Pepsi's refreshing ad strategy 2010

In a bold strategic move, Pepsi has dropped its entire Super Bowl advertising budget to focus on the new Pepsi Refresh Project. Under the Refresh Everything campaign, Pepsi will award grants for community-based projects proposed and selected by consumers. Pepsi has earmarked $20 million of its ad dollars for the grant initiative next year.

The move is an about-face for Pepsi, which was the biggest advertiser on last year's broadcast of the big game and has long made the National Football League championship the centerpiece of its marketing strategy. Pepsi has used the event, TV's priciest showcase for ads, to launch splashy spots starring celebrities such as Britney Spears, Cindy Crawford and Ozzy Osbourne.

The brand was the biggest advertiser during the Super Bowl last year. In the past, Pepsi’s advertising strategy used the major televised football event as a way to roll out some of its most memorable spots with celebrities like Britney Spears and Cindy Crawford. The shift aims to focus less on a singular event and more on cause-related marketing. Pepsi has also increased their online advertising budget by 60% for 2010.

Pic: WSJ