Verizon FIOSIt’s the kind of relationship you

want to be in

December 12, 2012Anyarat Priyawat, Jana Petersen, Zeynep Tiryaki, Ye Li

Roadmap for today’s

presentation

• Market analysis

• Marketing objective & target audience

• Big Idea

• The path to woo (and media and creative to support)

Is telecommunications a product or a service?

What industry providers say ….

PRODUCT

XFINITY is instant entertainment and connection – anywhere, anytime, on any screen.

XFINITY Internet: Stream the fastest Internet. The future of awesome.

Time Warner: Come home to a world of entertainment waiting for you. From your TV to your tablet, you can enjoy what you want, like never before.

RCN: When you come home to RCN, you’re connecting to a competitive digital entertainment provider that is committed to bringing customers the best quality digital cable TV, high-speed internet, and phone bundles.

But product features fall to deaf ears

They are hard to deal with.“Cable companies are about as fun to deal with as your parents’ divorce.”

They lie. “They never honored the original quoted price, promised by several people.”

They don’t listen.“They had a total of 9 service calls to my house, 51 emails, 3 faxes, a certified letter, and 31 tweets. No discounts.”

They are all like this. “I guess I should just be happy I have TV service though because it’s Comcast.”

They are not reliable.“Comcast missed three appointments and didn’t even bother to show up until someone from executive customer service dispatched three techs directly to my house.”

They make me wait. “We waited for a cable guy for seven weeks. I don’t think we’d go back to Cox.”

Leaving us, a disjointed reality and unrealized potential

Core benefit: Internet, cable, phone

Basic product: Cable box, remote, phone

Expected product: Fast and reliable Internet and cable

Augmented product: Benefits ++

Potential product: Benefits +

Verizon FIOS coverage area

FIOS Coverage Area

FiOS Other

Verizon FIOS coverage is limited

14% (42M)86%

FiOS: Who is in and where?

42 million are covered by FiOS across ….

18 states plus D.C., including:

California Connecticut

Delaware Oregon

Florida Texas

Indiana Virginia

New York Washington

New Jersey S.C.

Maine Rhode Island

Massachusetts Pennsylvania

Meet our target market: Me and YouDemographics Men & women Ages 25-35 Make average $80k/year Employed; established in career College graduates; post-grad education

Behavioristic Purchase occasion summer/early fall Seek convenience & value Non-user, potential user Minimal awareness of FIOS

Target insights Jaded by negative experiences with cable companies Receptive to change Value convenience and quick service Have grown up with web, technology, and social media Financially independent

Psychographics Ambitious Gregarious and social Like to be ‘in the know’ Connectors & salesmen Employed; established in

career College graduates and post-

grad education

Geographic Northeast: Boston, NYC,

Providence. Mid-atlantic: Philadelphia, Washington, D.C. West Coast: LA, Seattle, Portland

Urban & suburban

IOS

What does an otherwise large target share?

The pursuit of a good relationship:

Love Humor

Reliability Faithfulness

Presence Transparency

Entertainment Good communication

Responsiveness Patience

Trust Good listening

Fun Honesty

One where product meets service to deliver the full package

Core benefit: Internet, cable, phone

Basic product: Cable box, remote, phone

Expected product: Fast and reliable Internet and cable

Augmented product: Benefits ++

Potential product: Benefits +

Our marketing objective

Strategies to support objective: Make prospects aware of FIOS Engage through benefits Lead to active consideration

Our main focus: 33.6M prospects

FIOS

To PERSUADE customers of other cable/internet providers to SWITCH to Verizon FIOS FOR CABLE/INTERNET.

So, what do we say? The Big Idea

“Verizon FIOS: It’s the kind of relationship you want to be

in.”FIOS

How do we communicate it?

Break-up (current provider)

Date (FIOS)

Meet the parents

Marry

And how & where are we going to say it?

GO BIG: BE where love interest is Market fragmentation (for our target in particular) has never

been higher. Must reach target where they are.

Where is audience PRESENT?

