Pepsi’s announcement that they will forego Super Bowl ads this year in favor of a planned, philanthropic-based microsite called the “Pepsi Refresh Project” is in many ways a revolutionary acknowledgment of how effective online engagement can be. What’s not revolutionary, however, is Pepsi’s plan of engagement. Early reports indicate that Pepsi will follow the growing trend of companies running vote-based contests that award money to good causes. Coming on the heels of Ralph Lauren’s “Match Rugby Fund” and the Case Foundation’s “America’s Giving Challenge” (where people “voted” with their dollars), the best example at the moment is the “Chase Community Giving” contest on Facebook. The contest boasted “tens of thousands” of non-profits competing for a spot in the Top 100 with a guaranteed $10,000 prize and a shot at $1million. Over 1 million fans have voted to date and Chase plans to distribute the balance of $5million in a second round featuring only the Top 100 starting in mid-January.

The model is simple: offer a huge cash prize to non-profits or social entrepreneurs who will then creatively, enthusiastically and relentless beat the bushes to win. It’s like creating a seemingly infinite amount of brand ambassadors virtually overnight. Chase competitors recently hit me up an incredible 9 times in one day via email and Facebook.

The question that haunts me (and one that the Pepsis of the world need to carefully consider) is whether people care more about Chase now than they did before the $5million was up for grabs. If the goal is to create buzz online then it’s probably been a success, but if the goal is more focused on their bottom line (like hoping people now or in the foreseeable future will choose Chase for their banking needs) then I’m afraid this will come up short.

Here’s a perhaps oversimplified reason why: of the “tens of thousands” of non-profits that competed in the Challenge, only a handful had any connection with Chase’s core business – banking. A quick scan of the $10,000 winners reveals groups like the “Cavalier Drum and Bugle Corps,” the “Phantom Regiment Drum and Bugle Corps,” and the “Feel Your Boobies Foundation.” I’m sure all are fine organizations, but why would Chase giving them $10,000 make me more loyal as a customer or motivate me to actually become a Chase customer? Wouldn’t a similar commitment exclusively to, say, microfinance organizations or New York City non-profits make more sense, though still only marginally interested in Chase? Without even getting into what I suspect is the main reason people choose their banks – convenience and interest rates – or the fact that hosting a free-for-all contest brings up problems like this, there is a huge strategic piece missing here. Unfortunately, that missing piece is critical if Chase hopes to receive a sustained, positive brand impact from their efforts.

Before succumbing to the economy, Advanta bank – a small business credit card company – developed ideablob.com as a forum for people to crowdsource new business ideas while competing for monthly $10,000 grants. As a special incentive, existing customer could win $20,000. Advanta generated an enormous amount of loyalty from existing customers and positive publicity in places that were relevant to our business, including  The Motley Fool, The New York Times small business section and the social entrepreneur-focused TriplePundit. We also partnered with Kiva during that time.

It’s very possible that Chase just felt like giving $5million away and was looking for a way to do it that was more engaging, fun and promised more publicity than just writing another check. Maybe they just wanted to give money away without worrying about “maximizing” ROI. If that’s the case, then I can appreciate that. As a business accountable to shareholders and one with some slip ups in the recent past I don’t understand it, but I can appreciate it.

What has been your experience with the Chase Giving Challenge? Am I way off base? Are you more likely to become a Chase customer because of the Challenge? If you’re a Chase customer do you think of yourself as more loyal now?