Chapter 4 4 ENDORSEMENTS Endorsements The Federal Trade

Chapter 4. 4 ENDORSEMENTS

Endorsements �The Federal Trade Commission (FTC) defines an endorsement as any advertising message [that] consumers are likely to believe reflects the opinions, beliefs, findings, or experience of a party other than the sponsoring advertiser. ” �In other words, an endorsement is a person’s public expression of approval or support for a product or service. �Endorsements are a promotional tool rather than a form of sponsorship. �The FTC, also offers clarifying examples of what is and is not an endorsement.

Endorsement Examples �For example: a film critic’s comments, if used by the filmmaker in and advertisement are legally endorsements. �A commercial featuring two unidentified teenagers talking about a product or store is not an endorsement because the teens are not “real” and they are acting as spokespersons for the company. �However, a commercial starring a well-known racecar driver for a brand of tires is an endorsement.

Legal Restrictions on Endorsements �The FTC has several guidelines that must be met by the endorser and the sponsoring company, including: 1. Endorsements must always reflect the honest opinions, findings, and beliefs or experiences of the endorser. 2. The endorser must have real experience with the product. 3. The endorsements may not contain any deceptive or misleading statements. The statements must be able to be substantiated by the advertiser.

Legal Restrictions on Endorsements 4. Endorsements may not be presented out of context or reworded so as to distort in any way the endorser’s opinion. 5. The endorser must use and continue to use and believe in the product for as long as the endorser is used in the advertisements. 6. If the product changes in any way, the company must notify the endorser, and the endorser must continue to use and believe in the new or revised product.

Athlete Endorsements �American businesses pay more than $1 billion to athletes for endorsements. �There are over 2, 000 athletes who make endorsements

Advantages �Advertising endorsements are advantageous to businesses in at least three ways: 1. 2. 3. Consumers will buy products endorsed by celebrities more often than products that are not endorsed. Viewers, listeners, and fans are less likely to turn off a commercial featuring a celebrity than a commercial featuring a fictitious character. Consumers tend to believe celebrities, especially those who are chosen for their good public image.

Disadvantages �Endorsement as a means of promotion has a few disadvantages, too. 1. 2. 3. Endorsements are very expensive to the sponsoring company. The endorser may not agree to endorse one product. The risk of negative publicity if the endorser commits a crime or a serious social blunder.

How Controversial Can an Endorser Be? �One of the common-sense decisions to be made when choosing an endorser is whether the endorser is a positive representative for the product or service. �Most businesses and advisers turn away from any sort of negative publicity. �But there is a difference between harmful endorsement and questionable endorsement.

What Businesses Look for in an Endorser � Brad Vom Bauer, the director of account planning at Harris and Love, a Salt Lake City advertising firm, once said, “If you want to create a personality for your product, the easiest way to do it is to buy a personality. ” When searching for a celebrity endorser, businesses look for: 1. 2. 3. 4. 5. Someone with a positive, charismatic, trustworthy image who is respected by consumers. A celebrity most consumers know. A celebrity whose career is in process. Someone who presents few risks. Someone who has a believable relationship with the product.

�Speaking ability, personal appearance, and educational background are not among the top requirements. �Businesses believe these deficiencies can be remedied with voice coaches and wardrobe assistants.