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Table of contents Our Team:

Courtney Bernstein Jared Fox Katherine Kahn Nomi Kaplan Julie Kern Michelle Kordahi Emma Kruger Virginia Laird Carolina Leite Kyle Murphy Kelechi Okengwu Farah Rahman NĂŠha Shah Robert Skenes Katie Steiner Charlie Weisman Josh Yeston

Our Campaign:

Executive Summary

2

Research Research Methods

3

SWOT Analysis

4

Key Insights

5

Target Market

6

Objectives

7

Creative

ve rt is in g Ca p it o l A d p rin g 2010 GW U - S

Professor: Gina Myers Faculty Advisor: Lynda Maddox Special Thanks: Darshan Mehta

Big Idea

9

Creative Strategy

10

Media Objectives and Plan

12

Campaign Rollout

13

Print

14

Digital

15

Video Ads

16

Your Life. Your Events.

17

Guerilla

21

Your Life. Your Rewards.

23

Microsite

24

Sponsorships

25

Partnerships

26

Capitol Advertising is proud to present Your Life. Your Policy.

Metrics Accountability

27

Our innovative campaign is based on extensive research and insights. We engage Young Adults with creative executions and leverage our budget through viral media and partnerships.

Budget & Media Flow Chart

28

Five Year Plan

29

We look forward to meeting and working with you!

Sources

32

Long-Term Plan

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Executive summary Your Life. Your Policy. rises above the artificial price war by educating Young Adults to choose insurance based on value, a personalized policy that fits their needs. Constant low price messaging from competitors has conditioned consumers to shop for the cheapest quote, not the right coverage. Your Life. Your Policy. carves out a niche for State Farm as the leader in personalized policies. Your Life. Your Policy. • Attracts diverse Young Adults through positive, relatable experiences • Educates Young Adults on how State Farm Agents personalize policies to fit their individual needs • Encourages Young Adults to purchase State Farm Auto and Renters insurance • Reminds Young Adults that State Farm continues to personalize their policies as their needs change We segment the target market based on profitability, low risk, and long-term loyalty. Our campaign builds awareness and changes Young Adults’ perceptions of State Farm as they transition into ready-now buyers. Your Life. Your Policy. uses digital media, partners, and loyal customers to extend our budget. Guerilla marketing, contests, and campus events raise awareness and allow the target market to interact with our campaign. Through user-generated content and social media, our campaign takes on a life of its own, making it relatable and extendable. Your Life. Your Policy. connects individuality to personalized policies, recognizing that Your Life shapes Your Policy.

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research methods The Challenge Educate Young Adults about insurance

Change Young Adults’ perceptions of State Farm

ACHIEVE growth through new Young Adult policies

retain current Young Adult and Legacy State Farm customers

Guiding Research Questions • • • •

Which Young Adults are most profitable for State Farm? How do Young Adults perceive State Farm and the agent model? What factors are most important to Young Adults when considering insurance providers? What type of insurance messaging resonates with Young Adults while maintaining State Farm’s brand tone?

19,000+ h Researc Hours

217

In-Depth Interviews

4 Focus Groups

1,561

Sur Resp vey onse s

Your Po licy. Your Life.U R

O

BIG Idea

378

Crea tiv Testi e ng

We conducted secondary research on the insurance industry, target market, and past insurance ad campaigns. We spoke with Young Adults, insurance agents, landlords, and policemen, among others. We also conducted four online focus groups with Independent and Dependent Young Adults, with and without insurance. Results from our qualitative research led to our national survey and ultimately our big idea: Your Life. Your Policy.

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swot: State Farm STRENGTHS • • • •

Industry leader with high brand awareness Established brand image based on trust Agents personalize policies to individual needs Retain policyholders with excellent customer service

opportunities • Young Adults are receptive to positive, relatable messaging • Young Adults value personalization • Young Adults value the right amount of coverage to fit their needs • Position value as more than a cheap quote

weaknesses • Perceived as old-fashioned • Young Adults do not relate to current advertising. • Decreasing market share

threats • Young Adults view insurance as a commodity due to the artificial price war • High competition exists in the Young Adult insurance market • Brand icons distract Young Adults from making smart, value-based decisions

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key insights Young Adults: Value personalized policies that fit their needs. Are most likely to purchase insurance at life transitions, like graduation. View insurance as a commodity. Do NOT respond well to messaging that portrays negative situations, no matter how subtle. Are receptive to realistic, relatable, and humorous messages that inform them about insurance. AND Brand icons do NOT necessarily increase sales or build trust.

