Nike spent $3.59bn on advertising in 2020, closed 5.1% of its retail shops amid pandemic

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Data presented by Safe Betting Sites indicates that in 2020, Nike has spent $3.59 billion on advertising. The figure represents a slight drop from last year’s $3.75 billion.

Nike’s 2020 revenue drops amid a pandemic 

Nike’s spending on advertisements has remained fairly constant over the years. In the last five years, the company has spent a total of $17.54 billion on advertising.

The SafeBettingSites research also overviewed Nike’s revenue and 2020 recorded $37.4 billion. This is a drop of 4.35% from last year’s $39.1 billion.

Notably, Nike’s last year’s revenue was the highest in five years. In 2018, the revenue stood at $36.9 billion, representing a growth of 7.26% from 2017’s $34.4 billion.

Nike’s 2020 revenue drop was majorly due to the coronavirus pandemic. According to the research report:

“The pandemic played a key role in shifting consumer behaviour, a change that was also felt at Nike. During the period, most consumers opted for online shopping in a bid to flatten the curve. The changing consumer behaviour offers Nike an opportunity to transforms its business in regards to meeting customer needs.”

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In 2019, Nike retail stores in the United States stood at 384, dropping to 338 in 2020. For non-US based stores the number stood at 768 last year while in 2020, the figure was 758.

From the data, in 2020 Nike has closed 46 shops in the U.S, and only 10 overseas representing about 5.1% of all 1096 retail stores. The closure was mainly due to the implications of the coronavirus pandemic.

Nike spent $3.59bn on advertising in 2020, closed 5.1% of its retail shops amid pandemic

Nike’s advertising strategy remains unique

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Nike advertising covers different mediums including digital and print platforms. However, the firm has been focusing more on the digital section in relation to technological advancements. The company’s adverts are known to go the direction of emotional branding. The ads are strategically crafted to evoke particular feelings and needs among consumers that can only be satisfied with Nike products.

Additionally, Nike’s marketing approach has been untraditional. It has avoided the normal conventions of sports marketing by mostly favouring viral advertising and word-of-mouth. Nike has created some of the effective buzz marketing campaigns with both innovative products and celebrity endorsements and collaborations.

For example, in 2018, Nike created an ad featuring NFL’s Colin Kaepernick despite the controversy surrounding the player.

Nike spent $3.59bn on advertising in 2020, closed 5.1% of its retail shops amid pandemic
Photo by REVOLT

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Nike’s focus on effective marketing can be seen in its revenues that have majorly remained high despite the 2020 dip. This drop in revenue can be directly linked to the coronavirus pandemic. The health crisis compelled Nike to temporarily close some of its retail stores in leading markets like North America and China.

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The pandemic played a key role in shifting consumer behaviour, a change that was also felt at Nike. During the period, most consumers opted for online shopping in a bid to flatten the curve. The changing consumer behaviour offers Nike an opportunity to transforms its business in regards to meeting customer needs.

Going into 2020, Nike was leveraging on several business strategies to grow its revenue before the pandemic disruption. Most importantly, the company expected to drive growth across footwear and apparel, by banking on innovations.

Additionally, Nike expected solid growth across sportswear, Jordan, Nike Kids, and running categories, along with the rising brand value and international presence especially in developing countries. The apparel revenue which has recorded positive growth in recent years was also expected to lead he way in more revenue.

Nike’s revenue growth path

Overall, despite the 2020 drop in revenue, Nike is expected to rebound later this year accelerated by the reopening of retails stores in North America and China. Furthermore, Nike is set to make more investments in technology to deal with changing consumer behaviour globally.

The company is heavily banking on strong leadership to make a revenue comeback after the coronavirus pandemic. In July this year, Nike announced a series of senior leadership changes as part of its Consumer Direct Acceleration (CDA) program. The program seeks to accelerate its digital transformation for generating long-term growth and profitability.

The company expects the leadership changes to result in a net loss of jobs across the company, which will result in pre-tax one-time employee termination costs running into millions of dollars.

Nike’s consistent focus on product and marketing innovation should continue to pay off especially with a renewed commitment to upgrading the digital footprint through its Nike Direct business. Brand recognition and growth through endorsements will also be key in Nike’s journey to recovery.

However, the path towards recovery might be bumpy. Factors like the US-China trade wars might impact Nike’s equipment revenue that has been struggling in recent years. A majority of the company’s equipment is manufactured in China and the tough tariffs will likely complicate matters. Competitors Adidas cannot be ignored as they attempt to shake Nike’s position in the market.

