Weekly Newsletter - 08.08.2024

MARKETING TRENDS
Feel the ‘Meta’ burn 

Meta continues to be a powerhouse for e-commerce brands, delivering unparalleled Return on Ad Spend (ROAS). The social media giant reported a 23% year-over-year increase in ad revenue, driven by e-commerce brands using its advanced tools to achieve growth. 

According to Meta’s Alphonso Calatrava, here’s how top-performing brands are mastering Meta. 

1. Cultivate a measurement-driven mindset 

From the outset, prioritize a culture where measurement is integral to decision-making. As Jamie Bolton, VP Growth at Fospha notes, “Create a culture where measurement is a key element to decision making – this will really aid performance long term." 

2. Leverage Meta’s full funnel

Fospha's report reveals that successful larger brands, particularly those in the mature stage, are adopting a comprehensive full-funnel strategy.  

While mature brands allocate 17% of their spend to upper funnel activities, they maintain a balanced approach across the entire funnel. The data indicates that as brands grow, they increasingly diversify their channel mix and funnel strategy.  

Mature brands reduce the proportion of conversion activity, investing more in awareness, consideration, and Advantage+ campaigns: 

• Conversion: Driving immediate sales or actions (lower funnel). 

• Awareness: Increasing brand visibility among potential customers (upper funnel). 

• Consideration: Engaging potential customers to learn more and consider purchasing (mid-funnel). 

• Advantage+: AI-driven campaigns optimizing budget across the funnel. 

This balanced approach brings their total investment in long-term resilience to 31%, enhancing both engagement and conversion rates.  

Athleta's social media strategy is centered around their multiphase campaign "Find Your Movement”. The campaign features prominent athletes, including gymnast Simone Biles, swimmer Katie Ledecky, and triathlete Katie Zaferes, in upbeat video spots.  

The brand leverages both paid and organic social media channels across platforms such as Meta, Snapchat, Reddit, and TikTok to support this initiative. 

Through engaging with its audience through interactive and storytelling content, Athleta can focus on real-life stories that resonate with the campaign's themes of empowerment and movement. 

3. Utilize Advantage+ 

Since early this year, there has been a notable increase in spending on Advantage+ campaigns, with many advertisers reporting a shift in strategy to capitalize on Meta’s AI-driven capabilities. 

Brands that integrate Advantage+ see better results compared to manual campaigns. According to Fospha’s data, digitally mature brands allocate 17% of their budget to Advantage+, yielding the highest returns across all groups.

ATHLEISURE MARKET GROWTH
Athleisure: The Future of Fashion and Fitness

The athleisure trend, characterized by the blending of athletic and leisure wear, has cemented its place in the fashion industry due to its versatility and growing consumer demand for comfort and style. According to a report by GlobalData, the athleisure market grew by 42% between 2019 and 2021, driven by an increased focus on health and wellness, as well as the shift towards remote work. This trend shows no signs of slowing down, with projections indicating continued growth, making athleisure a staple in modern wardrobes and a significant segment for brands to capitalize on.

BRAND SPONSORSHIPS
Adidas Predicts Soccer Trend to Continue Until 2025 ⚽️

Adidas anticipates the soccer trend to persist into 2025, driven by major events like UEFA Euro 2024 and the Paris Olympics. The brand's CEO, Bjorn Gulden, highlighted a 6% rise in apparel sales, marking the first increase in a long time. Adidas sold nearly 5 million jerseys for Euro 2024 and Copa America, reflecting the sport's growing appeal.

The German sportswear giant's involvement in soccer includes sponsorships with top clubs like Real Madrid and Manchester United, and a deal with Major League Soccer in the U.S. Despite the challenges in quantifying the exact impact, Adidas is optimistic about soccer's integration into lifestyle categories, traditionally dominated by basketball.

ACTIVEWEAR PARTNERSHIP
USA Football and Under Armour Announce Multi-Year Partnership

USA Football and Under Armour have announced a multi-year partnership through the 2028 Summer Olympics. Under Armour will be the Official Uniform, Apparel, and Footwear Partner, supporting U.S. National Teams. This collaboration aims to grow football, enhance athlete performance, and debut flag football at the 2028 Olympics.

CAMPAIGN MARKETING
S&S Activewear to Acquire alphabroder in Strategic Expansion Move

S&S Activewear, backed by Clayton, Dubilier & Rice, is set to acquire alphabroder, a leading supplier of trade and retail apparel brands. The seller, Littlejohn & Co., has significantly contributed to alphabroder's growth, establishing it as a key player in the imprintable products market. The deal, advised by Harris Williams and Sheppard Mullin LLP, is expected to close later this year. This acquisition underscores S&S Activewear's strategic expansion in the North American market for imprintable apparel and accessories. With a strong foundation in the industry, the company aims to leverage alphabroder's established supply chain and leadership to drive further growth and innovation. No financial terms were disclosed.

CHANGE IN LEADERSHIP NEWS
Eva Erdmann Named CEO and Brand President of Kate Spade 

Eva Erdmann has been appointed CEO and brand president of Kate Spade, succeeding Liz Fraser. Erdmann, formerly with L'Oréal, will focus on innovation and global growth. Joanne Crevoiserat, CEO of Tapestry Inc., expressed confidence in Erdmann's leadership to drive the brand's future success.