Even if you're not in marketing, you should read this post from the former CMO of Nike. It details Nike's transition from a brand-driven demand creation engine to a data-driven performance DTC model that relied primarily on sales on https://t.co/cbf6NiqhCn.
The results?
After the release of Nike's Q2 2024 financial results, they lost 25B in market cap in a day, and shares hit their lowest since 2018. Decling -32% since the beginning of 2024. Ouch.
Here is my favorite excerpt:
"Nike invested a material amount of dollars (billions) into something that was less effective but easier to be measured vs something that was more effective but less easy to be measured. In conclusion: an impressive waste of money."
Will marketing see renewed interest and perhaps even a renaissance in brand advertising? For Nike's sake, I hope so.
https://t.co/xCbSrGRyyZ
Even if you're not in marketing, you should read this post from the former CMO of Nike. It details Nike's transition from a brand-driven demand creation engine to a data-driven performance DTC model that relied primarily on sales on https://t.co/cbf6NiqhCn. The results? After the release of Nike's Q2 2024 financial results, they lost 25B in market cap in a day, and shares hit their lowest since 2018. Decling -32% since the beginning of 2024. Ouch. Here is my favorite excerpt: "Nike invested a material amount of dollars (billions) into something that was less effective but easier to be measured vs something that was more effective but less easy to be measured. In conclusion: an impressive waste of money." Will marketing see renewed interest and perhaps even a renaissance in brand advertising? For Nike's sake, I hope so. https://t.co/xCbSrGRyyZ
Epic post on how Nike lost $25B in a day by trying to make everything data-driven:
"Nike invested billions into something that was less effective but easier to measure vs something that was more effective but less easy to measure.
In conclusion: an impressive waste of money." https://t.co/YyLH98B0eH
alex and added
Nike is down 30%+ YTD (wiping $60B+).
A former Nike branding exec wrote a viral post and blames it on three decisions Nike made in 2020 under incoming CEO John Donahue.
The plan prioritized the direct-to-consumer (DTC) business but backfired:
▫️ELIMINATE CATEGORIES: Mckinsey advised Nike to get rid of categories (running, basketball, soccer) and... See more
Levi Lian added
CAC: Customer Acquisition Chaos - by Rex Woodbury
digitalnative.substack.comdigitalnative.substack.com
sari and added
That Nike post is the perfect articulation of the fact that as soon as all the corporations learned how to be “data driven” all the leverage had already shifted back to those able to make decisions based on taste, insight, and intuition.
3. Brands can no longer attain hyper-growth using digital Facebook and Google advertising.
Maveron • Casper Aside, Consumer Brands are Thriving
sari added
Beverley added
“One might propose that the entire profit motive behind the genre of creative work made up by brand, marketing, and design is to drive behavior change. We enable customers to do something new — whether by informing them that an option exists, or making it more attractive and effective to choose that option over others.”
It’s increasingly difficult for brands to earn media. A growing number of them are reporting on the compounding effects of a loss of revenue due to decreased affiliate sales. This will force more brands to redirect resources to other forms of creative marketing.
PM • ON NEW MUTUALISM AND MEDIA
sari added
“While smaller, niche players like Hoka and On Running doubled down on product innovation and grassroots marketing, Nike seemed stuck in a loop of digital experimentation that failed to excite the core sportswear consumer. By focusing almost exclusively on scaling its own digital platforms, apps, and virtual ventures, Nike alienated key wholesale partners and overlooked the growing demand for authentic, community-driven experiences in favor of short-term gains through DTC margins. Now it appears the long-term ramifications have finally caught up.”