Do celebrity endorsements build brands?

US tennis ace, Andre Agassi, is the new face of Aramis men's fragrance products. The ad campaign reflects the brand - it is cool, appealing, clean. But if Agassi spins out of the top world rankings with dismal performances on court, will this affect the brand or is he too much of an icon already? Tiger Woods is the world's number one golfer, but will Nike ditch him when he loses his magic touch?

It's an interesting debate, with few concrete answers.

Beauty brands and fragrance houses have traditionally aligned themselves to celebrities. Sometimes that association surpasses the endorser's original claim to fame - and we see an actress make headlines not for her craft but for her endorsement. Sports stars are also essential endorsers for sports goods, clothing and other brands.

But how far can you push credibility? Does the consumer really believe that Andre Agassi wears Aramis or that Claudia Schiffer trusts L'Oreal to iron out her wrinkles, or is the mere association sufficient to influence a buying decision? Perhaps endorsements work because the majority of people seek recognition. Buying a product that a famous person wears or uses connects us to their fame and to their status.

Credibility is boosted in the case of sports celebrities and their endorsements. Consumers see the brands in action. They see the golfer wearing the cap, or the cricket player using the bat. The brand association is tangible. There is also the perception that the sports personalities have had some input and influence in the development of the products, thereby adding credibility to the association.

Research conducted by Bates in India that tracked consumer opinion on the 'relevance and effectiveness of celebrity advertising in building brands', urged brands to 'de-celebritise' and focus on ideas. Concluding that ideas, and not celebrities, build brands, the study identified the optimum celebrity 'fits' and the cases where celebrities overshadowed brand-building performance.

During 2002, India's cricket captain, Sachin Tendulkar, was the country's top brand endorser with 12 brands to his name ranging from Pepsi and Colgate Total to Fiat Palio and Adidas. The survey showed that in the case of cars, celebrity endorsers helped the brands attain almost instant recall. The study also showed that consumers were not naïve, and were able to identify a clear difference between a good script and a good brand idea.

We know that. Consumers are getting wiser. We can't fool them with fancy pictures and slick copy. There's a wide choice out there and people are making intelligent buying decisions. Brand endorsements have to be very, very carefully selected. A wrong move can be suicidal.

What happens when a legend is created by a brand? Take Virgin and Richard Branson for example. Branson has become a legend in his own right. Yes, he typifies the Virgin personality - he's fun, exciting, irreverent, challenging - but he won't live forever. Does the Virgin brand need Branson? Is there a danger of him damaging the brand as time goes on? What happens when he dies? In my view, those brands associated with a living legend should focus on building the relationship during the living years in order to build momentum.

Celebrity endorsement comes at a price. It's a subject that never fails to stir debate. Sportsmen and women earn enormous sums of money through endorsements that far outstrip their actual winnings. The reality is that the few million dollars paid to an individual is insignificant in the greater brand picture where global giants battle for supremacy. Celebrity endorsement gives a brand an instant value and personality package which otherwise would have taken years and millions of dollars - to establish, with far less guarantee of results.

Living legends are one thing - but why would a brand choose to associate with dead ones? Interestingly, watch and chronograph makers, Tag Heuer, have included the late Steve McQueen and Ayrton Senna among their brand ambassadors. Perhaps it is because their history has been recorded, and their achievements and their value set understood and packaged. They're a safe bet. There will be no surprises.

Whatever the reasons, the reality is that celebrities can - and do - play a role in building brands. Making the right choices in terms of personality, values, associated emotions and code of conduct is critical. The wrong choice could be terminal.