Nike has long been the gold standard in athletic wear, a brand that dominated sports apparel globally for decades. But in 2020, under the leadership of new CEO John Donahoe, things began to shift.

Here’s what went wrong:

1. Eliminating Product Categories – Breaking the Framework

Nike ditched its tried-and-tested category-based structure, which had been crucial in delivering specialized products.

Within six months, they laid off hundreds of employees, losing decades of expertise in niche areas. Without that specialized knowledge, innovation slowed down, and Nike began to lose its edge in an industry that thrives on constant innovation and fresh ideas.

2. Direct-to-Consumer Strategy – Undermining Key Relationships

Nike shifted its focus to direct-to-consumer (DTC) sales, cutting back on partnerships with wholesalers. Retailers, once champions of Nike, were forced to give shelf space to competitors.

Many loyal customers who preferred shopping in-store couldn’t find Nike products anymore and began exploring other brands that remained available.

Instead of boosting control, Nike’s decision diluted its presence in traditional retail channels.

3. Digital-First Marketing – Missing the Mark on Engagement

Nike poured billions into digital marketing, focusing heavily on performance marketing and customer loyalty programs.

While this helped retain some existing customers, it neglected a key aspect of growth – acquiring new customers.

For a brand as iconic as Nike, brand-building and community-driven marketing are essential.

Local markets felt alienated, and this overly digital approach stifled Nike’s ability to engage with a broader, more diverse audience.

Google added tCPL bidding for local services ads

They still recommend Maximize Leads for this campaign type, but if you want to set an efficiency threshold, now you can.

Just like any other tCPA campaign, some leads may cost more than your target, and some may cost less, but they should average out close to your target.

If your local services ads are seeing a higher than desired CPL, consider adding a target CPL to your strategy’s settings. Now for some SEO news…

Google Search Console performance report filters stick now

I know this may not be tea, but it is a big deal to me. I use Search Console all the time and I’m so tired of constantly having to re-apply filters. Now they’re sticky, yay! Just remember to hit the ‘reset filters’ button when you don’t want them anymore. Now for some social updates…

Snapchat influencers are the most ~influential~ influencers

Say that 5 times fast. A recent study by eMarketer on what they call ‘creator-driven shopping’ revealed that Snapchat influencer shopping content has a higher conversion rate than TikTok or Instagram. So retailers, it’s time to reach out to some Snapchat influencers, especially if your target audience includes Gen Zers–who the study showed are most susceptible to influencer marketing. The study also found that Facebook had the lowest rate of creator-driven shopping… no surprises there. Let this report guide where you spend your influencer marketing budget this holiday season. In other social news…

Meta is letting advertisers make ad-embedded chatbots

These AI chatbots offer a new type of CTA. Rather than prompting users to ‘shop now’ in your ads, you can prompt them to chat. Then, ad-embedded chatbots can answer questions about your products–increasing brand engagement and boosting click-through-rates (according to Meta). That said, studies show that the majority of people would rather wait a minute or two to chat with a real person than chat with an AI bot instantly. But I still think an AI chatbot is better than nothing. Test out this new CTA and let me know how it goes?