Beyoncé Nabs A $50 Million Dollar Contract With Pepsi Cola

New Commercial, New Album, New Tour

Back in October we learned that Beyoncé nabbed the coveted upcoming Super Bowl halftime performance slot in a deal with Pepsi Cola that we learned at the time included a new TV commercial for the soft drink. Today we learn that Bey‘s deal with Pepsi — which includes, among other things, a concert tour sponsorship — will net the singer $50 million dollars. Folks, FIFTY MILLION DOLLARS. Dang. Among the fun things this collaboration with will bring us, the consumer, is a special edition Pepsi can that features Beyoncé on it. The New York Times published a feature story about this $50 million dollar endorsement deal, check out some excerpts from the article below and marvel. FIFTY MILLION DOLLARS, YO! Dang.

FOR its campaign with Beyoncé next year, Pepsi doesn’t just want to sign up the telegenic pop star for another TV commercial. It also wants to get into the Beyoncé business. In an expansion of the recent marketing experiments that have brought PepsiCo ever closer to the music industry, the company has embarked on a hybrid project with Beyoncé that will include standard advertising like commercials as well as a multimillion-dollar fund to support the singer’s chosen creative projects.

“Pepsi embraces creativity and understands that artists evolve,” Beyoncé said in a statement. “As a businesswoman, this allows me to work with a lifestyle brand with no compromise and without sacrificing my creativity.”

The campaign will coincide with a blitz of promotion for her next album, which has no title or release date so far but is expected in 2013. Sometime after she performs at the Super Bowl halftime show on Feb. 3 (also sponsored by Pepsi), Beyoncé will appear in a new TV ad — her fifth for the soft drink since 2002 — and her face will be on a limited-edition line of soda cans. The less conventional aspects of the deal are meant as collaborative projects that indulge Beyoncé’s creative whims, and might well have no explicit connection to Pepsi products. They are still at the brainstorm stage, but could include live events, videos, “a cool photo shoot” or almost anything else, said Lee Anne Callahan-Longo, the general manager of Parkwood Entertainment, Beyoncé’s company. For Pepsi, the goal is to enhance its reputation with consumers by acting as something of an artistic patron instead of simply paying for celebrity endorsements … The multiyear campaign is estimated at $50 million, the bulk of it for media placements and promotions around the world, and the remainder split roughly equally between Beyoncé’s fee and what Pepsi calls a creative content development fund … In addition to the commercial — a collaborative effort between 180 LA, TBWA/Chiat/Day Los Angeles and Organic, all part of the Omnicom Group — and the soda can, the deal will involve sponsorship of Beyoncé’s world tour next year. All the standard sponsorship elements will be present on the tour, like prominent Pepsi logos. That kind of marketing, Mr. Jakeman said, is “still important, but insufficient” to reach savvy young consumers. So Pepsi will also play a role in selecting local talent as opening acts at various points around the world. And who knows — a concert stage would seem a perfect spot for some fund-supported video or social-media experiment. “It’s wise for a brand like Pepsi to give an artist the ability to truly express herself,” said Ms. Callahan-Longo, of Beyoncé’s company, “instead of just the old-school way of, ‘Do you want to be in an advertisement?’” “This is much bigger,” she added. “This is, ‘How can we create something together that is truly unique?’”

This is a very interesting evolution in endorsement deals. The old model required endorsers to merely feature in advertising, pose for pictures, film commercials then walk away with their checks. There are some elements of that old model in this new Beyoncé deal but in addition, Pepsi is going to fun Bey‘s creativity and will allow her to come up with her own ways of endorsing their product. It’s risky but I get it. This way, her endorsement of their product is more organic … and therefore, they assume, more appealing to consumers. This kind of deal only works if the endorser (Beyoncé) takes her role seriously and she comes up with innovative ways to promote. Personally, I think she is the perfect kind of celeb to do this kind of deal. Other celebs would do the bare minimum, I think. Pepsi chose well … Bey is a very hard worker and she is insanely creative. It remains to be seen if this deal will be a boon for Pepsi but I think they bet on the right horse. $50 million dollars is a lot to pay out to one person but my guess is that Bey will give the soda company their money’s worth. We shall see when she takes the Pepsi halftime stage at Super Bowl XLVII if this deal looks like it’ll be a hit right out of the gate. What do y’all think? Is Beyoncé worth $50 million bucks to sell soda pop?

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  1. Very smart move by Pepsi. I think Beyonce will do a great job selling the brand and product. But Britney will always be the queen of Pepsi to me!!

    Pepsi… For those who think young. ;)

  2. I don’t even drink soft drinks, but I want some of that Pepsi with Bey’s face on it!

  3. No one will evvverr be a better Pepsi girl than Britney!

  4. I love that Beyonce is such a business lady. Other celebs should take notes. Maybe Lindsay Lohan can nab a similar endorsement deal with Keystone or some kind of alcoholic beverage.

  5. Daniel

    Absolutely ridiculous. 50 million?

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