we had a successful start to the year, delivering double-digit sales increases in our strategic growth areas greater china and e-commerce as well as another strong profitability improvement. brandâs e-commerce channel is the fastest-growing revenue channel and all the production processes as digitized as possible. describing itself as a digital company, adidas wants to be the worldâs best sporting apparel brand. the company spends 90% of its marketing budget on digital campaigns and social media. the purpose of the manufacturing process is to deliver the most innovative and personalized running shoes for every athlete. the brand takes every touchpoint like mobile, social and retail that consumers can interact to provide a consistent experience.
engine digital collaborated with the adidas digital future team to meet the needs of run genieâs other audience: the adidas sales associate. the brand also collaborates world-famous football players, athletes and singers to inspire. north america is the biggest market in the sporting goods industry, and its total share is 40%. the company is constantly revisiting its portfolio and concentrating on the core brand adidas and reebok. if you want to explore the digital marketing and social media campaigns from adidas, have a look at this page created for adidas projects! list your agency among the leaders of the industry, promote your work, create original content, find new team members and keep up with digital marketing events.
adidas is on a journey to shift from marketing efficiency to marketing effectiveness, admitting a focus on roi led it to over-invest in digital and performance marketing at the expense of brand building. this focus on efficiency was one of a number of issues that needed sorting at the company in order to drive long-term growth. adidas also had a performance budget linked to ecommerce in the belief that digital ads drove digital sales. adidas was keen to drive online sales because it is the most profitable part of its business. plus, while adidas thought only performance drove ecommerce sales, in fact it was brand activity driving 65% of sales across wholesale, retail and ecommerce, while performance also drove wholesale and retail sales.
that led adidas to over-invest in paid search, for example, an error it uncovered in its latin america market when a breakdown at google adwords and therefore inability to invest in paid search didn’t lead to a dip in traffic or revenue coming from seo. what the econometrics told adidas was that it should invest in video, which hadn’t shown up before because it didn’t do well in last-click attribution, as well as tv, outdoor and cinema to drive ecommerce. diageo credits its two-year focus on integrating marketing effectiveness across the business with a “profound shift” in the belief in marketing investment, but says the job is not done yet. adidas is changing the way it works internally and with agencies so it can focus on creating better media and marketing strategies and look after the long-term health of the brand. i was a md/marketing and sales director for one of adidas’ minor competitors back in the early 90s and was head hunted for a top marketing job at nike. i wouldn’t have got passed the screening interview if i had owned up to this.
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