Many brands rely on commercial relationships with high-profile
celebrities and sports personalities to promote their products and
image. The potential synergies that can be achieved through
commercial endorsements are huge: brands can anticipate increased
sales and recognition, while celebrities could receive vital
sponsorships and publicity. In all, it's a win-win
situation.
The flip-side of this rosy partnership is that, when the
celebrity endorser falls from grace, it could drag the brand down
with him or her. In such circumstances, brands may well decide to
distance and/or dissociate themselves with the individual(s)
concerned for brand preservation. This could result in potentially
significant financial losses where the advertisement campaign
featuring the celebrity needs to be cancelled or re-shot, for
example, not to mention the reputational damage and the consequent
adverse effect on sales.
