NEW YORK, NY--(Marketwire - Feb 10, 2012) - In an article by SmartMoney titled Do Celebrity Endorsements Work?, it highlights that the Journal of Advertising Research looked at stock market valuation and sales data for a raft of athlete endorsements. The authors find that a company's stock goes up roughly a quarter of a percentage point, while a Harvard Business School study states ads of a celebrity of an endorsed company can go up as much as 20%.

Companies like Priceline.com (PCLN), Nike (NKE), Coke (KO) and recently announced FrogAds, Inc. (OTCBB: [ FROG ]) all use celebrity endorsements and dedicate portions of their budgets toward securing appropriate celebrities to endorse their products. According to Business Insider, $50 billion is invested globally in securing celebrity endorsements.

Celebrity endorsements have become such a major part of advertising that a Celebrity BDI, an "independent index for brand marketers and agencies that determines a celebrity's ability to influence endorsements," was created. The index evaluates celebrities based on their awareness, appeal and relevance to a brand's image, and influence on consumers. The scores out of 100 are based on ratings for awareness, appeal, aspiration, breakthrough, endorsement, influence, whether the celebrity is a trendsetter and trust.

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