How Coca-Cola's 'American Idol' Deal Transformed TV Advertising

[Commentary] When Coca-Cola signed on as an initial sponsor for Fox's "American Idol" back in 2002 for $10 million, it was considered a huge coup.

"American Idol" far exceeded expectations, averaging 12.7 million viewers in that first season when it aired during the sleepy summer months, prompting Fox to move it to its regular season. What made this such a pioneering deal was Coke's ability to get in on the ground floor and discover a hit in a genre that up until that point hadn't really existed. It also allowed Coca-Cola and other sponsors the opportunity to extend their brand beyond the TV screen, through merchandise, national tours and music sales. Coca-Cola's decision to end its partnership with "American Idol" signals another blow to the sagging TV show and closes a significant chapter in the cola wars.