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Table of content
I. INTRODUCTION.......................................................................................... 3
II. CELEBRITY ENDORSEMENT ON TRADITONAL MEDIA .................................. 3
1. The historical development of Celebrity Endorsement.........................3
2. Customers attitude towards Celebrity Endorsement............................4
3. The applicable industry/products categories for CE ............................5
4. The pros and cons of Celebrity Endorsement.......................................6
5. Models on Celebrity Endorsement Strategy .........................................8
III. CELEBRITIES ENDORSEMENT ON SOCIAL MEDIA ....................................... 9
1. Brands in a Social Media Environment .................................................9
2. Motives of Fans and Celebrities to Use SNS .......................................10
3. Online Celebrity Endorsement ...........................................................11
IV. CONCLUSION............................................................................................ 13
V. REFERENCES............................................................................................. 14
VI. APPENDIX ................................................................................................ 18
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I. INTRODUCTION
Since the nineteenth century, celebrity endorsements (CE) has been used as an effective
advertising tool to support the brand (Hood, 2012 and Erdogan, 1999) (CE - A type of
advertisement that involves a famous person to advocate a brand or product). During more than
two centuries, organisations have invested large sums of money aligning their brands or
themselves with the prospective endorsers (Jyothi et al., 2005). Nearly a quarter of marketing
budget of the UK base commercials utilises for high profile people such as singers or sports stars
(Shimp, 2012).
Scientifically, the use of CE aims to transfer endorsers’ attractiveness and appealing qualities to
the products/brands through marketing and communication activities (Langmeyer et al. 1992).
Based on the endorsers’ fame, the brand could maintain the relationships with the target
audiences; and the brand image/message would be archive the high recall rate (O'Mahony and
Meenaghan 1997). Therefore, the marketers have been marking use of celebrity endorsers widely
for their marketing communication campaigns to target their customers (Hood, 2012).
The recent research has shown that CE is “a two-edged sword” marketing strategy and the
selection an appropriate celebrity endorser plays an important role to ensure the successful of the
brand. This paper explores the CE literature in terms of its development, pros and cons and
customer attitudes towards CE in both traditional media (offline) and social media (online).
II. CELEBRITY ENDORSEMENT ON TRADITONAL MEDIA
1. The historical development of Celebrity Endorsement
CE is an age old concept in marketing and advertising theory (Kaikati, 1987), the advertisers have
applied this tool widely for approximately 200 years. For example, Sherman (1985) points out of
the association of Queen Victoria and Cadbury’s Cocoa is one of the first and most successfully CE
campaign since the late nineteenth century. The development of radio in the 1930s, television,
and cinema in 1950s have extended and improved the concept of CE (McDonough, 1995).
However, at this time the potential endorsers (i.e. famous singers or actors/actresses) did not
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have an awareness of CE, so they are not willing to be the brand presenters and the advertisers
were limited their choices. In the 1970s, the number of film and TV shows has increased so the
marketers had the availability to choose the most suitable endorsers for their brand and the use
of CE has flowered from this time until now in the advertising industry (Speck et al., 1988). The
research claims that the usage of CE in advertising was estimated as one in very six commercials
in the 1970s (Howard, 1979), one in five advertisements (ads) in 1980s (Motavalli, 1988) and one
in four ads in 1990s and 2000s (Shimp, 2012).
Regarding the monetary value of CE, Lane (1996) and Liu et al. (2007) estimate the UK companies
spend more than one billion pounds each year for celebrities (entertainers and sports stars) during
the 1990s and 2000s. These authors also point out the CE is mainly used in the following
advertising activities: spokesperson, endorsement, and testimonial (Lane, 1996 and Liu et al.,
2007). However, the use of CE has changed due to the emergence technology especially internet
and social networks. This issues would be discussed in details later.
2. Customers attitude towards Celebrity Endorsement
Undoubtedly, celebrities have the power to brighten the brands by using their fame to attract the
attention of target audiences. Currently, almost all companies pay money to endorse their brand
with the high profile people, from fast-moving consumer goods to luxury products. Surprisingly,
political parties also use CE as an effective strategy to shape up the opinions of the public during
the election (Veer et al., 2010).
