Adidas Announces it will Stop TV Advertising

Adidas CEO Kasper Rorsted has announced that it will step away from TV advertising in the US market, preferring to focus on digital channels to capture a younger audience. Adidas’ new strategy is part of its endeavour to quadruple revenues from e-commerce by 2020.

“It’s clear that the younger consumer engages with us predominately over the mobile device,” Rorsted told to US TV network CNBC.

Rorsted, who was previously at the helm of German consumer goods company Henkel where he managed to boost e-commerce revenue, is a firm believer in the power of social networks as effective tools to trigger consumer engagement. Adidas’ marketing spend increased from €1,886 billion in 2015 to €1,981 billion in 2016.

Other companies do not seem to be too enthusiastic about the results delivered by social network advertising.  Procter & Gamble Chief Brand Officer Marc Pritchard recently called for increased transparency of measurement metrics on digital platforms.

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