Celebrity market

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ing University of Hull |
Celebrities in advertisement: motives and risks |
Independent Study |
Sarah |
3/30/2011 |



Introduction 3
Background 3
Aim and objectives 4
Outline of the essay 4
Characteristics of a celebrity endorser that condition the effectiveness of an advertisement 5
Source attractiveness model 5
Erdogan source credibility model 6Celebrity-product congruence. 7
Audience characteristics 8
Mc Cracken’s meaning transfer model 10
Risks involved in celebrity-endorsement 11
Overexposure 11
Massive using of celebrities 12
Overshadowing 13
Financial risks 13
Exploratory study on the use of athletes in advertising 14
The popularity of athletes in advertisement 14
Nike case 15
Gillette case 15
Gatorade case 15Conclusion 16
Annexes 17
Successful and unsuccessful celebrity endorsements, Source: Till and Busler 1998, Walker et al. 1992 17
The Elaboration Likelihood Model, Petty Cacioppo, 1986 18
Zinedine Zidane different advertisements 18
References 20

“A sign of a celebrity is that his name is often worth more than his services” Daniel J. Boorstin


BackgroundCelebrities, meaning individuals who acquired a sizeable fame, hold down a dominant position in our daily life. Nowadays it seems impossible to open a magazine or to watch television without be flooded by news concerning the “people”.
For the firms, advertisement remains the favoured method of the sales promotion. The challenge is to catch the viewer attention and make an ad more noticeable, attractiveand impellent. One way to achieve this is through invoking celebrity endorsement. Mc Cracken defines celebrity-endorsement as “any individual who enjoys public cognition and who uses this cognition and on behalf of a consumer by appearing with it in an advertisement”. The use of stars in advertisement is not a new phenomenon but this sales promotion is increasingly widespread over the last twentyyears.
The number of celebrities in advertising has risen of 60% between 2000 and 2004. In 2010, 25 to 30% of advertisements feature a celebrity as a product endorser. Firms spend millions of dollars to contract celebrities to endorse their brands in order to underpin a differential competitive advantage. Thus Nicole Kidman got $3 million for her spot for Channel, David Beckam $10 million forGillette. Today the most successful endorser is the golfer Tiger Woods. His endorsement contracts worth more than $ 100 million dollars with Nike, American Express, General Mills and Buick.
Research has demonstrated that celebrity endorsement affects consumer’s feelings and could affect the attitude of consumers towards the brand. It has been argued that a celebrity in an advertisement can have apositive impact on the viewer by increasing credibility, message recall, memory and likeability. Some authors believes that a celebrity could bring many benefits for a company such as facilitating brand identification, changing or impressing the negative attitudes towards a brand, repositioning an existing brand, affecting purchase intentions of consumers. Although the use of celebrities may bringlots of benefits for a company, it could present some risks. For instance celebrities who are known to be guilty because of negative events. We can wonder if such events can have an impact on the brand and purchase intentions.

The popularity of this marketing communication to promote a growing range of products demonstrates the relevance of the topic.

Aim and objectives

The overall aimof this essay is to explore the different factors that a company must take into consideration for a successful celebrity endorsement and thus a positive impact on the brand and sales.
The steps to achieve the aim are formulated into two objectives:

* To identify the characteristics of a celebrity endorser that condition the effectiveness of an advertisement

* To identify the risks...