When discussing the finances of athletes, actors, and musicians, their primary source of income is frequently not actually the skill for which they are most famous. Instead, many celebrities tend to secure their income through lucrative endorsement deals and brand partnerships.
During the 2024 Summer Olympic Games, for example, some athletes were candid about the need to build their brand while in Paris – or otherwise face financial difficulties upon returning home.
Ilona Maher, who earned a bronze medal in rugby sevens, told the Guardian that she spent as much as six hours a day on TikTok – building a social media brand to ensure that she can earn sponsorships and support herself in a sport that is obscure to many Americans.
In very different endorsement, supporters of Vice President Kamala Harris rejoiced (and bought campaign merch) when Taylor Swift backed the Democratic candidate. The singer’s statement was quickly classified as a watershed moment for Harris’s campaign – with MSNBC (CMCSA) anchor Lawrence O’Donnell describing it as “the most important celebrity endorsement” he had ever seen.
All this excitement, however, raises a crucial question: Are celebrity endorsements (commercial, political, or otherwise) actually that effective? The answer – according to one 2023 study from the Wharton School of Business – is yes. At least when we’re talking about moving product.
“There is this inherent tension in advertising between these ideas that celebrities are there to bolster and endorse the product, yet they are also known to take attention away from the product,” said Elizabeth Johnson, executive director and senior fellow at the Wharton Neuroscience Initiative, in 2023.
Johnson, who co-authored the paper “How Celebrity Status and Gaze Direction in Ads Drive Visual Attention to Shape Consumer Decisions,” said that simply looking at a celebrity’s image while shopping influenced consumers to buy a product. The study’s subjects also made their decisions faster, even though they weren’t necessarily studying the item they bought.
“It turns out that even though viewers aren’t looking at the product as much, the celebrity is still building consumer confidence. These are where preferences are more swayable on purpose,” Johnson said.
“That doesn’t mean a celebrity can make you choose a product that you hate,” she continued. “Your strong preferences — if you absolutely love or hate something — don’t move, but there is a lot of wiggle room in there with products you might not yet have strong feelings about.”
Continue reading for more on five celebrities who pulled in top-dollar endorsement deals in recent years.
