Adidas has handed MediaCom its global media buying duties, Marketing can confirm. MediaCom did not respond to Marketing's queries at the time of writing. Marketing has also reached out to adidas for a statement.
The sports brand previously worked with Dentsu Aegis Network’s Carat in Southeast Asia, UK and US while Publicis Media’s Starcom has held the sportswear giant’s media-buying in the Middle East.
An adidas spokesperson said: "It is our mission ‘to be the best sports company in the world.’ To hit that mark, we need the right line-up of partners onside with us. Consumer-obsessed, digitally-focused and always creating the new. This is the way we at adidas and Reebok operate."
"We are pleased to have found those same drivers in our newly chosen media agency partner, MediaCom. Through our new partnership, we look forward to innovating ways of reaching and connecting to our consumers across the trend-leading cities whose influence on global culture is the key to unlocking desirability and demand," the statement added
We would like to thank Carat for its partnership over the last 19 years and for the successful work we have created together.
MediaCom added: "MediaCom are pleased to confirm that the agency have been chosen by adidas for a new global partnership. More details will be available in due course."
According to its Q1 2018 financials, the brand has grown its bottom line significantly faster than the top line while continuing to invest into creating brand desire, said adidas CEO Kasper Rorsted. There is also an 11% increase at brand adidas which was driven by double-digit increases in the running, football and training categories as well as at adidas Originals.
Revenues at the Reebok brand decreased 3% due to declines in the training and running categories. Meanwhile, from a channel perspective, e-commerce was once again the fastest-growing channel with an increase of 27%. From a market segment perspective, the combined sales of the adidas and Reebok brands grew in most market segments. Growth was particularly strong in North America (+21%) and Asia-Pacific (+15%), the latter driven by a 26% increase in Greater China.
For 2018, adidas continues to expect sales to increase at a rate of around 10% on a currency-neutral basis, driven by double-digit growth in North America and Asia Pacific.
Meanwhile, in May this year, adidas also halted its video ad spend on Facebook, and said it is considering cutting spending on the platform. This is due to concerns that consumers are not regularly viewing its Facebook ads, Digiday reports and adidas is quoted to be “frustrated” with the limited amount of data Facebook shares with its marketing team, making it hard to verify the effectiveness of its ads.
An internal review conducted by adidas uncovered that viewability and retention rates for its Facebook ads were not “high enough”. This poses a challenge to the brand, as it puts a heavy emphasis on video and wants to know that consumers are watching its videos instead of merely scrolling past them. adidas however, has no issue with its ad spend on Instagram.