Freakonomics Radio 594. Your Brand’s Spokesperson Just Got Arrested — Now What?
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Jun 27, 2024 
John Cawley, a professor of economics at Cornell University, delves into the risks and rewards of celebrity endorsements in branding. He discusses the fallout from Jared Fogle's scandal and its surprising minimal impact on consumer loyalty towards Subway. The conversation touches on how public perception and moral outrage shape market dynamics, alongside the ethical dilemmas brands face when aligning with celebrity figures. Cawley humorously navigates the complexities of these endorsements, raising intriguing questions about their true effectiveness.
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Early Endorsements
- Josiah Wedgwood secured a royal endorsement from the Queen in the 1760s, creating one of the first luxury brands.
- Ancient Greek coins featured images of gods and goddesses, early examples of celebrity association building trust.
Jared Fogle's Subway Success
- Jared Fogle's weight loss journey using Subway sandwiches turned him into a celebrity endorser.
- Subway attributed significant growth, between one-third and one-half, to the Jared campaign.
Authenticity and Fame
- Jared Fogle's personal appeal contributed to Subway's success, making him integral to the brand's identity.
- The Jared campaign was deemed one of the most successful restaurant campaigns ever, according to Nation's Restaurant News.