Pepsi and Beyoncé: The New Sponsorship Model

PepsiCo recently signed a sponsorship deal with Beyoncé worth a reported $50 million—but we’re not terribly concerned with news about a pop singer promoting a soda company.

We’re more interested in the nature of the relationship between the two parties, which seems to have broken new ground when it comes to sponsorships and invites the question: Who is promoting whom?

Pepsi calls the contract a “brand ambassador” deal, and the accompanying New York Times headline mentions Pepsi’s focus on “collaboration”. What do these terms mean, exactly? Well, Beyoncé won’t just appear on Pepsi products, star in commercials, and perform in next year’s Pepsi-sponsored Super Bowl: Her contract also includes “a multimillion-dollar fund to support the singer’s chosen creative projects.”