What is one potential drawback of celebrity endorsements?

One potential drawback of celebrity endorsements is the high costs associated with hiring well-known individuals along with the risk of negative public relations. Engaging a celebrity can require a significant financial investment, which might not yield a proportional return on investment if the campaign does not resonate with the audience or if the celebrity faces controversies. Negative publicity related to the celebrity can directly impact the brand’s image, leading to a loss of consumer trust and loyalty. This dual layer of risk—financial and reputational—makes it crucial for brands to carefully consider their choice of endorsers.

In contrast, options focusing on increased brand loyalty, low audience engagement, and increased awareness for minor brands suggest positive outcomes typically associated with celebrity endorsements, but they do not address the inherent risks associated with them, such as costs and the potential fallout from negative publicity.