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Form of advertising campaign or marketing strategy

Celebrity branding or celebrity endorsement is a form of advertising campaign or marketing strategy which uses a celebrity's fame or social status to promote a product, brand or service, or to raise awareness about an issue. Marketers use celebrity endorsers in hopes that the positive image of the celebrity endorser will be passed on to the product's or brand's image.

In the 1700s, Wedgwood, producers of fine chinaware, used royal endorsements as a marketing device to show value in the company and promote their product. In 1882, London socialite and West End stage actress Lillie Langtry became the poster girl for Pears Soap, making her the first celebrity to endorse a commercial product. In the late 1800s, trading cards were introduced, a card with an image of a celebrity and a product description which was either given to the customer or inserted in product packaging. Cigarette companies gave away baseball cards as part of a customer loyalty scheme, and the increased demand to buy cigarettes in order to collect entire sets of baseball players was exploited by marketers. Early endorsements of this kind didn't always have the permission of the celebrities to use their image. In the 1930s the trend was toward athletes, such as with Babe Ruth's paid endorsement of Red Rock Cola. In the 1970s, with the advent of free agency, the value of celebrity endorsements escalated, and correspondingly the pay of the athletes by their teams. By 1989, 75% of all sports related products were using athletes for endorsements, and by the 1990s sports endorsements were being announced with press releases. This led to celebrities becoming spokespeople and brand ambassadors for companies, and a corresponding increase in the value of endorsement contracts.

Brand recognition is a huge part of celebrity branding. Brand recognition is where the general public is able to establish a brand from its attributes. It is most successful when a brand is exposed without a company name and is then recognized by the customer through the visual signifiers such as logos, slogans, and colors. An example of this is Coke whereby their signature color is red and consumers acknowledge that. Brand recognition is extremely effective in promotional campaigns. To measure brand recognition and the effectiveness it has on promotional campaigns, companies will conduct experiments on study groups for results. If brands are equal in quality similar products brand recognition will always have an advantage of higher sales. that embraces the standard Pepsi print and TV commercials that Beyoncé will appear in, as well as a more unorthodox 'creative fund' for any future projects Beyoncé chooses to take on. This is an effective explicit endorsement because not only does Beyoncé have incredible reach, being one of the world's biggest female popstars, but also the term 'partnership' feels more genuine for consumers which may make them more likely to believe that Beyoncé is endorsing the Pepsi product because she believes in the product and the company behind it, rather than some celebrity endorsements which feel forced, or where consumers see through the endorsement and assume it is just a business decision on behalf of the celebrity to make some extra cash. An example of implicit endorsement can be explained by noticing the growing number of Beats by Dre portable speakers that have been appearing in pop and hip hop music videos, (such music videos include Lady Gaga, Miley Cyrus, Nicki Minaj and Britney Spears). The celebrities involved are not expressly mentioning the Beats product within their music videos, but their presence amongst these celebrities convey the message of it being a high quality product associated with those of a high social class, particularly those who are industry leaders in music. Within the past decade, the number of celebrity owned beauty brands have grown. These brands are recognized due to its association with a well known celebrity and gain popularity paralleling how favorable the attitudes towards the celebrity are. Examples include Selena Gomez's brand Rare Beauty which gained its popularity due to its marketing strategy focusing on using Gomez herself in digital and print ads. She also leverages social media to post makeup tutorial type videos showcasing how she uses her beauty products for different occasions. This type of marketing relies on Gomez's favorable public image which builds the element of reliability, trust, and likability towards her brand. Once these are formed, some people move onto the stage of forming emotional bonds to the brand which then leads to strong brand loyalty.