GO TARGETED: Target based on relationship positioning

What does audience see / hear / do / feel when they think of relationship?

Matching to objectives: The path to woo

Message

Media

Break-up (with current

provider)Date

“Meet the parents”

Propose & marry

OOHTV

Digital

PrintOOH

Social mediaEvent

DigitalDirect

marketingIn-store

Awareness Engagement Consideration Purchase

Goals

www.Verizon.fios/mykindofrelationship

We’re interested in you. Will you take a chance on us?

Verizon FIOS: It’s the kind of relationship you want to be in

Meet us Get to know us Take a chance

Let us prove it. Get connected with a customer service rep to learn more about the TV/cable packages we offer. This could be the start of something great.

We are … Good listeners, responsive, and transparent;Entertaining;Fast and reliable; an all-around better package than your current provider.

Name: Verizon FIOSLocation: Click here to see if you’re covered. Interested in: Delivering good customer service, reliability, entertainment, fiber optics, and high speed.

Phase 1: Awareness February-April

What to say: Break-up with your current provider – “It could be so much better.”

Where to say it: OOH TV Digital

Break-up (with current provider)

OOHTVDigital

Awareness

Goal

Message

Media

Campaign kick-off: You deserve better

Valentine’s Day: February 14, 2013

Locations: NYC, Boston, D.C., Philadelphia

Goal: Increase awareness

Message: You deserve better

Distribution spots: Times Square (NY), Beacon Hill/Boston Common (MA), Love Park (PA), DuPont Circle (Washington, DC)

FIOS

Creative execution for “You Deserve Better”

Does this box of chocolates remind you of your own relationship – unfulfilled and unsatisfied?

This Valentine’s Day, isn’t it time you found someone who meets all of your needs?

This break-up is sponsored by Verizon FIOS.

OOH Placement: Awareness

GO BIG: Spotlight on NYC

Locations with HIGH traffic: Times Square

Subway cars (L, 4/5/6, 1/2/3)

Highways leading into city: FDR Drive, West Side Highway

Movie theaters, with focus on movies related to love / Valentine’s Day (Feb 2013, during kick-off period)

Taxi cabs

Other cities: PhiladelphiaBostonLAWashington, DCPortland (OR)Providence (RI)

OOH Creative Execution #1: Billboards

Additional variations onbillboards BENEFIT: ENTERTAINMENT

We never try anything new anymore.This break-up is sponsored by Verizon FIOS.

BENEFIT: SPEEDI hate not being able to depend on you.ORIt's so hard to reach you--I'm done with long distance.This break-up is sponsored by Verizon FIOS.

BENEFIT: ALL-AROUNDYou're just NOT meeting my needs.This break-up is sponsored by Verizon FIOS.

OOH Creative Execution #2: Subways

OOH Creative Execution #2: Subways

FIOSReliability

Speed

Presence

We know you demand it – and it’s not too much to ask.

Verizon FIOS: It’s the kind of relationship you want to be in.

www.verizonFIOS/mykindofrelationship

TV and digital strategy to communicate ‘break up’Position FIOS benefits against what generally

characterizes ‘bad relationships’

Our display ads and commercials feature four benefits:

(1) Customer service

(2) Entertainment

(3) Speed (fiber-optics)

(4) Benefits as a ‘package’

“Just ain’t workin out” byMayer Hawthorne

Don´t want you to be sad girlDon´t want you to be afraidI know that will you understand my waysOne day! (oooh)No need to be upset girlPlease don´t scream and shoutI know that you were hearing wedding bellsBut I´m sorryCause it just ain´t working out

Mayer Hawthorne, Musician

Benefit #1: Reliable and responsive customer service

I feel like you’re not listening to me.

Why is it so hard for you to answer the phone when I call?

You’re testing my patience.

The benefit of being in an exclusive relationship is that you don’t have to compete for attention.

The customer service reps at Verizon FIOS want to get to know YOU.

You deserve better.

Verizon FIOS: It’s the kind of relationship you want to be in.

Benefit #2: Entertainment

We never try anything new anymore.

