Brands
Celebrity Endorsements: A Powerful Tool Or A Dangerous Game?
Celebrity endorsements have become increasingly popular in today’s advertising industry, but the question remains, are they a powerful tool for promoting a product or service, or are they a risky game that could potentially harm a brand’s reputation?
On one hand, celebrity endorsements can bring numerous benefits to a brand. A celebrity’s fame and popularity can help increase a product’s exposure, creating a buzz around it that may not have existed otherwise.
This can ultimately lead to an increase in sales and revenue for the company. A celebrity’s association with a brand can add a sense of credibility and trustworthiness, as fans may view the endorsement as a personal endorsement from the celebrity themself.
However, there are also potential drawbacks to using celebrity endorsements in advertising.
One major concern is that a celebrity may engage in a behavior that is deemed controversial or offensive, which can reflect poorly on the brand they endorsed.
If a celebrity’s image or reputation changes over time, their endorsement may no longer be effective or even become damaging to the brand.
One example is the case of Tiger Woods, whose extramarital affairs caused major damage not only to his own earnings but also to the shareholders of his sponsors in 2009.
According to a study by UC Davis economists, shareholders of Nike, Gatorade, and other Tiger Woods sponsors lost a collective $5 to $12 billion in the wake of the scandal. The losses were separate from damage to Woods’ own earnings.
Nike, in particular, faced a difficult decision after the scandal broke. The company reportedly slashed Woods’ contract by 50%, but the decision came at a cost.
A study by the Tepper School of Business at Carnegie Mellon University found that Nike’s $2 million saving cost the golf category $10.2 million in sales and turned off 441,000 customers.
In a mature industry like golf, every customer counts, and increased demand across the category benefits the category leader or at least provides benefits to all competitors.
Another example is Cristiano Ronaldo’s removal of two Coca-Cola bottles at a Euro 2020 news conference.
Ronaldo’s action coincided with a $4 billion drop in the market value of Coca-Cola. The company responded in a statement that “everyone is entitled to their drink preferences” with different “tastes and needs.”
Experts advise companies to avoid being overly reliant on a single individual and instead think about alliances with multiple influencers.
Giana Eckhardt, a marketing professor at King’s Business School, advises brands to look at past behavior to assess future risks of implosion, especially online behavior.
For David Dubois, an associate professor of marketing at INSEAD, companies need to understand the tactical use and value of celebrities rather than using them at a strategic level, which can be too dangerous.
Endorsements can also be affected by social media campaigns.
Other examples of the pitfalls of celebrity endorsements include Kylie Jenner’s tweet about no longer using Snapchat, which led to a 7% drop in the company’s stock price in 2018.
Kylie Jenner who was unhappy about Snapchat’s new redesign declared that she was no longer using the app, causing shares of parent company Snap (SNAP) to plummet by 7% which wiped out roughly $1.3 billion of the company’s market value.
The tweet reads “Sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad,”
In another tweet she said, “Still love you tho snap … my first love.”
However, despite these risks, celebrity endorsements can still be a powerful marketing tool for brands.
For example, the popular peak milk firm in Nigeria saw an increase in children opting for their milk after endorsing Nigerian footballer Kanu Nwankwo.
The campaign featured the tagline “Papilo, one day, you go make us proud,” and showed the footballer drinking the milk.
Another example is Beyoncé’s endorsement of Pepsi in 2013 which helped to increase the brand’s market growth by leveraging her star power and popularity to attract new customers who were fans of the singer.
The multimillion-dollar marketing campaign featuring Beyoncé in television commercials, print ads, and social media campaigns allowed Pepsi to tap into the growing trend of celebrity endorsements in the beverage industry, which led to increased brand awareness and sales.
Brands need to carefully consider the potential impact on their reputation and sales before entering into an endorsement deal, and should be prepared to act swiftly if the celebrity’s behavior or actions become a liability.
The premiere of the “Indomie Love Bowl,” a family game show sponsored by Indomie in collaboration with Multichoice, is scheduled for October 22, 2023.
The 13-episode series will showcase three families per episode, competing for the coveted title and attractive prizes.
