Endorsements

Why are retailers so interested in celebrity licensing programs when many of them (actually, most of them) fail (if they even get off the ground)?

One of the oldest brand strategies is celebrity endorsement. Brands are always seeking validation in one form or another, and often the easiest and most compelling way is to have someone famous eat, wear, drive, walk in or just say something nice about your brand.

As Subway’s Jared Fogle joins the pantheon of brand endorsers who’ve been dropped in a hurry for either real or alleged off-brand activities, it’s worth revisiting the risks and benefits of endorsement strategy.

Popular wisdom asserts that getting a celebrity endorsement is a tried-and-true, simple-to-implement way to maximize advertising effectiveness. Sure, it’s expensive, but celebrities always yield stronger ties with viewers and, ultimately, greater sales, right?

Nike is known around the world for being one of the most iconic brands. It was recently ranked as the world’s 25th most valuable brand in terms of its brand value – USD10.8 billion – by the annual Business Week’s global top 100 brand survey.