The celebrity endorsement. I understand why it exists (to help increase brand awareness, promote effectiveness of a product/service and drive sales). Most of the time, however, it’s a hard pill for me to swallow-that is, knowing how much money and freebies are shelled out to “It” entertainers, sports figures, politicians, media personalities and even (gag) reality “stars” to tout a product or service that they (a.) likely don’t know much about and/or (b.) probably wouldn’t use if they weren’t being heftily compensated to do so.

The even bigger issue (now, more than ever) seems to be the risk factor involved for companies, given the frequency of pop culture figures getting into hot water (Tiger Woods, Kobe Bryant) or being controversial (Madonna, Kanye West). A key factor with celebrity endorsements is credibility. And if your spokesperson has lost it, your brand may inevitably get lumped in there, too.

Madonna was paid $5 million by Pepsi-Cola to appear in a 1989 commercial that would feature the world premiere of “Like a Prayer”. The tone that the commercial sought to convey sharply contrasted with the music video. Pepsi execs quickly yanked the advertisement after only two airings in an attempt to dissociate themselves from the controversy Madonna had created with the video.

According to industry data, more than 20 percent of all TV commercials feature a celebrity, often carrying over into radio, print, billboard and web advertising. Theory has it that these famous names can help brands maintain a high profile status, or shift or reinforce positioning. Those with news to share need more than just high visibility. That’s where relevant celebrity values and credibility come into play.

Clearly there is no “golden celebrity guarantee.” Who would’ve thought such charming, likable and successful figures like Tiger, Michael Phelps, and (I couldn’t possibly leave out) OJ could fall from grace. And yet they do. And will continue to do so.

So what’s a company who wants some added star power for their brand to do? I think you can’t go wrong with community involvement and philanthropy. Giving back to the very people that support your brand is a win-win all around.

Now for some Did You Know? Info:

Celebrities have been sought after as advertising pitchmen since the late 1800s, when English actress Lillie Langtree endorsed Pears’ soap and explorer Admiral Peary appeared in an Eastman Kodak ad. Some early (and more conservative) celebrity endorsements included President McKinley for Waterman pens; Ernest Hemingway for Ballantine Ale; Eleanor Roosevelt for Zenith hearing aids and Nancy Reagan for Crest toothpaste.