The victorious family in the reality show stands to gain significant rewards, with the first-place winners earning an impressive 5 million Naira.
The second and third-place families will receive 2.5 million Naira and 1.5 million Naira, respectively. Beyond the cash prizes, the winning families will relish a two-year abundance of Indomie products, renowned for their delightful flavor and quality.
Asiwaju Temitope, Head of Corporate Communications for Indomie, emphasized the brand’s deep connection with love and excitement in the food category as the driving force behind the show.
The primary goal of the show is to elevate values such as love within families, particularly emphasizing the special bonds between mothers and children.
The collaboration with Multichoice was a strategic move, leveraging its broad outreach and the widespread accessibility of DSTV in numerous households. This ensures the game show’s broad and impactful reach.
“We created this games show and we chose this with family represented by mums and children. It’s going to involve several families and winners willl emerge based on the programmes. 3 families will emerge as winners with consolatory prizes. We chose Multichoice because it is a big reach and there’s no home where you won’t find DSTV”.
Busola Tejumola, Executive Head of Content and West Africa Channels at Multichoice West Africa, underscored that the “Indomie Love Bowl” revolves around themes of unity, bonding, and the special affection between mothers and children.
Set to debut on October 22, 2023, at 7 pm on the Africa Magic Family channel, the show aims to deliver thrilling moments and dynamic interactions among family members.
Stephanie Coker, the show’s host and On-Air personality, expressed her joy in being involved in the project, particularly as a mother. She eagerly anticipated watching the show with her daughter, celebrating the special bond between mothers and children, the exciting games, and the evident team spirit. Coker also emphasized the chemistry with her co-host, Darasimi, promising an engaging experience for the audience.
BUA Cement PLC has declared a cut in the price of its cement product to N3,500 per bag, effective from Monday, October 2, 2023.
. The company cites its dedication to fostering growth in the building materials and infrastructural sectors as the reason behind this reduction.
The announcement was made through a statement posted on its X page, previously known as Twitter.
This decision follows the chairman, Abdul Samad Rabiu’s commitment to reviewing the product’s price after a meeting with President Bola Tinubu weeks ago.
The statement read in part, “We refer to our previous pronouncements regarding our intent to reduce cement prices upon the completion of our new lines at the end of the year, in order to spur development in the building materials and infrastructure sectors.
“As per the commitment made to reduce prices and following a periodic review of our operations for efficiency, the management of BUA Cement Plc wishes to announce and inform our esteemed customers, stakeholders, and the public that effective October 2, 2023, we have decided to bring the price reduction forward.
“As a result, BUA Cement would now be sold at an ex-factory* price of 3,500 Naira per bag so that Nigerians can begin to enjoy the benefits of the price reduction before the completion of our plants.
“Upon completion of the ongoing construction of our new plants, which would increase our production volumes to 17million metric tonnes per annum, BUA Cement PLC intends to review these prices further in line with our earlier pronouncements by the first quarter of 2024.”
Dangote Industries Limited has received the prestigious Brand of the Year award, acknowledging the company’s outstanding corporate performance in the past year.
At a ceremony held in Lagos, John Ajayi, the Publisher of Marketing Edge, clarified that the award conferred upon Dangote is the flagship recognition, highlighting the company’s consistent contributions to the economic advancement of Nigeria and Africa.
Mr. Ajayi emphasized that this recognition encompasses a broad spectrum of business investments and corporate initiatives carried out by Dangote across the African continent.
He noted “This recognition covers many business investments and corporate interventions carried out by the company in Africa as a continent.”
During the award presentation, he credited Dangote’s exceptional position in its industry to its robust efforts in generating employment opportunities, thereby positively impacting numerous youths.
Additionally, he praised Dangote Industries for its steadfast dedication to the development of vital infrastructure.
He highlighted that the award presentation marked a significant milestone during Marketing Edge’s 20th-anniversary celebration and the 11th edition of its annual Brands and Advertising Excellence Award.
Numerous other brands were also honored for their exceptional achievements in the market.
Mr. Ajayi underscored that Marketing Edge’s two-decade presence in the industry has firmly established it as a trustworthy and authoritative partner for all stakeholders in the Nigerian marketing and advertising landscape.
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