StockX has been the fastest growing sneaker resale platform created. The company launched with influencers and the “Now You Know” ads featuring Wale and YouTubers like Foamer Simpson to gain credibility with the sneaker community. They then landed in a Super Bowl ad with Rocket Mortgage. Following those marketing strategies up, the platform rolled out commercial spots during WNBA games and they eventually became sponsors of the NBA’s Ignite G League team. StockX didn’t stop on there. One of their last tactics included signing women’s college basketball star Paige Bueckers to an NIL deal. The range of strategies the company implemented led to the most explosive growth amongst all resale platforms. Today, a comparison to StockX’s competitors website traffic, reveals the extent of their marketing adspend. Below are charts comparing StockX with GOAT and Stadium Goods. To further cement why this post is being written I’m also sharing the traffic for a traditional retailer in Foot Locker:
Marketing and branding for companies is getting progressively more complex. Digital media is multi-layered with floors in a building where social media is the first level (the easiest, but least measurable tool focused on branding vs action), traditional media (television and print), which has transitioned to digital via apps, on the second level (commercials placed in shows along with product placement), content media systems on the third level (like blogs which in many instances have usurped print media) and video platforms on the fourth level (social media rooted in video content created by both amateurs and traditional news services recognizing the power of this format). StockX has been an active participant in both branding and marketing, taking an elevator through each floor attempting to find what works. All brands and retailers are actively moving between floors looking for the perfect combination to drive engagement. There is no one method that works. Marketing requires constant tests and results to inform strategy. There isn’t any publicly available data to show StockX’s marketing budget, but watching the startup navigate explosive growth uncovers a range of tests. In light of the current lawsuit and recent layoffs by StockX it was interesting to see their current strategy taking shape.
The video and picture above are on the fourth floor of the branding and marketing building. Video content is critical in meeting the consumer where they are. The picture is of considerable importance. In the process of adding movie reviews to this site, I was pulling YouTube trailers to compliment the content. Notice the number of tabs open and the type of films being searched on YouTube. During the research an ad was delivered showing StockX. This ad was of interest because it couldn’t be skipped (a more expensive option when advertising) and it added to a trend I had been noticing. The platform was ramping up the promotion of various categories outside of the streetwear and sneaker sections. The ad was a colorful promotion for handbags and watches clearly catering to a demographic not usually associated with StockX. The notifications I’ve been receiving are often for toys and trading cards, not sneakers. Now, consider the video from Rose Anvil. Rose Anvil is one of the most watched stations on YouTube. The channel is celebrated for its authentic look at the quality of footwear. Rose Anvil initially began by breaking down handcrafted boots and leather products. The owner, recognizing the growth opportunity in breaking down the construction of sneakers, has pivoted and the growth of the channel has been explosive. In a completely unexpected alliance StockX sponsored the comparison video above by Rose Anvil. While the two marketing strategies here are completely different, they both serve to elevate StockX in the mind of the consumer. Advertising to women with handbags offsets the target on their back placed there by Nike’s lawsuit. Advertising with Rose Anvil tells viewers that StockX can be trusted, again offsetting Nike’s claims that the site sells fakes.
StockX has been aggressive in building website traffic. Lately, they’ve become focused on ads which establish the credibility of the platform. This is critical as Nike has been chipping away at the site. For the first time in two years, since the site hit over 40 million visits per month in 2020, StockX has dipped below 30 million visits. What is at the core of the slowdown is debatable, but inflation and the sites own effectiveness at breaking down obstabcles in resale are definitely contributing factors. Nike’s lawsuit against the company is also a factor. Can marketing and branding be additive offsetting negative aspects and help StockX regain its footing? This is to be seen. Have you noticed any shifts in marketing for the sneaker industry?
Updated
StockX just released a new ad spot named “Own It”. The company doesn’t really own anything as it is a resale platform and the call to action requires viewers to shop the items sold by individuals, so just what does “Own It” mean? In the midst of their NFT lawsuit where Nike is attempting to prevent the only real ownership the site has (outside of the customers), this may be less of a call to action for the consumer and more of the platform saying we own what we are, and we are unashamed. Join us. Does it work?