Celebrity endorsements can build brand equity. An example of this is Nike. Prior to Michael Jordan, Nike mostly sponsored tennis and track athletes and decided to expand their market, which increased sales to become a multibillion dollar company. Celebrity endorsement is used as an advertising strategy, by using celebrity status and image, to promote a brand's recognition, recall, and differentiation. A celebrity endorser who likes and utilizes the product, and has some knowledge about it, is presumed to be more passionate about the product and would therefore promote the product in a believable way that consumers would find more persuasive. Studies have shown that using celebrities in advertising increases the message's persuasiveness which results in consumers having a better recall and recognition for the product or brand.

Due to the high profile lives of celebrities that are constantly being reviewed and scrutinized by the media, there are risks of using celebrities in advertising. Overexposure refers to the negative effect that is a result of when a celebrity endorses multiple products of a similar type at one time. Celebrity endorsements do not guarantee long term favorable effects. If a celebrity endorser is caught up in a scandal, negative perceptions of the celebrity among consumers can be transferred to the brand, One of the largest profile celebrity endorsement scandals of recent history was the infidelity scandal of Tiger Woods in 2009, at the time, Woods was a brand ambassador for Nike Golf apparel and footwear. It has been estimated that Nike lost approximately US$5–12 billion due to this scandal.

When a celebrity is promoting a brand there can be risks involved, where there is a miscommunication between the consumer and the representation of the product. In some cases, there is no connection between the product and the celebrity, which can become an effective or a defective result due to the position and relevance of the product. When celebrity branding does not work out for a firm, the celebrity can be seen as a scheme to promote the person as a marketing instrument. Ideally, some consumers believe that companies who use celebrity endorsers, as a marketing strategy to promote a product should choose an endorser who utilizes and enjoys using the product. Therefore, ethically they are trusting the brand and showing potential consumers the effects of the product and making the advertisement more believable. Rather than a celebrity endorser who is promoting the brand just because of their social status and there is no relevance between the product and the celebrity. With the future being so unexpected, using a celebrity to endorse a product and business could bring huge positives or could have immensely damaging effects but there is no way of predicting which outcome the business will get. By choosing the perceived most trustworthy and suitable celebrity relative to the business is usually the safest bet to gain success and prevent reputation damage.

A source (defined as the individual or group that intends to communicate an idea, or message to their target audience, also known as a sender,) will be more effective in their objective to convince consumers to purchase a product if the receivers perceive them as attractive, credible, and powerful. The attractiveness of the sender is determined by how much the audience likes the person that is making the statements about the company/product. The credibility can refer to how much we trust the individual's opinions/morals, and how convincing their belief in the product that they are sponsoring is. An individual is considered powerful when they can "affect behavior because of perceived reward or punishment".) However, following the 2009 scandal, (Tiger was caught sleeping with around 7 women while married to his wife,)) Nike began to see shifts in their sales. According to a study conducted by Carnegie Mellon University's Tepper School of Business, "the scandal cost Nike $1.7 million in sales and lost the company nearly 105,000 customers." This just goes to show that although Tiger Woods was still attractive to consumers, and still a very powerful man, he was no longer credible and as a result his endorsement in the later years did more harm than good.

Unpaid endorsement or covert endorsement occurs when a celebrity wears or uses the product of a certain brand because they like it.

When companies are selecting a celebrity to endorse their brand, they must match a certain criteria that they wish for the brand to be associated with. The celebrity must fill the gap between the consumer and brand when one is present. Image: Brands must look and see if the celebrity's image is one the brand wants to be associated with, making sure they look into the celebrity's image and past in case it could put the company into a bad light. If the celebrity has a negative image, the brand could be perceived that way too. Attractiveness: A positive attitude is associated with attractive people. The more attractive a celebrity is, the more effective the endorsement will be. They look at the physical attributes the celebrity has such as body shape, facial features, and nationality. Physically attractive models serve a decorative, rather than an active, role in ads by sending an indirect, positive message to the viewer. Attractiveness is often leveraged in ads for the cosmetic or fashion industry. Cost: Some celebrities can cost more than others due to popularity. The amount the celebrity costs to have endorsed a product or service can influence whether they are selected or not. Credibility: The credibility of the celebrity will transfer onto the brand so they must ensure the celebrity has a credible reputation. If a celebrity is already endorsing other brands or has endorsed a lot of brands in the past, this can have a negative effect on the brand image as consumers could believe that they are only doing it for the money and their credibility could come into question on whether the product is actually as good as what they are saying, creating the brand's credibility to come into question also.

