However, not all celebrities are equally influential. In addition, according to an influencer marketing study conducted by Tomoson (2015), firms are making $6.50 for every $1 spent on influencer marketing, rendering it one of the most cost-effective customer acquisition channels. On average, businesses see an increase of 4% in stock price and sales after they announce signing a celebrity endorser (Olenski, 2016). The ROI (return on investment) of celebrity endorsement is salient. From Britney Spears to Ashley Olsen to Morgan Freeman, McDonald’s has found celebrity endorsement a promising marketing tool and signed various celebrities for advertising campaigns (Stone, 2019). McDonald’s is a classic example of attaching celebrities for name-value to attract consumers’ attention. Companies spend billions each year to have high profile celebrities endorse and promote their products, services, and brands. It has a positive impact on brand image, consumer buying behavior, as well as firms’ financial performance.

Influencer Marketing: A Comparison of Traditional Celebrity, Social Media Influencer, and AI Influencer By BublikHaus on Shutterstockīy Lu Zhang, Ph.D., Associate Professor, Michigan State University, and Wei Wei, Ph.D., Associate Professor, University of Central Florida IntroductionĬelebrity endorsement as an effective marketing tool has long been recognized by hotels, restaurants, and tourist destinations.