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target market Higher education leads to higher earning potential and less risk, making college and graduate students the most profitable Young Adults. The emphasis on price in insurance advertising conditions Young Adults to shop based on price. Your Life. Your Policy. differentiates State Farm by focusing on value. Educated Young Adults are most receptive to messaging about the added value of a personalized policy. Your Life. Your Policy. attracts and retains these profitable and loyal customers. Forward Thinkers Young Adults are most likely to purchase insurance at life transitions, making Forward Thinkers our ready-now buyers.

Primary

6 million of target population College Seniors

Graduate Students

This group spends their time planning their future and is eager to enter the real world. They view having a career, their own car, and apartment as the ultimate independence.

This group is striving to advance their careers and earn higher incomes. They are more mature and less risky, and many will purchase cars and homes upon graduation.

Secondary

Movers & Shakers

Segmentation strategy

13 million of target population These underclassmen are focused on school, extracurriculars, and their social lives. Most move off campus with friends. They do not understand insurance, but will listen to relevant and entertaining messaging. We build brand awareness now to ensure that State Farm is top-of-mind when they become Forward Thinkers.

Good Neighbors

Forward Thinkers

Tertiary

Good Neighbors 4.62 million of target population Excellent customer service and relationships with their Agents keep these current policyholders loyal to State Farm. They simply need to be reminded that State Farm is there for them and their changing needs. We retain them by making them feel like valued customers.

Movers & Shakers Over time, Your Life. Your Policy. grows State Farm’s customer base by engaging Young Adults at every stage in their lives. Movers & Shakers grow into Forward Thinkers, who become Good Neighbors after interacting with Your Life. Your Policy. Our segmentation works long-term, increasing profitability and loyalty. TM

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objectives communication

We want:

We remind:

to change their perceptions of State Farm from an old-fashioned brand to one that understands their unique needs.

90%

ALL Young Adults

60% 60% 99%

Forward Thinkers Movers & Shakers to know that State Farm Agents provide personalized policies. Good Neighbors

80% 60% 99%

Forward Thinkers Movers & Shakers to view State Farm as the leader in personalized insurance. Good Neighbors

99%

Good Neighbors

that State Farm

• Personalizes policies as their needs change. • Provides other products to fit their needs.

marketing We achieve:

18% increase in Young Adult Auto policies. 17% increase in Young Adult Renters policies. TM

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big idea Campaign Strategy

Your Life. Your Policy. changes Young Adults’ perceptions of State Farm from an old-fashioned brand to one that understands their unique needs. Our campaign carves out a niche for State Farm as the leader in personalized policies. Your Life. Your Policy. gets Young Adults thinking about insurance before they need it. While competitors focus on switch and save tactics, our campaign attracts smart and diverse Young Adults who want more than a cheap quote. Your Life. Your Policy. educates them about the value of a personalized policy and places State Farm above the artificial price war. Your Life. Your Policy. uses relatable scenarios to show Young Adults that their belongings are more than just material possessions; they provide experiences worth protecting. Our campaign shows that Your Life shapes Your Policy.

Young Adults value Personalization st a pa rt g m y f ir in t ra o c de 8/2009

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Campaign Positioning

Your Life. Your Policy. highlights the ability to build a personalized policy with a State Farm Agent, encouraging decisions based on value, not price. Price-centric insurance advertising focuses on cheap quotes, creating the perception that insurance is a commodity. Though price-conscious, Young Adults are willing to pay more for added value, like the ability to personalize. They choose value over price for items like laptops, cars, and even coffee. Your Life. Your Policy. educates them about the added value of a personalized policy from State Farm. TM

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creative strategy Young Adults love remembering fun times in their lives, like taking road trips with friends or cooking in their first apartments. Your Life. Your Policy. captures these moments with print and digital executions that spread virally and drive Young Adults to our campaign Microsite. There, they interact with user-generated content and connect with local State Farm Agents. Your Life. Your Policy. uses messaging that shows Young Adults having a good time, creating a relatable and extendable campaign.

