Nike knew this was coming.
After former NFL quarterback Colin Kaepernick revealed he would be featured in Nike's 30th anniversary "Just Do It" campaign, social media erupted with messages calling to #BoycottNike.
At the close of the trading day, shares were down 3.2%. With all this in mind, let's break down Nike's move.
First, let's agree that Kaepernick is a polarizing choice for an ad campaign
Remember: In 2016, Kaepernick began sitting during the national anthem to protest racial injustice and police brutality. Some respected the decision, while others found it offensive to the U.S. flag and the military.
More players followed Kaepernick's lead, and the issue continues to be a subject of intense debate—from your group chat to the president of the U.S.
Zoom out: Usually, companies would try to steer clear of hot-button topics. But by selecting Kaepernick to appear in ads and on billboards, Nike clearly wants to insert itself in the conversation.
Here's the bet Nike's making
These days, being overtly political could be a less risky strategy than staying on the sidelines. That's especially the case when trying to attract young Gen Z-ers who support brands that take political stances.
What a Nike exec told ESPN:
"We believe Colin is one of the most inspirational athletes of this generation, who has leveraged the power of sport to help move the world forward."
The campaign is targeting 15- to 17-year-olds.
The view from Wall Street:
Firms mostly stayed quiet, but Oppenheimer analyst Brian Nagel wrote that the decision "will spur significant debate among those in athletic circles and more broadly"...but over time, "we think the power of the messaging from this new broader campaign is apt to overshadow any potential backlash."
So far, it could be working: Apex Marketing Group says Nike received more than $43 million worth of media exposure in less than 24 hours following the announcement, per Bloomberg.