Instant brand awareness: People will begin associating the celebrity with the brand, meaning the brand is more recognizable, building stronger brand awareness. New consumers: When a celebrity endorses a brand, they often bring their followers along too, creating new consumers for the brand as they can reach a new market. The celebrity appeals to their consumers, which then can become the brand's consumers, as they want to try what their celebrity is endorsing. Influences consumer purchases: New consumers arise as they follow the celebrity. This creates the outlook that if the celebrity thinks the product is great, then they should try it too. They desire to be like the celebrity, which influences the sale. Brand Positioning: A celebrity can help position the brand or product in the minds of the target market, forming a positive connection. This can increase the brand position over other brands.

Positive image: If the celebrity becomes an endorser for a company with a positive image, the celebrity can gain the same reputation of the brand they are associated with. This could be if they join with a brand who is environmentally friendly, the celebrity can be seen to be environmentally friendly also. Income: Brands will pay a huge amount for celebrities to endorse their product or service. This means celebrities gain more income for associating themselves with the brand. Fame: Celebrities can also gain a bigger following from the brand’s consumers. They think that if the celebrity likes a brand they do, that they should like the celebrity too.

Lose credibility: If the brand does something deemed unacceptable by consumers, the celebrity can also be seen in this light. This could cause followers of the celebrity to be doubtful of them, not just the brand. Assumptions could be made that the celebrity agrees with all actions of the brand and become less credible by association. Brands build a relationship with new consumers through celebrities endorsing their products. Celebrities can capture the consumer's attention and identify with the brand, leading to sales and making the brand more desirable over other competitors. They also have an influence over their followers due to consumers showing an increase in obsession with celebrities.

It is important for a brand to choose their celebrity endorser carefully after considering factors, such as who fits the brand's image and what kind of message the brand wants to get across to the audience. It is also important for the celebrity endorser to be attractive, credible, and trustworthy as the image of the celebrity enhances advertising effectiveness. A report by Brand Affinity Technologies (BAT), a celebrity marketing company, discusses the effectiveness of celebrity endorsement in social media advertising. In 2011, BAT analysed 200 social media endorsements against comparable social media advertisements that did not feature any celebrities and found that endorsed messages gave performance rates huge lifts: the results showed that 50% improvement was made in cost per action for endorsed messages over non endorsed advertising, and the click through rates for endorsed messages were 17~21 times higher.

The match up hypothesis generally suggests that the image of the product or the brand that is being endorsed by the celebrity should match the image of the celebrity to make an effective advertisement. The match up hypothesis is only relevant when the product or the brand that is being advertised is related to a product that enhances one's attractiveness. For example, if there are two brands that have a similar or identical product, it is almost guaranteed that the brand with the more established and well known celebrity will be more successful in sales and interest.

Celebrity entrepreneurial branding refers to when a celebrity associates themselves as a financial stakeholder and/or decision maker of a product line.

Mono branding refers to when a product carries only the name of the celebrity and the manufacturer does not directly associate itself with the product. state there are three levels of co branding: reach/awareness co branding, value endorsement co branding and value awareness co branding. Reach/awareness co branding is the lowest level and its purpose is to maximize brand awareness.