CREATIVE ROLLOUT Our eye-catching print and innovative executions drive Young Adults to www.YourLifeYourPolicy.com where they learn more about State Farm and our campaign. The Microsite, our campaign hub, enables our target market to constantly receive, absorb, create, and broadcast every aspect of Your Life. Your Policy. Young Adults become immersed in the brand, making State Farm top-of-mind. Young Adults interact with our campaign in three stages:

attention

engagement

response

Our print ads, rich media banners, and video ads attract and drive Young Adults to our contests, events, and Microsite.

Young Adults interact with our campaign by downloading applications, attending events, entering contests, and creating their own content. This will virally drive our campaign.

Young Adults relate to the positive experiences in our ads, recognize their need for insurance, and contact their Agents to create personalized policies. Good Neighbors recognize they have the perfect policy.

ATTENTION

ENGAGEMENT

RESPONSE

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creative testing After conducting 378 in-depth interviews, our research revealed Young Adults prefer advertisements that: • Highlight their individuality • Feature realistic situations • Teach them something new in a relatable way • Feature people their age • Use vivid imagery • Show positive, memorable experiences Your Life. Your Policy. does exactly that. The images show relatable experiences and evoke nostalgia, while the copy relates insurable objects to positive experiences. Our ads subtly educate Young Adults in a non-threatening way. Using two photos in each ad tested best for the Your Life. Your Policy. campaign. The background photo is a familiar and realistic setting. The polaroid draws viewers in by showing an identifiable experience. In our creative testing we received overwhelming approval:

“State Farm knows I’m different and will make a policy for my needs.” — ­ Mark “I LOVE the Polaroid picture - my friend and I actually did this last weekend.” — Laura

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Traditional $14,705,000.00 Non-Traditional $11,403,300.00 Digital/Social $11,632,500.00 Guerilla $12,575,000.00 Sponsorships $2,120,000.00 Other $1,052,500.00

media objectives and plan Your Life. Your Policy. targets Young Adults across the country through traditional and non-traditional media tactics. Chart 1

Media Budget:

Your Life. Your Policy. reaches:

4%

• 95% of Forward Thinkers 852 times/year. • 90% of Movers & Shakers 415 times/year. • 99% of Good Neighbors 200 times/year.

27% 24%

We leverage our partners to extend our budget by $13.5M and reach 29.9 million Young Adults.

Media Density Chart:

22% 21%

Traditional:

Campaign Media Density

2%

Traditional Guerilla

Non-Traditional Sponsorships

Digital/Social Other

Print ads build awareness and drive our target market to www.YourLifeYourPolicy.com and State Farm Agents.

Non-Traditional:

Spring Break

Winter Break

Graduation

Guerilla marketing, special events, and contests engage Young Adults through various passion points, creating PR buzz. Our iPhone application also increases interaction between Your Life. Your Policy. and Young Adults.

Digital & Social Media:

Young Adults thrive on being connected to each other, making our Microsite and innovative digital media executions essential to evolving and spreading our campaign.

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campaign rollout Your Life. Your Policy. reaches all Young Adults through print, digital, and guerilla advertising. Our campaign launches events and contests at 100 of the most influential college campuses. These tactics engage students and their local communities, generate PR, and raise campaign awareness across the nation.

Arizona State ▪ Boston University ▪ Brigham Young University ▪ California State University, Fullerton ▪ Florida State University ▪ The George Washington University ▪ Indiana University ▪ Iowa State ▪ Louisiana State ▪ Michigan State ▪ New York University ▪ North Carolina State University ▪ Ohio State Oklahoma State ▪ Oregon State University ▪ Pennsylvania State ▪ Purdue University ▪ Rutgers University, New Brunswick ▪ San Diego State ▪ Temple University ▪ Texas A&M ▪ University of Buffalo ▪ University of Central Florida ▪ University of Colorado, Boulder ▪ University of Connecticut ▪ University of California, Berkley ▪ University of California, Los Angeles ▪ University of Delaware ▪ University of Florida ▪ University of Illinois ▪ University of Kansas University of Maryland ▪ University of Massachusetts, Amherst ▪ University of Michigan ▪ University of Minnesota ▪ University of Missouri ▪ University of Nebraska ▪ University of New Mexico ▪ University of North Texas ▪ University of Pittsburg ▪ University of South Carolina ▪ University of Washington University of Wisconsin ▪ Virginia Commonwealth University...

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print

Print Ads:

Magazines, posters, newspaper ads, and shuttle wraps promote Your Life. Your Policy. Ads are placed in popular publications and high traffic areas around college campuses to raise campaign awareness and initiate buzz.

