08 February 2010

Pepsi Chooses Social Media Over Super Bowl Ads

San Francisco Chronicle


The rise of social media has helped end one of the longest streaks in Super Bowl history - Pepsi won't have a televised commercial during the big game for the first time in 23 years.

Instead of paying millions of dollars for 30 seconds of airtime, the soft drink giant is pouring resources into an online social-networking campaign designed to engage and interact with customers for months.

It's a move that raised eyebrows among traditional media watchers, but social media experts say Pepsi has called the right play for a rapidly changing advertising game in which consumers are becoming the mass media that carry the message.

And relying on standard TV, print or online banner ads may no longer be enough.

"People are expecting the same interactivity, the same engagement that they're finding when they use Facebook or when they are Twittering," said social-media marketing consultant Carnet Williams, founder of Sprout Inc. of San Francisco.

The Super Bowl telecast is considered the top advertising opportunity of the year on American television. For Sunday's Super Bowl XLIV between the Indianapolis Colts and the New Orleans Saints, CBS-TV was reportedly asking as much as $3 million for a 30-second spot.
Joining conversation

Yet the growing prominence of social networks like Facebook and Twitter is causing advertisers to look beyond broadcasting its brand once or twice to 100 million people to joining the conversation stream emanating from the audience itself.

Several Super Bowl advertisers are incorporating social media into their commercials. Budweiser, for example, asked voters on its Facebook page to vote for which commercials to air during the game, while Monster.com's Facebook page featured video of a fiddling beaver that is scheduled to star in the online job company's Super Bowl ad.
Coke's donation

And Pepsi's archrival, Coca-Cola, is donating $1 to the Boys and Girls Clubs of America for every virtual Coke gift that Facebook fans send to their friends.

But PepsiCo Inc., which reportedly spent $254 million on Super Bowl commercials over the past two decades, decided not to run any soft drink spots during the game, although the company will continue to pitch its Doritos snack food brand.
Online campaign

Instead, it launched an online campaign on Monday called the Pepsi Refresh Project, pledging to donate more than $1 million in February alone to social causes and community projects nominated and selected in a vote by fans. Pepsi is committing about $20 million in donations through the end of this year, with a new round of voting each month.

"The project is about creating a movement, not just a moment," said Bonin Bough, PepsiCo's global director of digital and social media.

A key component is a Facebook page that by Friday had more than 342,000 fans. Pepsi is also using Twitter, live Ustream video and an iPhone application.

Pepsi hopes those fans will vote, post comments and passionately promote their favorite causes - and along the way, the Pepsi brand - within their own networks of friends.

"They allow us to build deeper relationships and deeper dialogue with our customers," Bough said. With digital media, he said, "consumers are using it in totally different ways than advertisers ever expected them to."

Among the early top vote-getters was an organization hoping to ship 5,000 Girl Scout Cookies to military troops and another offering to send a care package to needy expectant parents. Movie stars Demi Moore and Kevin Bacon posted videos promoting their own favorite causes, which stand to win a $250,000 Pepsi grant.

Bough said more than 1,000 causes for February were nominated in the campaign's first 72 hours and Pepsi has already reached the maximum number of submissions for March.
Praising decision

Jessica Ong, director of online media and search for the Internet traffic measurement company Compete Inc., said Pepsi made the right decision to shift ad dollars away from the Super Bowl and to social media.

"It's really a good example of content that gives consumers incentives to come back and interact with the site," Ong said. "It is going to open the eyes and ears of those working at other brands to consider online channels."

Ong said she examined the response to Pepsi's sponsorship of NFL.com's Rookie of the Week voting during the regular season. People exposed to the sponsored site were far more likely to visit a Pepsi site, including RefreshEverything.com.

And more than 83 percent visited Pepsi sites instead of those of rival Coke, she said.

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