Nike’s Instagram Strategy

Cris Ong Yu Wen

A Communication Tool for Consumer Engagement

V15227 likes

King’s College London, Department of Management

20 Apr 2015

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King’s College London Department of Management 5SSMN221 Marketing Management Coursework Assessment

Nike’s Instagram Strategy A Communication Tool for Consumer Engagement

For Dirk vom Lehn

Cris Ong Yu Wen V15227

20 April 2015

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Table of Contents

Abstract ......................................................................................................................... 1 Instagram Dictionary ............................................................................................................... 1

!1. Introduction ............................................................................................................... 2

2. Methods and Data ..................................................................................................... 2

3. Analysis ..................................................................................................................... 3 !3.1 Use of Visual Imagery for Brand Engagement ...................................................................... 3

3.1.1 Innovation: Nike Lab ................................................................................................ 3 3.1.2 Innovation: Nike, Nikerunning, Nikewomen ............................................................. 4

3.1.2.1 Symbolic Settings .................................................................................... 4 3.1.2.2 Content Mix ............................................................................................. 5

!3.2 Use of Text to Complement Images for Effective User Engagement .................................... 7

3.2.1 Inspiration: Metaphoric Quotes and User Stories .................................................... 7 3.2.2 Inspiration: Dialogical Interaction ............................................................................ 9

!3.3 Other Methods to build a Strong Brand Community within Instagram ................................ 11

3.3.1 Celebrating Milestones with the #Nike Community ............................................... 11 3.3.2 Nike’s Social Instagram Campaigns ...................................................................... 11

!4. Conclusion .............................................................................................................. 12

5. Appendix ................................................................................................................. 13 Figure 1: NikeLab – Different captions per each 3x3 Photo Product .................................... 13 Figure 2: 2014 World Cup – Football being played in Brazil, Rio De Janeiro and Portugal . 13 Figure 3: Content Mix of various sport activities during 2014 FIFA World Cup .................... 14 Figure 4: Fanpage Karma – Average Engagement Rate ..................................................... 15 Figure 5: Content Mix of Nike Apparel, OOTD and NTC in @Nikewomen .......................... 15

!Figure 6: Role-model Athlete profile stories in @Nike .......................................................... 16 Figure 7: Customer Feedback for Potential Collaboration .................................................... 17 Figure 8: Satisfied customers acting as Brand Ambassadors .............................................. 17

!Figure 9: Nike’s 24-hour Milestone Celebration ................................................................... 18 Figure 10: Nike’s #OneStepForRed Social Campaign ......................................................... 20

!6. References .............................................................................................................. 21 !!

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Abstract

Instagram is a relatively new social media platform that encourages photo sharing between users. Since its launch in October 2010, it has quickly overtaken Facebook as the most popular social media platform, resulting in corporate organizations flocking to Instagram as a marketing tool for brand awareness and engagement. In spite of this fact, little research has explored the benefits Instagram can bring to a brand.

Rudimental and essential questions such as 1) What type of photos posted on Instagram allows brands to engage with their audience?, 2) Can text captions supplement images to deliver brand message?, 3) How can brands utilize Instagram’s location tags and hashtags to their advantage?, and 4) Are there other Instagram techniques to establish customer engagement apart from the above? remain open and untouched. This exploratory study thus explores the Instagram content of the most popular brand on Instagram ranked by TOTEM, and adopts a qualitative and quantitative analysis revealing several insights addressing the above.

Instagram dictionary

Caption: A brief description accompanying an image

Like: Double-tapping on the image. Usually an expression of positive feelings towards the image. Users can also view a list of other users who has ‘liked’ a particular photo.

Comment: Writing a comment under the image posted. Users can also view comments of other users under that particular photo.

Impressions:

Tag:

Total number of Likes and Comments combined.

Adding a person or a geographic location to the image. Allows users to identify and click upon the tags for information retrieval. User-tagging occurs in the form of a photo comment.

Hashtag (#): Writing word(s) behind the #. A function allowing the words following the hashtag to be searchable. These words assist users to search posts according to themed categories.

Followers: Users that are interested in an account and receives posts updates of that specific account.

