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• Article | Journal of Advertising Research | June 2012

  The Economic Value of Celebrity Endorsements

  Anita Elberse, Jeroen Verleun, Anita Elberse and Jeroen Verleun

  What is the payoff to enlisting celebrity endorsers? Although effects on stock returns are relatively well documented, little is known about any impact on sales—arguably a metric of more direct importance to advertising practitioners. In this study of athlete endorsements, we find there is a positive payoff to a firm's decision to sign an endorser, and that endorsements are associated with increasing sales in an absolute sense and relative to competing brands. Furthermore, sales and stock returns jump noticeably with each major achievement by the athlete. However, whereas stock-return effects are relatively constant, sales effects exhibit decreasing returns over time. We outline implications for practitioners.

  Keywords: Stocks; Value; Advertising; Sales; Brands and Branding; Decisions; Economics; Marketing Strategy; Investment Return;

  Citation:

  Elberse, Anita, and Jeroen Verleun. "The Economic Value of Celebrity Endorsements." Journal of Advertising Research 52, no. 2 (June 2012): 149–165.

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• Article | Journal of Advertising Research | June 2012

  The Economic Value of Celebrity Endorsements

  Anita Elberse, Jeroen Verleun, Anita Elberse and Jeroen Verleun

  What is the payoff to enlisting celebrity endorsers? Although effects on stock returns are relatively well documented, little is known about any impact on sales—arguably a metric of more direct importance to advertising practitioners. In this study of athlete endorsements, we find there is a positive payoff to a firm's decision to sign an endorser, and that endorsements are associated with increasing sales in an absolute sense and relative to competing brands. Furthermore, sales and stock returns jump noticeably with each major achievement by the athlete. However, whereas stock-return effects are relatively constant, sales effects exhibit decreasing returns over time. We outline implications for practitioners.

  Keywords: Stocks; Value; Advertising; Sales; Brands and Branding; Decisions; Economics; Marketing Strategy; Investment Return;

  Citation:

  Elberse, Anita, and Jeroen Verleun. "The Economic Value of Celebrity Endorsements." Journal of Advertising Research 52, no. 2 (June 2012): 149–165.

  CiteView DetailsFind at HarvardFind at HarvardRead NowRead Now

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• Case | HBS Case Collection | 2012

  Sir Alex Ferguson: Managing Manchester United

  Anita Elberse and Thomas Dye

  Sir Alex Ferguson, the most successful manager in British football history, is preparing for the 2012–2013 season—his record-setting 26th as manager of one of the world's most decorated professional football clubs and one of sport's biggest franchises. Over the years Ferguson has overcome several major challengers to United. The newest rival can be found closer to home: since Manchester City, United's "noisy neighbors," has switched owners, the club has invested unprecedented amounts of money in new players, resulting in its first league title in decades. How could Ferguson lead his team to another victory and bring the next chapter in United's illustrious history to a successful end?

  Keywords: managing teams; Leading teams; leadership; sports industry; European Football; Sports; Leadership; Sports Industry; England; United Kingdom; Europe;

  Citation:

  Elberse, Anita, and Thomas Dye. "Sir Alex Ferguson: Managing Manchester United." Harvard Business School Case 513-051, September 2012.

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