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Nike spent $3.59bn on advertising in 2020, closed 5.1% of its retail shops amid pandemic - Brand SpurNike spent $3.59bn on advertising in 2020, closed 5.1% of its retail shops amid pandemic - Brand Spur

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Nike spent $3.59bn on advertising in 2020, closed 5.1% of its retail shops amid pandemic - Brand SpurNike spent $3.59bn on advertising in 2020, closed 5.1% of its retail shops amid pandemic - Brand Spur

Latest News

Spackman Entertainment Group’s Upcoming Musical Film THE BOX, Starring EXO’s Chanyeol, Scheduled To Be Released In The Spring Of 2021

  • Following the art film STONE SKIPPING, THE BOX is the next film production of the Company's wholly‐owned indirect subsidiary, Studio Take, founded by veteran movie producer, Mr. Song Dae‐chan
  • THE BOX will be EXO's Chanyeol's first lead acting role in a film
  • Directed by Yang Jung Woong, the Executive Producer of the 2018 PyeongChang Winter Olympics opening and closing ceremonies, THE BOX is set to be screened in Korea in the spring of 2021

SINGAPORE - Media OutReach - 3 March 2021 - Spackman Entertainment Group Limited ("Spackman Entertainment Group" or the "Company" and together with its subsidiaries, the "Group"), one of Korea's leading entertainment production groups, wishes to announce that its upcoming musical film THE BOX, produced by the Company's indirect wholly-owned subsidiary, Studio Take Co., Ltd. ("Studio Take"), is set to be released in Korea in the spring of 2021.


Following the art film STONE SKIPPING, THE BOX is the next film production of Studio Take, which was founded by veteran movie producer, Mr. Song Dae‐chan.

THE BOX is about the musical journey of an aspiring singer and a once popular producer.

Directed by Yang Jung Woong, the Executive Producer of the 2018 PyeongChang Winter Olympics opening and closing ceremonies, THE BOX stars EXO's Chanyeol who plays the aspiring singer and Jo Dal Hwan who acts as the once popular producer. This is Chanyeol's first lead role for a Korean commercial film. Jo Dal Hwan is known for his role in SECRET HEALER (2016), TRAFFICKERS (2012) and THE CON ARTISTS (2014).

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About Spackman Entertainment Group Limited

Spackman Entertainment Group Limited ("SEGL" or the "Company"), and together with its subsidiaries, (the "Group"), founded in 2011 by Charles Spackman, is one of Korea's leading entertainment production groups. SEGL is primarily engaged in the independent development, production, presentation, and financing of theatrical motion pictures in Korea. According to Variety, Korea was the world's fourth largest box office market in 2019, behind only North America, China and Japan.


The Group also invests into and produces Korean television dramas. In addition to our content business, we also own equity stakes in entertainment-related companies and film funds that can financially and strategically complement our existing core operations. SEGL is listed on the Catalist of the Singapore Exchange Securities Trading Limited under the ticker 40E.

Production Labels

SEGL's wholly-owned Zip Cinema Co., Ltd. ("Zip Cinema") is one of the most recognised film production labels in Korea and has originated and produced some of Korea's most commercially successful theatrical films, consecutively producing 10 profitable movies since 2009 representing an industry leading track record. Recent theatrical releases of Zip Cinema's motion pictures include some of Korea's highest grossing and award-winning films such as CRAZY ROMANCE (2019), DEFAULT (2018), MASTER (2016), THE PRIESTS (2015), COLD EYES (2013), and ALL ABOUT MY WIFE (2012). For more information on Zip Cinema, do visit http://zipcine.com


SEGL also owns Novus Mediacorp Co., Ltd. ("Novus Mediacorp"), an investor, presenter, and/or post-theatrical distributor for a total of 79 films (58 Korean and 21 foreign) including ROSE OF BETRAYAL, THE OUTLAWS and SECRETLY, GREATLY, which was one of the biggest box office hits of 2013 starring Kim Soo-hyun of MY LOVE FROM THE STARS, as well as FRIEND 2: THE GREAT LEGACY. In 2012, Novus Mediacorp was also the post-theatrical rights distributor of ALL ABOUT MY WIFE, a top-grossing romantic comedy produced by Zip Cinema. In 2018, THE OUTLAWS, co-presented by Novus Mediacorp broke the all-time highest Video On Demand ("VOD") sales records in Korea. For more information on Novus Mediacorp, do visit http://novusmediacorp.com.