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1. Introduction

Instagram is an image sharing social platform that has seen growing demand in the social media world. Its image content sharing and adaptation of Facebook’s popular visual image interactivity features and Twitter’s social network connectivity (Guardian, 2014) have attracted 300 million active users. According to Finn (2013), 67% of the Interband-recognized top 100 global brands are on Instagram. Despite its popularity, it attracted lesser attention from the research community.

To address the gap, this exploratory study analyzes Nike’s Instagram success strategy. Nike’s deep understanding of Instagram and its users attracted a devoted customer base of approximately 14 million followers and 41 million posts using their hashtag #nike, achieving its title of most popular brand on Instagram (TOTEM, 2015). To understand Nike’s Instagram popularity, several site analytic tools were engaged to analyze Nike’s use of (i) visual imagery and (ii) text to create effective user engagement, and (iii) other techniques adopted to build a strong brand community.

2. Methods and Data

The goal of this data collection is to analyze Nike’s Instagram imagery and text-caption techniques to foster brand engagement and community. Virtual media data was collected through qualitative research of public documents from Nike’s official parent Instagram account (@Nike) and children accounts (@Nikerunning, @Nikewomen and @Nikelab). On each account, Instagram activity was observed on four dimensions; photos, captions, hashtags and comments. Data was collected and compared across from the account establishment date till its current date for greater results consistency. Posts and comments were documented through mobile screenshots.

Strauss and Corbin’s (1990) grounded theory was used to distinguish Nike’s Instagram posts into categories (open-coding), connecting data into identified categories (axial-coding) and selecting and refining core categories into theoretical constructions (selective coding). Inductive qualitative content analysis approach was then applied mainly to focus on visual semiotic, text and narrative analysis to explicate Nike’s Instagram brand content focus and evaluate the content quality, spurring engagement. To assist information filtering, site analytic tools such as Fanpage Karma and Locowise were used to analyze Nike’s Instagram engagement rate across different time period.

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3. Analysis

Nike is reputable for its art for branding. Its mission “To bring inspiration and innovation to every athlete in the world – If you have a body, you are an athlete” (Help-en-us.nike.com, n.d.) is consistently conveyed, likewise on Instagram. Two major themes of ‘inspiration’ and ‘innovation’ were identified and analyzed across all Nike accounts.

3.1 Use of Visual Imagery for Brand Engagement

3.1.1 Innovation: Nike Lab

Great emphasis on innovation is witnessed through Nike’s three-month old @NikeLab account. Distinguishing itself with its profile biography “INNOVATION X INNOVATORS”, @NikeLab consists of only innovative products dedicated to “stimulate performance innovations across the Nike brand” (About.nike.com, n.d.). Leiss et al (1997) identified two basic advertising formats, product-information format and product-image format. @NikeLab belongs to the former, focusing on the hard-sell approach (Mueller, 1987, p.53) where the product is explicitly placed in the center of attention, drawing onto its details and function. Lacking engagement, Nike adopts a creative ‘3x3 photo grid’ approach, posting the same product thrice from different angles. While exposing potential customers to repeated stimuli within a limited period might create negative connotations (Campbell and Wright, 2008), Nike attached different captions for each post with posts of one-hour intervals [1]. This repetitive effect of multisensory imagery processing creates brand and product recall, while slight variations equips users with wider and deeper factual product knowledge.

Figure A: Nikelab (2015) – 3x3 Photo Grid

[1] Appendix Figure 1: NikeLab – Different Captions per each 3x3 Photo Product

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3.1.2 Innovation: Nike, Nikerunning, Nikewomen

Innovation is displayed in the other accounts @Nike, @Nikerunning @Nikewomen, with a subliminal approach. They adopt the product image format where, instead of focusing on the brand name and packaging, the product is associated with a symbolic relationship of “more abstract and less pragmatic domain of significance than mere utility” (Leiss et al, 1997). Despite each account catering for a specific audience segment, Nike adopts similar techniques to transmit the innovation concept across these accounts, categorized as follows:

3.1.2.1 Symbolic settings

Instagram focuses on visual marketing through photo sharing, challenging marketers to diversify content for broader reach. Photos tailored to embed the product into a symbolic context that imparts meaning to the product beyond its specific elements or benefits are better received (Okazaki et al, 2010). In these accounts, Nike adopts a soft-sell appeal where “mood and atmosphere are conveyed through a beautiful scene” (Mueller, 1987, p.53) to emphasize human emotional sentiments over clear-cut product related appeals. The diversification of landscapes and unique photo context delivered opposes the typical visual associations people have. This intimacy resonated with consumers’ emotive and innovative feelings, generating more than 62,000 likes per photo.