Verizon FIOS offers up to 130 HDTV channels, 530 all-digital channels, 36 commercial-free music stations, and more than

30,000 On Demand titles per month.

Get out of the rut.

Verizon FIOS: It’s the kind of relationship you want to be in.

Benefit #3: Fast and reliable speed

I hate not being able to depend on you.

Long distance sucks. I feel like I spend more time waiting for my computer to buffer than speaking to you.

Verizon FIOS’ fiber-optic speed is the fastest and most reliable in the nation. So you don’t have to

wait to be with the people & things you love.

Isn’t it time you found someone who meets your needs?

Verizon FIOS: It’s the kind of relationship you want to be in.

Benefit #4: All-around better relationship

The problem with our relationship is, we’re in one.

You’re just not meeting my needs.

Verizon FIOS provides the speed, customer service, and entertainment that’d make anyone re-evaluate.

What are you waiting for?

Verizon FIOS: It’s the kind of relationship you want to be in.

Media strategy for TV

PRIMARY media consumption insight for our audience: Audience increasingly catches favorite shows on their terms (through platforms like Netflix, Hulu, Amazon Prime).

Accounting for this, our strategy deploys THE FOLLOWING TACTICS:

(1)GO BIG on shows that our audience watches LIVE

With STRONG support via online platforms like Hulu

(2) TARGET shows and networks that use relationship theme

OTHER SUPPORTING TACTICS:

15 second spots & high frequency

Lesson #1: BE where your love interest is (Go BIG!)

American Idol

The Voice

So You Think You Can Dance

NFL, MLB, NBA

New Girl

The Daily Show

The Colbert Report

Saturday Night Live

Parks and Recreation

Lesson #2: TARGET

Along for the Bride (TLC)

How I Met Your Mother (FOX)

Say Yes to the Dress (TLC)

Keeping up with the Kardashians (Bravo)

The Bachelor & Bachelorette (ABC)

Real Housewives (Bravo)

Millionaire Matchmaker (Bravo)

Courtney and Kim take New York (Bravo)

Sex and the City (Syndicated)

Display Ad #1: Customer service

It just ain’t gonna work out

You don’t return my phone calls.

Display Ad #2: Entertainment

But I just don’t feel the same.

I’m sorry, it just ain’t working

out.

We’ve just been in a rut for too

long.

This break-up is sponsored by

VERIZON FiOS > You deserve a better

relationship. Get to know us.

Display Ad #3: Speed

But I’m sorry, it just ain’t working outThis break-up is

sponsored by VERIZON FIOS

> You deserve a better relationship. Get to know us.

I hate not being able to depend on

you.

Display Ad #4: All-around better

You’re just not meeting my needs.

This break-up is sponsored by

Verizon FIOS

> Get to know us

I’m sorry, it just ain’t gonna work out

Digital: Media Strategy

GO BIG

Web portals: google.com, aol.com, msn.com, yahoo.com, about.com Shopping: Amazon.com, Target.com, Bestbuy.com News: nytimes.com, cnn.com, usatoday.com, slate.com, jezebel.com, gawker.com, huffingtonpost.com Sports: espn.com, nba.com, nfl.com, deadspin.com Gossip: People.com, glamour.com, cosmopolitan.com, usweekly.com

GO TARGETED

Dating websites: match.com, zoosk.com, eharmony.com, plentyoffish.com, chemistry.com

Keyword strategy: Awareness

Break-up stage: Relationship, love, hate, dating, boyfriend, girlfriend, break up, trust, reliability, consistency, entertainment

Awareness: Measuring successTelevision

25% reach (ages 25 to 35); 30% audience share

High frequency campaign: >100 GRPs

CPR (cost per rating)

Digital

Primary: Impressions

CPM

Secondary: # click-throughs to landing page

OOH

Impressions, GRPs

Dwell time

The bottom line: Buzz (measured against cost)

Phase 2: Engagement April-June

What to say: Showcase benefits in a fun and interactive way, lead people to landing page: verizonFIOS/mykindofrelationship

