Star Power: The billion dollar business of endorsements

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Celebrity endorsements are hundreds of years old – but while they used to spark accusations of 'selling out', the age of the influencer seems to have made them more acceptable than ever, writes Adam Maguire.

Lillie Langtry was a British socialite and actress on the West End and, in that year, became the poster girl for Pears Soap.

That’s a question that many have tried to answer over the years, because there seems to be no doubt that they are effective. The question is why.In one case viewers’ eye movements were tracked, and that research found that people made a decision on buying a product far quicker when a celebrity was in its orbit. .

The actress Penelope Cruz, for example, was said to be earning around $2m per year to be L’Oreal’s spokesperson – and that was probably a couple of day’s work filming an ad or two and doing a photo shoot. And those deals are on top of their bloated earnings on the pitch – as well as other endorsement deals they might have going on .No – there have been some bizarre ones over the years.Though there is some logic there, as it not only plays on their surprise, real-life friendship, it also alludes to the variety of uses a lighter has. Such as lighting a candle… or something else.

And then there’s Bob Dylan – who back in 2004 appeared in an ad for Victoria’s Secret, of all things.It doesn’t seem so long ago that people – particularly musicians like Rotten and Dylan – would be branded a ‘sell out’ for even the slightest transgression – never mind taking money to shill for butter or underwear.

They see a celebrity or artist supposedly helps to create a line of clothes or headphones, for example, which are essentially endorsement deals in disguise.Yes – pretty much every major clothing chain has at least one clothing line that’s"curated" by a big name. He co-created it in 2013 but sold it in 2017 in a deal worth up to $1 billion. That net him somewhere in the region of $233m.Adidas is still counting the cost of its collaboration with Kanye West, or Ye as he’s now known.

In the end it decided to start selling that stock off – and donating some of the proceeds to charity.As people may remember, there was a glut of cryptocurrency ads during both the 2021 and 2022 Super Bowls – the most expensive ad time the world.

 

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