ASOS to boost ad spend amidst revenue goal of US$9.52bn

Online UK fashion retailer ASOS plans to significantly increase its marketing investment for the next three to four years. The move comes as the brand aims to deliver annual revenue of about US$9.52 billion and earnings before interest and taxes margin of 4% within that same period, according to its financial results for the year dated 31 August 2021. 

Globally, excluding the UK, US and European Union, ASOS saw a 3% growth in active customers, but also saw an increase in churn rates and slower growth in new customers. Global markets also continue to be disproportionately impacted by an extended delivery proposition, especially in Australia, where the current delivery period is over 30 days. 

According to a statement by ASOS, it plans to achieve a sales growth of between 10% and 15% for FY22, with H1 revenue growth in mid-single digits reflecting tougher comparables in the first half of the year, particularly the UK; which grew by 66% since FY19. Industry-wide supply chain pressures are also expected to continue throughout H1, resulting in longer lead times and constrained supply from a number of our partner brands. Meanwhile, H2 will see an acceleration of sales driven by increased event-led demand, an easing of supply constraints and marketing investment to support international growth.

Its latest marketing plan comes after Nick Beighton stepped down as CEO just yesterday after 12 years with the business. At the same time, CFO Mat Dunn has taken on the additional role of COO, while current director of group finance Katy Mecklenburgh steps in as interim CFO. While ASOS is on the hunt for a successor, Beighton will remain available to the Board until the end of the year to ensure a smooth handover.

Meanwhile, ASOS has also launched a broad reach, multi-territory advertising campaign. Targeted at its female customers in their twenties, the three-month, high-frequency activity will run across VOD, social and programmatic channels in the UK, France and the US. ASOS also revealed that the campaign is valued at seven figures. 

The campaign centres on an evocative ad directed by Ricky Saiz, which shows style lives being lived in different contexts and countries, from behind the scenes, out on the streets and spaces in between. Celebrating how fashion inspiration comes from everywhere, it reaffirms ASOS as relevant and inspirational during the key peak shopping period.

John Mooney, global brand creative director at ASOS, said that its latest advertising campaign is smartly planned, targeted and timed, and the creative embodies the brand’s belief that inspiration comes from everywhere, no matter who or where they are, while positioning the brand as a creator, curator and champion of style. "The screens have changed, but at our core we’re still about as seen on screen," he added.

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