The Company owns a 100% equity interest in Simplex Films Limited ("Simplex Films") which is an early stage film production firm. The maiden film of Simplex Films, JESTERS: THE GAME CHANGERS (2019), was released in Korea on 21 August 2019. Simplex Films has several line-up of films including A BOLT FROM THE BLUE (working title).


The Company owns a 100% equity interest in Take Pictures Pte. Ltd. ("Take Pictures") which produced STONE SKIPPING (2020) and shall release THE BOX and GUARDIAN (working title) in 2021 tentatively.


The Company owns a 100% equity interest in Greenlight Content Limited ("Greenlight Content") which is mainly involved in the business of investing into dramas and movies, as well as providing consulting services for the production of Korean content. Through the acquisition of Greenlight Content, the Group's first co-produced drama, MY SECRET TERRIUS, starring top Korean star, So Ji Sub, achieved #1 in drama viewership ratings for its time slot and recorded double digits for its highest viewership ratings. Greenlight Content was one of the main investors of MY SECRET TERRIUS.


The Company owns a 20% equity interest in The Makers Studio Co. Ltd., which plans to produce and release four upcoming films, the first of which will be THE ISLAND OF THE GHOST'S WAIL, a comedy horror film.


Our films are theatrically distributed and released in Korea and overseas markets, as well as for subsequent post-theatrical worldwide release in other forms of media, including online streaming, cable TV, broadcast TV, IPTV, video-on-demand, and home video/DVD, etc. We release all of our motion pictures into wide-theatrical exhibition initially in Korea, and then in overseas and ancillary markets.

Talent Representation

The Company holds an effective shareholding interest of 43.88% in Spackman Media Group Limited ("SMGL"). SMGL, a company incorporated in Hong Kong, together with its subsidiaries, is collectively one of the largest entertainment talent agencies in Korea in terms of the number of artists under management, including some of the top names in the Korean entertainment industry. SMGL operates its talent management business through renowned agencies such as MSteam Entertainment Co., Ltd. (Son Ye-jin, Lee Min-jung, Ko Sung-hee), UAA&CO Inc. (Song Hye-kyo, Yoo Ah-in, Park Hyung-sik), Fiftyone K Inc. (So Ji Sub, Ok Taec-yeon), SBD Entertainment Inc. (Son Suk-ku), and Kook Entertainment Co., Ltd. (Kim Sang-kyung, Kim Ji-young). Through these full-service talent agencies in Korea, SMGL represents and guides the professional careers of a leading roster of award-winning actors/actresses in the practice areas of motion pictures, television, commercial endorsements, and branded entertainment. SMGL leverages its unparalleled portfolio of artists as a platform to develop, produce, finance and own the highest quality of entertainment content projects, including theatrical motion pictures, variety shows and TV dramas. This platform also creates and derives opportunities for SMGL to make strategic investments in development stage businesses that can collaborate with SMGL artists. SMGL is an associated company of the Company.


The Company owns a 100% equity interest in Constellation Agency Pte. Ltd. ("Constellation Agency"). Constellation Agency, which owns The P Factory Co., Ltd. ("The P Factory") and Platform Media Group Co., Ltd. ("PMG"), is primarily involved in the business of overseas agency for Korean artists venturing into the overseas market. The P Factory is an innovative marketing solutions provider specializing in event and branded content production. PMG is a talent management agency which represents and manages the careers of major artists in film, television, commercial endorsements and branded entertainment.

Strategic Businesses

The Company owns a 100% equity interest in Frame Pictures Co., Ltd. ("Frame Pictures"). Frame Pictures is a leader in the movie/drama equipment leasing business in Korea. Established in 2014, Frame Pictures has worked with over 25 top directors and provided the camera and lighting equipment for some of Korea's most notable drama and movie projects including ITAEWON CLASS (2020), HOW TO BUY A FRIEND (2020), KIM JI-YOUNG, BORN 1982 (2019), FOUR MEN (2019) and ASADAL CHRONICLES (2019).

We also operate a café-lounge called Upper West, in the Gangnam district of Seoul and own a professional photography studio, noon pictures Co., Ltd.

For more details, do visit http://www.spackmanentertainmentgroup.com/

Nike spent $3.59bn on advertising in 2020, closed 5.1% of its retail shops amid pandemic - Brand Spur
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- Advertisement -Nike spent $3.59bn on advertising in 2020, closed 5.1% of its retail shops amid pandemic - Brand SpurNike spent $3.59bn on advertising in 2020, closed 5.1% of its retail shops amid pandemic - Brand Spur