PepsiCo to Stop Linear TV Advertising to Focus on Digital Marketing

PepsiCo has decided to completely redirect its advertising spend away from linear TV to digital platforms. This shift, as communicated by PepsiCo ANZ marketing head Vandita Pandey to B&T, is aimed at aligning with its target audience's evolving media consumption patterns.

Digital Dominance

Over the past few years, PepsiCo has been steadily increasing its investment in digital channels, making it the primary recipient of the company's advertising budget. This move reflects the brand's recognition of the growing significance of digital media in engaging consumers effectively.

Acknowledging the diminishing impact of traditional linear TV advertising, PepsiCo embraces a more dynamic and interactive approach through various digital screens. Pandey emphasized the importance of adapting to changing consumer behaviors and capturing attention in the digital landscape.

Strategic Evolution

B&T reported that PepsiCo's decision to transition away from linear TV has not been impulsive but rather the result of a meticulous strategic evolution. By gradually reducing TV ad placements and exploring alternative screen options, the company has paved the way for a more diversified marketing approach.

PepsiCo's shift towards digital marketing mirrors a broader trend within the FMCG sector, where brands like Coca-Cola have also embraced digital as a predominant advertising channel. This industry-wide movement underscores the importance of staying agile and responsive to market dynamics.

In addition to digital platforms, PepsiCo is exploring innovative ways to engage with consumers, including leveraging earned media opportunities. Recent creative endeavors like the unique Doritos coriander-flavored crisps and the Twisties scented candle release have garnered significant attention.

Collaborating with media agencies like PHD Media and creative partners such as Special Group and VaynerMedia has been instrumental in PepsiCo's marketing strategy. These partnerships have enabled PepsiCo to explore new brand promotion and consumer engagement avenues.

According to WARC, last month, PepsiCo declared that once the pandemic's effects eventually start to fade, it plans to raise its marketing and advertising budget.

CEO Ramon Laguarta stated during an earnings call, "If you think about where and how we're going to create demand in the future, you should be thinking about A&M continuing to increase."

Photo: PR Newswire