Nike’s Move Away from Advertising Into Content Is about Driving Revenues

This New York Times article on Nike’s new marketing investments into their consumer base should be a wake-up call for those companies not investing in content marketing. Nike, along with other huge brands such as P&G, Johnson & Johnson, and General Motors are all moving away from the basic advertising and sponsorship strategies that helped make them the well-known brands they are today (The article discusses Nike investments such as their Nike Running blog site that create original content for customers).

Just look at the variety of quotes from Nike’s marketing management team in their response to this relatively new marketing direction:

“We’re in the business of connecting with consumers.”

“We want to find a way to enhance the experience and services, rather than looking for a way to interrupt people from getting to where they want to go.”

“How can we provide a service that the consumer goes, ‘Wow, you really made this easier for me’?”

Lee Doyle, chief executive for North America at Mediaedge:cia goes on to state, “…consumers have been trained to skip all advertising…That’s the world we’re all afraid of.”

Now, go back and read these quotes again.  What these people are saying is that traditional advertising:

1. Does NOT connect with consumers.
2. Interrupts people away from what they really want.
3. Does NOT provide a wanted experience.
4. Does NOT help the buyer solve a problem.
5. Is ignored.

Now, traditional advertising still has its place, but, in general, this is what’s coming out of the best and brightest marketing organizations in the world.

Content Drives Revenues

Okay, okay…you might have heard all this before. Statements such as:

“It’s the end of interruption marketing.”

“It’s about engagement and the customer experience.”

“Technology has created a new consumer buying behavior.”

All these are true, but rarely do I see articles get down to the heart of what is going on for businesses. Simply put, content drives revenues. Valuable and relevant content created by companies and delivered to target users:

1. Makes a connection with buyers.
2. Gives buyers the information they really want, need.
3. Provides a wanted (even needed) experience.
4. Helps the buyer solve a problem.
5. Is given attention.

Businesses today have the opportunity to be the content, to be the media. Are you targeting a specific type of customer? If so, stop looking at the available media as a first option. Identify the buyer persona(s) involved, find the informational needs of that buyer, and deliver consistent and valuable content to them based on those informational needs.

The answer seems so easy that it’s often dismissed by business marketers. I’ve been in more than one meeting where the chief marketer nearly laughed me out of the room when I said they could be the dominant media source for a particular industry. Why can’t you have a website that delivers the best industry content available? Why can’t you deliver in-person roadshows across the country on a key industry topic? Why can’t you create a print custom magazine that is anticipated by thousand of target buyers each month?

You can! And why would you actually do such things? Because great content – content that delivers on the informational needs of buyers – drives revenues. If the goal of a business is to make a reasonable profit, there is no other reason to create great content than to drive corporate revenues and profits. That’s it!

Still not sure…just ask Nike, P&G, J&J and General Motors.

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