Figure B: Nikewomen, Nikerunning, Nike (2015)

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Further leveraging on Instagram’s geo-tagging option, Nike labeled photos according to geographical locations, and featured multi-cultural people and landscapes of various iconic world attractions. Drawing upon cultural codes of appearance, Nike breaks down barriers with its audiences to induce a sense of identity recognition, creating greater global interaction.

Figure C: Nike (2015)

3.1.2.2. Content Mix

While the key to relationship building is providing new content and keeping up-to-date with posts, most marketers face challenges in keeping their newsfeed fresh and relevant. Nike acknowledges that its product may not always make for engaging content as seen in @Nikelab and hence utilizes other Nike Instagram accounts as an online portfolio showcasing versatility in posting styles and focusing on a myriad of subjects. Additionally, in anticipation of the 2014 World Cup, Nike drastically increased its @Nike posts frequency. It kept content topical and current by featuring images of locals playing football in countries which games are coming up next [2]. Nike then broke the monotony of football posts by sharing photos of other sports in between, keeping in mind of its wider audiences [3].

[2] Appendix Figure 2: 2014 World Cup – Football being played in Brazil, Rio De Janeiro, Portugal. [3] Appendix Figure 3: Content Mix of various sport activities during 2014 FIFA World Cup

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Thereafter, Nike featured its Zoom-City-SNKRS Station with the newly introduced time-lapse video option on Apple’s iOS in-built Camera app and Instagram’s new installation of Hyperlapse, high quality infinite loop video-clip motion in 2014. According to social media analytics tools Fanpagekarma and Locowise, between a one-month period of February 1 to 28, 2015, Nike’s first video initiative (Feb 13, 2015) evoked a spike of 497,124 impressions and a high engagement rate hitting almost 5% from its average 2.387% [4].

Figure D: Locowise – Nike’s Key Performance Index based on accumulated impressions

Also, between a two-week period from 20 February to 6 March 2015, @NikeWomen achieved the highest daily average engagement rate (2.569%) among its peers with its integrated composition of fashion, fitness and function content posts (Fanpage Karma & Locowise, 2015). It incorporated the prominent “outfit grid” photo approach where instead of its usual posts displaying women in Nike apparel [5], it showcased Nike’s apparel laid out in grids for outfit inspirations, alias Outfit of the Day (OOTD) [5]. Additionally, it introduced the Nike Training Club (NTC) [5] to promote the fitness element sporting Nike trainers working out alongside their crews. Consequently, it attracted a spectrum of athletes, casual fitness individuals and comfort athletic apparel fans. This is represented by its significant trending hashtags (#NTC #justdoit #ootd) compared to its other accounts.

[4] Appendix Figure 4: Fanpage Karma – Average Engagement Rate [5] Appendix Figure 5: Content Mix of Nike Apparel, OOTD and NTC in @Nikewomen

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Figure E: Locowise – Engagement Rate and Performing Hashtags across Nike Accounts

3.2 Use of Text to Complement Images for Effective User Engagement

3.2.1 Inspiration: Metaphoric Quotes and User Stories

Images are not necessarily seen as tools that speak for themselves. Nike therefore augments these photos by delivering quality captions to reflect its artistic composition while remaining consistent with its brand mission. Despite the diverse range of pictures across its accounts, the commonality is in its inspiring message to followers. Mueller’s (1987, p.53) soft-sell appeal is established with the use of implicit text to create latent meaning (Williamson, 1978). According to Okazaki et al (2010), amongst the most effective means of creating latent meaning is the use of metaphors where the message is figurative and implied. Designing metaphoric messages into short impactful quotes such as “The sky’s the limit” or “Leave distance in the dust”, and with the use of sentimental quotes like “We see athletes. We see you” to complement sensory images, the message resonates not only with surface knowledge but also conveys positive connotations with deeper meanings associated with the interest topic. Nike interplays with the consumer’s rational and emotional mind, inspiring ordinary people to feel like athletes and help them reach their potential.

