Several studies have been conducted during the years stating pros and cons with celebrity endorsement as a marketing strategy. Erdogan (1999) has summed up five advantages with the strategy; increased attention, image polishing, brand introduction, brand repositioning and underpin of global campaigns. Due to increased consumer power over programmed advertisements, as a result of technological innovations, advertising has become more challenging in recent years (Croft, Dean & Kitchen, 1996). Celebrity endorsement is thus argued to ease this challenge by creating and maintaining consumer attention towards advertisements, and it also helps in the communication process by cutting through excess noise and standing out (Erdogan, 1999; Sherman, 1985). Hunter (2010) further develops this and states that consumers experience high recall rates when exposed to a celebrity endorser in an advertisement and that it increases purchase intentions.
if a company has received negative public reputation, a strategically chosen celebrity connected to the product can give the product and brand its personality and appeal, hence turn the whole situation around. It is a strategic tool if a company wants to generate effective public recognition for a product or brand (Dickenson, 1996; Hunter, 2010). Likewise, a celebrity might have the necessary means to reposition an existing product, and it is also a powerful tool when it comes to entering foreign markets. This since a global celebrity can help overcome the cultural challenges for a firm in a new market, for example relationships, language, time and space (Mooij, 1994; Erdogan, 1999).
Hunter’s (2010) findings further revealed that celebrity engagement affect the communication effectiveness positively due to increased perceptions of emotional involvement and trustworthiness. Further, two more potential advantages with celebrity endorsement as a marketing communication tool are mentioned; personality and appeal, and that it can lead to higher stock prices. Using a celebrity in a marketing campaign can create connections between consumers and the product and brand. It is said to give instant recognition, personality, and appeal. Higher stock prices as an advantage with celebrity endorsement is more difficult to interpret, however, when a firm announces the collaboration with a celeb