We over-invested in digital advertising: Adidas Case Study

Hi people,

and a warm HELLO, well, rather cold one from the Swiss mountains, where I’m enjoying the first ski day of the season with my kids. A couple of runs are already into our legs and it’s just beautiful up here.

But I just wanted to take a minute with you to share insights I found regarding the sportswear company Adidas and their statement which says: “we over-invested in digital advertising”.

I mean, what does this mean?

For years, Adidas had the understanding that it was digital advertising driving e-commerce sales and as a consequence, their advertising split was 23% into brand and 73% into performance. Their attribution model was based on the last-click but it did not do any brand tracking. Their focus on efficiency over effectiveness lead to KPI’s on how to reduce cost rather than what was in the best interests of its brands.

I mean, what did they change to address this problem?

Adidas introduced a new campaign framework, with emotional brand driving activity at the center, and with a focus on generating again brand desire, creating desire by connecting with consumers around major campaigns three or four times a year while at the same time running advertising with a rational message.

This brings me to the conclusion that you or your brand, you need to create meaningful experiences that appeal to your customers. Because both brand awareness and performance campaigns, they need to coexist in order to maximize sales.

Well people, I hope you find these insights useful, and I would, as always, love to hear from you. Leave a comment about your marketing challenges, and let’s get the discussion going.

But remember, even in the beautiful Swiss Alps and there’s not the Matterhorn in the back, as long as the Matterhorn stands, everything is going to be alright. Well, cheers people, I need to go and catch up now with my kids. They’re already ahead;-)

Cheers. Talk to you soon again from another great place. Bye.

Greetings from a Swiss mountain guy;-)

Claude Oggier

More marketing questions? Call me at 0041-78-637-4314 and I am happy to help.

Is technology hurting your marketing effectiveness?

Hi people,

I hope you’re doing well and I’m saying hi from a viewpoint I visit frequently during summer when I go cycling. I mean, look in the back. It’s a spectacular view today over lac lĂ©man (Lake of Geneva) and the Alps where it’s foggy today. And it’s just great to be above the fog and I feel very grateful.

Now people my question for you today is do you have the feeling that your marketing campaigns are less effective than they used to?

Do you have the feeling that your marketing is falling behind?

Well, I believe a problem today is the abusive use of technology where too many marketing messages have forgotten the human connection or human element. Everything seems to be programmed and automated by marketers, who seem to have forgotten about what makes actually good sense. It’s simply annoying, it provides mediocre results and simply we must do a better job if we want to keep people’s trust in our products or services.

And here is my take on what we should do.

Marketing to digital natives has to be consensual. I’m feeling concerned and I believe you too. Therefore marketing, in general, has to be consensual.

Somebody at the top of the organization needs to declare that building trust in a more human way is a top priority.

Make the success of your customers be your most important KPI.

Embrace technology and make the consumer path to your product or service fast and easy. By all means, use artificial intelligence to accelerate and automate repetitive processes.

Provide customer service value by informing consumers on their order status or to students about their program progress.

Create ongoing conversations with your biggest fans and stay relevant in the consumer’s eyes when they decide to make a purchase.

Last but not least, brand building and building trust with consumers has never been more important than today. People want to be respected, don’t abuse people’s trust with technology.

Well, I hope you enjoyed these insights and I would really love to hear from you about your marketing challenges.

But regardless, remember, as long as the Matterhorn stands, everything is going to be alright.

Well, cheers people from this great, spectacular viewpoint.

Talk to you soon again. Bye bye.

Greetings from a Swiss mountain guy;-)

Claude Oggier

More marketing questions? Call me at 0041-78-637-4314 and I am happy to help.

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