John Leathers & Amanda Wolsborn

 Third floor of the Jerry Rice Building at Nike’s Headquarters  Engineers and scientists with pedigrees from MIT and Apple.  Leaks are tightly controlled – a PR man jumps in front of a visitor who gazes at the computer screens for a little too long.  Once upon a time, this level of secrecy would have been about a new sneaker release; today, its about a revolution in marketing

 Home of the new Division the company launched in 2010 – Nike Digital Sport  On one level, it aims to develop devices & technologies that allows users to track their personal statistics in any sport they participate in (Nike + Running Sensor w/Apple, Fuelband, Sportwatch GPS)

 It’s about more than just creating must have sports gadgets; it allows Nike access to valuable consumer data  This means it can follow its consumers, build online communities for them, in the hopes of forging a tighter relationship with them than ever before  It is part of a broad effort to shift Nike’s marketing efforts to the digital realm

 Nike’s spending on TV & Print advertising has dropped 40% in the U.S. in just the last 3 years  In the same period, its total marketing budget has steadily climbed upward to hit a record $2.4 billion last year  Nike has mostly done away with the reliance on top down campaigns celebrating a single hit (Air Force One’s, Tiger Woods, etc.)

 Nike is going where its consumers are: its core customer is a 17 year old who spends 20% more on shoes than his adult counterpart, and spends more time online than on television  Spent nearly $800 million on non traditional advertising in 2010  30 story billboard in Johannesburg that posts fan headlines from Twitter

 Nike has been moving the marketing mix away from ‘hero worship’ (Superstar athletes), towards ‘consumer driven conversation’.  Has it been paying off?  The company’s stock has returned 120% over the past 5 years, compared to the S&P 500 index, which has returned just 2.5%.

 Do you think that Nike’s transition is working? Have you noticed?  Would you rather be engaged through social media and ‘alternative advertising’ methods or through more traditional means?  Is there a nostalgic element about TV/Print advertising that is attractive?

 Thank you for listening.  Article Link: 3/nike-digital-marketing/