The brand is believed to speak to all major holding companies, meaning Interpublic Group of Cos. Mediabrands could also be a participant. However, Nike will not seek to find a single media partner according to a person familiar with the matter.
Nike, Wieden+Kennedy, Mindshare, Mediabrands and Assembly were not immediately available for comment. The review is believed to be handled by R3 although the consultant was not immediately available for comment.
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The review covers around $1 billion in global spending, according to a person familiar with the matter. The bulk of Nike’s marketing spend is on non-media activities such as sponsorships and events. Nike reported $3.1 billion in global spending on advertising and promotion, also known as “demand generation spending,” in the fiscal year ending May 2021, according to data center Ad Age. Demand generation expenses include advertising and promotion expenses, including the costs of sponsorship contracts, add-on products, television, digital and print advertising and media expenses, brand events and presentation of the distribution brand.
The review has been a long time coming as Nike’s business is shifting from a brand-driven business to a performance-driven business, according to a person familiar with the matter. This could mean big wins for incumbent stores that only handle branded media as they seek to secure elements of Nike’s performance media business, given that the brand has a dozen agencies. of performance media in its list, according to a person familiar with the process.
Lately, Nike has been following its consumers into the metaverse. Last month, the retailer filed virtual product trademarks for its namesake and Jordan brands. More recently, he created his own world “Nikeland” in the popular game Roblox. Today, Nike announced the acquisition of RTFKT, an up-and-coming NFT company. In a statement, Nike Chairman 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”.
Yet it’s physical retail that’s helping the sportswear giant continue to grow. In its latest quarter, Nike reported a 12% increase in revenue 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 been struggling 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 top marketer when Alex Lopez, a Nike veteran who had recently served as global vice president of brand marketing and global menswear creative director at the apparel giant Beaverton, Oregon-based sports company has joined McCann Worldgroup as President and Global Head. creative agent.
Contributor: Judann Pollack and Adrianne Pasquarelli
