The chart above displays the advertising and total marketing expenses of Pepsico from 2010 to 2022 in billions. In 2022 and 2021, the company spent $3.5 billion on advertising. Its total marketing costs in 2022 were $5.2 billion in 2022 or $100 million higher than the prior year.
Advertising and Marketing Expenses of Pepsico 2003-2022
Amounts in Billions.
|Year||Advertising expenses (Billions)||Total Marketing Costs (billions)|
Pepsico’s advertising expenses increased to $3.5 billion in 2021 from $3 billion in 2020.
Advertising costs of Pepsico increased by around $200 millions in 2018 compared to the previous year rising from $2.4 Billion in 2017 to $2.6 Billion in 2018.
Pepsi invests heavily in marketing like Coca Cola. The brand invested 4.1 billion dollars in marketing in 2017. Out of the total, 2.4 billion dollars went towards advertising. This was however a bit less than its 2016 expenditure when it spent 4.2 Billion dollars on marketing out of which 2.5 billion dollars went to advertising.
Marketing innovation is a key driver of demand in the soda industry and since the competition in the industry is very high, brands also compete in the area of marketing. The two leading brands Coca Cola and Pepsi invest billions in marketing to promote their products and brands. Pepsi has 20 Billion dollar brands in its portfolio that generate revenue in billions. It has run several iconic promotional campaigns and targets the young people mainly through its advertising campaigns. Digital engagement has become an important focus for Pepsico and the brand is investing in engaging digital video ads and creating exciting advertising campaigns. Its ‘Bring Happiness Home’ happiness campaign including a 20 minute long video has seen high level of success in Greater China generating more than 1 billion views. he brand is focused on creating effective advertising and marketing campaigns for its sales growth. To a large extent, Pepsi’s sales growth depends upon the success and effectiveness of its marketing campaigns. Apart from these campaigns Pepsi also depends on sponsorship for marketing of its brand and products. Pepsi also promotes its each brand individually. Gatorade, a sports drink for the athletes is promoted through a separate campaign. Its ‘Made for This’ campaign featured High School athletes . The campaign underscored that Gatorade is fuel for the athletes and their success. These marketing and advertising campaigns are made to draw new customers as well as to improve brand image and brand recall.