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Introduction
The use of endorsers has been a popular advertising tool for decades, and remains as one today. Athletes have been used as endorsers for over 30 years, where they have endorsed more product categories than any other type of celebrity (i.e. actors, musicians, comedians, etc.) (Carlson and Donavan, 2008). Athletes provide several important benefits to advertising such as increasing brand name recognition, creating positive associations by transferring different qualities to the product like physical appeal or likeability, and aiding in the development of distinct brand personalities (Kamins, 1990; Ohanian, 1991). If used appropriately, endorsers in advertising can serve a valuable role in enhancing a firm’s competitive position by not only contributing to building a favorable brand image (Till, 1998), but also by having direct economic influence on the firm (Agrawal and Kamakura, 1995; Elberse and Verleun, 2012).
Many firms today are willing to pay athletes top dollar to have their product associated with a star athlete. In 2013, more than 100 US-based companies spent more than $15 billion on sponsorships (IEG Sponsorship Report Sponsorship Report, 2014b). Nike, one of the top US sponsors spent around $265 million on athletic sponsorship in 2013 (IEG Sponsorship Report Sponsorship Report, 2014b). Companies that employ athletic endorsers are not limited to sport-related brands, many fashion brands have signed athletes to endorsement deals, especially in the male fashion market (IEG Sponsorship Report Sponsorship Report, 2011). David Beckham, according to Forbes, earned $42 million from endorsements with Adidas, Coty, HandM, Sainsbury’s, Samsung and his newest partner, Breitling watches (David Beckham-Forbes) as well as designer brand Armani. Tom Brady earns $7 million a year from his endorsements that include UGG, Stetson Cologne and Under Armour (Manfred, 2013). Designer watch brands Citizen, Piguet, Breitling and Tag Heuer continue to employ both male and female athletes in their advertising campaigns, thus extending the reach of their products to a new consumer base. Marketers of designer watches are doubling and tripling their sponsorship budgets, hoping to increase acceptance of luxury and high-end fashion in the male watch market (IEG Sponsorship Report Sponsorship Report, 2011).
Currently, Tiger Woods can be seen endorsing Nike, which recently re-signed him to a $20 million endorsement deal (Bateau, 2013) and Hero MotoCorp, where he received a four-year deal...