Campaign Imminent: American Eagle shifts advertising strategy ahead of an upcoming Fall initiative (Score 34)

Sales Lead: American Eagle Outfitters (AEO)'s execs recently detailed the company's current strategy in an earnings call.

• As AEO shifts into Q3 2023, it has experienced sustained momentum, largely credited to innovative marketing.
• Execs are currently focused on providing efficiencies across the business while improving profit flow-through.
  • These exec's priority specifically involves utilizing unique marketing to bolster brand awareness and amplify AEO's products.
• AEO also received a boost in sales when it recently launched new lines, SMOOTHEZ and an extended body suit collection; its intimates line, Aerie, has also experienced high ROI.
• The company's recent Aerie campaign, "Hidden Gems," did well, and AEO will launch a new one this fall.
  • This 360° campaign includes partnerships with popular dating app along with celebrity influencers, active social campaigns, and experiential activations via live events.
• AEO has also ramped up its Gen-Z efforts by teaming up with Summarize in Pretty, which included a live Amazon shopping experience, which was a "strong success."
• The company will likely:
  • Invest in similar experiential activations, influencer and brand partnerships, and social channels
• Target demographic: 
  • ​​​​​​​Gen-Z

Additional spending insights:

• Digital and social insights (digital ad spend, effectiveness, impressions, and performance)
  • YTD spend: Since the beginning of 2023, AEO has spent roughly $16.3m on digital ads, up 72% from the roughly $9.5m spent by this point last year.
  • YTD data: The retailer has earned around 2.4b digital impressions YTD via Instagram (59%), Facebook (30%), YouTube (7%), and desktop display (4%) ads.
  • Last year: AEO spent approximately $18.1m on this channel 2022, 36% more than the approximately $13.3m spent in 2021.
• Additional channel insights  
  • The company utilizes Google Ads along with search, digital, OOH, Facebook, Instagram, TikTok, and online video (primarily via Youtube IOS and Youtube.com) ads.

Additional agency insights:

• Opportunity: AEO may seek new agency partners as its strategy continues shifting; reach out soon to see.
  • ​​​​​​​An advantage may go to those able to offer experiential and/or influencer services since AEO is bolstering related initiatives.
• Current agency roster:
  • VaynerMedia​​​​​​​: Media and digital AOR (March 2021)
  • ICF Next: Creative agency partner
  • Shadow PR: PR agency partner

Insight Sources: Digital spend insights estimated by Pathmatics; search marketing insights by Bombora; additional channel insights estimated by Vivvix.