Noticeably, there is limit research which aims to explore the customer attitudes towards the CE
activities of the brands (Veer et al., 2010) but almost all researchers have drawn the same
findings. Due to the intense competition of products having the same features, CE would motivate
and create the customers’ desires to purchase the endorsed products (Khatri, 2006). Anghel
(2009) argues that the celebrities could transfer their charismatic and expertise to the endorsed
brand. Then, they create the higher levels of attractiveness and recalls compared to the non-
endorsed brands. Based on this concept, several companies have successfully emphasized their
completive advantages by association with the celebrities such as Nicole Kidman/Brad Pitt and
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Channel No5 (Fashion Gone Rogue, 2014); Liz Hurley and Estée Laude (Estee Lauder, 2016) or
Taylor Swift and Diet Coca-cola (Olson, 2015).
The experimental research of Koernig and Boyd (2009) figures out that majority of customers
assume the products/brands which are endorsers by the celebrities as the high-quality products
or brands. Khatri (2006) supports that CE has the power to enhance product recall. Moreover, CE
plays an important role to affect the customers’ purchasing decisions process (Ling, 2011). It is
hard to change the consumers’ attitudes towards the brand which they highly involve. Regarding
the low customer product involvement, the endorsed brands by celebrity have more potential to
approach and mould consumer’s views than the non-endorsed brand (Ling, 2011). The main
reason behind these behaviours is CE could fulfil the psychological needs of individuals. Firstly,
purchasing the brand which is endeared by the idol is the proper way for young people to show
their admiration (Temperley et al., 2006). Secondly, people tend to build their self-identity by
associating themselves with the celebrities who have several matched personalities and
charismatic to reflect the customers’ desired self-image (Hosany et al., 2011).
3. The applicable industry/products categories for CE
Recent researchers have pointed out that the use of CE is not practical for all industry (Rafique,
2012). Additionally, the success of endorsers advertising is not only depending on the products
categories but also mainly related to how the advertiser utilise the endorsers for their marketing
and communication campaigns (Friedman et al., 1979). Choosing the appropriate celebrity to
reflect the desires of target customers is the biggest challenge for every company. Therefore,
Kotler (2009) proposes the advertisers should select the endorsers based on their high credibility
and attractiveness, but the most important factor is they must match with the brand personalities/
type of products and have the power to charismatic the target audiences. For example, Paris Hilton
or Donald Trump have their high recognition but due to their negative reputation which not allow
them to be the prospective brand ambassadors. Likewise, Gordon Ramsay is one of the most
famous chefs in the world in recent years, so he also has a positive reputation and wide-scale
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recognition, but it does not mean that he could endorse for every industry such as an International
Peace Conference (Sun, 2009).
4. The pros and cons of Celebrity Endorsement
It is undeniable that CE has some significant advantages, but it also exists several hazards which
the organisations should pay attention to ensure the success of the brand when using this
advertising method (Erdogan, 1999). Table 1 shows various positively pros and cons of using
celebrity as an endorser for the brand as well as proposing some practical prevention-tactics.
Table 1: Pros and Cons of using endorser advertising
Source: Adapted from Erdogan (1999)
3.1. The advantages of Celebrity Endorsement
Increased attention and Brand Introduction - The most significant power of CE is the ability
to generate the attractiveness and draw the attention of customers to the products’
advertisements. As the result, the endorsed brand could stand out from the others competitors,
and CE would logically enhance the smooth, flowing conversations between the target audiences
and the brands (Sherman, 1985). The increase of 400% seals volume of Nike golf sportswear in
2012 after partnering with Tiger Woods (the well-known worldwide golfer) has emphasized the
benefit of CE (Brna, 2009).
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Image polishing and brand repositioning - The usage of CE could prevent the brand image be
polished due to the threat of being “tarnish or discoloured” (Sherman, 1985). The charisma of
celebrity could instantly offer the new personalities to the endorsed products (Dickenson, 1996).
Indirectly, the brand has been repositioned by the effect of the celerity’s fame, and this strategy
allows products reach a wider target market (Miller et al., 2011). Coca-Cola, Adidas or Zara are
the role models which incorporate with different endorsers to keep their brand always being fresh
and attractive (Miller et al., 2011).
Underpin global campaign – there are various difficulties for international corporations to enter
the new market due to the difference of language, culture and customer behaviours (Hofstede,
1984). CE is a practical solution for these international brands to approach the foreign markets.
