Nike revelation comes to light 12 months after Tiger Woods left to set up Sun Day Red

Less than a year after Tiger Woods ended his 27-year association with Nike, news has come to light the sportswear giant has lost a staggering 1m followers on Instagram since September. 

According to the latest social media data supplied by AltIndex.com, Nike (NKE) has lost more than 1m Instagram followers over the past three months.

The company has also been leaking followers for eight straight months now, and the slide shows no signs of relenting as we head into 2025. 

Nike might still have a whopping 303m followers on Instagram, but the noticeable fall off is raising serious concerns over the brand's ability to remain relevant in the highly competitive social media space. 

Nike has been losing Instagram followers for eight straight months

Over the years, the stock market has seen a number of stocks whose prices skyrocketed or plummeted based on social media momentum. 

A single Reddit post or a tweet from a prominent investor can create a huge interest in a particular stock, increase its trading activity, and even influence its price. 

That is why companies pay special attention to growing their social media communities and keep them engaged.

For years, Instagram has been a cornerstone of Nike’s marketing strategy and an essential channel for reaching its core audience of young, active, and trend-conscious consumers. 

According to AltIndex data, between August 2023 and April 2024, more than 18m people started following Nike`s Instagram account, reaching an all-time high of over 307m followers. 

But things have changed a lot since then, with Nike`s Instagram fan base melting since April.

That was just four months after 15-time major champion Woods terminated his long-term deal with Nike.

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Why did Tiger Woods leave Nike?

Tiger Woods ended his association with Nike on 8 January 2024.

Neither Woods nor Nike revealed exactly why they finally decided to part ways but it is assumed the deal wasn't making the sportswear giant money any more.

Nike stopped making golf clubs and golf balls in 2016 because it was losing cash. 

But it still makes golf shoes and golf apparel. 

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It has been estimated by writer Joe Pompliano that Woods earned between $500-660m during his time with Nike.

"For over 27 years, we have had the honour to partner with Tiger Woods, one of the greatest athletes the world has ever seen," Nike said in a statement.

"We watched him set records, challenge conventional thinking, and inspire generations of people around the globe.

"We are grateful to have been a part of it. We wish him the best in the future."

Woods, 48, then shortly announced his brand new clothing and footwear brand, Sun Day Red. 

Despite losing Woods for 2024, Nike still work with a number of the game's best golfers including Rory McIlroy, Scottie Scheffler and Nelly Korda.

Scheffler, 28, enjoyed the greatest year of his career to date with nine victories around the world highlighted by a second Masters title in three years and a first FedEx Cup at the end of the season.

He also won a first Olympic gold medal.

On the LPGA Tour, Korda, 26, sweeped up seven titles on the season highlighted by a second career major title at the Chevron Championship.

Both Korda and Scheffler collected Player of the Year honours.

McIlroy, 35, won twice on the PGA Tour and although he failed to win a major he did match late great Seve Ballesteros' feat of six Harry Vardon trophies by taking the Race to Dubai once again on the DP World Tour. 

Social media backlash has cost Nike $20 billion so far

Since April, more than 4m people have unfollowed Nike on Instagram, with a sharp loss of 1m in just the past 90 days. 

This is more than just a numbers game.

Losing millions of followers, particularly over a longer period, is a potential signal that the company is losing its grip on a critical audience, which is a huge alert for a brand like Nike, known for its storytelling and emotional marketing.

This downturn can be explained by a combination of several factors. 

Rising competition from other sportswear brands, their fresh marketing strategies, personalized engagement and innovative design are capturing more and more attention from younger audiences. 

Meanwhile, some of Nike’s recent campaigns have sparked controversy, dividing its audience rather than uniting it, with growing criticism that Nike’s Instagram content has become stale, lacking the creativity that once set it apart.

Such a huge Instagram followers drop, coming from the most-followed brand on the platform, is an important alternative data signal for investors.

Social media engagement is one of the leading indicators of brand strength, directly affecting sales, partnerships, and long-term growth potential.

Nike`s case proves this. 

The fallout from this social media decline isn’t just impacting its follower count but also its stock value. 

Since the decline began, the sportswear giant has lost roughly $20 billion in stock value, falling from $135 billion in April to $114 billion as of this week.

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