Noncelebrity branded products are products that are not branded with the manufacturer or the celebrity's name. Music and fashion continue to intersect today due to the trend of celebrity musicians collaborating with designer brands. According to the Journal of Marketing Management, celebrity endorsement can be effective because consumers believe in the celebrity figures and consequently support the brands that the endorser markets. Evaluation of celebrity branding also suggests that credible advertising messages, coupled with the right endorser, can build consumer loyalty for the brand. Companies today often work with famous musicians to reap various benefits for their business such as increasing brand awareness. Singer and songwriter, Lana Del Rey, collaborated with H&M, and a study found that the posts containing Del Rey on the Facebook brand page received more likes than their regular posts, averaging out to around 667,000 likes per post. Over the past couple of years, many other well known musicians have started their own capsule collections with designer brands.

In December 2014, Grammy award winning artist, Rihanna became a brand ambassador and creative director of the fashion sportswear brand PUMA. In this role, Rihanna oversaw the brand's women's line which included collaborations in apparel, footwear, and accessories. In 2015, Rihanna released her first footwear collaboration with PUMA, the Creeper, which sold out within three hours of its pre sale launch. Following the success, Rihanna and PUMA teamed up to create her very first fashion line named after her last name: FENTY PUMA by Rihanna. Each of the collection's seasons has introduced a different concept visually. The first season that dropped had roots in goth streetwear culture, the 2017 spring/summer collection was French inspired and described by Rihanna as, "If Marie Antoinette was going to the gym and needed something to wear." Furthermore, the 2018 autumn/winter drop features a collection influenced by different cliques of high school. The apparel pieces features elements like exaggerated block letters and preppy silhouettes all designed by the help of the singer herself. In an interview with Vogue, Rihanna said, "I have never gotten the chance to dress up in school. I always had to wear a school uniform making this collection, I was able to have a little fun and play and create." Rihanna's last collection with PUMA dropped on 15 March 2018 fusing race culture and beach wear. According to Rihanna, making this collection "was definitely a challenge" but she "really wanted to make something that was completely different" than anything she's ever done before with PUMA. The introduction of Rihanna's line has not only been praised by critics and fashion bloggers, but has brought the company great success. Since the collaboration with the musician, PUMA has seen a 183% increase in searches on their site and Rihanna's velvet Creepers won Shoe of the Year Award in 2016.

In 2016, GUESS collaborated with rapper, A$AP Rocky, on a capsule collection featuring a line of apparel and accessories for both men and women. Since A$AP Rocky is a prominent rapper who has also been known for his style and interest in the fashion industry, the Los Angeles native brand, GUESS, paired up with him to release a 1990s hip hop throwback collection with a modern spin. Referring to the initial concept of the collaboration, Rocky said, "It was just all about doing this whole throwback thing and bringing back Guess and just showing its importance in hip hop. Let's be real, Guess was the s**t for hip hop." The line of apparel features iconic GUESS pieces like the triangle logo, colourful stripes, and distressed denim jackets with a redesigned version of the GUESS logo on the back. Most of the pieces in the collection replace the original "s" in "GUESS" with embroidered dollar signs in order to represent the rapper's insignia. According to Rocky, the line was also meant to feel nostalgic, "I just wanted to bring back that feeling for our generation. There's so much that they don't know about, even with access to the Internet. I have a platform, so I'm just trying to show kids what they missed out on. They don't know about the '80s and early '90s." During the summer of 2017, the rapper and GUESS hosted pop up shops in New York City and West Hollywood where celebrities and fans attended to get the first chance to purchase something from the collection. Despite the buzz from his collaboration with GUESS, the company still reported a loss of $21.3 million in its fiscal first quarter as of May 2017.