Figure F: Short metaphoric texts for Positive Engagement

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Nike taps deeper into consumer’s mental models of knowledge and behavior. Perceived as marketers’ challenge to determine the dominant constructs driving consumer thoughts and actions to influence their reasoning processes (Zaltman & Coulter, 1995), Nike engaged in Schmitt’s (1999) experiential appeals of ‘act marketing’ through featuring profile stories of role-model athletes to advocate healthy lifestyle and behavioural change [6] and ‘relate marketing’ to appeal to individual’s self-improvement desires.

This supports Goldman’s (1986) bottom-up processing framework for understanding sensory perception and thinking. Through semiotic images where the product’s physical attributes are not mentioned, a sensory perception is created and Nike complements it with metaphoric texts and user stories to elicit abstract thoughts. Thinking is then stimulated through the development of a highly abstract connection between the athlete, brand and consumer (Stern and Schroeder, 1994), transferring meaning of athlete’s identity, lifestyle and physical appearance together with the visual imagery style onto the consumer. This instigates brand engagement where a visually compelling story of hope is communicated. The establishment of a strong emotional and relational connection thus inspires consumers to the athleticism of its celebrity endorsers and view Nike as a part of their identity.

Figure G: Goldman (1986).

[6] Appendix Figure 6: Role-model Athlete profile stories in @Nike

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3.2.2 Inspiration: Dialogical Interaction

In today’s social media marketing era, the views of consumers and user communities are vital as they can positively or negatively influence a brand’s image (Power and Hauge, 2008). To encourage consumer feedback, Nike complements its visual imagery with dialogue interactions encouraging ‘friend-tags’ and considers customers as an ally on social media rather than just a ‘customer audience’ (Phan et al, 2011). Through eliciting consumer information via multisensory channels and leveraging on Instagram’s tagging tools, these interactions transform engaged fans into ‘brand ambassadors’ to collaborate with the brand to influence other consumers for brand adoption. Nike’s friend-tagging strategy fosters a stronger ‘alliance’ with existing fans by relying on them to advocate and crowd-source for a wider and deeper interest network. This signifies a paradigmatic shift in the relationship between involved parties (Ballantyne, 2006), enhancing long-term relationships with both potential and current consumers (Hanna et al, 2011; Sashi, 2012, p. 260).

Figure H: Nike consumers as Brand Ambassadors through Friend-Tags

True customer engagement is achieved when brands exceed customer expectations (Sashi, 2012, p.262). Nike understands that communication serves greater roles of informing, listening and answering, (Duncan and Moriarty, 1998) and communication messages alone may not necessarily lead to a dialogue (Gronroos, 2004). Therefore, Nike consistently sieves through its comments (listening) and responds promptly (answering), achieving two key aspects of customer relationship interaction. Nike further personalizes each reply by tagging and notifying customers individually (informing), generating greater customer brand commitment and satisfaction. Conversely, Nike gains knowledge of its consumers’ thoughts, feelings and behaviour in relation to its products and services, expediting more relatable promotional materials for better engagement.

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Figure I: Nike’s swift individualized replies

Dialogical interaction encompasses a learning perspective. By introducing Nike’s collaboration with four new hardware partners for its Nike+ health and fitness application to its followers, co-creation of new and previously unknown knowledge positions were revealed as followers responded through feedback for other potential collaborations [7]. This prompted an open-ended brand-customer discovery promoting two-way learning. A three-way communication of meaningful firm-customer and customer-customer exchanges were also established due to the vast connectivity and availability of information sources, empowering customers to interact, share, and influence [8]. A 24/7 collaborative world was amalgamated where brand and customers look to each other for inspiration (Hanna et al, 2011).

[7] Appendix Figure 7: Customer Feedback on Potential Collaborations [8] Appendix Figure 8: Satisfied customers acting as Brand Ambassadors

Figure J: Interest community – Customer-customer interaction and collaboration

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3.3 Other methods to build a Strong Brand Community within Instagram

While an interest community has been established through images and texts, Nike continues to find new ways to engage its followers to create a stronger Instagram presence.

