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.
Wearable devices could be having a problem with their image
Wearable technology has been growing in popularity, but not always because of good reasons. Wearable devices are gaining attention throughout the world because they are being marketed as somewhat revolutionary. Some of these devices can, quite literally, change the way you see the world, while others simply offer you a better way to keep track of your health and other basic information. Some devices are being lauded as tools that could change the way society, as a whole, interacts with itself. The issue, however, is that none of these devices have yet become successful.
What is going on behind the scenes in the technology world may determine the future of wearable devices and their image with the public. Recently, Nike laid off many of the members of its FuelBand team. The FuelBand is a sort of smart wristband that is meant to track physical activity. Nike claims that it will continue providing support for the device, but rumors concerning the FuelBand’s imminent demise have already begun to circulate. While Nike may, indeed, have plans to continue supporting the device, the image that the FuelBand has created for itself may end up affecting its future.
Consumers may be somewhat disinterested in wearable devices
Similar things are happening to other wearable devices as well. The majority of these devices may end up be affected by rumors much more than the FuelBand, however, as most of these devices have not yet been released. Products like augmented reality glasses are often presented as devices that can change how people see the world, but these devices have also been shrouded in controversy. Google’s forthcoming Glass platform, for instance, has run afoul of many lawmakers in some parts of the United States. These legislators suggest that the device will be distracting for drivers and could lead to serious privacy issues. Beyond that, Google had earned some notoriety in the past for constantly changing the features of the Glass platform, initially noting that it would including augmented reality technology, then claiming that it would not support the technology.
One of the most significant challenges facing wearable technology has to do with the apparent lack of interest that consumers have for these devices. While wearable devices have become very popular among tech-savvy individuals, most people have not yet been convinced that these devices are interesting in any way. Marketing that has focused on the vague, innovative aspects of these devices has yet to thrill the majority of people that already have smartphones or tablets.
