Ad forms used: Banners, skyscraper ads, streaming video of TV ads
Agencies: Tribal DDB
Target audience: Primarily 18-year-old males
Online exposure: In March, Oscar month, the brand bought more than 200 million impressions; as compared with June when the brand bought only 16.5 million (Source: Jupiter); three percent of the marketing budget goes to online marketing
Results: Pepsi says 3 million unique visitors go to Pepsi.com each month
Executives at the country's No. 2 soft drink company are still singing about the Joy of Pepsi, but increasingly the snappy tune has a digital sound.
Five years after its 1996 launch, Pepsi.com receives up to 3 million unique visits per month. The site offers the opportunity to watch Pepsi TV ads, play games (which long have been a focus of the site), track down the Pepsi challenge, and enter sweepstakes.
Pepsi-Cola Co., a division of PepsiCo, would not disclose how much it invests in online marketing, but John Vail, director of digital media and marketing at the company's North American unit, says interactive accounts for 3% of its marketing budget, or more than $1.2 million in online spending in the first quarter, based on the brand's total $40 million in Q1 measured media according to Taylor Nelson Sofres' CMR.
With its skyscrapers, banners, streaming video-and database of more than 3 million e-mail addresses-Pepsi is honing in on young consumers, specifically 18-year-old men. Pepsi has advertised on MTV.com, Yahoo.com and the Academy Awards at Oscar.com. Mr. Vail says the company is looking to the Internet as a way to provide something deeper than a magazine spread or 60-second spot.
"Just as we, once upon a time, moved from three networks to four and five ... now the new media [is the Web]. Just as when TV came out, radio didn't go away," he says.
Typical of the company was its promo effort behind its Academy Awards spot starring Britney Spears. Pepsi previewed the spot three hours before the show on Yahoo! and has used its deal with Spears in Web promotions. also previewed a spot featuring Ken Griffey Jr. and Sammy Sosa, and the site carries behind-the-scenes peeks at the filming of the ads.
Using the Net to expand traditional marketing, Pepsi hopes, will further users' ties to the brand. Says Christian Dietrich, account director at Pepsi's digital agency, Tribal DDB, "Instead of passively receiving communication by watching TV or flipping through a magazine, they are actively engaged and interacting with the brands."