Dive Brief:
- After a scandal at the Rio Olympics cost U.S. swimmer Ryan Lochte all four of his brand sponsors, Lochte is back with a new endorsement deal with cough drop maker Pine Bros.
- Lochte was embroiled in controversy at the Rio Olympic Games after a very late night on the town turned sour. Lochte initially claimed he and three other swimmers were dramatically robbed at gunpoint, while Brazilian authorities said Lochte and the swimmers vandalized a gas station and were asked to pay damages before leaving by armed security guards.
- While it's still not completely clear what the full story is, Lochte lost all four of his endorsement deals with swimwear brand Speedo, apparel retailer Ralph Lauren, mattress maker Airweave, and laser hair removal treatment Gentle Hair Removal, with the swimmer admitting he "over-exaggerated" his story.
Dive Insight:
You might be asking yourself: Why would Pine Bros. sponsor Ryan Lochte in the middle of a controversy?
Media coverage may be the answer. While more established brands have more to lose from standing by Lochte, a smaller brand like Pine Bros. could actually gain attention from the controversy.
Still, the overall lesson for marketers is that using celebrities as an endorser or even the face of the company can sometimes come at a cost. The brand is tying its image to that of the celebrity, for better or for worse, depending on what the celebrity does. A particularly strong case in point is Jared, the longtime Subway spokesman who was quickly dropped after his arrest (and eventual conviction) on child pornography charges. Another example is when automaker Mini dropped soccer star Abby Wambach after a DUI arrest in April.
“While a celebrity can be a great spokesperson and generate major interest and sales, brands also need to be wary of tying their entire reputation too closely to any one individual,” Patrick Hillman, a vice president at Levick Communications, a public relations firm that specializes in crisis management, told Marketing Dive.