Celebrity Endorsements - Risk vs. Benefit

Celebrity endorsements are risky. Just ask Mary-Kate and Ashley, Kate Moss, Kobe Bryant, The Dell Dude, Michael Vick, Cybill Sheperd, Madonna plus many more who have lost their endoresments due to dicey behavior. Most Americans see celebrities as flawless people they want to be like and forget that they are just regular people who still make mistakes.

In a recent AdAge article titled "At Least Elvis Can't Get Caught Smoking Pot," they mention that one way to play safe in the endorsement world is to use a deceased celebrity. Sure, Elvis had alcohol and drug issues, but he isn't out today shooting guns and making derogatory comments. People still revere him as the King of Rock 'N' Roll and his estate generated about $51 million in 2008, $6 million more than Justin Timberlake. Companies have used Elvis, Albert Einstein, John Lennon, Winston Churchill and Audrey Hepburn in their media relations strategy and endorsements around the world, and with more and more celebrities making negative news, that may be increasing. The fact is that no celebrity is immune to scandals put on by other parties (illegitimate kids, photos), but there are safer alternatives that brands can turn to. A-list celebrities like Nicole Kidman have had good track records for years, which is what made her attractive for Chanel's campaign. Even though top celebrities will demand larger endorsement deals, their image has stood the test of time and are less likely to sink your brand.

Endorsements are especially risky when young celebrities are involved. Take Michael Phelps, 23, and Chris Brown, 19. They are both in deep water because of drugs and domestic abuse which have wrecked their image. Although their endoresements are the least of their worries, the companies that trusted and relied on these spekesmen to tout their products now have to clean up their mess and make changes to their marketing plans and media relations strategy. If you plan to use a celebrity to speak on behalf of your brand, doing a thorough background check and negotiating a moral clause will make it easier for you to back out if something comes to light in the future.

About the Author: Ellen Stevens

As the Search Media Manager for Off Madison Ave’s interactive division, Mighty Interactive, Ellen develops and manages strategic online paid search and Search Engine Optimization (SEO) campaigns for clients of all sizes. She is also the head of the internship program at Off Madison Ave. Ellen uses her previous agency internship experience to be an effective mentor and help the students develop skills they will need professionally after graduation. Ellen graduated from the W.P. Carey School of Business at Arizona State University with a bachelor’s degree in marketing and a certificate in international business.