Digital technology is changing everything, even at Nike. Â The sportswear conglomerate created a separate division, Nike Digital Sport, which launched in 2010, to create gadgets and technologies that allow consumers to track their performance in any sport. While Nike had the sports enthusiast in mind, the innovative technology is now being used by everyday people thanks to its new marketing strategy.
Historically speaking, Nike has been one of the leading brands in terms of traditional marketing spend.Â The company has reduced its spend in television and print advertisements by 40% over the last 3 years, moving those dollars towards digital. According to Advertising Age, the company spent close to $800 million on “nontraditional” advertising the year Digital Sport came on the scene. Nike is shifting from a total dependence on superstar athletes and big marketing campaigns to creating a digital ecosystem of consumers and athletes.
With Nike’s digital focused division expanding to include more employees and moving into a larger space off the Beaverton, Ore. campus, take a look at how the iconic brand embraced technology and plans to remain strong in the digital race.
The Nike Digital Sport ecosystem consists of 6 million connected consumers using the Nike+ platform, apps, mobile devices, and gear.Â The platform allows people to socially share their runs, workouts, activities and fitness goals, driving consumer engagement while motivating and inspiring people to live more fit lives.
There are clear similarities between Apple, the poster child of brand experience, and Nike as they continue to push the envelope in creating a unique user experience and embracing a digital-first strategy.Nike’s old philosophy was to build a great product and let consumers purchase them. Â Â The result was great sales, but the downside was that they wouldn’t see the consumer until it was time for their next purchase. Â The company’s new strategy integrates a consumer-driven experience that enables users to connect multiple times per day with the brand and share their experiences with an online community.
Available to iOS and Android users, Nike apps are a major component in its engagement efforts:
- Nike+ Running
- Nike+ Training
- Nike+ Basketball
Here is a list of Nike devices on the Nike+ platform:
- Nike Fuel Band
- Nike Sport Watch
- Nike Sport Band
Nike on Social Media
Nike’s social media accounts are helping to fuel the online conversation:
@Nike — 602, 600 Followers
@NikeBasketball — 332,376 Followers
@NikeRunning — 97, 207 Followers
Nike — 10,392,993 Likes
Nike Basketball — 4,327,993 Likes
Nike Running — 1,105,060 Likes
Numbers as of August 16
Online conversations are reshaping brands.Â With 56% of customers trusting other consumers versus 28% trusting a company’s website, it appears that brands centering their business model on consumer engagement are making the right move. Brands, as Nike would advise: Just do it!