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Armstrong Debacle: Are Celebrities too Risky for Brands?

Once again, brands that thought they could borrow some magic from a celebrity find themselves swimming in confusion and controversy, like poor Mickey Mouse in The Sorcerer's Apprentice . From  AdAge : Within hours, Mr. Armstrong's endorsement empire fell apart as Anheuser-Busch, Trek, Easton-Bell Sports, 24-Hour Fitness, Honey Stinger, Oakley and other firms dumped the cancer survivor, even as some pledged to continue support of his Livestrong Foundation. Nike's livid. The US Postal Service is dismayed. I'm not at all surprised. Celebrity endorsements are a double-edged sword for brands. When the celebrity is hot and you're slicing the competition into prosciutto, life is good. When the celebrity trips and the brand falls on that sword, well, not so good. The foibles of even the most upright-seeming celebrities are eventually exposed and magnified by social media and the Internet, association with stars is a minefield for brands. Eventually someone's ...
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RIT Finds Consumers Queasy About Online Tracking

A study by the Rochester Institute of Technology finds a majority of Americans don't wish to have online ads personalized to them, especially if that personalization comes about as a result of websites tracking their movements: "The desire by a majority of Americans not to be followed for the purpose of tailored content comes at a time when behavioral targeting is a fast-growing advertising practice upon which many content providers have staked their businesses ... Americans’ widespread rejection of relevant tailored advertising is particularly startling because it flies in the face of marketers’ consistent contention that Americans desire for relevant commercial messages justifies a variety of tracking activities. When three contemporary forms of behavioral tracking are highlighted, rejection of tailored ads is even more widespread. The finding applies across all age groups, including young adults, a cohort that media executives have insisted cares little about information...
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Consequences of Culture: How the blinkered focus on numbers is destroying financial services brands

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“You should resign. You should give back the money you took while this scam was going on and you should be criminally investigated.” Ouch. Imagine if that was a public official leveling such a charge at you, the CEO of a heretofore well-respected financial services institution. Think of the damage done, not only to your personal reputation, but to the brand value of your company and the morale of your people. Yet this is exactly what John Stumpf, CEO of venerable Wells Fargo Bank, had to endure at the hands of Senator Elizabeth Warren this week. This Senate hearing came on the heels of a scandal in which bank employees, under reportedly intense pressure to cross-sell products to make their numbers, fraudulently opened new accounts for customers without their permission. To make matters worse, Stumpf appeared to blame the proverbial “few bad apples” for the trouble, although it appears as though the number of apples fired as a result was somewhere north of 5,000 and none of them, oddly...
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