A recent Illinois State University study found that approximately 20% of all television advertising features a well-known individual from the world of sports, TV, movies or music. Combine this with other studies that show that customers are more likely to choose goods and services endorsed by celebrities, and it is easy to see the power celebrity has to influence consumer purchases.

Unfortunately for advertisers, celebrity endorsements are costly. Cellular provider T-Mobile paid $20 million over four years to Catherine Zeta-Jones to entice viewers to "get more" from their phone service, and Pepsi and Nike have shelled out tens of millions to land Beyonce Knowles and Tiger Woods, respectively.

So instead of giving out pricey endorsement contracts, some marketers are opting for a less-expensive strategy-giving products to celebrities for free. At a recent Teen Choice Awards the parade of free merchandise included brands from Hello Kitty, Guess, and Accuvue, with the stars of Uptown Girls beaming over their Electric Funk CD players and lip-shaped phones. Elsewhere, at a VH1 Diva Duet concert in Las Vegas, Beyonce happily toted her swanky Escada bag, while Celine Dion and Jewel touted their branded leather boots. It appears that stars, like the rest of us, love free stuff too.

Yet while most observers agree that this sort of corporate gift giving has its merits, some raise the question of whether the practice should ultimately be considered a legitimate marketing tactic. Sure it's less expensive to give away products to public figures in hope of getting exposure, but the question remains as to its true effectiveness.