Author: Julie Campbell

Even though the brand spent more than usual on advertising this quarter, its results were still better than expected.

Nike has reported that even though it spent more on advertising such as social media marketing as the FIFA World Cup got underway, it still managed to achieve results that were stronger than expected for its fiscal fourth quarter.

The company has stated that strong social media played an important role in this success.

The brand explained that the gains that it experienced were the result of a number of different efforts, which include strong social media marketing campaigns, new products, and a digital advertising strategy that was well received, including the “Risk Everything” campaign. As a result of this, the company not only saw its revenues rise, but they increased notably higher than they had anticipated.

This helps to illustrate the strength of a well implemented social media marketing campaign.

It reported that its revenues rose by 11 percent to reach $7.4 billion. The Nike brand product sales increased by 13 percent to break the $7 billion mark. Its Converse revenues also rose by 15 percent, to reach $410 million. The brand also pointed out that these revenue increases were experienced in every one of its regions and in its key categories, as well as in their children’s, men’s and women’s businesses. Their profits rose by 5 percent, to hit $698 million.

According to the president and CEO of Nike, Mark Parker, “An ongoing two-way dialogue with consumers is a critical element of our digital ecosystem.” He also went on to explain that this type of interactive experience offers the brand considerable innovation driving insights that boost the connection between the consumer and the company’s brands. Social media and mobile marketing also offer a platform over which consumers can interact with each other, not just the brands, themselves.

Parker added that “Through our social media platforms, we leverage the power and passion of sport to deepen our relationship with our consumers.”

As companies and brands continue to discover the ways in which they can properly implement social media marketing campaigns, it is clear that this type of success story will become increasingly common.

Only a very small percentage of companies actually know what they’re doing when advertising on smartphones.

A recent study conducted by Boston Retail Partners has revealed that while many retailers are attempting to use mobile marketing to their best advantage, only a very small number of them are actually proving that they understand this channel and are utilizing it properly.

Smartphone ads and promotions have a great deal of potential for reaching a consumer at the best possible moment.

The opportunity presented by mobile marketing is a unique one, as the retailer would ideally be able to engage a customer using a device that he or she has available and turned on at virtually every moment. When that customer is already in or near a shop location, added enticements can be provided to encourage a sale – or a larger sale. However, as much as merchants do say that they want to be able to provide this experience, few have shown that they have figured out how to do it, quite yet.

Ninety five percent of retailers have identified customer engagement among top initiatives for mobile marketing.

At the same time, only 3 percent showed Boston Retail Partners that they had the ability to identify a customer when he or she actually stepped into a shop, according to the firm’s survey results.

The Commerce Benchmark Survey included the participation of 500 retailers and showed that within the next five years, the majority (three quarters) of retailers do intend to put technology into place that will allow them to be able to identify customers who have stepped into their locations.

That said, at the same time, the survey showed that retailers are starting to learn the ropes and they are discovering what they need to do when it comes to mobile marketing in the most effective way, through the use of location based technologies. Approximately 63 percent have intentions to provide real-time retail from their point of sale, while another 62 percent have plans to advertise over smartphones. Moreover, 61 percent intend to set up real-time analytics that will give them a measure of their effectiveness through proper analysis.