The Pitfalls of Celebrity Endorsements

In May, 2008, Oscar Pistorius was named one of the three most influential people on the Heroes & Pioneers section of Time Magazine’s annual list. As an individual who had overcome adversity through his early disability to achieve greatness, his inspiring story drew admiration and respect, becoming a role model and inspiration to many. It was only natural that Nike would associate themselves with his image, even going so far with unfortunate slogan, “I am the bullet in the chamber”.

As recent news Pistorius’ murder of Reena Steenkamp illustrate, this want not adroitly decided.

While endorsements by prominent athletes have long been one of the hallmarks of the sports attire market, particularly by industry giants such as Nike quick research shows a history of scandal ridden celebrities in Nike’s drive for positive role models. Aside from Pistorius, Lance Armstrong’s disgrace following the revelations of the US Anti-Doping Agency, the disastrous collapse of Tiger Wood’s marriage with his extra marital affairs surfaced, American Sprinter Marion Jones, Justin Gatlin and Michael Vick round up the group. Considering that $4 billion is spent yearly on endorsements alone, a full 15% of yearly revenues, these failures are incredibly costly. This is further exacerbated with its company tradition on centering its focus on a single, dominant, athlete, beginning with the iconic Michael Jordan in 1984.

In building these myths and powerful image around its celebrity athletes, Nike stands to gain, and lose much in its bid for positive association. Seeking to create the next great hero, the company has repeated established widely acclaimed athletes, who repeated fall short of expectations. To their detriment, Nike doesn’t seem to have grasped negative connotations of this approach.

And so, even while a parade of greats are ousted or sidelined, Nike continues to bring in fresh faces, with world number one golfer Rory McIlroy signing a $250 million deal as the new face of their brand.

http://www.guardian.co.uk/sport/2013/feb/14/nike-oscar-pistorius

http://www.dailymail.co.uk/sport/golf/article-2227463/Rory-McIlroy-signs-250m-Nike-deal.html

http://online.wsj.com/article/SB10001424127887324162304578304340546753724.html

 

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