So, recently I read this article about Adidas and how they ditch TV ads to reach generation Z on mobile. This is part of their strategy called “Creating the New” that was launched in 2015. They emphasize in mobile-based marketing as they believe this generation are always engaged with their mobile devices and no longer watch TV with the development of various online streaming services. So they shift their advertising schemes and no longer advertise their products on TV.
Looking at their revenue, I say they made an excellent decision since they earned a revenue of $21.5 billion USD, increased by 18% from the previous year. However, I was curious about how their competitor was doing and did a little research for Nike, their largest competitor. I found that Nike last year made $32.4 billion USD. That is almost 50% more than what Adidas is earning. I look into their advertising schemes and found that Nike is advertising both on TV and mobile-based marketing. And looking also from their market share below, we could see how Nike still dominates the market.
I find this very interesting and see how different advertising strategy may lead to a different outcome. I personally think that Adidas is on the right track by advertising fully on mobile, however, I think that they do it too soon when a numerous amount of people still watch TV and still watch the ads on the TV.
So what do you guys think? Is this the right strategy for Adidas to implement now? And is Adidas losing potential customers for not doing TV ads? Feel free to leave your opinion below! 🙂