Blog Post By: Kali Kraft, Baer Performance Marketing Intern
Celebrities are plastered all over TV, social media, magazines, and any other place you’d find an ad. But do those endorsements truly lead to an increase in sales of a product? In short, yes, but there can be some drawbacks that you may want to consider before choosing a celebrity to represent your brand. Here are some advantages and repercussions of celebrity spokespeople on the brand in which they’re promoting.
- Builds credibility
People are attached to their favorite celebrity, and they are generally well-trusted by their fans. If they use your product, it shows their fans that it is a product worth using and builds trust in your brand. Seeing a celebrity attach their name to a product also reassures consumers of the quality of your product. The celebrity would be at risk for damaging their reputation if they endorsed a product that’s quality was lacking.
- Makes your brand stand out
Using a celebrity to represent you helps to differentiate your brand from competitors. It also can improve ad recall, making consumers remember your ad and that your brand is connected to their favorite celebrity.
- Opens up new markets
Choosing the right celebrity can open up your brand to new markets. For example, when Nike wanted to expand from primarily sponsoring tennis and track, they partnered with Michael Jordan – and this partnership has been so successful it has expanded into its own subsidiary company.
- Celebrity images change
When you sign on a celebrity to endorse your brand, you sign on to everything that comes with them. While this usually means bringing in some of their fan base as customers, it can lead to disaster if a scandal occurs. A prominent example of this was Tiger Woods in 2009, when rumors of his infidelity surfaced and brands began to drop him as a sponsor to avoid the backlash from consumers. Nike didn’t immediately release him as a sponsor and lost customers as a result.
- They may overshadow your brand
If a celebrity is too big, their popularity might instantly overshadow your brand. If the ad focuses too much on the celebrity, it can cut out brand recognition in the minds of consumers. This can also become a problem if a celebrity is endorsing multiple products at the same time, as they might see the celebrity and associate it with another brand.
- Endorsements are expensive
This may seem obvious, but getting a celebrity endorsement typically requires shelling out a pretty substantial chunk of money. Pepsi decided it was worth the price when they signed on with Beyonce for a whopping $50 million 10-year endorsement contract, but if you aren’t a multi-billion dollar company, it’s important to assess if the increase in consumer interest and revenue is worth the cost of the endorsement.