Where to say it: Print OOH Social media Sponsorship: Speed dating

Date

Print OOHSocial mediaSponsorship

Engagement

Goal

Message

Media

Print Media StrategyFIOS

GO BIGNYTIMES, Washington Post, WSJ, LA Times, USA Today,

People Magazine, Sports Illustrated, GQ, Rolling Stone, COSMO, US Weekly, Glamour, Allure, Vogue, Newsweek

TARGETED placement strategy of ads in magazinesNear classified ads (newspapers), next to quizzes (Cosmo & Glamour)

Print Ad #1: Customer service (Quiz)

What are you waiting for? Verizon.fios/mykindofrelationship

How often does he pick up the phone when you call?

Does he listen to you?

Does he return your calls?

Does he meet your needs?

The benefit of being in an exclusive relationship is that you don’t have to compete for attention.

How to know: Are YOU in the right relationship?

Print Ad #2: Entertainment (Word Search)

What are you waiting for? Verizon.fios/mykindofrelationship

530 channels 36 commercial free channels 30,000 on demand HDTV

Did we mention fiber-optic speed and 3D ESPN?

J O F C S D F Z K P Q F M I W N Z T E I B P G Y E I O E H D T V S C R A B C Q W S S D W J Z A X D B B P F E D N P G A G C F I H3 6 J A E B R P N H T R B I 5 UF F I E Z X I F 0 F I T Y W 3 P3 0 0 0 0 B V N W U O A X I 0 G

….So you don’t have to resort to a word search puzzle on a Saturday night.

Entertainment IS the kind of relationship you want to be in, and Verizon FIOS has got it all to offer.

Print Ad #3: Speed

Relationships are tough when you’re looking at screens like these, and saying things like –

“Hey, can you repeat that?”

“Sorry, hold on, computer’s still loading.”

“You keep breaking up.”

Talk about the things you love with the people who matter.

Verizon FIOS’ fiber-optic cable provides the fastest and most reliable speed in the nation so you don’t have to BREAK UP on account of your Internet connection.

What are you waiting for? Verizon.fios/mykindofrelationship

Print Ad #4: All-around

These days, it can be hard to find long-lasting love.

Britney Spears and Jason Alexander were married for 48 hours. Terrell Owens signed a contract to play for the Seahawks on August 6; on August 26, the Seahawks released him. Kim Kardashian and Kris Humphries were married for 73 days. Dennis Rodman and Carmen Electra were married for 9 days.

Not with us. We are in it for LONG HAUL.

Verizon FIOS: It’s the kind of relationship you want to be in.

What are you waiting for? Verizon.fios/mykindofrelationship

OOH: Interactive mood boardOBJECTIVE: Showcase the benefits of FIOS. Build customer – brand engagement through a channel that reflects entertainment and technology.

LOCATION: NYC, Time Square TKTS steps (‘flagship’ locations in other cities)

About the Interactive Mood Board: People within the Wi-Fi area (Broadway & 40 St to

45 St) will be prompted to a landing page with option to animate board with a phrase / response to the given topic on the monitor.

Each comment will be on the screen for 5 seconds

OOH: Interactive mood board execution

OOH: Internet hot spots

OBJECTIVE: Showcase the benefits of FIOS. Customer – brand engagement through a channel that reflects fast internet speed and ‘fun.’

LOCATION: Locations that couples frequent Spotlight on NYC: High Line Park, Central Park

Fountain

FIOS

Hot spot: High Line creative execution

Hot spot: High Line Creative Execution Cont’d

Hot Spot: High Line Creative Execution Cont’d

Hot Spot: High Line Creative Execution Cont’d

Social Media

Twitter & Instagram

Why? Apps are implicitly connected. Easy to link one to the other. Campaign is visual. To be in a good relationship, must be

PRESENT. Demographic increasingly active on Twitter.

#mykindofrelationship

#mykindofrelationship

Speed Dating: Sponsored by Verizon FIOS

OBJECTIVE: Build customer-brand engagement

MESSAGE: To offer a best-in-class dating experience that demonstrates that FIOS sets the stage for the kind of relationship you want to be in. Hosted by Patti Stanger of Millionaire Matchmaker.

