Filed under: Coca-Cola (KO), Marketing and advertising, McDonald’s (MCD), NIKE, Inc’B’ (NKE), Business of sports, Earnings transcripts

This post is part of a series on celebrity spokespeople who ended up doing serious harm to the brands they were hired to promote, or vice versa. See how we rank the 20 top spokesperson fiascos.

Basketball star Kobe Bryant may be this generation’s Michael Jordon, a combination of lightning-quick moves, shooting touch and court savvy unmatched by any backcourt player in the world. As leader of the Los Angeles Lakers, he has become a fixture on the scoring leader stats sheet and the All-star roster.

Raised in Italy while his American father Joe “Jellybean” Bryant played basketball there, Bryant was a polished and appealing personality when he entered the NBA straight out of high school. His popularity swiftly translated into lucrative endorsement contracts with Nike (NYSE:NKE), Coca-Cola (NYSE:KO) and McDonald’s (NYSE:MCD).

Therefore, the sports world was stunned when a Colorado hotel maid accused the married Bryant of sexually assaulting her. The resulting tawdry court case made Bryant the laughingstock of the league’s fandom. Although the case was eventually settled out of court with Bryant’s public apology, the damage had been done. McDonald’s declined to renew its agreement with Bryant, having had one unhappy meal too many.

Since then, Bryant has mended his marriage, grown in his career (MVP in 2008), and regained endorsement contracts. I doubt, though, that you’ll ever seen Kobe and Ronald McDonald share the court again.

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Filed under: Marketing and advertising, Business of sports, Federal Reserve

This post is part of a series on celebrity spokespeople who ended up doing serious harm to the brands they were hired to promote, or vice versa. See how we rank the 20 top spokesperson fiascos.

In the buildup to the 1988 Seoul Olympics, Canadian sprinter Ben Johnson was the prohibitive favorite to win gold in the 100-meter sprint, having set a world record the year before at the World Championships. Many companies vied to tie their name to his speedy frame, and his coach estimated that Johnson was bringing in a cool $480,000 a month in endorsement money from companies such as the Italian family-owned sports company Diadora.

Once the Olympics began that September, the sponsors must have been high-fiving one another as Johnson, on the biggest stage in sports, broke his own 100-meter record by running a 9.79, which won him the gold medal.

He should have kept running, right out of the stadium and to a safe hiding place. Test of his urine found evidence that Johnson had been using steroids. He was stripped of his medal, his time was disallowed, and after further investigation, his 1987 world record was also invalidated. Diadora pulled its $2 million contract, and other sponsors followed suit. Johnson ended up living in his mother’s basement, and Diadora probably made a bonfire of its Ben Johnson campaign.

The aftermath of this scandal is felt even today, as baseball and cycling struggle to overcome the same pollution of competition and incredulity of their fans. There’s not a company in the world that yearns to cultivate the brand ‘cheater’.

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Filed under: PepsiCo (PEP), Marketing and advertising, Anheuser-Busch Cos (BUD)

This post is part of a series on celebrity spokespeople who ended up doing serious harm to the brands they were hired to promote, or vice versa. See how we rank the 20 top spokesperson fiascos.

In a confrontation between bombast and street cred, Fox mouth Bill O’Reilly managed to rip the Pepsi (NYSE:PEP) bottle from rapper Ludacris’s live, warm fingers. In August of 2002, O’Reilly, upset with the musician’s street language and what he perceived as glorification of crime and misogyny, called for a boycott of Pepsi. At the time, Ludacris was a featured representative of Pepsi, no doubt part of the companies attempt to reach out to the 18-34 demographic.

After the company dumped Ludacris in response to the boycott, Pepsi immediately stepped back into a pile of controversy by signing the rock and brain-damage icon Ozzy Osbourne, he of bat-head biting-off fame. (Nothing goes better with bat than an ice-cold Pepsi.)

O’Reilly’s diatribe helped call attention to the brutality of Lucacris’s lyrics, not atypical for the genre but fear-inspiring to the Fox nation. For example:

“Hollow laid hollow sprayed I’m the hollow man
I get to my hollow point wit my hollow plan
Hollow bullets I pull it I’m about to live in vain
And then I drill em refill em make sure they feel the pain”

(BTW- Is this a shout-out to T.S. Eliot’s The Hollow Men?)

While the controversy cost Ludacris his Pepsi deal, O’Reilly was to swallow his tongue for a second time two years later when the rapper was signed by Anheuser-Busch (NYSE:BUD).

I don’t see Bill O’Reilly pulling in massive endorsement contracts these days. So who’s your daddy now, Bill?

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Filed under: Marketing and advertising, Small business

From some of the companies I’ve talked to, the results from advertising on LinkedIn have been fairly strong. Then again, the website is the largest and fastest growing professional network, making it much easier for targeting.

Well, LinkedIn is improving things even more. That is, the company has launched LinkedIn DirectAds. As the name implies, this is a self-service system.

Of course, this might not be the ideal option for major advertisers that need sophisticated campaigns. But, for small companies, this solution can be best (hey, just look at the success of Google AdWords).

And the targeting for DirectAds is highly granular. For example, you can select a myriad of industry categories, such as CPAs, graphic designers, and so on. Or, perhaps you want to focus on sales executives or CEOs? Keep in mind that LinkedIn has 20 million registered users (with extensive profile information on each).

Getting started is simple. The process takes a few minutes and the minimum fee is $25.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar On the internet Guide to Decoding Financial Statements. He also operates MergerBook.com.

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