Pepsi Decides to Use the NFL a Different Way

In what may be a mini ‘bell weather moment’ in advertising, Pepsi has decided to keep its usual Super Bowl advertising money in its bank account. While they are not exactly saving it they are certainly redirecting it to online opportunities. I say this is a potential ‘bell weather’ moment because it ends a streak of 23 consecutive years where Pepsi has advertised during the event that attracts some of the largest viewing audiences in the history of television.

So what is Pepsi saying with this move? It’s more like a question they are asking the NFL and the advertising world that has made such a big fuss over Super Bowl ads for years: Where’s the value? Not to worry about the NFL though because they are still getting Pepsi-bucks……just not in a big chunk for the big game. Compete tells a little more

Pepsi is already a large sponsor of the NFL, having paid millions back in 2002 to replace Coke for the title of the official soft drink of the NFL. The company also sponsors Rookie of the Week section on NFL.com.

So the big moment is more about the how Pepsi is deciding to spend its money rather than with whom. The NFL is a marketing juggernaut (I had to use that word before the close of 2009) and will remain so. Even the NFL though is going to have to adjust to the dollars that are moving online that once fueled the just as important Super Bowl activity of watching and rating the advertisements. If last year was any indication that ‘pastime’ may be on the decline as well as many companies didn’t even create specific ads for the big game but simply rehashed old ones. Kinda takes the fun out of it, doesn’t it?

So why is Pepsi seeing the online space as the way to go? Compete shows a little data below that may become the new version of the old ‘Pepsi Taste Challenge”.

Even more interesting are the differences in competitive share of visitors to Pepsi and Coke sites between control and exposed consumers. Among the control group, Pepsi captures only 16% of visitors versus a lion’s share of 84% for Coke. However, the numbers are completely reversed among the exposed group.

So what is your thought about the days of the big Super Bowl advertising buys and the excitement around the creativity of the ads? Are the days of Super Bowl ads being a huge deal going the same way as my NY Giants (meaning directly south and in the toilet)?

Your thoughts?

A Billion Reasons for Twitter to be Happy

So it looks like Twitter has entered some rarefied air for sure. According to ReadWriteWeb and TechCrunch the micro-blogging juggernaut is moving into an exclusive club by securing a new round of funding ($50 million) based on a valuation of $1 billion (yup, it’s a b). No doubt, this will begin to stir the supporters and detractors alike. Unless we have ridiculously short memories or just think that this time will be different one has to wonder how a company that no one can figure out revenue wise can be valued at that much.

While I am not an analyst I did think about staying at a Holiday Inn Express over the past year so I qualify for jumping into the fray, right? Let’s hear what the RWW folks had to say first though.

While it’s unlikely that Twitter CEO Evan Williams was wearing a Dr. Evil costume when he delivered the news, he had the pleasure of announcing his company’s $1 billion dollar valuation today at an all hands meeting. According to TechCrunch, the company has raised a $50 million dollar funding round and the money will be in the bank shortly. Given the fact that Twitter turned down an offer to be purchased by Facebook earlier in the year, it appears the two are about to tango.

So of course, this conversation wouldn’t be nearly as much fun without bringing Facebook into the mix. Facebook is starting to look almost like IBM compared to Twitter. What with actual revenue generation plans and actually having the audacity to be cash flow positive one begins to wonder if Facebook is going to actually merit its own valuation. As we mentioned yesterday, Master of the Universe, Mark Zuckerberg, has something to say in the Facebook blog.

We’re also succeeding at building Facebook in a sustainable way. Earlier this year, we said we expected to be cash flow positive sometime in 2010, and I’m pleased to share that we achieved this milestone last quarter. This is important to us because it sets Facebook up to be a strong independent service for the long term.

So is Twitter in for the long term? They certainly still have the buzz going and now there appears to be a a real Facebook faceoff looming for the foreseeable future.

In the past, ReadWriteWeb has looked at Twitter’s platform potential. The service has already been used to create meme trackers, emergency alert services, news feeds and brand monitoring tools. As the infrastructure and search have improved, Twitter has become the go-to site for real time media. But can the company make a Facebook-like leap?

Facebook has added Twitter like features so why not? So what’s your take? I bet there at least a billion opinions on this one.

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The Young Bail on Facebook, but Over 55s Soar 500% and Bring Their Checkbooks!

The demographic has shifted dramatically over at Facebook and that change could lead to billions in revenue, according to one prominent board member.

iStrategyLabs spent the last six months collecting user demographic data and discovered the number of users over the age of 55 soared from 1 million to nearly 6 million. During the same 6 month period, high school and college users dropped by as much as 22%!

Here’s the breakdown:

At the same time Facebook continues to gray, Silicon Valley entrepreneur Mark Andreessen–a Facebook board member–suggests the social network could realize revenue of $1 billion if it would only push harder with its advertising.

"This calendar year they’ll do over $500 million..If they pushed the throttle forward on monetization they would be doing more than a billion this year…There’s every reason to expect in my view that the thing can be doing billions in revenue five years from now," Andreessen said.

What’s interesting is that the 15-24 year olds are the ones that helped Facebook become the juggernaut it is today, but when you have champagne revenue goals while your audience has a beer budget, you need those with established incomes to pay the bills–or in this case, click on the ads.

Perhaps the key question is can Facebook continue to grow while losing its vocal youth? Arguably, high school and college users were the ones that evangelized Facebook to their older friends and family. Without them, will Facebook’s growth–and revenue–stall?