PepsiCo (NYSE:PEP) recently signed a 10-year, $2.3 billion deal with the NFL that takes effect this year.
The 2012 season, dubbed “Power of One,” will be featured through 25,000 NFL displays going up at the start of the season. For example, $100 million will be dedicated to in-store display racks highlighting a wide range of PepsiCo products. Company research has shown that consumers are more likely to buy these products when they are displayed or coupled with NFL advertising.
The new deal is the largest in U.S. sports and expands advertised offerings within PepsiCo to include its Pepsi, Gatorade, Frito Lay, Tropicana and Quaker Oats brands. Attractive to PepsiCo is the NFL’s wide demographic appeal — from men to women, old to young, the NFL is America’s most popular sports league.
Also included in the deal is a shift in product placement. Original Pepsi will be highlighted this season. PepsiMax was highlighted in the previous two seasons.