Nike puts global media account under review
The brand is believed to speak to all the major holding companies, which stands for Interpublic Group of Cos. ‘ Mediabrands could also be a participant. However, Nike will not seek to find a single media partner according to someone familiar with the situation.
Nike, Wieden + Kennedy, Mindshare, Mediabrands and Assembly were not immediately available for comment. The review is supposed to be managed by R3 although the board was not immediately available for comment.
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The review covers around $ 1 billion in spending worldwide, according to a person familiar with the matter. The bulk of Nike’s marketing spend is spent on non-media activities such as sponsorships and events. Nike reported $ 3.1 billion in global advertising and promotion spending, also known as “demand-creation spending,” in the fiscal year ended May 2021, according to the Ad Age data center. . Demand creation expenses include advertising and promotion costs, including costs of endorsement contracts, add-on products, television, digital and print advertising and media costs, branding events and presentation of the retail brand.
The review has been long in coming as Nike’s business is shifting from branding to performance, according to a person familiar with the situation. This could lead to big wins for incumbent stores that only handle brand media as they seek to secure chunks of Nike’s performance media business given the brand has a dozen agencies. performance media in its list, according to a person familiar with the process.
In recent times, Nike has been following its consumers in the metaverse. Last month, the retailer registered virtual product brands for its namesake brands and Jordan. Most recently, he created his own world “Nikeland” in the popular game Roblox. Today Nike announced the acquisition of RTFKT, a growing NFT company. In a statement, Nike President and CEO John Donahoe said the agreement “accelerates Nike’s digital transformation and enables us to serve athletes and creators at the intersection of sport, creativity , games and culture ”.
Still, it’s the brick-and-mortar retailing that is helping the sportswear giant continue to grow. In its most recent quarter, Nike reported a 12% revenue increase to $ 11.6 billion, including a 24% increase in physical retail, for its Nike brand. Overall, revenue increased 16% to $ 12.2 billion for the quarter. Like many retailers, the brand has struggled with supply chain issues, which could impact the crucial holiday sales season. Nike will release its second quarter results on Monday, December 20.
Earlier this year, the brand lost a marketer when Alex Lopez, a Nike veteran who had recently served as global vice president of brand marketing and global creative director for men at the sportswear giant based in Beaverton, Oregon, joined McCann Worldgroup as President and Global Head. creative agent.
Contribution: Judann Pollack and Adrianne Pasquarelli