ASICS America Corp. is just catching up with competition when it comes to mobile sales and marketing.
The Irvine-based footwear and apparel manufacturer acquired FitnessKeeper Inc. in Boston and its flagship Runkeeper app this month—a bargain at $85 million, considering Under Armour Inc. in Baltimore, Md., purchased the MyFitnessPal app last February for $475 million, and Germany-based Adidas AG bought Runtastic in August for $240 million.
“It is an exciting acquisition for ASICS as the brand continues to grow its global business, create value for consumers, and strengthen its digital marketing efforts,” company officials said in an emailed statement.
Runkeeper tracks fitness activities of about 33 million registered members via smartphone GPS. ASICS can use the insights to send personalized ads to individual app users.
The move is part of a larger effort to expand its customer base by “focusing on female and young customers through digital marketing.”
“When we look ahead, it seems clear that the fitness brands of the future will not just make physical products, but will be embedded in the consumer journey in ways that will help keep people motivated and maximize their enjoyment of sport,” FitnessKeeper founder and Chief Executive Jason Jacobs wrote in a message to the Runkeeper user community announcing the purchase.
“By putting these two pieces together (a digital fitness platform and world-class physical products), you can build a new kind of fitness brand that has a deeper, more trusted relationship with consumers and can engage with them in a more personalized way. Partnering with ASICS to fulfill this vision together makes a ton of sense. We both have deep roots in and focus on running as a core component of the fitness experience. … And from people using our Shoe Tracker feature in the app, we know that ASICS shoes are by far the ones that Runkeeper users run in the most.”
Most of Runkeeper’s Facebook fans commenting on the deal were supportive, but a few had reservations.
“One of the reasons why I enjoy Runkeeper … is because it’s free of product endorsements and impartial to brand alliances,” Rachele Fletcher posted a comment. “It is just about the sweat, guts and glory of anyone who loves to run or almost dies trying! … It’s a hope that Runkeeper stays that way regardless of ASICS now acquiring them.”
ASICS already has 12 running-related apps for iOS and Android devices, all created in-house and most tied to a specific event, including the Tokyo and TCS New York City marathons. Its most popular is My Asics Run Training, which enables users to create a training plan for a marathon or a short race and track their progress.
Runkeeper, in addition to tracking fitness data, sells company-branded merchandise and offers in-app features that ASICS can potentially monetize by introducing its products at an opportune moment. The app, for example, tracks the life cycle of users’ running shoes and sends them a notification once they’ve hit a specific distance, usually after 300 to 500 miles, to alert them it’s time to get another pair.
Runkeeper is a free app, but advanced training programs are offered as in-app purchases that range from $9.99 per month to $39.99 a year. It also has teamed up with fitness-friendly companies to host branded contests, including a recent #SundayRunday sponsored by Microsoft Corp.’s Band, a smart watch-like device that can track users’ heart rates, calorie burn and sleep quality; a “Run 4 It Challenge” by Centrum, a vitamin product manufactured by Pfizer Inc. in New York; and the “Timex Ironman Run x50+ Challenge,” a marketing deal with Middlebury, Conn.-based Timex Group USA Inc.
Under Armour recently used its MyFitnessPal app to promote the “Earn Your Holiday Dinner Challenge,” a branded contest that encouraged the app’s more than 80 million users to track their calorie intake for a chance to win an outfit from Under Armour worth $300. Adidas, meanwhile, provided products for Runtastic’s “New Year Giveaway,” which ended last month.
ASICS’ Japan-based parent, ASICS Corp., reported $3.75 billion in sales last year. Its Americas market grew 14.5% year-over-year and represented the biggest share of total revenue—31.8%. It also sold the most running shoes, contributing about $968.6 million to the category’s $1.96 billion in companywide sales, an 8.4% increase over 2014.
The digital marketing push follows ASICS’ decision to let its title sponsorship of the LA Marathon lapse. It was replaced by Sketchers Performance, a division of Skechers USA Inc. in Manhattan Beach. And this year will be its last time sponsoring the TCS NYC Marathon, a relationship that commenced 25 years ago.
ASICS last week announced the “Want It More” marketing campaign, which is “designed to support the true sport performance brand’s global strategy to expand its footprint beyond running and reach a wider, younger audience.” It was developed by Netherlands-based 180 Amsterdam, the creative agency that handles ASICS’s global ad work. ViTRO in San Diego, the company’s advertising agency of record for the U.S. market since 2012, didn’t participate.
The new brand campaign has a significant digital component, including 15-second training spots scheduled to post on ASICS’ Instagram account on March 1. They feature ASICS’ sponsored athletes, coaches and training influencers offering “tips and challenges” on taking “your workout to the next level.”
The brand also invited consumers to tag their photos with the #wantitmore hashtag on social media and to check out an annual sporting calendar on the campaign website.