Fred Perry is a British clothing brand founded in 1952 by triple Wimbledon champion, Fred Perry. The brand is known for its expensive yet casual wear, cashmere polos, sport inspired wear, and involvement in mod culture. In 2010, the brand collaborated with the late British singer, Amy Winehouse to release a 1950s and 1960s inspired collection all designed by Winehouse herself. Richard Martin, former marketing director for Fred Perry, said the brand chose to collaborate with Winehouse because they "were aware she was a genuine fan of the brand" and because "Amy has a unique sense of style that reflects the brand's own historical reference points." For the collection Winehouse was inspired by her own retro wardrobe and said, "I still dress like I am in the 50s." The line varies in its product assortment, featuring plaid shirts and rompers, vintage sweaters, and polos with embroidery replicating the singer's own tattoo designs. The singer was only alive during the first drop of her collaboration which featured pieces like an argyle longline sweater that she was often seen wearing in the public, as well as during her recording session with Tony Bennett. After Amy Winehouse died on 23 July 2011, Fred Perry eventually received permission from her family to continue to release the rest of the collection over the next couple of years. Mitch Winehouse, the singer's father said, "When Fred Perry came to us to ask what we would like to do with the new collection, it was natural to continue. Amy loved working on both collections and would want them to be made available." The singer's collection with Fred Perry is still available for sale online, but some of the new pieces are not based on original designs by Winehouse. Instead, her tattoo artist, Henry Hate and the Fred Perry design team have collaborated to continue working on the collection. Since the new collaboration, all sales from the collection's Fall 2011 and Spring 2012 pieces were donated to the Amy Winehouse Foundation. The Amy Winehouse Foundation was started by the singer's parents after she died, and mainly aims to prevent the effects of drug and alcohol misuse on young people. Fred Perry continues to make seasonal donations to the Amy Winehouse Foundation.

Celebrities are sometimes referred to as opinion leaders or OLs. An opinion leader is a well known individual or group that is used to help influence an opinion on a certain subject or matter due to their perceived social standing. This is different from an opinion former, who is someone who holds professional expertise due to previous study and/or employment and is known to be knowledgeable within the field. Opinion leaders are used for the pre purchase period when a consumer is most interested in the marketing of the product they are intending to buy. The power of the persuasion that the opinion leader possesses will change depending on many different factors. The first is their credibility, this also works in turn with perceived trustworthiness. Consumers are more likely to believe that the campaign is genuine if the opinion leader is someone who has a reputation for being honest and credible. Another factor is their expertise in that field, although they don't have to be at an opinion former's level of expertise, any previous actions, study or jobs that may help the consumer believe that they do know a little bit about what they are promoting, also helps with the authenticity of the advert. For some, the more superficial values hold the most weight in persuasion so the mere fact that the OL is attractive is a key for them, also their social standing not only effects the reach of promotion, but also can attribute to the persuasiveness. People who are the most effected by opinion leaders are those who are often engaged under the peripheral route. The peripheral route is less analytical of the actual product at hand, but will be persuaded due to other factors including an opinion leader that the consumer likes, or attractive elements of the packaging. Whereas those who undertake the central route of persuasion are less affected by these often superficial features and are more likely to choose an option based on the merits of the products or the strength of the argument.

Communication has been variously defined as the passing of information, between a sender and a receiver. This suggests that for communication to occur, there must be some common thinking between two parties and information must be passed from one person to another (or from one group to another). In relation to celebrity branding, if a company decides they want to use a celebrity endorsement, they would need pick what touchpoints they use to convey their brand to their consumers.

There are many elements that make up a company such as people, products, services, places, and ideas. Each of these constituents have the ability to be branded, giving the company multiplicity. Celebrities are among the people a company can brand and they contribute to the image created in consumers' minds. This image influences the brand's meaning in consumer minds and can form a positive or a negative attitude. With the rise of technology, multiplicity will rise in the future with new ways to market different elements of a given company. Consumers will be more frequently exposed to celebrity branding with the rise in digital technology use, making marketers needing to create more engaging ads that capture attention to maintain company success.

Heterogeneity explains the differences among society's diverse consumers. As members of younger generations increasingly gain access to technology like smartphones, they become a part of companies' target market, growing the audience of ad campaigns. In terms of celebrity endorsements, the choice of celebrity needs to encompass a wider age demographic while maintaining an element of personalization that resonates with a company's given target audience. When younger kids are targeted in an ad, a company tends to stay away from controversial celebrities who are known as having a bad influence or reputation.