Celebrity Branding

Clark Gable & Rolex

Celebrity branding or celebrity endorsementis a form of advertising campaign or marketing strategy which uses a celebrity’s fame or social status to promote a product, brand or service, or to raise awareness about an issue.

Celebrity endorsement builds credibility and can expose a brand to new markets. The celebrity effect is the ability of famous people to influence others. Companies can use that star power and influence to boost their own products and services. Celebrities can add credibility and glamour to a brand.

The Economic Value of Celebrity Endorsements


This study showed that approximately 20% of all advertising features a celebrity, that celebrity endorsements increase trust, and that brands can experience a 20-40% increase by using a celebrity endorsement. Conducted by Anita Elberse, Harvard Business School, this is one of the most cited studies regarding celebrity endorsements.

In this study of athlete endorsements, we find there is a positive pay-off to a firm’s decision to sign an endorser, and that endorsements are associated with increasing sales in an absolute sense and relative to competing brands, Elberse wrote.

The Economic Worth of Celebrity Endorsers: An Event Study Analysis


After analyzing 110 celebrity endorsement contracts, the authors of this paper found that the impact of just the announcement of a celebrity endorsement has a positive correlation with stock prices. Despite the high cost, the mainstream use of celebrity endorsers suggests that marketing managers think it is a worthwhile marketing strategy.  The researchers concluded that using a celebrity endorser is a worthwhile investment.

The Effects of Celebrity Endorsement in Advertisements


This study addresses the advantages of using celebrity endorsement in advertising.

  1. Establishment of credibility – approval of a brand by a star fosters a sense of trust for the brand among the target audience especially in the case of new products.
  2. Ensured attention – celebrities ensure the attention of the target group by breaking the clutter of advertisements and making the advertisement and the brand noticeable.
  3. Higher degrees of recall – people tend to commensurate the personalities of the celebrity with the brand thereby increasing the recall value of the product.
  4. Associative benefit – a celebrity’s preference for a brand gives out a persuasive message. Because the celebrity is benefiting from the brand the consumer will also benefit thus this perception increases the sales or consumer’s attachment to the product.
  5. Psychographic connect – celebrities are loved and adored by their fans and advertisers use stars to capitalize on these feelings to sway the fans towards their brands.

You Now Have a Shorter Attention Span Than a Goldfish


This article summarizes a 2015 study conducted by Microsoft. When people are in an unfocused state, their attention span is approximately 8 seconds, which is less than that of a goldfish. Consumers attention spans’ have been on the declined. In 2000, the average attention span was 12 seconds.

The Influences of Perceived Value on Consumer Purchase Intention: The Moderating Effect of Advertising Endorser


An advertising endorser can connect product value by deepening consumers’ impression and transfer their feelings on a product/service.

When people shop, they typically compare brands. This study found that when a celebrity endorser represents a brand, customers have a high-level of satisfaction and confidence in the product or service. The celebrity endorser also was found to help to bolster the perceived value of the product.  The last finding that this study surmised was that a celebrity endorser helps to cut through the competitive noise.  If a product or service is associated with a well-known figure, this helps the product stand above the rest of the competition in customer retention.

Athletic Endorsements and Their Effect on Consumers’ Attitudes and Consumption


Researcher and professor Karla McCormick, Florida State, thinks that athletic celebrity endorsements give a company an edge in the advertising marketplace and also contributes to an increase in profits.

If used appropriately, athletic endorsers in advertising can serve a valuable role in enhancing a firm’s competitive position by not only contributing to building a favorable brand image but also by having a direct economic influence on the firm, McCormick wrote.

The Lure of Celebrity Endorsements


This article quotes a study conducted by a team of Dutch researchers headed by Mirre Stallen that proved that celebrity endorsements increased product sales. The Dutch study also outlined the psychological reasons why celebrity endorsements work.

Impact of Celebrity Endorsement on Consumer Buying Behavior


This study shows that consumers show greater recall for products that have been endorsed by celebrities. This study also states that approximately 19% of all national advertising features a celebrity.

New Research Sheds Light on Daily Ad Exposures


The Yankelovich study, summarized by this article, shows how many advertising messages a person sees per day and how many of those ads have an impact on the conscious and subconscious mind.