Celebrity endorsement and its impact on brand equity

Today, the use of celebrity endorsement has increased drastically. It has become an integral part of almost every brand's promotional campaign and a big marketing trend. TV channels are flooded with advertisements most of them being celebrity advertisements. Celebrities are seen endorsing almost every product meant for selling. Due to high channel surfing, it is very difficult to keep the viewers’ attention for a long time and to focus in a productive way. Perhaps, the advertisement with a celebrity is more likely to keep a TV remote control from changing the channel vis-à-vis a commercial with an unknown artist. While studying the rationale behind the increasing trend of celebrity endorsements across the globe, researchers explore several dimensions of the ‘celebrity endorsement’ technique. They summarize that celebrity endorsements are worthwhile investments in advertising considering their several benefits. Instant and better recall is one of the most important benefits. Celebrities can bring quick memorability, recall and recognition, and direct client connection with the audience.

The aim of this seminar paper is to research relevant issues linked to the impact of celebrity endorsement on the equity of a brand, as far as the customer is concerned and to understand its effectiveness in marketing communications.