Nike's Colin Kaepernick Ad Campaign Sees Company Market Value Rise $6 Billion

It has been 20 days since Nike released their controversial advertisement starring former San Francisco 49ers Colin Kaepernick and it is safe to say it has been a resounding success for the American sports apparel and equipment manufacturer.

The ad created outrage when it was released Sept. 5 and it was due to the presence of the former NFL star. He created controversy when he became one of the first players to kneel when the national anthem was played prior to an NFL game in order to protest police brutality and perceived racial injustice.

Kaepernick’s actions were deemed as disrespectful to the country and its armed forces, according to many, and Nike’s decision to use him in a campaign caused outrage. A number of customers began posting pictures destroying their apparel and shoes made by the American manufacturer, with many predicting the company will take a major hit in sales.

President Donald Trump, who has been vocal against NFL players taking the knee during the national anthem, was quick to criticize Nike and predict a massive boycott. And looked like it did have an effect as Nike’s shares prices dropped to the tune of around $4 billion.

“Just like the NFL, whose ratings have gone WAY DOWN, Nike is getting absolutely killed with anger and boycotts,” Trump tweeted in the days after the ad’s launch.

However, it was only a minor blip in what has become a major success story with the brand reaping major success in the last couple of weeks. According to Fortune, Nike’s market value has grown by $6 billion since the launch of the ad involving Kaepernick.

The report claimed the shares were up over 36 percent for the year and nearly went up by 5 percent since the marketing campaign was launched at the start of September. And the latest surge is not the first sign of success that is being reported.

The first signs of the campaign being a success showed when Nike’s online sales jumped by 31 percent during the Labor Day weekend. A Reuters report later revealed the American sportswear giant sold out 61 percent more merchandise since the ad was released.

The research conducted on the sales of Nike product also showed they discounted fewer products as the sales were booming, while they also saw their women’s Kaepernick jersey’s being sold out Sept. 17.

“These strong statistics reinforce the notion that Nike is standing firm – and not just in a social context,” Jharonne Martis director of consumer research at Thomson Reuters said. “They don’t need to participate in the discounting that tends to plague other retail brands.”

Nike’s ad campaign involving Kaepernick has been branded as a stroke of genius and Nike director Beth Comstock also made it clear CEO Mark Parker had the full backing of the board to go ahead with the ad campaign.