Nike golf balls, since the company signed Tiger Woods in 1996, have seen a $ 50 million revenue growth. Nike's golf line grossed more than $ 250 million in annual sales. In 2000, he re-negotiated a five-year contract estimated at $ 125 million.

Other successful endorsements like Nike - Michael Jordan, Dunlop - John McEnroe, Adidas - Prince Naseem Hamed, and so on

Venus Williams, tennis player and Wimbledon champion has signed a five-year $ 40 million contract with sportswear manufacturer Reebok International Inc.

Advantages of a Celebrity Endorsing a Brand

Brands have been leveraging celebrity appeal for a long time. Across categories, whether in products or services, more and more brands are banking on the mass appeal of celebrities. As soon as a new face ascends the popularity charts, advertisers queue up to have it splashed all over. Witness the spectacular rise of Sania Mirza and Irfan Pathan in endorsements in a matter of a few months. The accruement of celebrity endorsements can be justified by the following advantages that are bestowed on the overall brand: -

Establishment of Credibility: Approval of a brand by a star fosters a sense of trust for that brand among the target audience - this is especially true in case of new products. We had the Shah Rukh-Santro campaign. At launch, Santro was endorsed by Shah Rukh Khan and this ensured that brand awareness was created in a market which did not even know the brand.

Ensured Attention: Celebrities ensure attention of the target group by breaking the clutter of advertisements and making the ad and the brand more noticeable.

PR Coverage: This is another reason for using celebrities. Managers perceive celebrities as topical, which create high PR coverage. A good example of integrated celebrity campaigns is one of the world’s leading pop groups, the Spice Girls, who have not only appeared in advertisements for Pepsi, but also in product launching and PR events. Indeed, celebrity-company marriages are covered by most media from television to newspapers (e.g., The Spice Girls and Pepsi).

Higher Degree of Recall: People tend to commensurate the personalities of the celebrity with the brand, thereby, increasing the recall value. Golf champion Tiger Woods has endorsed American Express, Rolex, and Nike. Actress Catherine Zeta-Jones is used by T-Mobile and Elizabeth Arden. James Bond character Pierce Brosnan promotes Omega, BMW, and Noreico.

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* Contributed by -
Saurbh Katyal,
Symbiosis Institute of Management Studies (SIMS), Pune.