Just the Facts Please: Celebrity Endorsement Research

There have been numerous studies conducted into how celebrity endorsements influence consumers. Here is a compilation of some of the most prominent research papers and articles in this field.

The Economic Value of Celebrity Endorsements

SUMMARY:

This study showed that approximately 20% of all advertising features a celebrity, that celebrity endorsements increase trust, and that brands can experience a 20-40% increase by using a celebrity endorsement. Conducted by Anita Elberse, Harvard Business School, this is one of the most cited studies regarding celebrity endorsements.

In this study of athlete endorsements, we find there is a positive pay-off to a firm’s decision to sign an endorser, and that endorsements are associated with increasing sales in an absolute sense and relative to competing brands, Elberse wrote.

The Economic Worth of Celebrity Endorsers: An Event Study Analysis

SUMMARY:

After analyzing 110 celebrity endorsement contracts, the authors of this paper found that the impact of just the announcement of a celebrity endorsement has a positive correlation with stock prices. Despite the high cost, the mainstream use of celebrity endorsers suggests that marketing managers think it is a worthwhile marketing strategy.  The researchers concluded that using a celebrity endorser is a worthwhile investment.

 

The Effects of Celebrity Endorsement in Advertisements

SUMMARY:

This study addresses the advantages of using celebrity endorsement in advertising.

  1. Establishment of credibility – approval of a brand by a star fosters a sense of trust for the brand among the target audience especially in the case of new products.
  2. Ensured attention – celebrities ensure the attention of the target group by breaking the clutter of advertisements and making the advertisement and the brand noticeable.
  3. Higher degrees of recall – people tend to commensurate the personalities of the celebrity with the brand thereby increasing the recall value of the product.
  4. Associative benefit – a celebrity’s preference for a brand gives out a persuasive message. Because the celebrity is benefiting from the brand the consumer will also benefit thus this perception increases the sales or consumer’s attachment to the product.
  5. Psychographic connect – celebrities are loved and adored by their fans and advertisers use stars to capitalize on these feelings to sway the fans towards their brands.

You Now Have a Shorter Attention Span Than a Goldfish

SUMMARY:

This article summarizes a 2015 study conducted by Microsoft. When people are in an unfocused state, their attention span is approximately 8 seconds, which is less than that of a goldfish. Consumers attention spans’ have been on the declined. In 2000, the average attention span was 12 seconds.

The Influences of Perceived Value on Consumer Purchase Intention: The Moderating Effect of Advertising Endorser

SUMMARY:

An advertising endorser can connect product value by deepening consumers’ impression and transfer their feelings on a product/service.

When people shop, they typically compare brands. This study found that when a celebrity endorser represents a brand, customers have a high-level of satisfaction and confidence in the product or service. The celebrity endorser also was found to help to bolster the perceived value of the product.  The last finding that this study surmised was that a celebrity endorser helps to cut through the competitive noise.  If a product or service is associated with a well-known figure, this helps the product stand above the rest of the competition in customer retention.

Athletic Endorsements and Their Effect on Consumers’ Attitudes and Consumption

SUMMARY:

Researcher and professor Karla McCormick, Florida State, thinks that athletic celebrity endorsements give a company an edge in the advertising marketplace and also contributes to an increase in profits.

If used appropriately, athletic endorsers in advertising can serve a valuable role in enhancing a firm’s competitive position by not only contributing to building a favorable brand image but also by having a direct economic influence on the firm, McCormick wrote.

 

The Lure of Celebrity Endorsements

SUMMARY:

This article quotes a study conducted by a team of Dutch researchers headed by Mirre Stallen that proved that celebrity endorsements increased product sales. The Dutch study also outlined the psychological reasons why celebrity endorsements work.

Marketing Maria: Managing the Athlete Endorsement

SUMMARY:

This article, published by the Harvard Business School, talks about athletic endorsements and how important it is that the athlete has a logical connection to the brand. The athlete endorser has to match the attributes the company hopes to associate with.

