The Idea: Celebrity endorsements used to be fairly straightforward: a face in an ad, a logo on the TV screen. The photo above shows Nicole Kidman promoting Etihad Airways. Despite having no commercial links with the business, Kylie Jenner managed to wipe almost $2 billion off the stock price of social media platform Snapchat. The Lakers star lost an estimated $10 million when McDonald's declined to renew his contract at the end of the 2003. By clicking Sign up, you agree to receive marketing emails from Insider "They're not being nice to the Dalai Lama, who is a friend of mine," Stone said. Celebrity endorsements gone wrong: The tiny gestures that have cost companies billions View Gallery Small gestures by celebrities can cause stock prices to plummet and billions to be lost on the stock market. Weve only heard one side. Apparently, people took this to mean that he wasnt being patriotic. When Osama bin Laden was killed, he tweeted, "What kind of person celebrates death? Unfortunately, just days after this announcement, the new Blackberry Creative Director sent out a tweet. When Lance Armstrong was found guilty of doping, it is estimated that he lost $75 million in sponsorship arrangements. You may also like: Celebrity brands and endorsements gone wrong Microsoft and partners may be compensated if you purchase something through recommended links in this article. They countersued her, claiming breach of contract. Free and premium plans, Customer service software. Not great for Brylcreem. Perrys team, however, stated that Jemella Group is backing out of the deal because they are changing owners and simply want to save face. I just have a hard time believing a plane could take a skyscraper down demolition style.". Find us online at HollywoodBranded.com. Slaps at the Oscars, antisemitic slurs, accusations of domestic violenceat a certain point, even the biggest brands and supporters have to position themselves by making a statement. But not all of his endorsements were so profitable. Here's another company that used YouTube to endorse their brand with a significant effect. Terms & Conditions. Simpson became famous for allegedly murdering his ex-wife Nicole Brown and her friend, Ronald Goldman, the former football star was the face of Hertz rental cars. His latest endorsement is the UK takeaway app, Just Eat, for which he. While NBA legend Charles Barkley was never fired for his gaffe, it was still pretty embarrassing. Reference. The real Rob Lowe was used to extol the virtues of DirecTV, while Alternate Universe Rob Lowe portrayed a cable subscriber, to comic effect. First, the questionable T-shirt during his fashion show, then public anti-Semitic statements and beef as far as the eye can see. One thing is clear, we wont see Smith anytime soon at the Academy Awardsdespite his public apology, the Academy imposed a 10-year ban on the Best Actor winner. For more information, check out our, You're Fired: 10 Celebrities That Got Dumped By Brands. The three-dimensional scale proposed by Roobina Ohanian (1990) has been used for the purpose. Celebrity endorsements can be used in a positive way for persuasive . While Tiger Woods seems to have his hands full with endorsement deals today, many brands were singing an entirely different tune back in 2009when he went public with his marriage infidelity. Vick is now out of jail and back playing football for the Philadelphia Eagles. Simpson, LeBron James and Oscar Pistorius. However, from this moment at the latest, the decision-makers in the fashion and media world probably started to seriously consider to what extent they should give this man a platform. 5, but her recent advertising campaign for the United Arab Emirates Etihad Airways didnt go over so well. We intend to litigate this case aggressively SRG's attempt to take advantage of Ms. Polizzi will not be tolerated.". In 2016, Selena Gomez was the most popular celebrity on Instagram, and brands were definitely taking notice. And as people who are constantly under a bright light and a fine microscope, celebrities know this better than anyone. The starry-eyed New Girl sued Steve Madden, claiming that she was never paid for an endorsement deal indicating that Steve Madden would release a line of Zooey shoes and accessories. According to the actress, she had an oral agreement with Steve Madden and the company didnt keep their word. These major influencers, who have access to large audiences, received a lot of backlash for promoting failed celebrity endorsements. "not consistent with the image of Kellogg.". But in retrospect, actor Will Smith was given countless reasons to regret his hasty reaction. But when Cristiano Ronaldo removed a pair of Coke bottles from the podium of a press conference, he unwittingly cost the company more than $5 billion. Nevertheless, here and then, some have to taste the bittersweet aftertaste of their own actions. Three years later, when still under contract, Becks emerged with a fully shaved head. Updated: Her Own Clothing Line, Thalia vs. Pharmaceutical Company Genomma Lab International, IMAGE DISTRIBUTED FOR PARKWOOD ENTERTAINMENT / AP, Katy Perry vs. British Hair-Care Company Good Hair Day, make an estimated $750 million in retail sales. The actress eventually dropped the lawsuit in the beginning of 2012, but was originally suing for $1.2 million. With the spotlight on them at all times, celebritiesmust be on their best behavior to maintain a credible reputation-- and for some, this is easier said than done. In the weeks after the fashion show, West did not shy away from any kind of confrontation on Twitter and Instagram. Choi, S. M., & Rifon, N. J. Overall, Phelps and his pocketbook remained relatively unscathed -- Speedo, Visa, Subway and others decided to stick with him. Hell hath no influence more than a Kardashian (or a Jenner, as this case may be). Sign up for our newsletter to get the latest stories in hedge funds, PE, fintech, and banking delivered daily to your inbox. The Kardashians are known for their business ventures (among other things), and for the most part, theyve done pretty well when it comes to being entrepreneurs. Despite the enormous benefits of celebrity and influencer endorsements, marketers face equally great risks in partnering their brand or product with an individual since unpredictable scandals and controversy can damage a companys reputation and sales. Only about five weeks ago, a last-minute event hosted by rapper Kanye West during Paris Fashion Week made big headlines after presenting a T-shirt with the writing White Lives Matter on it. This reportedly caused the Edward Scissorhands icon to lose out on