Nike spent around 24% more on marketing in 2022 compared to 2021. The total marketing expenses of Nike (demand creation expenses) remained $3.85 billion in 2022 compared to $3.1 billion in 2021.
Nike Inc Marketing Expenses 2000-2022
Amounts are in $millions.
|Year||Nike Marketing expenses ($mn)|
2022: The marketing expenses of Nike (demand creation expenses) increased 24% in 2022 compared to the prior year. Nike spent $3,850 million in 2022 on marketing and promotions compared to $3,114 million in 2021.
2021: Nike’s marketing expenses have continued to decline over the past two years. In 2021, the company spent $3.114 billion on advertising and promotions compared to $3.592 billion in 2020.
Marketing is a critical function of business and Nike is known to invest a lot in marketing and promotion of its brand and products. Worldwide it is known as one of the best marketers. It utilizes several channels for advertising and is known for cool videos & other promotional strategies that target millenials and athletes. The maker of sports shoes and apparel spends billions on advertising.
2021 v 2020: Nike spent $3,114 million on marketing compared to $3,592 million in 2020.
2020 v 2019: Nike spent $3,592 million on marketing in 2020 compared to $3,753 million in 2019.
2018 v 2017:
In 2018, the total marketing costs of Nike rise by 7% as compared to 2017. Its marketing expenses reached 3,577 million dollars rising from 3,341 million dollars.
Nike’s marketing expenses have grown more than treble in less than 20 years. In its Annual Report Nike notes these expenses as the demand creation expenses. These costs include the advertising and promotion costs. In the advertising and promotion costs are included the costs of endorsement contracts, television, digital and print advertising, brand events and retail brand presentation. There was a rise of 2% in the year 2017 as compared to 2016 in the demand creation/marketing expenses of Nike. It spent 3.34 billion USD on marketing in 2017. In 2016, its marketing expenditure was 3.28 Billion US dollars. The main driving factors behind this rise in marketing costs were the growing sports marketing costs and higher marketing and advertising costs. Nike spent a lot on sports events like Rio Olympics and European Football championship. In 2016 too Nike’s demand creation expenses grew by 2% compared to previous years mainly because of investments in digital brand marketing. Nike also spent on key brand events and initiatives. The brand also spent on sports marketing initiatives. Lower advertising expenses also offset the costs to some extent.
In 2018, Nike’s marketing expenses have grown further further based on its spending during the first three quarters. By the end of the third quarter Nike had spent 2594 million USD on marketing. In 2017, it had spent only 2552 Million dollars on marketing during the first three quarters. Overall expenditure on marketing reached 3,577 millions compared to 3,341 millions previous year.