Written By: Monique Costabile
There is no surprise that advertising is a great extra income
celebrities have been involved in for a while. Especially when a celebrity is thrown into the mix with name brands, the public knows they had to be paid a pretty penny. But, the truth of it all is none of us exactly know how much celebrities get paid to endorse products.
A lot of this information is found within the contracts celebrities are associated with when endorsing a brand and/or their product. “Celebrity endorsement contracts are not only on the rise but the average compensation paid to celebrities is also increasing. Reports from the annual surveys at Forbes magazine reveal that many celebrities earn far more money from their endorsement contracts than from their usual fields of endeavor. In addition, the abnormal returns reported here actually suggest that, on average, celebrities are worth more than the costs of hiring them. These results should be of interest to agencies that represent celebrities in contract negotiation” (Agrawal & Kamakura 61).
This is very informative as it shows the money brands need in order to approach a celebrity to advertise their product. It is not a cheap method of advertising but if the face a celebrity means turning your brand into a worldwide known multi-million dollar company I think anyone would use a celebrity for advertising purposes.
Agrawal, Jagdish, and Wagner A. Kamakura. “The Economic Worth of Celebrity
Endorsers: An Event Study Analysis”. Journal of Marketing 59.3 (1995): 56–62. Web.