What is a major risk associated with celebrity endorsements?

The major risk associated with celebrity endorsements is that it may result in overspending without clear benefits. Engaging a celebrity for endorsement can entail significant financial investment, including fees for the celebrity's appearance, promotional events, and ongoing campaigns. If the chosen celebrity does not resonate with the target audience or fails to generate the expected brand affinity, the costs may not lead to a proportional increase in sales or market presence.

Furthermore, celebrity endorsements can sometimes distract from the core messaging of the brand, leading to misalignment between the brand's identity and consumer expectations. If the partnership does not yield visible results, companies may find themselves at a loss, both financially and in branding strategy, underscoring the risk of overspending while lacking a clear return on that investment.

Engaging in celebrity marketing should involve careful consideration of the celebrity's image, values, and connection to the brand to avoid such risks.