TIMING: April 2013

LOCATION: New York: Standard Hotel

Speed Dating: Event pitch

Communicating the benefits through the experience

Customer service Prior to event, every registrant receives a toolkit with instructions on how to download mobile app, love tips, dating guide for NYC

Entertainment Able to send message via mobile app to any participants before/during/after actual conversation

Speed 5 minutes to spill!

Package Customer service, perks, entertainment, and speed make it the ideal setting to meet the one.

Speed Dating: Recruitment

1. RECRUITMENT Acquire list of prospects (purchase response & compiled

lists) Send personal email invitation from Patti Stanger of

Millionaire Matchmaker OOH: Billboards in areas highly-trafficked by singles

Be where SINGLES go Meat Packing Lower East Side Williamsburg

Speed Dating: Recruitmentexecution

FIOSSpeed Dating:Discover the relationship you deserve

“Being single isn’t bad; what’s bad is giving up hope on finding that special someone”

Verizon FIOS alongside Patti Stanger is excited to host NYC’s

fastest and funnest Speed Dating event on April 25 at the

Standard Hotel.

What’s involved? - New people

- Fun atmosphere - More love tips than you can

handle …..

And possibly a new relationship

Agenda

Register

Send to a friend

Verizon FIOS: It’s the kind of relationship you want to be in

Speed Dating: Event Layout

1. REGISTRATION Once RSVP, registrants will receive detailed instructions on

app download corresponding to the event and other logistics. With app, can upload photo and fill out standard information

to begin to view profiles of other participants; receive love tips; get list of hot dating places in NYC and promotions that correspond to those places.

3. DURING THE EVENT Speed Dating total time: 3 Hours Lectures by Patti Stanger, “Tricks of the trade” & what

makes people successful on finding the one Twitter: #FIOSspeeddating

Supporting mobile applicationFirst feature: “Love Advisor”

Tips based on relationship stage (populated by Millionaire Matchmaker):

Interest: How to make him like me?

First date: What to wear/where to go

Meeting the parents: How to prep

Break-up: Is it worth it? Is he into me?

Supporting applicationSecond feature: Dating Kit & promotions

WHAT IS IT?: Feature that updates the top rated and dating spots and activities and offers weekly promotions/deals corresponding to places that we think facilitate good relationships (NYC & beyond)

“I’m looking for a fancy restaurant in Soho to go on a first date. Where should I go?”

Engagement: Measuring successPrint

Recall: 35%

Recognition: 60%

Tracking to landing page

Speed Dating

Number of attendees

Number of mobile app downloads

Social media

Twitter: # replies, retweets, favorites, follows

Instagram: #users using hashtag

OOH

# Impressions, GRPs

# Users to campaign landing page from hotspot

# posts to Mood Board

The bottom line: Traffic to landing page

Phase 3: Active considerationJune - August

What to say: Directly connect the benefits to FIOS Customer service Entertainment Speed Benefits as a ‘package’

Where to say it: DIGITAL: (1) On websites that inherently

validate the need (2) On websites that catch people looking for more information or reviewing products

DIRECT MAIL

“Meet the parents”

Digital Direct marketing

Consideration

Goal

Message

Media

Where do people need high speed? Hulu.com, Netflix.com, Spotify, Pandora, ign.com, gamespot.com, cheatcc.com

Where do people complain about service? (editorial banner) Community Forums and boards: dslreports.com; community section of IMDB; 4chen forum; IGN boards

Where do people review products? Consumerreports.com, yelp.com, citysearch.com, merchantcircle.com, insider pages

Where do people ask about products? (editorial banner) Q and A: ask answer, yahoo answer, answer.com

Digital media placement

Our undivided attention

Endless entertainment

Fiber-optic speed so you can

spend more time with the people and things you LOVE

It's not just

one.

It's the

whole

package.

Verizon FIOSIt's the kind of

relationship you want to be in

> What are you waiting for? Learn

more.

