Rationally thinking marketing executives from any American company wouldn’t even consider running a high-profile ad campaign that used a celebrity’s name and image without duly compensating that public figure. Doing so would run expressly afoul of state and federal laws and subject an infringer to monetary and other penalties.
We stressed in a recent blog entry the high stakes involved for any business that seeks to put a celebrity under contract to promote sales of a company product or service. We noted in our April 16 post that decision makers obviously need to “get it right” when they turn to high-profile endorsers to make a pitch for their business.
Business principals obviously pay attention when large amounts of money are being discussed or exchanged. Seemingly, there is nothing quite like cash to sharpen focus and scrutiny for parties on both sides of a negotiating table when a big-asset deal is in play.
"Shame on you."
Even if you're a lay person completely removed from the world of advertising and product endorsement, you would welcome the chance to be Chloe Kim's marketing manager for a few weeks, wouldn't you?
If you are a business principal in Southern California or elsewhere thinking about contacting a celebrity to endorse your company's products or services, you might first want to spend a bit of time talking with a proven entertainment and business law attorney.
It's quite possible, of course, that some readers of our Los Angeles entertainment law blog don't immediately attach a face and personality to the above-cited headline name "Mike."
Celebrity endorsements have been shown to cause significant spikes in business for a given company. A celebrity’s endorsement generally causes a company’s sales increase an average of 4 percent relative to its competition—for some companies, that can mean millions of dollars.
As a consumer, you can turn to Brad Pitt, the above-cited Beyonce or a host of other well-known media personalities for a bit of advance help regarding prospective product purchases.
An endorsement from the right celebrity can make any product seem tempting. With the right celebrity spokesperson, companies can expect to receive a boost of publicity and glamour. Consumers who buy a product because of a high-profile endorsement frequently do so because they want to emulate the celebrity, or because they implicitly trust his or her judgment.