Nike ended the 2022 fiscal year (ended in May) with marketing expenses of 3,850 million dollars, 23% more than in the previous year due to “the normalization of spending on brand campaigns and the continuous investments in digital marketing to support growth in demand in this segment.
Last year, Nike reduced its marketing spend by 13% primarily due to lower spending for its branded events and retail operations. In the last financial year, however, the American giant lost some sponsorships, such as Russia’s Spartak, which Nike canceled after the outbreak of the war in Ukraine, or Sporting, which signed with Puma for the next two seasons. In the first division soccer of Argentina, the Giant of Oregon dresses only to San Lorenzo.
Puma was the company that increased its marketing item the most in the last year, to 1,309 million euros, 24.7% more than in 2020, when it reduced its item by 5.6% and reinforced warehouses and logistics to deal with the demand. Investment in this category, which also includes the retail business, accounts for 19.2% of the total.
“The increase was mainly due to higher marketing expenses, the increase in stores and higher distribution and storage costs related to sales,” explains the German company in its annual report.
After returning to physical events, in the last year, Puma signed agreements with Grupo Baskonia Alvés and four players from the World Padel Tour. In Argentina, the only top team you saw is Independiente. In the first six months of 2022, the German company continued to increase the expenses of this item, although it does not detail the figure.
In the case of Adidas, the German group increased its investment in marketing by 7.3% in 2021, to 2,547 million euros.
“Investment in marketing is one of our largest operating expenses and, at the same time, one of the most important mechanisms to drive brand appeal and revenue growth,” the German group points out in its annual report.
In 2021, the company relaunched its Impossible is nothing campaign, which was originally launched in 2004 by boxer Muhammad Ali, with the aim of conveying hope “at a time when optimism in the world was in short supply.” Among the athletes who participated in the last campaign are the soccer player Lionel Messi, the athlete Peres Jepchirchir and the basketball player Candance Parker, among others.
In Argentina’s first division soccer, the “three-strip brand” wins the war against its main competitors (Nike and Puma) since it dresses three teams: Boca, River and Arsenal.
In the first quarter of 2022, the German company has continued to increase the marketing budget, with a rise of 19%, to 641 million euros, “which reflects additional investments in various brand campaigns and support for the launch of new products ”.
For its part, Under Armor allocated 98.8 million dollars more in marketing in 2021 and closed the year increasing spending on this item by 18%. The investment was directed especially to Asia Pacific, with the aim of gaining positions in the region.
However, the company explained in its annual report that due to increased competition “the costs and return on our sports sponsorship investments may become more challenging and could affect the value of our brand image.” The company primarily sponsors college clubs and athletes.
Source: Ambito
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