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Publications
  • June 2012
  • Article
  • Journal of Advertising Research

The Economic Value of Celebrity Endorsements

By: Anita Elberse and Jeroen Verleun
  • Format:Print
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Abstract

What is the payoff to enlisting celebrity endorsers? Although effects on stock returns are relatively well documented, little is known about any impact on sales—arguably a metric of more direct importance to advertising practitioners. In this study of athlete endorsements, we find there is a positive payoff to a firm's decision to sign an endorser, and that endorsements are associated with increasing sales in an absolute sense and relative to competing brands. Furthermore, sales and stock returns jump noticeably with each major achievement by the athlete. However, whereas stock-return effects are relatively constant, sales effects exhibit decreasing returns over time. We outline implications for practitioners.

Keywords

Stocks; Value; Advertising; Sales; Brands and Branding; Decisions; Economics; Marketing Strategy; Investment Return

Citation

Elberse, Anita, and Jeroen Verleun. "The Economic Value of Celebrity Endorsements." Journal of Advertising Research 52, no. 2 (June 2012): 149–165.
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About The Author

Anita Elberse

Marketing
→More Publications

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    • March 2023
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    MrBeast: Building a YouTube Empire

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    • May 2022
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    The NFL’s $110-Billion Media Rights Deals

    By: Anita Elberse and Elizabeth Warner
More from the Authors
  • MrBeast: Building a YouTube Empire By: Anita Elberse and Oliver Band
  • Number One in Formula One: Leadership Lessons from Toto Wolff and Mercedes, the Team behind One of the Greatest Winning Streaks in All of Sports By: Anita Elberse
  • The NFL’s $110-Billion Media Rights Deals By: Anita Elberse and Elizabeth Warner
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