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
(1/14)After observing $250M+ in ad spend on @facebook, I’ve noticed that DTC brands that scale very quickly have a few things in common:
- High margins & high AOV
- Business model is focused on retention
- Cross-border activation is simple
- Product is a consumable & impulse buy
One Harvard Business Review study found that 80 percent of marketers are unhappy with their ability to measure marketing return on investment (ROI). Not because the tools aren’t good enough, but because they’re too good, and marketers are seeing for the first time that their marketing strategies are “often flawed and their spending is inefficient.”