Why Coca Cola is making money from coca-Cola ads
Posted October 03, 2018 12:19:51 The U.S. Department of Agriculture (USDA) has announced that Coca-Cola has agreed to pay the Department of Defense (DoD) $2.5 billion for the purchase of “coca-Cola advertising space” over the next five years.
The deal will see Coca-Cola and the DoD use the space for “advertising, promotional, marketing, and promotional materials” and will include “advertising to educate consumers, promote Coca-cola products, and drive sales.”
Coca-Color and the Department did not immediately respond to CNBC’s request for comment.
“The DoD has long recognized the need to further expand and enhance its ad purchasing capability and the availability of ad inventory in support of the Department’s mission of ensuring national security and public safety,” the USDA said in a statement.
The DoD is the largest single advertiser on the Coca-Coca network.
The Coca- Cola deal follows a previous deal that saw the Department purchase a piece of advertising space for $5 million for the next two years.
Under the new deal, Coca- Coca will pay the DoE $1.8 billion for its ads for the “five years to 2024.”
“This acquisition provides the DoL with more ad inventory space and the opportunity to purchase ads in more categories and more locations to better serve the Department and the broader community,” DoD Under Secretary of Defense John F. Dunlap said in the statement.