One of the benefits of contracting with celebrities to endorse the company's brand of athletic clothing or shoes is that celebrity endorsements can increase product sales. Marketwatch reports that just one celebrity endorsement can increase a brand's revenue by up to 4%.
When a celebrity endorses a brand, that brand gains instant credibility with the audience. This is a powerful tool in a world with massive amounts of branding, as it can make the product seem legitimate and trustworthy to the consumer.
Endorsement contracts are a key part of this process, as they ensure that the celebrity living the lifestyle that the brand represents lives in line with its values and beliefs. This includes a morals clause, which requires the celebrity to be ethical in their actions, so that they do not negatively reflect on the brand.
The value of the celebrity: For a celebrity to be effective as an endorser, it needs to have a wide appeal in the market and a lot of influence. This means that they have to be attractive and trustworthy, as well as have a certain level of expertise on the subject.
Timing is important: Companies should sign on with celebrities as soon as they are available to them and in their formative years, so that they have a chance to build up a good reputation before they start endorsing other brands or products.
It is also crucial to consider the legalities involved in a celebrity campaign and to hire external experts to help with it. These experts will know how to handle the contracts, agents and unions that will be involved in such a marketing initiative.