Does Tom Selleck make you want to get a reverse mortgage?

Miami Herald

21 hours ago

In a billion-dollar Homes.com ad campaign, Dan Levy and Heidi Gardner travel around the country collecting local data for the listing portal, with the catch line 'We've done your homework.'
It's the largest real estate ad buy in history, designed to draw would-be homebuyers to the site. But the Emmy-winning Levy and 'Saturday Night Live' cast member Gardner are hardly the first celebrities to shill in the real estate sector.
Years ago, John Wayne had a side job as a spokesman for Great Western, one of the country's largest mortgage lenders at the time. When 'Duke' died in 1979, the gig was taken over by actor Dennis Weaver of 'Gunsmoke' fame.
Both actors are gone now, as is the once-big California savings bank. But many others followed in their wake.
Elizabeth Banks was once the face of Realtor.com, a Homes.com rival. And who can forget the long list of actors representing the reverse mortgage business? Right now, the frontman is Emmy- and Golden Globe-winning actor Tom Selleck. But before him came actor-turned-Senator Fred Thompson, Henry 'the Fonz' Winkler, Robert Wagner and Jerry Orbach.
A spokesperson doesn't necessarily need to be super famous, but they should at least be recognizable. Take Peter Koch, who once did ads for buyer-agent matching service HomeLight. He's a former NFL player who has appeared in numerous movies and TV shows. When you see him, you know him, but you're not sure where from.
There are reasons companies pay to have someone like Selleck or Wayne endorse them. Celebrities can give a product or brand instant credibility, not to mention increased publicity.
In the long run, according to a 2016 Forbes article, these endorsements 'encourage more and more customers to find out more about the business their favorite celebrity happens to be supporting.' Forbes cites Social Media Week to claim that one endorsement by a famous actor or sports star can increase sales by about 4%.
But companies must choose the right personality. The wrong choice can backfire — if not now, then perhaps down the road. For instance, comedian Bill Cosby was once considered a bankable, believable spokesman. He hawked Jell-O, Coca-Cola and numerous other products before being convicted of sex crimes.
O.J. Simpson shilled for Hertz and Lance Armstrong pitched for Subaru before they each fell from grace.
Or consider the former PGA golfers who lost sponsorships after joining the Saudi Arabia-sponsored LIV Golf tour. Rocket Mortgage dropped Bryson DeChambeau after he joined LIV. Similarly, RBC, Canada's largest bank, cut ties with Dustin Johnson and Graeme McDowell.
Rocket, one of the nation's largest lenders, is often credited with being the first in the mortgage sector to recognize the value of partnering with sports teams. In 2019, the company created the first-ever PGA tour event in its Detroit hometown. And now it is so entwined with the industry that the Rocket name is practically ubiquitous in the sports world.
In addition to hosting the Motor City event, Rocket is an official partner of the PGA; it also has deals with NFL teams, the World Pro Ski Tour, and dozens of college football and basketball programs.
Rocket's founder, Dan Gilbert, owns the Cleveland Cavaliers of the NBA, as well as other sports franchises. These connections are undoubtedly part of the reason Rocket topped the USA Today Super Bowl Ad Meter two years in a row.
But other big-name lenders link their names with sports teams, too. Ruoff Mortgage, which is licensed to originate loans in 45 states, has a multiyear partnership with NASCAR. And Guaranteed Rate is the official mortgage partner of the National Hockey League, as well as a backer of professional rugby teams and bass fishing events.
Firms sometimes support smaller local teams, too. For the same reason that a large, national outfit pays big money for the naming rights to a professional team's stadium — think LoanDepot Park and the Miami Marlins, among others — they might also put their name on a minor league field, or perhaps just a fence surrounding a sandlot.
In Pepperell, Massachusetts, for example, the local Mortgage Network office sponsored the town's youth baseball and softball programs. It's an affordable investment that lets people know the company supports the town and its kids. And when the need for a mortgage arises, the hope is that Mortgage Network will be top-of-mind.
Sports marketing is appealing for the housing industry, especially mortgage companies, for the same reasons that advertisers seek celebrity endorsements: A connection to a team brings instant recognition and credibility. We support the team, the thinking goes, so the team's fans will support us.
Of course, most entities don't have the big bucks to spend that Rocket does. But there are numerous opportunities at sports' lower levels — from youth sports to the minor leagues to local marathons to college events.
Lew Sichelman has been covering real estate for more than 50 years. He is a regular contributor to numerous shelter magazines and housing and housing-finance industry publications. Readers can contact him at [e-mail].