When Celebrity endorsements go wrong..

Celebrity sponsorship and endorsement is one of the oldest techniques for marketing products. However, it can all go wrong; it can create a damaging issue for the celebrity and the corporate sponsor in question. Sometimes, it is the fault of a poorly conceived marketing campaign, other times it is the fault of the celebrities undermining their brand message-either inadvertently or with bad behaviour. The real test however is how the organisation responds.

The pace of social media have made it more difficult for brands to curate their image and enlisting a celebrity spokesperson adds a significant layer of risk says Patti Williams, professor of marketing at Wharton.  “Traditionally, a celebrity would agree to be in an advertisement, and that was essentially the extent of the relationship, now celebrities are now encouraged to engage with the brands customers in other ways. This could be through the companies own media or through the celebrity’s own media, like twitter or Facebook. 

"The nature of the celebrity is a 360 degree proposition and that’s where many of the risks come from.” Patti Williams

The theory goes that borrowing a celebrity’s star power will create both an awareness of and interest in the brand in question. According to a study published in 2011 (Journal of Advertising) that looked at athletes’ support for brands found that such endorsements produced a 4% growth in revenue (About $10 million a year in added sales of the branded products), and a 0.25% rise in stock returns, celebrity endorsement proves successful!

Barbara Kahn believes that: “There are two schools of thought (on choosing the right celebrity for your brand), One is that you want to choose a celebrity who evokes positive emotions in your target market. You want someone who has a board appeal, some who creates a buzz, and someone who is likeable. The second is that you want someone who is a good fit or has some expertise with your product. This gives credibility.

I mean say someone like Beyonce?! Can you suggest anyone fitting this description?

With regards to social media, celebrities have more of an impact than brands. On twitter for example Justin Beiber has 34.5 million followers yet popular brands such as Rolling Stone magazine has a mere 2.3 million!  

Nearly three-quarters of social media users say they use social networks to hear others; experiences with brands, according to Nielson. Of those, about 65% wanted to learn more about brands’ products and services; 53% wished to compliment brands, and 50% want to express concerns or complain about brands and services.

Although social media allows consumers to have a voice and celebrities have a great field of communicating with brand and viewers, there can be both positive and negative impacts (David Reilbstein) I mean if the celebrity in question or brand for that question makes a “faux pas” it could create negative atmosphere around the other one which could equate to a loss in finances or fewer business opportunities and a chance to expand.

I mean the old say “there’s no such thing as bad press” …. Well I guess that’s not always true.

Social media aside, celebrities will not always act wisely.

Britney spears, brand ambassador for Pepsi, seen drinking coca cola, not just once, but well several times, “oops, she did it again”.

Tony Jaques: “The problem is that corporations need to respond more thoughtfully and effectively to protect their own reputation. (March 03, 2013, Vol 4, No. 5. Managing Outcomes.)

Pepsi very carefully and tactfully phased Britney out as their brand ambassador and slowly introduce Beyonce to take over the role as brand ambassador. Check out video below to see Pepsi's clever tactics!