Thursday, October 18, 2007

The New Advertising Outlet, Your Life:Nike+

STEVE SAENZ used to run a 10K race in 36 minutes. But last spring — 20 years, 2 children and 50 pounds later — he found himself seriously out of shape. A new Web site from Nike, he says, has brought him back on track.

Since April, Mr. Saenz, 53, has been running with a Nike+, a small sensor in his running shoes that tracks his progress on an Apple iPod he carries. After each run near his home in Louisville, Ky., he docks the iPod into his computer and posts details of his run on the Nike+ Web site. There, he has made friends with other runners around the world who post running routes, meet up in the real world and encourage one another on the site.

Nike’s famous swoosh is there all along. For Nike, this is advertising.

“It’s a very different way to connect with consumers,” says Trevor Edwards, Nike’s corporate vice president for global brand and category management. “People are coming into it on average three times a week. So we’re not having to go to them.”

The success of Nike+ is bad news for the traditional media companies that have long made money from Nike’s television commercials and glossy magazine ads.

Last year, Nike spent just 33 percent of its $678 million United States advertising budget on ads with television networks and other traditional media companies. That’s down from 55 percent 10 years ago, according to the trade publication Advertising Age.

“We’re not in the business of keeping the media companies alive,” Mr. Edwards says he tells many media executives. “We’re in the business of connecting with consumers.”

http://www.nytimes.com/2007/10/14/business/media/14ad.html?_r=1&em&ex=1192680000&en=fc6ac49bb702517a&ei=5087%0A&oref=slogin

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Poster: M.Salih Abamor

1 comment:

Marketers discussing marketing & markets said...

Media is not the only way for advertisment, Big enterprises will be looking for alternatives to traditional media advertisements. And using channels like nike+, in addition to advertisement, there will be long term interaction between the customer which is noy is for a sport equipment supplier
Poster: Salih Abamor