Nike and Other Companies Appeal to a Mobile Population

As technology continues to increase at a rapid rate, so too does the astounding popularity of mobile devices. From developing to developed countries, mobile devices have taken the world by storm because of their ease of use and convenience. In fact, according to Smart Insights, as of 2014 the number of global mobile users even surpassed those of desktop users.

http://siliconangle.com/files/2013/08/mobile-devices-752x483.jpghttp://siliconangle.com/files/2013/08/mobile-devices-752×483.jpg

With more users on mobile devices thus comes an increase in the use of applications (or apps) tailored specifically to such formats. Studies have shown that mobile user app usage time even exceeds that of simple mobile web browsing time. In an amazing statistic from Goldman Sachs, “Americans are spending 60 percent of their online time in apps, compared with about 30 percent on desktop computers and 9 percent on the mobile web.”

As with any large social change, this shift in the way Americans gather and interpret data is creating quite the impact on business. In order to stay competitive in today’s market, companies must understand large changes in consumer behavior and adjust advertising strategies accordingly. In today’s mobile-dominated world, this adjustment revolves primarily around mobile app advertisements. In fact, according to Smart Insights, “mobile is the future, and within 3 years it will come to dominate digital ad spending.”

http://cdn2.content.compendiumblog.com/uploads/user/ab04c84c-11a5-40cf-a34e-fd5aba218b07/f44af44e-faa2-47fd-8fed-a51bccf4083f/Image/e6d8d27103fed663ef5f23db1d80d60f/mobile_apps.jpghttp://cdn2.content.compendiumblog.com/uploads/user/ab04c84c-11a5-40cf-a34e-fd5aba218b07/f44af44e-faa2-47fd-8fed-a51bccf4083f/Image/e6d8d27103fed663ef5f23db1d80d60f/mobile_apps.jpg

One company which is trying to follow this marketing strategy is Nike. Beginning in November 2015, Nike will be sponsoring advertisements in the Weather Channel mobile app to target consumers using personalized local weather data. For example, an app user in somewhere cold like Alaska would see advertisements for Nike winter jackets and boots while an app user at the same time and same day in a warmer climate like California might see advertisements for lightweight running gear. As David Schriber (vice president for the North American marketing brand at Nike) states, “If you’re checking the weather, you probably have a question in your mind about how you can prepare for that weather.” Nike wishes to provide an answer.

http://brandchannel.com/2013/07/03/nike-celebrates-25-years-of-just-do-it/

Though this seems a relatively intuitive strategy to increasing consumer traffic, Nike hopes the convenience of the ads will significantly boost sales. According to the New York Times, in the next five years Nike’s e-commerce business is anticipated to increase from $1 billion to $7 billion with great emphasis on the contribution of the mobile marketplace.

As mobile devices continue to increase in popularity due to advances in technology, businesses must adapt to the changing market accordingly. Nike—along with other businesses such as L. L. Bean, Starbucks, and State Farm— have already begun adjusting advertising strategies to meet the demands of our dynamic world. So, the next time it’s snowing here in Happy Valley—which we know happens quite a bit— check the weather on your phone, tablet, or other mobile device. Don’t be surprised if Nike is there to offer you a nice pair of cozy winter socks to keep your feet warm on your trek to class.

Sources:

http://www.nytimes.com/2015/10/29/business/nike-embraces-weather-app-in-campaign-to-sell-gear-suited-to-local-conditions.html?ref=technology&_r=0

http://www.smartinsights.com/mobile-marketing/mobile-marketing-analytics/mobile-marketing-statistics/