How Celebrity Reputation can influence their endorsement potential

Celebrities make considerable revenue in their career from endorsements and brand promotions and it is one of the most effective marketing tools as well. However, celebrity reputation has a great bearing on the pulling power and demand of celebrities. How the Tiger Woods crisis dealt a devastating blow to celebrity endorsement is still fresh in everybody’s mind. He was dropped like a hot potato from the various endorsements he was contracted that not only left a huge dent in his popularity but also his earning potential as well.

The marketing tactics behind endorsements is that if you put a face to a name, it is more likely for the that the customers remember it. This is what prompts marketers to hitch celebrities to their brands to make it popular. A recent study on endorsements have indicated that sales for some brands increased up to 20% upon commencing an endorsement deal. Celebrities can make your brand reach the the conscious mind of the consumer, which will remain in the minds of the consumers through the mass media. Peer endorsement is effective than advertising in creating a buzz in the market.

Celebrity endorsement has the power to inspire and enlighten the customer and can create an impact on the brand promotion without the advertisement clutter. It could be an expensive option but is certainly more effective in establishing its brand image in the niche markets. However celebrity endorsements are not for every product and it is followed by companies that have exceptional product lines that suit the profession and glamor of the celebrity that they are hiring and is most commonly used in sports apparels, perfumes and accessories among others. Nike’s rapid success in the golf category was chiefly because golfers wanted to lay claim to the number-one golfer in the world.

Celebrity endorsements help you to create new markets and to get connected with the core customer groups. However on the downside, using celebrities to market a product instead of banking on the product merits and service value has its own risks, constraints and contractual limitations as well. If the celebrity reputation takes a beating, the brand image will be effected immensely. Though fraught with danger, social media’s potential for making celebrity endorsement is being tapped in establishing the brand image of companies today! It is a tight rope walk indeed and a slight whiff of rumors or down slide in the popularity of the celebrity is all it takes to bring down the popularity of the product among the buyers.

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