The new client's group would establish the connection with the new products throw the well-known
celebrities who endorsed for these brands (Mooij, 1994). Clear (the shampoo product of Unilever)
has a pairing with Cristiano Ronaldo (the worldwide recognition Portuguese football players) to
bring their product near to the target customers around the world (Badenhausen, 2016). Similarly,
PepsiCo has increased its global brand awareness by utilising global celebrities including David
Beckham, Beyoncé, and Jordan (Appendix 1) (Klara, 2015).
3.2. The disadvantages of Celebrity Endorsement
Image change and loss of public recognition - There is the strong connection between the
personal celebrity’s brand and the endorsed brands (Cooper, 1984). Specifically, if the endorsers
have any scandals, it would negatively affect customers’ perception of the endorsed products
(Shimp, 2012). For instance, after Tiger Wood scandal, all of the endorsed brands by him (Nike,
Gillette, and Electronic Arts) lost at least 3% market shares. Likewise, EA and PepsiCo lost $5 and
$12 billion revenue because Tiger Wood was the spokesman for these brands at that time (Reuters,
2009).
Overshadow the brand and Public controversy - Rossiter et al. (1987) argue that CE
strategies in some situation could cause more attention to the celebrity than the endorsed brands.
Moreover, the public could be attracted to the embroiled in a controversy between the fans and
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anti-fans of the celebrities. Consequently, the customers could be distracted from the brand being
promoted (Rossiter et al., 1987).
Overexposure – Nowadays, the majority of worldwide celebrities endorse for more than one
brand. Subsequently, the endorsers could be overused and lead to the conflict in the way
customers recall and recognise the brands which are endorsed by the same celebrities. Specifically,
if a celebrity associated with many products at the same time, the connection between the celebrity
and a particular brand would be not distinctive and lead to the potential brand damage (Mowen et
al., 1981). Then, the celebrity’s involvement in multiple endorsement deals, which might confuse
consumers, resulting in a specific brand being swept away along with the crowd of brands endorsed
by a particular celebrity.
5. Models on Celebrity Endorsement Strategy
The source credibility model – this theory mainly explores the key aspects of communicators
that construct a source of credibility and what factors are important than others in different
circumstances (Hovland et al., 1953). Several follow research has figured out two main factors of
credibility which are expertise and trustworthiness (Kim et al., 2007). Erdogan (1999) claims that
celebrities play as credible ambassadors/opinion experts for the brands. Therefore, these
endorsers could help the brands/products approach their target audiences positively. The last five
decades has witnessed the significant change in the marketing perspective from sales orientation
to customer orientation (Amos et al., 2008). This trend also highlights the importance of
trustworthiness or expertise of customers toward the brands/products. Researchers explore CE is
the practical solution to change consumers’ attitude/behaviour and persuade them to try the
products (Premeaux, 2009). Although the source of credibility is the vital factors that organisations
have to consider to select the appropriate endorsers for their brand, it is not the only aspect,
Ohanian (1990) also recommends the advertisers should pay attention to the source attractiveness
of endorsers to ensure the success of CE campaigns.
The source attractiveness model explains how celebrities transfer their likability, attractiveness
and charismatic to inspire and attract the endorsers’ fans (Lafferty et al., 2004). Based on these
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characteristics, the advertisements which are endorsed by celebrities could convert these
endorsers to ‘aspirational figures’ and bring the positive influence on customers’ attitude toward
the brands/product (Till et al., 2000). However, Cacioppo et al. (1983) argue that the
attractiveness could not boost the higher purchase intentions, it just causes the attention of target
audience and builds the brand awareness. This mainly because CE tends to affect the cognitive
and affective aspects of attitudes rather than the behavioural aspects (Baker et al., 1977).
Regarding gender relations between endorse and customers, several reports have found that
female celebrities could create stronger attractiveness than male endorsers across both sexes
(Debevec et al., 1984). Conversely, in cosmetic industry, Till et al., (1998) claim that males show
a higher intention to purchase from male endorsers and similarly to female customers and female
endorsers.
Kim et al. (2007) prove that the attractiveness and credibility would be less important than the
similarity between the products/brands and the endorsers. Specifically, if consumers doubt the
sincerity of the CE, the CE campaign might be not successful (Hsu et al., 2002). Therefore, Bhat
et al. (2001) and Erdogan (1999) propose “The match-up hypothesis” to ensure the congruence
between the entire image of the endorser and overall images of endorsed product/brand (Till et
al., 2000). Consequently, the incongruent between brand and celebrity could directly affect to
customer judgment toward the brand (Ilicic et al., 2013). Finally, the success of CE campaign is
not only depending on three main factors (attractiveness, credibility and the match-up hypothesis
of the celebrity) but also requiring the high-quality products (Callcoat et al., 1996).
