Nike is taking it to the Block

The New York Times
Nike spent just 33% of its $678 million United States advertising budget on ads with television networks and other traditional media companies last year. That’s down from 55% 10 years ago. And Nike executives say that much of the company’s future advertising spending will take the form of services for consumers, like workout advice, online communities and local sports competitions.

Nike calls the third floor of its New York store the “Nike Running Club.” There, runners can map out running routes, receive training advice and attend an evening speaker series–all for free, even if they trot in wearing Adidas or Brooks sneakers. The company pays five coaches and 17 pacers to lead runs three times a week in Central Park. The goal is to use the club to endear people to the brand and to provide opportunities for them to try products.

“We’re not in the business of keeping the media companies alive,” says Trevor Edwards, Nike’s corporate vice president for global brand and category management. – Read the whole story…