Our undivided attention

Endless entertainment

Fiber-optic speed so you can

spend more time with the people and things you LOVE

It's not just

one.

It's the

whole

package.

Verizon FIOSIt's the kind of

relationship you want to be in

>What are you waiting for? Learn

more.

Keyword strategy: Active consideration

“Meet the parents” stage: FIOS, FIOS cable, FIOS internet, high speed internet, time warner, Comcast, cable service provider, best fiber optic, best customer service, fast installation

Direct mail strategy What?

- Content: Reason to reach out is summary of Speed Dating event

Who receives it?- 1st segment: Speed dating event attendees- 2nd segment: Those in target who didn’t attend (NYC

local and national): Purchase response list and compiled list.

What do we say?Attendees: “So happy you attended. To demonstrate

commitment to starting off good relationships well, offering to waive installation fee if you sign within next month.”

The rest of our world: “We are doing something new and different here at Verizon FIOS. Creating the kind of

relationship you deserve. Insert brief description of event and then offer to waive installation fee.”

Direct mail: Language

We hope you had fun at last week’s speed dating event!

FIOS offers the customer service, vast selection of channels and entertainment options, and fiber-optic speed that we believe makes for the kind of relationship you deserve.

To demonstrate our commitment to you, we want to offer you the opportunity to have installation fees waived should you sign on within the next month.

We have enclosed a few snapshots of the event! Enjoy!

We hope this is the beginning of something great. You can visit www.verizonFIOS/mykindofrelationship to learn more about our offerings.

Best,The FIOS team

A piece of heart-shaped mail from a national cable/internet/phone provider? We admit – it’s a rare – extremely rare and seemingly unfit – occasion.

But it’s because we are doing something totally new at Verizon FIOS. In a world of short-lived and tumultuous personal relationships, we have taken a renewed focus on what comprises good relationships so that we can deliver the BEST kind of relationship to our customers.

Responsiveness. Reliability. Entertainment. Fiber-optic speed. Just a few traits that make FIOS the kind of relationship you want to be in. To demonstrate our commitment in creating an environment that provides the best kind of relationship, last week we sponsored a speed dating event with Patti Granger, host of Millionaire Matchmaker. We have included some additional information on the kind of relationship Verizon FIOS is offering to its customers. To demonstrate our commitment to you, we want to offer you the opportunity to have installation fees waived should you sign on within the next month.

{IN SHAPE OF HEART}

EVENT ATTENDEES REST OF TARGET

Active consideration: Measuring successDigital

Number of click-throughs to the landing page

Direct mail

Number of hits to landing page following mail piece

Number of phone calls inquiring about service

The bottom line: Sales

Projected campaign budget

Projected budget 2013

OOHDirect market-ingSponsorshipTVPrintDigital

OOH

DIRECT MARKET-ING

SPONSORSHIP

TV

PRINT

DIGI-TAL

SM

Social media

How it all comes together ….

February

March April May June July August

TV

Digital

OOH

Print

OOH

Social Media

Event

Digital

Direct Marketing

Awareness

Engagement

Active Consideration

All roads lead to …The right kind of relationship

FIOS

Works Cited Jenks, Jared. “Demographic Profile – Millennials.” eMarketer. 9 May 2011.

Keeter, Scott and Taylor, Paul. “Millennials: Confident, Connected, and Open to Change.” Pew Research Center: 1 – 113. February 2010.

Loechner, Jack. "Newspaper Websites Reach Key Demographics With High Quality Journalism,” Mediapostblog. 9 February 2011.

Lulofs, Neal. “The Top U.S. Newspapers for March 2012.” The Audit Bureau of Circulations. 1 May 2012.

“Sports fans Go Digital to Get Their Post-game Fix,” eMarketer, n.p. July 5 2012.

Stelter, Brian. “Media Decoder: With Verizon’s $3.6 Billion Deal, Cable and Wireless Inch Closer.” The New York Times. 3 December 2011.

Quantcast, quantcast corporation, n.p. 2012

Verizon.com. Verizon. Web. 20 October 2012.