What is Celebrity Endorsement and How Does it Make Money?

Endorsement deals make huge money for celebrities, and it is easy to see why. People are more likely to purchase sporting goods if they believe that their favorite athlete uses them to reach peak physical condition, or if a favorite actress uses certain branded beauty products to be more beautiful.

 

Although it is usually not true in most cases that the celebrity actually uses the product in their everyday lives,a commercial showing a famous actor using a certain products usually sends sales of that product through the roof. That is the key to celebrity endorsement.

 

Let’s look at which celebrities have the largest endorsements.

Tiger Woods

While he may have fallen from grace in 2010, Tiger Woods still has the highest endorsements of any celebrity.  Companies such as Gatorade may have dropped him, but many companies, including Nike, know that the public loves celebrities as well as scandal and have kept him on the payroll.

Michael Jordan

While there is an entire generation of people alive today who have never seen Michael Jordan play basketball, he still has huge endorsements.  In addition to marketing Hanes clothing, he also has a line of Nike clothing that includes shoes, shirts, accessories, and more.

Jay Z

This rapper and hip hop mogul has an empire worth tens of millions of dollars.  He has endorsements from numerous companies and has personally hyped everything from shoes to HP computers, making him one of the most widely used celebrities in advertising.

Drew Barrymore

Already a household name for her acting, directing, and childhood scandals, Drew Barrymore has a level of popularity that most celebrities aspire to.  Now she can add huge endorsement to that list, raking in a large paycheck to become the new face of Cover Girl cosmetics.

Celebrities are great tools for selling products, and companies know it.  

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