III. CELEBRITIES ENDORSEMENT ON SOCIAL MEDIA
Social media is developed based on the foundation of Web 2.0; these platforms allow users to
produce ad exchange their content (user-generate-content) (Kaplan et al.,2010). There are
various benefits of social media compared to other traditional media, since this tool is open,
participated, conservative and connected (Hoffman et al., 2010). Therefore, social media is
forecasted to play the vital role in marketing activities in the next decades.
1. Brands in a Social Media Environment
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In social media environment, the brand could connect directly with is customers in the real time,
blurring the emotional distance between the target audiences and the brands (Jansen et al., 2009).
SNS allow business/organisations set up their channels/pages on these platforms. Each
channel/page could be recognized as a particular brand community where the brand and its
customers could communicate independently and interactively (Jahn et al., 2012). Various type of
communicated methods that brands and customers could use such as post (Facebook) tweets
(Twitter), comment, message, like (Facebook), follow (Twitter) and share (Wen et al., 2009).
Consequently, the brand messages could be spread out virally by the effect of electric-work-of-
mouth (eWOM) (Dholakia & Durham, 2010).
Almost all brand focus on building up the customer engagement for their brand on SNS because
this is the good way to reduce the brand-damaging risks (De Vries et al., 2012). An experimental
study of Facebook has shown that the persuasive content influences social media engagement
significantly to compare with informative content (Lee, 2014). Persuasive content is categorized
into three types: ethos strategies (convince someone by using persuader’s credibility or authority),
pathos strategies (convince an audience of an argument by creating an emotional response) and
logos strategies (persuading an audience by logical reasons) (Lee, 2014). Based on this concept
the use of celebrity endorser to promote the brands/products is the smart way to apply the ethos
strategy in the form of persuasive content (Lee, 2014) to draw the higher customer engagement.
Specifically, the online CE enhances the customer integrate with the brand’s page throw the
attractiveness of the endorsers than the brand message would be spread out to the target audience
naturally (Mohapatra, 2013). Finally, non-customers could be reached through the sharing function
of SNS.
2. Motives of Fans and Celebrities to Use SNS
There are two primary motivations that SNS’s users be addicted by these websites (Raacke et al.,
2008). Firstly, the SNS enable users to keep contact with existing friends and family members
(Subrahmanyam et al., 2008) or make new friends as well as (Wilson et al., 2012). Secondly, SNS
are good channels for users to entertain and reduce bore during the waste time (Ruggiero, 2000;
Wilson et al., 2012). Kim et al., (2010) claim celebrity is a major reason which motivates SNS
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users to integrate with these platforms. Furthermore, the research of Hargittai et al. (2011) figures
out that the high SNS involvement users prefer the “soft news” especially celebrity news for gossip
whereas the low SNS involvement is interested in politics and technology. The Generation Y is
recognized as the most favourable group toward CE (Bush et al., 2004), this is in line with the
findings of several researchers when concluding that CE could create the positive affect and
persuade young people (Generation Y) to perceive the endorsed brand messages positively.
The SNS have blurred the barriers which enhance customers/fans to be closer to their stars and
have the stronger connection to compare to the offline environment, thus possibly improve the CE
effectiveness (Tajfel et al., 1986). Based on these covered reasons, CE is the potential marketing
technique that companies should take into consideration to engage not only existing customers
bust also new customers via online channels (Ha and Hu, 2013). The next part of this report will
discuss in details how to implement CE in the online environment.
3. Online Celebrity Endorsement
In social media environment, people have a significant number of social ties or have the ability to
convince their online community by their great knowledge/experience in specific majors (friends,
fans on Facebook, follower on Twitter or other SNS). These people are called influencers or Key
opinion leaders (KOLs) (Elderkin, 2015). The advertisers aim to target these influencers for their
marketing campaign because the KOLs could ensure the growth of market size and the increase
of brand awareness in particular geography region in the short-time (Goldenberg et al., 2009).
There are three core group of people could be considered as the active influencers including
celebrity, expertise and good taste/quality (who may not currently have a lot of followers or
influence, but who has good taste and is developing an organic following) (Elderkin, 2015).
