Nike Embraces the Power of Private Media

Nike and others have discovered that they can increase customer retention and affinity by communicating directly with customers rather than through traditional “interruption” based media. Companies that use Private Media and permission based marketing techniques are seeing positive results; and are shifting their advertising budgets away from big media companies to direct interactions with customers and prospects. This Private Media strategy has been at the foundation of King Fish’s approach since its founding, and continues to be successful for our clients.

I thought this fact and quote from the story was very powerful:

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,” Said Trevor Edwards, Nike’s corporate vice president for global brand and category management.  Mr. Edwards says he tells this to many many media executives. “We’re in the business of connecting with consumers.”

Read this story from a New York Times article illustrating how Nike and other leading marketers are using Private Media and bypassing traditional media channels.

This is just the beginning of what will be a long term shift in strategy.  Thanks to advances in wireless technology and the maturation of social networking web tools, we will see more and more companies speaking directly to consumers without the filter and expense of media companies.  This does not mean that traditional media companies will disappear by any means.  However there will be a shake out and only ones with the best relationship with their readers/viewers will survive.

Share This