Celebrity brands can be as bold as they are glamorous, and last year was no exception.
The most serious scandal – and dramatic financial fall – is that of Sean Combs, accused of sex trafficking and extortion, accusations that the rapper denies.
But stars like Blake Lively and MrBeast have seen their reputations shattered in 2024. Their setbacks (and the effects they’ve had on their businesses and partners) show how damaging it can be to rely on the strength of the stars to drive a business forward. .
“2024 has taught us that no author, no matter how successful, is immune to controversy,” platform vice president Nate Harris told Business Insider author marketing platform CreatorIQ.
For decades, Combs has illustrated how a star can monetize his fame. However, since she first accused him of rape and abuse in November 2023, his fall from grace has been rapid and his businesses have suffered blow after blow.
Diageo, his spouse for more than a decade, said it best: “Mr. Combs is well aware that those lawsuits save him from becoming the ‘face’ of anything,” the alcohol giant’s lawyers wrote in a press release. Sentencing letter after sexual assault lawsuits began to come in.
Diageo is now reportedly ditching Cîroc, the vodka logo represented through Combs. This might be a tough sell given his synonymy with Diddy, who has denied any wrongdoing.
“Over time, Combs went from being a cultural icon to a warning,” Stacy Jones, CEO of branding firm Hollywood Branded, told BI.
But the consequences of fame (and the negative consequences it has for a company) do not want to be so pronounced.
At the premiere of her film “It Ends With Us,” the actress faced a wave of negative attacks in the press and on social media, calling her unwieldy and bringing unflattering bits of her behavior further.
Whether justified or (Lively sued Justin Baldoni, her husband and director, alleging he waged a smear campaign in retaliation), the attacks had a negative effect on his Blake Brown haircare line, the company said in a report cited by the New York Times. Array’s hair care line said it lost as much as 78% of its sales, according to the Times.
Blake Brown is a joint venture with Give Back Beauty, a celebrity brand incubator. Give Back Beauty, Blake Brown, and representatives for Lively did not respond to BI’s requests for comment.
The reputation of Jimmy “MrBeast” Donaldson, the world’s most popular YouTube star who was about to break into the mainstream media this year with the Amazon Prime show “Beast Games,” has also been damaged.
Although Amazon did not reveal the series’ budget, Donaldson said the series makes more than $100 million. Amazon hoped to attract advertisers to the platform.
“Beast Games” was marred by controversy for months before its debut. Contestants said they were injured and complained about what they described as a lack of medical care and food on the exhibition’s initial filming set in Las Vegas. The show was also negatively reviewed by critics, earning 14% on Rotton Tomatoes.
“Filming the MrBeast promotional video, which featured over 2,000 participants, unfortunately confused by the CrowdStrike incident, extreme weather situations and other unforeseen logistical and communication issues, which we reviewed and “We are grateful that virtually every guest in Toronto accepted with enthusiasm our invitation. “a MrBeast representative told BI, adding that they “continue to comply with popular industry regulations and regulations. “
While it’s working well, according to Amazon’s own ratings, the ordeal has been a headache for the tech company and could prove costly for the streamer. An Amazon expert told BI that he believes the negative press is hurting advertising sales. Several “Beast Games” participants have also filed a lawsuit against the company, alleging, among other things, sexual harassment and salary issues.
MrBeast’s representative said he had been notified but declined to comment further on the lawsuit.
Amazon responded to a request for comment from BI.
To be sure, some brands had blockbuster years. Selena Gomez’s Rare Beauty is reportedly receiving investment offers at a billion-dollar valuation, and Kim Kardashian’s Skims opened its own brick-and-mortar stores.
These good luck stories may be enough of an explanation for brands to continue partnering with celebrities or investors to invest money in prominent companies.
Going forward, more caution will be needed when choosing partners and deciding whether or not to pursue those partnerships, Harris and Jones said.
Part of this is about dissecting the teams of celebrities or influencers who gauge the online sentiment (positive or negative) around those stars and whether they fit into the existing cultural moment.
Brands are more often evaluating partners based on their content around politics, competitor mentions, profanity, illicit substances, and sensitive social issues.
And when one crosses the line, brands will be more proactive and distance themselves.
“Brands are quick to cut ties with problematic figures to protect their own integrity,” Jones said.
“The public understands that brands are not to blame for a celebrity’s actions, but expect transparent and thoughtful responses when controversies arise,” he added.
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