The highly controversial Nike campaign featuring former San Francisco 49ers quarterback Colin Kaepernick has unsurprisingly aggregated millions of dollars worth of publicity.
The Nike campaign has garnered more mileage than any previous marketing attempt, with a new report indicating it is having a positive impact for the sportswear giant.
According to Apex Marketing Group, Nike has received $163 million worth of media buzz, including $49.08 million in negative buzz, which also included a sharp criticism by US President Donald Trump; $65.58 million in positivity created by the campaign and $48.84 million in the neutral news coverage.
Despite Nike Inc.’s market capitalization being down $3.4 billion, the brand still stands to gain from the endorsement of Kaepernick; with $163 million worth of media coverage, “That far outweighs the risk of alienating some customers,” Bloomberg stated.
Sports marketing executive at Baker Street Advertising, Bob Dorfman, told Bloomberg: “It’s not a move that any company can make, but for Nike it’s definitely smart business.”
Former head of US marketing for Reebok, Howe Burch, says Nike has a particular market that drives their business and thats who they are focusing on.
“Nike cares most about the category influencers and tastemakers – nearly all of whom will embrace their decision,” Burch said.
“They know they will lose some customers short-term but not the kind of customers that really drive their business.”
Senior retail analyst at Nomura Instinet, Simeon Siegel added: “Nike is, at the same time, one of the world’s best product companies and one of the world’s best marketing companies.”
“This has been their strength.”
“They understand impressions, they understand brand image, perhaps as good, if not better, than anyone.”
Nike’s stock was up as much as .94 per cent Thursday as of 10:13 in New York.