• by Wayne Friedman , January 4, 2011

Looking to create the commercial mojo that rival Coca-Cola has on "American Idol," Pepsi has signed up a major marketing/promotional deal as an official sponsor of new Fox talent show "The X Factor."

Coming from Simon Cowell, the high-profile judge on "American Idol," "X Factor" has been positioned to be the next high-rated reality talent show, on the order of "American Idol."

Neither Fox or Pepsi disclosed financial information about the deal. But an announcement says it is a "comprehensive sponsorship," including "an extensive, multiplatform off-air marketing partnership; weekly in-show integrations and placements; and an immersive content experience online. Pepsi will be the exclusive beverage sponsor of THE X FACTOR both on and off-air."

All that sounds like a similar deal to the one Coca-Cola has on "Idol," in which the omnipresent Coke-logo-ed cups sit on the "Idol" judges' desk.

Along with Coke, Ford Motor Company and AT&T are three major sponsors of the show. Media estimates are that each "Idol" sponsor brings in an eye-popping $50 million to $60 million a year. In the early years of the show, big sponsorship deals went for around $26 million, according to media executives.

Reports say Coke was also heavily interested in "X Factor" -- forcing it and Pepsi into a bidding war and driving the deal price into the $50 million to $100 million range.

Fox says Pepsi is the exclusive beverage sponsor of "X Factor" -- suggesting that more deals are forthcoming.

Pepsi says the marketing deal with the talent show -- which will include music acts -- makes sense, given its long association with top performers like Michael Jackson, Madonna, Britney Spears, and Snoop Dogg.

The show, which is already a big hit in the U.K., will start up on Fox in this fall.

"The best partnerships are always the most organic ones, and we feel a strong creative fit between Pepsi's brand positioning and "The X Factor," said Keith Hindle, chief executive officer Americas, FremantleMedia Enterprises, one of the show's producers.

The move of "The X Factor" to the U.S. is important because it's about real excellence in music -- the selection of the artists, the development of their performances and the music they ultimately produce," stated Frank Cooper, chief consumer engagement officer of PepsiCo Americas Beverages.