a $22.5 million payday. Celebrities can overshadow brands. Though, much like the fans that have been crowding outside the courts to show their support for him, not every brand has given up on the actor.The number one brand that definitely proved its devotion to the actor and stayed by his side through thick and thin: Dior. "I only wish that the Republican re-election committee would spend as much time working on the economy as they seem to be spending trying to harm my pocketbook.". COMPLEX participates in various affiliate marketing programs, which means COMPLEX gets paid commissions on purchases made through our links to retailer sites. The former Disney star and "Love You Like a Love Song" singer signed a $10 million endorsement deal with Coach. The cable provider Comcast didnt see the humor, and asked the National Advertising Division of the Better Business Bureau to gently urge DirecTV to take down the ads. Kellogg Co. also dropped Phelps, ending a reported $500,000 deal, and released a statement declaring that his druggy persona was "not consistent with the image of Kellogg. He complained on camera that he wouldn't endorse a product he didn't like, and quit the commercial. Michael Vick's conviction on dog-fighting charges cost him a lot more than jail time. Why are Priceline execs sending Shatner to his fiery demise? Immediately after, Coca-Cola's market value went from $US242 billion to $US238 billion - a drop of $US4 billion ($5.2 billion). Sometimes they just pull ads, sometimes they just wait for the contract to expire, and sometimes they immediately sever ties, putting as much distance between the endorser and themselves as humanly -- and monetarily -- possible. She says that there was an oral agreement to add two more years to her contract, but the company backed out. The bird flies away, and Clooney speaks the tiniest amount of Japanese to really earn the . The celebrity-level ambitions of all of these brands have produced terrible rap songs promoting their products, collaborations gone wrong, and just plain bad advertising. Spears filed a counter complaint, saying that Brand Sense withheld her payment and failed to pay her interest. What's your favorite celebrity endorsement fail? The Black Eyed Peas frontman was sued by his own clothing line in 2012. The court papers allege that SRG lied about their connections in the industry and failed to secure licensing agreements in accordance with the parties' written contract. After news broke about the doping scandal that cost Armstrong his 1999to2005 Tour de France titles, he stepped down as chairman of Livestrong, a cancer-fighting charity he founded. 11 Celebrity Endorsements Gone Wrong #4: When you have a hair endorsement, don't shave your head. After publicly making anti-semitic and other inappropriate statements, his supporting brands, like Balenciaga, The Gap, Adidas, his artist agency, and Vogue, had no other choice than to distance themselves from the musician in order to preserve their reputation. By clicking Sign up, you agree to receive marketing emails from Insider He led many to believe that he was not proud of the color of his skin. In the end, Pepsi agreed to pay $3 to the Ludacris Foundation, an Atlanta-based nonprofit, in order to avoid a hip hop wide boycott. The actress camp released a statement defending her decision to step down. They have been gr8 partners in my support of the arts. Be that as it may, the spots made him an unwelcome presence at an October 2011 Occupy Wall Street gathering, where he was characterized on Twitter as a shill for Capitol [sic] One.. He led many to believe that he was not proud of the color of his skin. Daniel Bukszpan is a New York-based freelance writer. studio, network or celebrity. Learn how to build a brand for your business that stands out. After all, Britney Spears, Christina Aguilera,. ", Other brands didn't care about Phelps' bong. 10 Celebrity Endorsement Deals That Went Way Wrong Erin Geiger Smith News and speculation about what will happen to the endorsement deals of Tiger Woods is rampant. The Bill has been under discussion since 2015. The game company sued her, claiming "bad faith breach of contract so callous that, on what appeared to be a whim, she destroyed Gate Fives business and drove 70 people into unemployment, the week before Christmas (2010).". The most embarrassing and publicized celebrity endorsements gone wrong are definitely the scandal-riddendrug abuse, sexual assault, and mindless, politically incorrect comments. All in all, a self-directed crash. The film is scheduled to release in 2022, but as of now, no official date has been issued yet. So here's to brands like Charmin, who made Kim Kardashian be. By In 2005 she signed a deal with Hydroderm, but two years later she was sued by the company for $2.8 million. George Clooney has done so many foreign endorsement deals that his film career probably seems like a hobby to him. Will.i.am is known for his production work and collaborations with artists like Ciara, Macy Gray, John Legend and The Pussycat Dolls. He's the world second richest man, and easily the most powerful man in cryptocurrency. Here are five examples of celebrity endorsements gone wrong: 1. This is why it is not self serving to . It was reported that the then 31 year old model had even done lines during the Nelson Mandela Children's Fund in Barcelona in 2002. This is why, as Quartz recently noted, some companies may not want to work with Travis Scott any longer, after fans were trampled to death at the Astroworld music festival Scott founded. The clothing line sued the singer for $2 million. Let us know in the comment section below. Singer Katy Perry was paid $4.5 million to endorse Jemella Group Ltd. hair products under a two-year contract. Given her previous devoted support of Depp, this is a surprising turn of events (IF you decide to believe the rumor mill). Within hours the price of Bitcoin dropped 15 per cent, losing the total market of the cryptocurrency hundreds of billions of dollars. The beginning of 2012, but as of now, no official date has been used for the Eagles... Anti-Semitic statements and beef as far as the eye can see artists like Ciara, Macy Gray, legend... The three-dimensional scale proposed by Roobina Ohanian ( 1990 ) has been issued yet away, and the... Emirates Etihad Airways can see their brand with a fully shaved head dropped the lawsuit the... Deals that his film career probably seems like a hobby to him audiences, received a more! Phelps ' bong in my support of the arts 's declined to renew his contract at the end the... 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