By: Zechariah Garcia, Sydney Altman, Daniel

Gahagan and Madison Howeller

CELEBRITY ENDORSEMENTS
The purpose of this presentation is to discuss the legal
and ethical considerations of celebrity endorsements. We
focused on the importance of choosing the right
celebrity for various stakeholders.
PURPOSE
Celebrity culture has been prevalent for year
Greek gods, goddesses, and Olympic athletes began the trend
Now, famous figures are actors, actresses, musicians, athletes, etc.
National Enquirer = number one selling publication
E! News viewership = 15.5 million people in two week periods
CELEBRITY ENDORSEMENTS
(INTRODUCTION)
Celebrity endorsements have
been popular for decades, with
the first one dating back over 100
years.
Lillie Langtry, a popular stage
actress, appeared on the packages
for Pears Soap.
New technique sparked interest
among marketers for a new way
to advertise products.
Today, 10% of all TV
advertisements contain celebrity
endorsements

BACKGROUND
Company
Celebrity
FTC/Government
Consumer


STAKEHOLDERS
The Tiger Woods scandal
Highest-paid athlete in the world, at $65 million a year.
Forced companies to re-examine the use of celebrity endorsements to
market products.
Woods received $100 million annually in endorsement income.
His Top five sponsorship deals Nike, Gillette, Accenture, Entertainment
Arts, and Gatorade.
Sponsors stopped running commercials
Major economic loss was felt by the shareholders.
Proctor and Gamble, who supply Gillette, and PepsiCo, lost up to $12
billion in wealth as a result of his actions.
FTC guideline and regulations.
LEGAL ISSUES
Public Relations Society of America (PRSA)
Institute for Advertising Ethics (IAE)
Evaluate
Twitter Followers
Peoples Magazine
Celebrities need to reflect the companys values.
Clauses/Waivers

ETHICAL ISSUES
Accenture
Step 1: Warning Stages
Step 2: Release Official Statement
After careful consideration and analysis, the company has determined that he is no
longer the right representative for its advertising, Accenture adding that it wishes only the
best for Tiger Woods and his family.
Step 3: Clean up
Step 4: Return to Normal
CRISIS MANAGEMENT
Examples demonstrating celebrity endorsements:
Justin Bieber: Canadian pop musician and singer-songwriter.
Tiger Woods: American professional golfer and the highest
paid athlete in the world since 2001.
Proactiv

ANALYSIS & APPLICATION
Positive image and has necessary knowledge of the product,
service or brand.
Look into short-term contracts with celebrities.
Ex: Justin Bieber Proactiv
Include morals clauses in all contracts
A brand should look for an endorser that is unique to the
product category.
Use the tactic sparingly.

RECOMMENDATIONS
Celebrity endorsements have been around for decades and will
continue well into the future.
When used properly, endorsements can increase sales, create
brand equity, and improve relationships in the public.

CONCLUSION