Social Machinery

The latest social media marketing initiative from Pepsi is generating an enormous buzz in the whole advertising industry, mainly because its consequences for future of advertising.

Pepsi decided to pull back their TV spots in the next Super bowl edition. The beverage maker has been there for the last 23 year. This decision marked a 180° strategy shift from last year, when Pepsi went so far as to block rival Coca-Cola and other non-alcoholic beverage marketers from the first half of the game.

The main reason behind this decision is to focus their marketing efforts on social responsibility and digital media project “Pepsi Refresh Project”. Also the poor measurement and effectiveness they get from Super bowl marketing campaigns on TV triggered this shift towards digital media. During 2009, Pepsi spent more than $52 million Euros on advertising during the show. Therefore, the astronomical figure can be use in more meaningful campaigns.

This is undoubtedly a remarkable decision, which is already getting a big media buzz across the industry .The alternative to Pepsi’s Super Bowl TV spot is  to devote most of this budget into ’social’ projects coming from consumers, associations u other organizations  that are considered important enough to merit financial assistance from Pepsi.

In order to kick Start this Project they’ve launched the website The Pepsi Refresh Project with some preliminary information about the project, selection process and how participants can apply to these social funds.

What we conclude from this decision?

In my opinion there are two readings: the first and certainly the most important is that for a brand, its presence in a event like Super Bowl does not guarantee more sales or more visibility and better brand awareness by consumers. Its only get some buzz if it is extremely striking or provoking.

Furthermore and arguably the most important conclusion, is that Pepsi understand that brands need to talk about what interest people and establish a closer relationship, not only for 30 seconds but supporting relevant projects that once past a filter and evaluation may represent a turning point for those who promote them through the economic boost that will make the brand.

Secondly, is quite amazing to watch the impact and traction this strategic move is making. Is unusual to see such generosity from any brand without asking consumers anything in return, or discuss the great benefits of their products: This campaign is already doing some of the work done by Super Bowl buzz. At this moment there are more than 200.000 Google results about this campaign even do they will start on January 13, 2010.

For 2010 organizations will be more social and close with its customers. Brands will have full contact with the social media environment, taking the first step on becoming social enterprises. This new level will put sales targets, products and marketing on the background. Only by this way they will understand, and live in first person, developing a real social relationship with their customers and leveraging on new digital tools like blogs, Twitter, social networks, etc.

Pepsi Refresh Project is a clear example:  One of the qualities of a brand is being able to facilitate people to achieve their own dreams, often mobilizing fans and authentic “brand ambassadors” and winning the heart of consumers. That emotional thinking is what brands in order to realize customer intimacy and rapport.

2010 will be the year were brands will look for that lost ground, to reconnect with their users, treating them with respect and as equals, knowing that they are empowered too and that is the end of any win-win relationship. With respect to Pepsi, they have made an important decision and I will pay great attention to see how it evolves.

As Frank Cooper, senior VP-chief consumer engagement officer at PepsiCo Americas Beverages, in a statement said: “In 2010, each of our beverage brands has a strategy and marketing platform that will be less about a singular event, less about a moment, more about a movement.‪”