Nike marketing boss attacks 'old' approach to social-media
A leading global marketer at Nike has urged brands to stop trying to force "old metrics on to new media channels", claiming too many businesses are failing to add value through digital platforms.
Speaking at the launch of Velocity: The Seven New Laws for a World Gone Digital, which he co-authored with AKQA chairman Ajaz Ahmed, Stefan Olander, vice-president of digital sport for Nike, said brands should stop focusing on clicks or "likes".
He said: "A whole industry is stuck on trying to force old metrics on to new channels.
"Too many businesses are thinking 'I need to sell inventory', rather than 'How can I add value to a smartphone, or a new device?'"
On the topic of social media, Olander questioned the recent valuation of digital companies such as Facebook, commenting that a $100bn valuation of a company based upon an advertising model is "a little risky".
He said: "Advertising is an old model that is being squeezed into the new framework of social media, when the fact is that people don’t want to be interrupted."
According to Olander, Google AdWords is the only commercial model that is proven to work.
He said: "You look at the Instagram $1bn valuation – and Instagram doesn't make money.
"But it will be interesting to see, when it is combined with Facebook's platform, what value that creates."
Nike has moved away from investing in advertising to the creation of digital services such as Nike+. According to Olander, "once you have established a direct relationship with a consumer, you don’t need to advertise to them".
This article was first published on marketingmagazine.co.uk
- Senior Digital Designer Twist Recruitment £35000 - £42000 per annum + benefits, City of London
- Senior Digital Delivery Manager Harvey Nash £55000 per annum + package, Nottingham
- Assistant Buyer - Global Tech Brand Aquent Up to £49,000 Dependent on Skills and experience, London
- Senior Digital Operations Manager Harvey Nash £50000 per annum + package, Nottingham
- Marketing Executive Blue Skies Marketing Recruitment £25000 - £30000 per annum, Benefits: Benefits, London
- Evian baby Spider-Man 'rescues' fans with Twitter answers
- YouTube reveals user habits to appeal to 'older' marketers
- Pitch update: eBay's media contest, DFS and 2 Sisters Food Group
- McCann wins Qatar Financial Centre brief
- Three's pony and cats with thumbs top the cute Easter ad chart
- Metro launches content agency