The Effectiveness of Celebrity Endorsement in Advertising

Advertising is one of the most trenchant strategies of non-price competition, thats why it is closely associated and widely used in ground of monopolistic competition. Companies in monopolistic competitive market can not sell more of their differentiated product without lowering the price. Thus, advertise is a great instrument to gain more customers and increase the sales without black the price. Despite of different views on economic effectiveness of advertising, modern abundant companies in monopolistic competition spend millions of dollars for promotion of own brands, goods or services.It is a known tactic to employ credit kisser for advertising own product. In particular, for many years Michael Jordan has been appearing in Nike ads, and the products of this alliance are associated with Jordan on global scale. Many companies use a notoriety or athlete for advertising its goods or services because celebrity endorsement attracts more attention of luff audience, as well as it increases credibleness and improves reputation of the brand in customers eyes, leading eventually to higher sales. Specialists rumormonger that celebrity is already a known brand, and his/her endorsement of the product helps to deem it more popular. You have the core brand and then you have the celebrity brand, and, when that confluence is positive, the impact can be tremendous (Storey, 2006).In my opinion, enfolding of professional athletes in ads of certain brands can be considered quite convince and effective from two perspectives. First of all, only successful powerful companies, which tender mostly first-class quality products, can afford inviting famous sportsmen (like Michael Jordan or David Beckham) to advertise their goods. Besides, sport is a passion of people of different ages. some(prenominal) children and adults around the world love sports very much, and thats why target audience of such advertising is very large. Nevertheless, recently British specialists f ound out that currently the effectiveness of celebrity endorsement is firmly decrease (BBC News, 2007). ReferencesCelebrity Ads Impact Questioned. (2007, February 27). BBC News. The British Broadcasting Company. Retrieved February 25, 2008, from http//news.bbc.co.uk/1/hi/england/somersaulting/6400419.stm. Storey, L. (2006, October 12). Seeing Stars. The New York Times. Retrieved February 25, 2008.