3.3.1 Celebrating Milestones with the #Nike Community

Even though Nike successfully created an emotional bond with its customers, this retention over time engenders customer engagement but not necessarily loyalty. It requires customers to develop intimate feelings and emotional attachment to become unwavering brand fans. In 2011, Nike’s inspirational hashtag (#nike) sparked off its incredible Instagram community. The role-reversal marketing strategy invited fans to share their own Nike stories, creating more than 22.5 million #nike images today.

In March 2013, Nike hosted a 24-hour long community celebration to commemorate its first million Instagram followers and six million #nike photo milestone. To extend its appreciation to fans loyalty, Nike shared 10 best user-generated #nike images on @Nike with inspirational captions tailored to every photo [9]. The genuine expression of gratitude towards fans created a strong brand affinity, capturing reach, intimacy and engagement. The success of the celebration was measured by a staggering amount of 723,000 likes.

3.3.2 Nike’s Social Instagram Campaigns

While many firms feel obliged to contribute to charity, few excel in delivering it well (Porter and Kramer, 2002, p.56) and can take a page off Nike’s book. More than 91% of U.S. organizations are adopting corporate social responsibility initiatives (Lacey and Hensel, 2010). Nike recognizes this as an integral means for customer relationship management and engagement. In November 2014, it introduced its social Instagram campaign by partnering with Bank of America to fundraise (RED) in eradicating AIDS, incorporating its new Nike+ running application.

The #OneStepForRed eight-week campaign encouraged worldwide involvement of Nike’s followers to achieve weekly Miles Goal, where a 40-cent donation is matched to each Nike+ mile ran [10]. Having recognized the existence of passive members alongside active members of the community, both eager to share the brand’s purpose, Nike empowered its passive bystanders to collectively contribute to the charity. It tapped onto compassionate social issues and built deeper community connections through simultaneously advocating its purpose to “inspire the athlete in all of us” effectuating a global social change.

A new #nikeplus community was unfolded and the 2,459,237 user-generated Instagram images containing #nikeplus as of 13 April, 2015 (Instagram, n.d.) reflects Nike’s achievement of effecting a global inspiration for people to start exercising and to make a difference.

[9] Appendix: Figure 9: Nike’s 24-hour Milestone Celebration [10] Appendix: Figure 10: Nike’s #OneStepForRed Social Campaign

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Conclusion

Conceptualizations adapted from multiple academic studies conclude that brand engagement on social media platforms are characterized by interactive brand-customer communication. Therefore, this study details Nike’s imagery, text and other techniques implemented to achieve engagement, unveiling the importance of having the right brand content while bringing fresh innovative strategies to facilitate collaborative dialogue and experiences that customers value. Greater care is also required for site management, as customers are increasingly becoming co-creators of media.

While this study focuses on qualitative aspects of Instagram, future quantitative studies reviewing Nike’s reach by numbers per post (likes and comments) may be insightful. To make interests measurable, different content marketing methods across all Nike accounts could also be analyzed to unveil why these separate techniques were adopted and how it impacted engagement rates on each specific account.

Word Count: 2,490 words

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Appendix

Figure 1: NikeLab – Different Captions per each 3x3 Photo Product

Figure 2: 2014 World Cup – Football being played in Brazil, Rio De Janeiro, Portugal.

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Figure 3: Content Mix of various sport activities during 2014 FIFA World Cup

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Figure 4: Fanpage Karma – Average Engagement Rate

Figure 5: Content Mix of Nike Apparel, OOTD and NTC in @Nikewomen

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Figure 6: Role-model Athlete profile stories in @Nike

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Figure 7: Customer Feedback for Potential Collaboration Figure 8: Satisfied customers acting as Brand Ambassadors

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Feedback for potential collaboration

Friend-Tags “Brand Ambassadors”

Customer Satisfaction from “Listening”

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Figure 9: Nike’s 24-hour Milestone Celebration

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Figure 10: Nike’s #OneStepForRed Social Campaign

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