I knew this would happen someday (I always thought the feature article would be about Proctor & Gamble but Nike is an excellent exemplar too). I’ll let the quotes speak for themselves (click here for full article):
“Nike’s spending on TV and print advertising in the U.S. has dropped by 40% in just three years, even as its total marketing budget has steadily climbed upward to hit a record $2.4 billion last year.”
“Clearly they think they can get by without big television campaigns anymore.”
“That’s a major change, Nike CEO Mark Parker explained to Fortune. “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.”
“(Nike) spent nearly $800 million on ‘nontraditional’ advertising in 2010, according to Advertising Age estimates, a greater percentage of its U.S. advertising budget than any other top 100 U.S. advertiser. (And Nike’s latest filings indicate that that figure will grow in 2011.)”
“(Nike) has overhauled its $100 million-plus campaigns around major events like the World Cup and Olympics to focus on online campaigns first. The result? Before, the biggest audience Nike had on any given day was when 200 million tuned in to the Super Bowl. Now, across all its sites and social media communities, it can hit that figure any day.”
I have been singing this song for the past 3 to 4 years now: the decline of traditional shotgun mass-marketing national TV advertising and the rise of interactive, two-way, trackable and ROI calculating advertising – all at the same time being significantly micro-targeting to smaller and more specific customers. Well done marketing team at Nike, well done.
I have a feeling that 12 months from now, Nike will not be the only company in the top 100 advertisers list that spends more on interactive & two-way advertising than traditional mass marketing TV ads.
Daniel M. Ladik, PhD
Associate Professor of Marketing
Stillman School of Business
Seton Hall University