As It Focuses on Its DTC Business, Nike Picks Initiative and PMG as Media Agencies of Record

The results of Nike’s global media review are in, and the brand has selected two new agencies. IPG Mediabrands’ Initiative will handle Nike’s media globally and in the EMEA and APLA regions, while independent media agency PMG is now Nike’s integrated media AOR in North America. The account is worth approximately $1 billion total and $300 to $400 million in North America, according to a source with knowledge of the review. A large amount of that money will fuel the brand’s DTC initiatives. R3 managed the process, but was unavailable for comment. WPP’s Mindshare and Stagwell’s Assembly previously managed media for the brand in Europe and independent agency Wieden+Kennedy (W+K) held the media account in North America. W+K defended the business and will remain on Nike’s roster in some capacity, according to a source familiar with the matter. Nike hasn’t yet notified W+K of which parts of the business it will retain, but the source believes it will continue to manage media buying in North America as well as communications planning globally. It also remains Nike’s lead creative agency. Initiative deferred to the client for comment for this story while PMG and W+K declined to comment. “We have concluded our review of agency partners who provide paid media strategy and execution (planning and buying) for brand advertising and performance marketing. This is part of our standard operating procedures to ensure Nike continues to have the best-in-class paid media agency partners around the globe. We thank all our agency partners, especially those with whom we have had long-term relationships, for all the work we have delivered together,” said a Nike representative in a statement shared with Adweek. Decisions made by region Nike ran performance media and general media reviews in parallel, by region. Performance media was up for review in the U.S. and the incumbent, independent New York-based agency Within, defended the business. Some agencies only pitched performance, according to Adweek’s source, but PMG ultimately won the entire performance and brand investment. GroupM, Omnicom Media Group, Dentsu Media, IPG Mediabrands and Stagwell Media Network competed with PMG for the media business in North America. Havas Media Group was on the long list for consideration but was not in the final review, according to the source. Globally, Dentsu Media, Media.Monks and Initiative competed against Mindshare and Assembly for the account, said the source. Initiative won the business in Asia, but its purview does not include China. A shutdown in Shanghai delayed the results of a review specific to that country. Mindshare currently holds the account in China and is competing with Dentsu Media and Publicis Media for the business. Sources close to the matter expect Nike to name a winner in the China review by next month. DTC drive The pandemic helped accelerate Nike’s direct-to-consumer strategy. Just 16% of its sales fell under Nike Direct in 2011, but in the 2021 fiscal year, that jumped to 42% of the Nike Brand’s $44.4 billion in revenue. In total, Nike Direct sales increased 14% year-over-year, while its wholesale numbers decreased by 1% year-over-year. A source familiar with the review told Adweek that Nike’s booming DTC business played a factor in initiating this review. In 2019, Nike pulled its products from Amazon and last year, the sneaker giant continued to back off of wholesalers like DSW, Urban Outfitters, Macy’s and more. Fueled by tech Nike is referring to PMG as its “global digital capabilities provider.” The agency’s proprietary technology, called “Alli,” will fuel Nike’s North America media and analytics. The technology platform was an impetus for the brand’s decision, a source told Adweek. Alli provides a unified view of a brand’s media buys and reveals real-time insights and opportunities to automate and optimize buys and create a more innovative strategy. Breakthrough Media Agency of the Year PMG Weathered the Pandemic by Prioritizing People