Impact of Celebrity Endorsement on Consumer Buying Behavior

SUMMARY:

This study shows that consumers show greater recall for products that have been endorsed by celebrities. This study also states that approximately 19% of all national advertising features a celebrity.

New Research Sheds Light on Daily Ad Exposures

SUMMARY:

The Yankelovich study, summarized by this article, shows how many advertising messages a person sees per day and how many of those ads have an impact on the conscious and subconscious mind.

The Perfect Fit

When a company is choosing a celebrity endorser for their brand, the question at the top of their mind should be, is this celebrity a good fit?

Firms can feel like a proverbial Goldilocks trying to find the right celebrity endorser for their brand. One endorser might be too cold, irrelevant and fading into obscurity. One endorser might be too hot, riddled with scandals and an infamous reputation. The perfect endorser is not only famous but holds the respect and admiration of their fans.  Once a sound reputation is established, the next vetting process when selecting a celebrity endorser is establishing a clear connection to the product and why they would represent and strengthen the company’s brand.

Correspondence Bias

One of the reasons why celebrity endorsement is so powerful is the tendency for people to associate an individual’s actions, regardless of motivation, with their genuine personality.

The Association for Consumer Research found that despite the public knowing that celebrity endorsers were paid to promote products, they still demonstrated correspondence bias. Correspondence bias is the assumption that someone’s behavior is representative of their personality and not a result of a situation.

Most people logically know that celebrity endorsers are paid large amounts of money to promote a company’s brand, but researchers have found that this fact does not impede consumers correspondence bias. People still want to believe that celebrities are endorsing products because the celebrity genuinely supports the brands they are promoting.

Melding the Illusion

A bad celebrity endorsement product match is much like a director breaking the 4th wall.  Addressing the audience fractures the spell of the story and casting a celebrity endorser without a strong connection to the product gets people to wonder why this celebrity would really want to endorse this product. The fact that the celebrity was paid starts to creep into the consumer’s consciousness. It shatters the illusion that the celebrity and the brand are one in the same.

The ‘match-up hypothesis’ specifically suggests that the effectiveness depends on the existence of a ‘fit’ between the celebrity spokesperson and endorsed brand, (Till and Busler.)

The act of using a celebrity is not a guarantee that the product/service being endorsed will prosper. The thing being endorsed has to have a logical connection to the person representing that product. A standard formula in celebrity endorsement is to use a spokesperson that is in the same field as the merchandise. A classic example would be using an athlete to represent sports merchandise. Another common and effective use of celebrity endorsement is to match up the image of the spokesperson with the attitude of the brand. Chuck Liddell as a celebrity endorser representing a defense attorney’s firm is a perfect example.

Does Celebrity Advertising Work?

It’s Easy For Your Message To Get Lost In The Crowd

People today have an attention span of 8 seconds. That is shorter than a goldfish’s, which is 9 seconds. Consumers are exposed to over 5,000 advertisements per day. Of those, only 153 are processed by the subconscious and only 86 make it to the conscious mind. Of those, only 12 will make an impression. That means less than 1% of your ads will have an impact on your potential client. If you could improve this percentage, would you be interested?

Why are Companies Paying Celebrities Billions?

Approximately 19% of all national advertisements feature a celebrity. Celebrities are being paid billions of dollars each year to endorse products and services. The reason for this is because celebrity endorsements work and increase annual revenue. The Science Behind It

The Science Behind It

The reason why celebrity advertising works is based on a basic principle; people like what’s familiar.

When someone sees a celebrity, the portion of the brain called the fusiform gyrus becomes active and the brain must analyze why that person is familiar. The brain does this by doing a comparison with the images stored in the long-term memory. This means that if someone sees your commercial with a celebrity spokesperson, different areas of the brain are engaged. This dramatically helps improve retention of the ad and bypasses the subconscious mind. This is one of the reasons that celebrity endorsements are so powerful.

