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Robert B. Yallen

Smaller Bets: Reducing Risk in Spokesperson Relationships

Reducing Risk in Spokesperson Relationships

By Robert Yallen and Hunington Sachs

At InterMedia Entertainment®, we’ve long understood that the right celebrity spokesperson relationship can be a marketing game-changer for an unknown brand in the direct response space. Multiple deals that we’ve worked in recent years, including Joan Lunden for A Place for Mom, William Devane for Rosland Capital, and Joe Theismann for SuperBeta Prostate all spearheaded campaigns that catapulted their brands from relative obscurity to the top of their DR categories.

We’ve seen that a strong celebrity spokesperson affiliation can quickly deliver a 15% to 30% increase in leads and sales. However, while potentially lucrative, celebrity campaigns also come with substantial risk and investment.  If a deal is structured poorly, an advertiser may have to risk as much as $1 million dollars to find out, once the costs of production, media outlays, and the celebrity relationship itself are factored into the equation.

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