ELI5: Why does Coca-cola still advertise?

[u/bigdubsy]

Why do companies that have seemingly maxed out on brand recognition still spend so much money on advertising? There is not a person watching TV who doesn't know about Pepsi/Coke. So it occurs to me that they cannot increase the awareness of their product or bring new customers to the product. Without creating new customers, isn't advertisement a waste of money?

I understand that they need to advertise new products, but oftentimes, it's not a new product featured in a TV commercial.

The big soda companies are the best example I can think of.

Edit: Answered. Thanks everyone!

Edit 2: Thanks again to everybody for the discussions! I learned alot more than I expected. If we weren't all strangers on the internet, I'd buy everyone a Pepsi.

[u/bigdubsy]

I think this "filling in the gap" is the factor I didn't think of. Just because there are only 2 dominant brands, does not mean that others cannot get a share. So if Coke stopped advertising, Faygo (shoutout to my favorite regional brand) might be able to increase their ad budget and grab a higher market share. Given infinite time and money, perhaps there would eventually be as high of a demand for Faygo on store shelves as Coke.

I still doubt the ability to "convert" people away from their preferred soda. I know for a fact that I drink Pepsi because its what my parents bought my whole life. This is far more powerful than polar bears.

[u/HawkEyeTS → u/bigdubsy]

Ironically my parents to this day continue to buy Pepsi, but my taste buds have changed over the years to prefer Coke to the point that when I go somewhere with Pepsi as the only option, I'll drink Mt. Dew instead.

[u/bigdubsy → u/HawkEyeTS]

For what it's worth, Mountain Dew is a Pepsi product. Why do you like that over Mello Yello?

I don't drink cola often. So I often get mountain dew or sierra mist even if they do have Pepsi. Which brings to mind the fact that I have no preference between sierra mist and sprite. This is even further evidence that the cola war is only in our heads.

[u/HawkEyeTS → u/bigdubsy]

To be perfectly honest, I haven't had the option of drinking Mellow Yellow in most situations. The scenario I described before was with a choice of the standard Pepsi products, even if I might have wanted a cola, I'd drink Mountain Dew instead because I dislike Pepsi in comparison to Coke. Unfortunately Mellow Yellow isn't often found in restaurant/fast food soda machines, and when I buy bottles, I usually go for things I'm sure I'll like rather than experimenting.