Nike Returns to Super Bowl Advertising To Revive Sales After 27-Year Gap

Nike Inc. NKE has decided to return to Super Bowl advertising after a 27-year break, in an effort to revive its dwindling sales.

What Happened: The news of Nike’s return was disclosed by JPMorgan analysts in a research note, following a meeting with Nike’s CEO and CFO. The company has yet to make a public statement on the matter.

This decision comes at a critical time for Nike, which has been battling falling sales. The company is taking a high-stakes risk, as a 30-second Super Bowl ad spot can cost more than $8 million.

As per the report by Insider, newly appointed CEO, Elliott Hill, who returned to the company in October after a four-year hiatus, had presented a recovery plan in December. Hill has been critical of some of Nike’s previous strategies, such as heavy discounting and neglecting relationships with wholesalers.

The sportswear behemoth is also trying to reignite interest in its iconic sneaker brands like Jordans and Air Force 1s by limiting supply to stimulate demand.

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Over the past year, Nike’s shares have dropped approximately 30%, and the company reported an 8% year-over-year decrease in revenue to $12.4 billion for the quarter ending November 30.

In recent months, Nike has restructured its marketing department, promoting several company veterans, including former vice president Nicole Hubbard Graham, who was appointed as marketing chief.

The company seems to be leveraging significant cultural events to rejuvenate its brand, as seen by a new ad launched during the Grammy Awards this month, celebrating the 40-year legacy of its Jordan Brand.

Why It Matters: Nike’s return to Super Bowl advertising signifies a major shift in its marketing strategy. This move could potentially attract a larger audience and boost sales, which is crucial for the company given its recent financial performance.

However, the high cost of Super Bowl advertising also adds a significant risk to this strategy.

The success of this move will largely depend on how effectively the company can leverage this platform to connect with its target audience and rekindle interest in its products.

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