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.