Gen-Z Media Opps: Steve Madden significantly increasing spend

Shoe brand Steve Madden (SM) madden-ingly continues increasing its brand marketing. Its spend rose in 2020 despite the global pandemic, and execs reported in its latest earnings call that they plan to further increase it in 2021. Marketing spend is up roughly $15m in 2021 compared to 2019.

SM also responded to the coronavirus by debuting a try-before-you-buy payment option and a buy online, pickup- in store service. 

Over the past several months, the company hired influencer marketing manager Sally Phelps (January) and senior retention marketing manager Hannah Sinclair (February), reinforcing its strengthened focus on marketing efforts. As you can tell from Phelps's hire and the video above, SM is also focused on reaching potential social media influencers.

So far this year, Pathmatics reports SM has allocated roughly $2.6m toward digital ads. This marks a 3x increase from the roughly $828.2k it allocated within the same 2020 timeframe, and it's a third of the roughly $7.4m it spent in all of 2020. The company's estimated full-year 2020 spend ($7.4m) rose by 35% from its estimated 2019 spend of $5.5m. SM has earned around 368.1m digital impressions YTD in 2021 via Facebook (59%), Instagram (41%) and desktop display (1%) ads.

According to Magellan, SM has only aired one podcast ad within the past 12 months.

As you can see from the company's sharp increase in digital ad spend and reliance on Facebook and Instagram advertising, it's primarily targeting Gen-Z right now. To do so, it likely also invests in OTT. Per Kantar data, SM does additionally utilize print media via newspapers. As I briefly mentioned, its spend will continue rising in 2021.

SM also just debuted Cool Planet, a sub-brand dedicated to affordable and sustainable footwear. This appeals its aforementioned Gen-Z target demographic since this audience tends to invest more in eco-friendly brands than other generations do.

Agency & martech readers - This company doesn't show major signs of upcoming agency reviews, so seek more immediate opportunities elsewhere for now. SM has an in-house media team, and Cramer-Krasselt IL handles its creative.