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As Adidas attempts to grow and continue compete with the likes of Nike and Under Armour, the athletic apparel giant is apparently going away from TV ads.
Adidas is one of the most well known athletic apparel brands in the world. However, as the company attempts to keep competing with the likes of Under Armour, they are reportedly planning on making a pretty big change to their marketing strategy.
While speaking with CNBC, Adidas CEO Kasper Rorsted told the network that the athletic apparel company is planning on completely abandoning TV advertising in an attempt to increase online retail revenues from approximately $1 billion to $4 billion by 2020.
The idea is that Adidas will begin focusing on a younger audience by abandoning traditional TV ads and instead focusing primarily on digital channels such as social media.
“It’s clear that the younger consumer engages with us predominately over the mobile device,” Rorsted told CNBC. “Digital engagement is key for us; you don’t see any TV advertising anymore.”
This isn’t the first company to completely abandon a marketing strategy that includes television, but it’s definitely an interesting strategy. Adidas is clearly seeking to focus on a younger market, which is a sign that Adidas wants to focus on long-term growth rather than short-term sales.
Rorsted took over as the CEO of Adidas at the beginning of 2016 after spending time as the CEO for Henkel, a German chemical and consumer goods company. He’s still a relatively new executive, but he’s already making some major changes for Adidas.
