Why do brands pay so much money to athletes for endorsements?

[Leo23]

I have always wondered this

I don't understand why these brands pay millions to athletes for endorsement

For eg tissot pays Kohli 4 crores for attending a promotion or shooting an ad

So how many watches does tissot actually sell because of Kohli that they are happily paying him crores of rupees.

I personally have never bought any watch or shampoo because of an athlete promoting it and I don't know anyone who does.

 

[Diffusion]

Exposure. Household brands like coca cola & pepsi spend 100s of millions on marketing every single year, even though almost everyone in the world knows who it is. But, I believe research shows that doing nothing is worse than doing something.

I worked for a big FMCG and their biggest budget was marketing and R&D - and even the R&D was product research used to support their marketing campaigns, rather than developing/improving the products or saving costs in the manufacturing process.

 

[finalfantasy7]

Cuz it works - especially on kids - look at lucazade for instance - it's everywhere in the health sector on sports - yet the drink has too much sugar inside it to be considered good for you- this comes from Bradley wiggins himself a athlete

 

[finalfantasy7]

Even Pepsi said Michael jackson helped thr sales when he signed up.

Your question should be the opposite - why do people fall for it

 

[King-Misbah]

You have to pay less corporate tax (marketing is costs) and marketing can generate more revenue so it's a win/win situation.

I may be wrong as I am not an accountant.