Wednesday, December 17, 2014

Coke Bows Out of American Idol

via WallStreetJournal

Long-time American Idol sponsor, Coca-Cola Co.KO +1.68%said it will no longer support the one-time mega hit.
Coke had been a high-profile sponsor of the program for 13 years. It was one of the big advertisers most closely associated with the program thanks in part to the product placement the beverage giant received because of its ad deal with Fox.
Coke’s ad package not only included airing TV commercials during the program but also included having its brand mentioned and seen throughout the program. For example, Coke cups had been a regular fixture on the judges’ table for several years.
“After 13 years, we feel it is the right time for the Coca-Cola brand to venture into new spaces and pursue other opportunities to connect with teens and leverage music as a passion point,” said Coke in a statement.
News of Coke’s decision was first reported by Variety.com.
A spokeswoman for Fox said that Ford, another of the show’s main sponsors, will return for season 14 of Idol.
Last year, AT&T T +0.84%, another big sponsor, dropped out of the program. Although ratings for the reality show have declined significantly, Coke remained a sponsor of the program. However,  beverage giant did “significantly” reduced its spending on the program, the Wall Street Journal reported last year. A few years ago, the beverage giant was shelling out roughly $30 million on the show and last year was spending under $10 million, the report said.
Although “American Idol” had been a ratings juggernaut for years — reaching over 30 million viewers in 2006 — the show has suffered a big decline in ratings as the program aged and faced competition from other singing competition shows such as NBC’s “The Voice.”  Last season the show averaged 11.9 million viewers.

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