The Swiss running and tennis brand On counts among its athlete endorsers tennis legend Roger Federer, current world No. 2 Iga Swiatek, world No. 14 Ben Shelton, distance runner Yared Nuguse, and now… Elmo.
You know, Elmo from Sesame Street.
In On’s Super Bowl ad (its first ever in the Big Game), Elmo, who taught several generations of children the alphabet, points out to Federer that On’s logo looks like the letters QC. In doing so, he cheekily roasts the company for a branding issue that has beguiled many consumers who’ve wondered the same.
Elmo also stars in an additional series of ad spots urging runners to go for “soft wins” instead of going so hard. In one spot Elmo gives Nuguse, who recently set the world record for the fastest mile, a soft medal and a soft hug. In another, Elmo sees a group of out-of-breath runners take a break on a city sidewalk. “Running looks hard,” he says. When one of the runners tells him “hard wins,” he responds, “Elmo likes soft. Could that win?”
On’s “soft” marketing strategy is a not-so-subtle shot at Nike’s current “hard” positioning.
The campaign marks the release of On’s spring collection, featuring the Cloudsurfer 2, a cushioned running shoe. The messaging is not about shoe design or performance, but rather about “how one feels and how one should be allowed to feel through exercise,” Thomai Serdari, marketing professor at NYU’s Stern School of Business, tells Front Office Sports. In this way, it draws a stark contrast with Nike’s “Just Do It” mantra and recent hyper-competitive marketing tone.
Nike’s own Super Bowl ad this year—its first in 25 years—featured female superstar athletes including Caitlin Clark and Sha’Carri Richardson who are on the top of their respective games and was titled “So Win.” That followed the campaign Nike debuted last July also focused on winning, “Winning Isn’t For Everyone.”
Where Nike is all intensity and focus on the elite athlete, On is aiming to connect with an even larger audience: regular people who buy running shoes but are not competitive runners, Morningstar retail analyst David Swartz tells FOS. “Many don’t even run at all,” he adds. It’s a campaign that harnesses the broader casual running boom.
On’s softer approach also taps into the lifestyle and attitudes of Gen Z consumers. ”Think about mental health days, mental hygiene, forgiving oneself,” says Serdari.
On, which launched in 2010, is among a handful of smaller challengers, including Hoka and New Balance, that have eaten into Nike’s sneaker market share over the last couple of years.
The running category is large enough for many challengers to be successful. On is still relatively new and unknown and has not done a lot of traditional athletic marketing, whereas Nike’s roster of pro athlete sponsorships is unmatched. A smaller company like On can’t realistically afford to outbid Nike for elite athletic sponsorships anyway, Swartz says.
“As a performance-driven brand, we wanted to challenge the idea that success in running is defined by intensity alone,” On CMO Alex Griffin said in a Feb. 13 press release. “When thinking about who could embody the spirit of softness, Elmo and his kindness and compassion—not to mention his soft, red fur—immediately came to mind.”
Using Elmo in a commercial is not so easy, by the way. The brand must work very closely with the rights holder, Sesame Workshop, for approval. Fortunately for On, Sesame Street saw synergies with the shoe brand’s campaign.
“Sesame Street is committed to empowering the young and young-at-heart with strategies to help build resiliency and promote emotional well-being,” said Sesame Workshop SVP Jen Ahearn. “We’re thrilled to be a part of On’s campaign that encourages runners of all types to try their best, support each other, and celebrate everyday joys with friends, families, and the wider community.”
On reported an all-time record for sales and profit margin in the third quarter, with analysts expecting momentum to carry into the current year. “We expect On’s initial 2025 guidance to reflect strong growth, but also leave room to beat and raise as the year goes on,” Telsey Advisory Group wrote in a note Tuesday.
On is scheduled to report fourth quarter and full-year earnings March 4.
