Will Nike Thrive Following The Colin Kaepernick Ad Campaign?
Nike turned plenty of heads when it revealed it had onboarded former NFL quarterback Colin Kaepernick to be the face of the 30th anniversary of the “Just Do It” campaign. The Kaepernick selection was undoubtedly polarizing, since he was the leader of the on-field player protests, kneeling during the National Anthem to call attention to racial injustice and social inequality.
The ad kicks off showing a tight black-and-white photo of Kaepernick’s face with copy that reads: “Believe in something. Even if it means sacrificing everything.” The second part of the ad includes a commercial titled: “Dream Crazy” featuring Kaepernick as the voice over.
The ad generated $43 million in media exposure in the day after it was released, which was primarily neutral to positive, according to Apex Marketing Group. Online sales grew 31% from the Sunday Sept. 2 through Tuesday, Sept. 4, according to Edison Trends.
The RTP editors discuss whether the campaign will be a success for Nike in the long haul. Additionally, the team touches on some lessons retailers and brands can learn from this recent campaign as it plays out.
Debbie Hauss, Editor-in-Chief: Let’s face it: Controversy brings attention to brands. Sometimes the outcome is all good or all bad, but most of the time it’s somewhere in between. In this case it looks like Nike’s business is definitely going to benefit from the Kaepernick ad. A CNBC analyst actually called the ad a “stroke of genius” and estimates that the brand will see a 15% increase in stock value within the year. It didn’t hurt that the ad was extremely well done and featured LeBron James and Serena Williams in addition to Kaepernick. And Serena’s most recent newsworthy actions at the U.S. Open will likely give the Nike ad an extra boost.
Adam Blair, Executive Editor: I’m with Gartner L2’s Scott Galloway on this one: signing Colin Kaepernick is a genius, “gangsta” move by Nike. As Galloway says, the brand is trading in an older, more conservative audience of potential sneaker buyers (probably a small and shrinking group) for a younger, more diverse, more progressive cohort. As for the negative publicity — and I’m sure there will be lots of it — Galloway’s other point makes sense to me as well: everything, sports very much included, has already become politicized. Sitting it out on the sidelines just isn’t an option any more for brands that want to stay in the public conversation. Let’s also note that Nike is not just making a political point; their full commercial tugged at my emotional heartstrings — and this is coming from a person who really doesn’t care about sports.
Glenn Taylor, Senior Editor: In an era of authenticity-driven retail, retailers and brands are in a position where they can get their biggest customers to rally around them, and bring new customers in who may be drawn to a certain cause. We’re going to see more of this in retail, especially since so many companies are looking for ways to acquire and retain customers. It only makes sense that retailers would continue to appeal to consumers’ emotions, which drive many purchases and shopping visits. Make no bones about it, Nike knew what they were doing here. Colin Kaepernick had the highest-selling NFL jersey for a brief period two years ago right after he first knelt during the National Anthem, and one year later remained in the top 50 for merchandise sales despite not being on a roster at the time. Even with anticipated criticism and blowback from a portion of fans, Nike clearly sees that Kaepernick and the values he represents continue to be massive audience drivers.
Bryan Wassel, Associate Editor: I think Nike made the right decision to create this ad. As my colleague Adam mentions, putting Colin Kaepernick front-and-center trades an older, more conservative audience with a younger cohort. Gen Z is poised to become the biggest generation in terms of spending, representing 40% of consumers by 2020, and Nike’s commercial will appeal to them at an age when their buying habits are still fresh and malleable. Shoppers care about brands’ viewpoints on important topics more than ever, and Nike chose to take a stand that both keeps it in the spotlight and appeals to arguably the most important demographic in the country.