Nike marketing boss attacks 'old' approach to social-media

Nike: training club iPhone app
Nike: training club iPhone app

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".


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message