As of 2006, Nike was spending $475 million annually on endorsement deals with athletes.
LeBron James made $33 million in 2013 from endorsement deals with companies like Samsung, Nike, and Coca-Cola (Sprite).
Why such huge spending on endorsements?
Based on a 2012 study by Anita Elberse and Jeroen Verleun in the Journal of Advertising Research:
signing top athletic endorsers corresponds with “around $10 million in additional sales annually and nearly a 0.25% increase in stock returns.” (1)
Why do endorsements have such a significant impact on consumer decisions?
And can we use the same rationale to explain why connecting with influencers in your industry or niche is a critical path to growing your brand?
Yep, and here’s how…