How Nike’s Marketing Revolution has resulted in a 40% reduction in TV and Print Advertising in the U.S.
Nike is the world’s largest sports company, 30% bigger than nearest rivals Adidas.Â Scott CendrowskiÂ has scribed an insightful article on CNN parchment exploring “How the legendary brand blew up its single-slogan approach and drafted a new playbook for the digital era.
We’ve taken a close look at the article, picked out what we think are the key insights and included someÂ additionalÂ references. You might say we’ve bothÂ summarisedÂ and enhanced an already great article. No need to thank us.
How Nike has changed it Marketing Strategy
- Spend on TV and print is down by 40%.
- It’s total marketing budget hit a record $2.4 billion last year.
- Nike has decided to target 17-year-old’s who spend 20% more on shoes than their adult counterparts.
- It spent nearly $800 million on ‘nontraditional’ advertising in 2010.
- Gone is the reliance on big budget top-down brand campaigns celebrating a single hit.
- Marketing Â & Advertising campaigns are increasingly split between Wieden + KennedyÂ and a host of other agencies that specialise in social media and new technologies.
- Nike CEO Mark Parker who not only has has theÂ coolest CEO officeÂ in theÂ corporateÂ world,Â hasn’t even bought a pair of gym shoes since 6th grade. In recent Mark explains:“Connecting used to be, ‘Here’s some product, and here’s some advertising. We hope you like it,’ ” he says. “Connecting today is a dialogue.”
- The biggest audience Nike had on any given day was when 200 million tuned intoÂ the Super Bowl. Now, across all its sites and social media communities, it can hit that figure any day.
- Nike have stopped creating crap and now design cool stuff.
Nike’s New Digital Marketing Focus
- For the first time in its history, Nike isn’t wholly reliant on a handful of superstars to move merchandise.
- After perfecting the art of big branding, it’s moving on to a world in which its consumers want to be told less and just do more.
- Nike Digital Sport, is a new division the company launched in 2010.
- It’s hired scores of new engineers to make technology for digital communities.
New Design Focus Thanks to Steve Jobs
Nike+ Changed The Game
In 2006, to meet the changing demands of customers in the mobile era, Nike created the Nike+ platform. Nike+ is a multi-channel, multi-sensory marriage ofÂ AppleÂ andÂ NikeÂ technologies that allows individuals track performnce.
This platform allows Nike to have a personal conversation with customers. It also acts as a laboratory that lets Nike study its customers’ behaviors and patterns. Yes, sneaky, very sneaky.
â€œWith more than 150 million runs logged since its launch in 2006, Nikeplus.com captures the pulse of the running world everyday,â€
Along came a watch
In 2011 Nike launch Nike+ SportWatch.
I wonder if Nike’s brand team had considered the possibility of this comment, which is now the most popular comment on YouTube:
I wonder how high I can get it masturbating
Here’s the current marketing campaign forÂ NIKE+ FUELBAND
Launch Events Have Changed
Nike CEO Mark Parker compared the Lauch of NIKE+ FUELBANDÂ to the launch of Nike Air or the first Air Jordan shoe.
Interactive Digital Campaigns Replace Traditional Advertising
Nike Still still run major outdoor advertising campaigns, except now they take the form of a 30-story billboard that posts fan headlines from Twitter
Facebook First, TV Second.
Major commercials by Oscar-nominated directors are now first launched on Facebook before primetime television.
Nike has quietly engineered a revolution in marketing.