In November 1983, Jackson and his brothers partnered with PepsiCo in a $5 million promotional deal that broke records for a celebrity endorsement. The first Pepsi campaign, which ran in the US from 1983 to 1984 and launched its "New Generation" theme, included tour sponsorship, public relations events, and in-store displays. Jackson helped to create the advertisement, and suggested using his song "Billie Jean", with revised lyrics, as its jingle.

On January 27, 1984, Michael and other members of the Jacksons filmed a Pepsi commercial overseen by Phil Dusenberry, a BBDO ad agency executive, and Alan Pottasch, Pepsi's Worldwide Creative Director, at the Shrine Auditorium in Los Angeles. During a simulated concert before a full house of fans, pyrotechnics accidentally set Jackson's hair on fire, causing second-degree burns to his scalp. Jackson underwent treatment to hide the scars and had his third rhinoplasty shortly thereafter. Pepsi settled out of court, and Jackson donated the $1.5 million settlement to the Brotman Medical Center in Culver City, California; its Michael Jackson Burn Center is named in his honor. Jackson signed a second agreement with Pepsi in the late 1980s for $10 million.

The second campaign covered 20 countries and provided financial support for Jackson's Bad album and 1987–88 world tour. Jackson had endorsements and advertising deals with other companies, such as LA Gear, Suzuki, and Sony, but none were as significant as his deals with Pepsi.

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