Will Any Celebrity Do?

Having any celebrity or recognizable figure in your advertisements will be more memorable for the consumer. However, this does not mean that any celebrity will help increase your business. In order for a celebrity to be effective, there must be a logical connection to your brand.

What is Chuck “The Iceman” Liddell’s connection to attorneys? When a potential client is looking to hire an attorney, they want someone who is going to fight for them. Who personifies that better than an MMA legend? In fact, Chuck Liddell is one of the most popular and recognizable MMA fighters of all time. Your democratic knows who he is and by partnering with Chuck Liddell your intakes will increase by 20-40%.

Should Attorneys Be Their Own Spokesperson?

A study was conducted by Princeton University that cemented the fact that people do not trust lawyers. This is supported by multiple online studies/surveys. In fact, 81% of the people polled considered attorneys untrustworthy. However, many attorneys have been in their commercial for years and have become their firms’ brand. In this situation, a celebrity endorsement can help increase trust. It has a similar effect as a word-of-mouth referral.

Dollars And Cents

Research clearly demonstrates that a celebrity endorsement can increase your business by 20-40%. At TigerShark Studios, we have seen firsthand what a celebrity endorsement can do for a firm.  In some cases, we have even seen better results than what the research indicates.

4 Reasons “The Iceman” is the Perfect Celebrity Endorser for Your Firm

Celebrity Endorsements Work

A recent study by the Harvard Business School found that a celebrity endorsement can increase your sales by 20-40%. The study went on to explain that most firms aim to be seen as leaders in their fields; associating with an athletic champion cements the correlation between the athlete’s success and the expertise of the company being advertised. Celebrity endorsement is viewed as receiving advice from a valued friend. 85% of people surveyed felt that celebrity endorsements increased their predilection and confidence in a product or service, according to a survey discussed in the book Contemporary Ideas and Research Marketing.

Chuck Liddell, High Profile Celebrity Endorser

The name Chuck “The Iceman” Liddell is synonymous with Mixed Martial Arts (“MMA.”) He is a pioneer of the sport and helped popularize the fighting form in the late 1990’s and early 2000’s. His sprawl-n-brawl style made him a fan favorite and paved the way for his mainstream media success. Since 2010, Chuck has been paid millions of dollars to appear in commercials for some of the largest companies in the United States; including his Kia Optimacommercial which aired during the Super Bowl.

Why Choose Celebrity Endorsement?

The average person’s attention span is around 8 seconds. A goldfish has an attention span of 9 seconds. In order to reach potential clients, you need to not only capture their interest but also make an impression to stay in the forefront of their minds. People are inundated with over 5,000 advertisements per day. Of those 5,000 advertisements, only 153 are absorbed by the subconscious. Of those 153 advertisements, only 86 advertisements register in the conscious mind. Out of all the daily advertisements that were experienced by the consumer, only 12 will make an impression. Celebrity endorsements can cut through the marketing clutter, build credibility, and increase sales.

Affordable

TigerShark Studios is offering a unique opportunity to partner with Chuck Liddell for only $3,950.00 per month with a one-year agreement. This price is a small fraction compared to what Chuck would charge without TigerShark Studios’ special deal.  This opportunity is only available to one law firm per DMA. Don’t hesitate, put Chuck in your corner and call (877) 844-3557 for more information today.

Chuck Liddell: Who’s in your corner?

Put Chuck “The Iceman” Liddell in your corner and develop a strong, legal advertising campaign. TigerShark Studios offers DMA exclusive advertising strategies that feature Chuck as your celebrity endorser. Our standard package is $3,950 per month and consists of 4 Screen Actors Guild (SAG) certified commercials. Cut through the advertising clutter and reach your audience with Chuck in your corner.

Interested in Chuck “The Iceman” Liddell as your own personal celebrity spokesman? Call TigerShark Studios at (877) 844-3557.