Pepsi Trades Super Bowl for Social Media

Companies allocating marketing dollars away from traditional marketing to social media has been happening for some time now. That’s not a big surprise. However, the beverage giant Pepsi Co., just announced that they are pulling out of advertising during the Super Bowl.  Instead they will focus on a $20 million social media advertising campaign. ABC News reports “that the company will launch the Pepsi Refresh Project on January 13, where online users can submit ideas to help ‘refresh their communities to make a better world.”  This is a very bold move into the social marketing arena that I have not seen from any other company this size.  Maybe Pepsi believes it can get a better response for those dollars by using social media.  I wouldn’t disagree.  So what does it cost to advertise during the Superbowl anyway?  According to Wikipedia:

“Prices for advertising space can typically cost millions of dollars; 30 seconds of advertising time during the 2010 telecast is expected to cost US $3.01 million.  This excludes production costs and fees for actors, equipment, ad agencies, directors, crew and other personnel. In 2009, NBC sold out all the advertising spots for record revenue US $206,000,000.”

According to the Examiner:

“Advertisers view social media as important because online they can seek out people who have an affinity for the brand and engage them in a meaningful discourse that lasts longer than 30 seconds. Many times these people pass along information to their friends. Online tools give marketers the ability to track the ‘pass alongs.”

Thoughts?