Currently, almost all marketers focus on celebrities as the prospective influencers due to their
millions of fans on SNS (Cha et al., 2010). For example, Cristiano Ronaldo has more than one
hundred million fans on Facebook and nearly forty million followers on Twitter and him also so
becomes the most expensive athlete sponsorship deal in 2016 (Appendix 1) (Badenhausen, 2016).
The research of Cunningham et al. (2012) has shown celebrity could increase the reach of
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marketing activity on Twitter by thousand times compared to the regular SNS users. Thus, the
usage of CE on SNS could lead to the success of marketing campaign.
There are limit reports that analyse the use of CE in SNS, Pegoraro (2010) discovers that slight
amount of tweets (Twitter) had the promotional content in 2010. Hambrick et al. (2011) estimate
around 5% of social media content was used to promote the products in 2010 and this number
increased to 12% in 2011. These authors draw the same conclusion that SNS (especially Twitter
and Facebook) are the outstanding advertising environment for endorsing product or events
through celebrities. However, endorsed brands have to face various risks in the online environment
such as the products/brands being surrounded by both negative, positive comments or being
overshadowed by the endorsers’ fame (Dittmore et al., 2008). To reduce these risks, the US
Federal Trade Commission has proposed the Guide on Endorsements and Testimonials (e.g.
guidelines on how, when, and how often that could use CE for SNS). Marketers could follow these
ground rules to ensure the success of CE campaign on social networks (Hambrick et al., 2011).
The research of Cunningham et al., (2012) discover celebrity endorsers seem to be more
reliable/trustworthy than experts in the social media environment. The above author also
examines the application of the source attractiveness and source credibility models, as well as the
match-up hypothesis on selecting endorser for online CE campaign. The results recommend that
the selection endorsers must balance between the credibility and the attractiveness of the
celebrities. Regarding non-customers, they would be attracted by the celebrity credibility and this
aspect has a high impact on the perceived brand value of these customers (Zauner et al., 2012).
For existing customers, they already have the strong brand value perception so the attractiveness
of the endorsers would be a good motive for enhancing their engagement with the brands/products
(Zauner et al., 2012).
Jin et al., (2014) conduct the research on the impact of CE on the credibility, purchasing intention
and social identification of endorsed products. The result show that the endorsers who are the pro-
social celebrity (concern about the rights, feelings, and welfare of other people) and having high
number of followers (called the ‘high indegree’), can improve the buying intention and social
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identification of the endorsed products (Jin et al., 2014). Conversely, the anti-social celebrity
resonates with the eWOM effect would draw the negatively perceive attitude of target customers
for products and lower down the credibility of the endorsed brand (Jin et al., 2014).
Table 2 summarises all of the findings are covered above which including general results, the
application of traditional media CE models for social media, the pros, and cons of celebrity
endorsement on online environment.
Table 2: The summarisation of online CE on literature review
IV. CONCLUSION
In fact, celebrity has the power to not only attract the attention of new customers but also improve
the engagement of existing customers (Shuart, 2007).
For traditional media, the long history of CE has shown that there are three main factors which
lead to the successful of the CE campaign including celebrity’s attractiveness, celebrity’s credibility
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and product-celebrity match. The most challenge task that almost all marketers have to face is
selecting the “right” endorsers who have personality, values, standards that totally match with the
endorsed brand image.
The development of social media allows business to communicate with its customers directly
through SNS; CE is still a potential marketing technique which could improve the effectiveness of
marketing campaigns on the social media. Several researchers have applied the CE models of the
offline environment (source of celebrity’s credibility, the source of celebrity’s credibility or match
up hypothesis) for the online environment (Cunningham et al., 2012 and Premeaux, 2009).
Although the results are not very different, it still needs more research which could examine the
effectiveness and the efficiency of implication CE for social media (Cunningham, 2012 and Zauner
et al., 2012).
Finally, CE is the double-edged sword which could bring the brand to the top of the success but
also could damage the brand significantly. Especially, the brand could be destructed shortly by the
effect of eWOM in the online environment.
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VI. APPENDIX
Appendix 1: PepsiCo's five decades of celebrity endorsement deals
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Source: PepsiCo
Appendix 2: Cristiano Ronaldo - the most expensive athlete sponsorship deal in 2016