand themselves then this can be recipe for disaster. Consumers will not associate the link between the product and the celebrity and could therefore harm the brands reputation.

Introduction

This blog is designed to explore a chosen aspect of marketing management. The area in which I will study is Brand Celebrity Endorsement. It is a topic which has always been of particular interest to me. This is my first experience keeping an E-Portfolio Blog. The e-portfolio should allow me to explore the selected area of marketing management by covering a range of topics from an array of sources.

Definition: A form of brand or advertising campaign that involves a well known person using their fame to help promote a product or service. Manufacturers of perfumes and clothing are some of the most common business users of classic celebrity endorsement techniques, such as television ads and launch event appearances, in the marketing of their products.

http://www.businessdictionary.com/definition/celebrity-endorsement.html

The inspiration for this topic is my love of celebrity tennis player Rafael Nadal. As a tennis coach, a competitive player and a university ambassador for the sport I am a huge. The thing that really excites me about Nadal is his relationship with the luxury watch brand Richard Mille.

http://www.bloomberg.com/news/articles/2015-05-27/rafael-nadal-is-playing-with-a-775-000-richard-mille-watch

 

 

 

 

 

The blog will draw on a number of theories to further explore the stories behind the endorsements. 

The 'Source Credibility Model' contends that the effectiveness of a message depends upon the perceived level of expertise and trustworthiness of an endorser. Trustworthiness is defined as the honesty, integrity, and believability of an endorser as perceived by the consumer. Expertise is defined as the extent to which a communicator is perceived to be the source of valid assertions. It has been found that the expertise an endorser possesses directly relates to consumers intent to purchase. The Source Credibility Model states that the effectiveness of an advertising message relies on the consumer’s perception of how expert and trustworthy the celebrity endorser is (Keel & Nataraajan, 2012).

Keel, A; Nataraajan, R (2012). "Celebrity endorsements and beyond: New avenues for celebrity branding". Psychology & Marketing 29 (9): 690–703.
(http://www.uky.edu/~drlane/capstone/persuasion/sourcecred.htm )

This will help to analyse some celebrity-brand relationships, success stories and failures. Refering to this model, we could also discover whether the consumers trusted the celebrities based on their performance as an ambassador.

The next model is called the Match-up Hypothesis and this is a model used to choose celebrities for endorsement.
It revolves around the idea of finding dominant associations that support the celebrity and brand juxtaposition, and minimizing any contradictory ones.        
Lawrence Ang and Chris Dubelaar (2006) ,"Explaining Celebrity Match-Up: Co-Activation Theory of Dominant Support", in AP - Asia-Pacific Advances in Consumer Research Volume 7, eds. Margaret Craig Lees, Teresa Davis, and Gary Gregory, Sydney, Australia : Association for Consumer Research, Pages: 378-384.

 

The following posts will explore different areas of celebrity brand endorsement and provide a progressive learning experience.