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Celebrity Endorsers & Brand-Target Audience Fit

Celebrity Endorsers & Brand-Target Audience Fit . Rachel Davis Chris Gonzalez Ben Gradoville Amy Holden Lindsay Momberg Bridget Niedermyer. Statistics. In 1975, only 15% of prime time TV advertising featured celebrities In 1978, it went up to 20%, and approximately

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Celebrity Endorsers & Brand-Target Audience Fit

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  1. Celebrity Endorsers & Brand-Target Audience Fit Rachel Davis Chris Gonzalez Ben Gradoville Amy Holden Lindsay Momberg Bridget Niedermyer

  2. Statistics • In 1975, only 15% of prime time TV advertising featured celebrities • In 1978, it went up to 20%, and approximately • 10% of the dollars spent on TV advertising featured celebrities • Approximately 25% of all commercials include celebrity endorsers currently.

  3. Theories • Four different theories that touch base on the importance of choosing the right celebrity and the benefits associated with finding the right match: • The Product Match-Up Hypothesis • Source Credibility Model • The Source Attractiveness Model • The Meaning Transfer Model

  4. Michael Jackson as a Playskool Spokesperson??

  5. Courtney Love as a Cover Girl Model??

  6. Match-Up Hypothesis • The Product Match-Up Hypothesis • The Product Match-up Hypothesis literature maintains that messages conveyed by the celebrity image and the product should be congruent for effective advertising (Forkan, 1980; Kahle and Homer, 1985; Kamins, 1989, 1990)

  7. Source Credibility • Source Credibility Model • Effectiveness of a message depends on perceived level of expertise and trustworthiness of an endorser (Hovland and Weiss, 1951; Hovland et al., 1953; Ohanian, 1991)

  8. Source Attractiveness • The Source Attractiveness Model • Contends that the effectiveness of a message depends on the similarity, familiarity, and liking of an endorser (McGuire, 1968)

  9. Meaning Transfer • The Meaning Transfer Model • This process involves three stages: the formation of celebrity image, transfer of meaning from celebrity to product, and finally from product to consumers (McCracken, 1989) • The word “celebrities” promises excitement, amusement and fun.

  10. Brand Image • As well as enhancing brand equity, celebrities can be used to promote new brand images, help reposition brands, and introduce new brands to the market. • Jello (Bill Cosby) http://www.youtube.com/watch?v=OpUybAMfa-0

  11. Fit, Congruence, and Belongingness • Numerous brands have found celebrities that “fit” with their product • Example: Neutrogena -Brand targets the teen generation http://www.youtube.com/watch?v=pXaFND4XJLM

  12. Fit, Congruence, and Belongingness • -Advertising a product via a celebrity whose image is highly congruent with the brand leads to greater advertiser and celebrity believability compared with a situation in which there is low congruence (Kamins and Gupta, 1994)

  13. Fit, Congruence, and Belongingness • Athletes endorse sports drinks (Gatorade) http://www.youtube.com/watch?v=d9uE4OtTXPc&feature=related

  14. Fit, Congruence, and Belongingness • Models and actresses endorse Make-up

  15. Fit, Congruence, and Belongingness • Models and actresses endorse clothing

  16. Global Marketing • Extremely Difficult • Cultural “Road Blocks” • Good Fit=Huge success • Spice Girls http://www.youtube.com/watch?v=Lrq0rTRqOoE&feature=related

  17. Findings • Costly Contract Plans • Cocoa Cola (Bill Cosby, $25 Million) • IBM (MASH, $40 Million) • NIKE (Lebron $90 Million) • Milk ( $70 Million/ yr)-USA Today

  18. Bad Match-Ups http://www.youtube.com/watch?v=kgec97MfTKw

  19. Risks

  20. Research Study • The Economic Worth of Celebrity Endorsers: An Event Study Analysis (JagdishAgrawal & Wagner A. Kamakura ’95)

  21. Abnormal Returns Abnormal Returns Due to Announcement of Celebrity Contracts

  22. Abnormal Returns

  23. Abnormal Returns

  24. Results • Generally viewed as a profitable advertising strategy • Investors and Shareholders • Average + .44% abnormal return in Market Value • Benefits outweigh Costs

  25. Recommendations • Weigh your options • Determine fit • Brand Image/ Research • Spend money wisely • Short term contracts • PLAN FOR FUTURE

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