This works because: The images and copy equate Young Adults’ material possessions to experiences worth protecting. The Your Life. Your Policy. tagline highlights the added value State Farm provides through personalized policies. The call-to-action directs them to an Agent. TM

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DIGITAL Rich Media Banners

Social Media

Ads are strategically placed on high-traffic websites that Young Adults visit, such as www.ESPN.com. The ads incorporate the site’s overall theme, and highlight our target market’s personal interests and experiences.

Young Adults are avid users of social networks with 89% interacting daily. Our campaign creates viral buzz through two-way conversations with Young Adults on social media.

Twitter

#YLYP (Your Life. Your Policy.) allows State Farm to track tweets and send our followers information about our campaign and upcoming events.

Facebook Fan Page

The Your Life. Your Policy. Fan Page links to our Microsite and features downloadable posters, videos, and campaign information.

YouTube Channel

Your Life. Your Policy. video ads, webisodes, and contest entries are uploaded from our Microsite. Young Adults browse videos, comment, and share content with friends.

senior starter app Our iPhone App provides helpful advice on finding apartments, roommates, and cars. Young Adults access our App when they are ready-now buyers.

This works because: Our Senior Starter App shows State Farm is there during life transitions. This easily accessible application contains information relevant to college seniors transitioning into the “real world.” TM

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Video ads Your Life. Your Policy. video ads show Young Adults making memories in their cars and apartments.

Your Life. Your Policy. TM

my first date

Barrett picks up Farah.

Farah says: “Thanks for the ride, you’re such a good friend! Did you hear that Gabby—”

After a brief pause, Farah romantically snuggles up to Barrett.

“You look really pretty,” Barrett quickly interrupts.

is there.

click here to

Personalize.

Barrett plays Barry White music.

Campaign tagline appears, directing to Microsite.

Camera flashes and Polaroid sounds as the frame turns into a Polaroid.

Young male voiceover: “I don’t just insure my car, I insure I avoid the friend zone. Talk to a State Farm Agent today to personalize your policy.”

Video ads on Hulu play during popular shows that Young Adults watch, such as The Office, Gossip Girl, Glee, and 30 Rock. Radio spots on Pandora encourage Young Adults to personalize their radio stations and visit www.YourLifeYourPolicy.com.

Video ads and rich media banners are displayed on MTV.com.

This works because: Young Adults love watching funny content online and sharing it with friends. They relate to these scenarios and understand that State Farm can accommodate their unique insurance needs. TM

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Your life. your events. Your Life. Your Events. is a series of contests and events that engage Young Adults with our campaign. We leverage partners to increase our reach. Young Adults generate free PR for State Farm by tweeting, posting, and sharing contest entries and event information through their extensive social networks. Your Life. Your Events. is extendable and relatable, and reminds Young Adults of the unforgettable experiences they have in their cars and apartments.

Your Life. Your Spotlight.

Your Life. Your Road Trip.

Your Life. Your Band.

Your Life. Your Move in.

Creates a social media phenomenon that allows Young Adults to broadcast themselves and generates unprecedented buzz for State Farm.

Invites student performers to achieve local fame through a battle of the bands.

Draws Young Adults to our Microsite through an innovative application that assists in building their road trip adventures.

Builds trust with students, parents, and colleges as Young Adults move into their new home away from home.

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your life. your spotlight. Your Life. Your Spotlight. is a viral video contest that captures Young Adults’ positive experiences and generates unprecedented buzz for State Farm. We give Young Adults a platform to do something they already love—showcase user-generated content. Added incentives from our partners and the chance of Internet stardom make this a competition Young Adults won’t want to miss. The contest starts at the college-level, where clubs, teams, and groups of friends compete for the title of “Most Entertaining on Campus.” Each group has one week to capture their most hilarious moments with a Flip Video Camera, and upload the videos to www.YourLifeYourPolicy.com. Students will tweet, blog, text, email, and IM their friends to vote on their favorite video submissions. Campus winners receive gift cards to their favorite stores. These campus winners are also entered into the national competition for a chance to win a big concert at their school. The concert will broadcast live on mtvU, and commercial breaks will feature the top 20 user-generated videos. Participants can enter into categories to win branded partner awards: The Amp Energy Award Most energized moment

The mtvU Award Best homemade music video

PR

The Starbucks Shared Planet Award Most innovative way to reduce environmental footprint The Your School Award Most school spirit

This works because: Young Adults love reality TV and believe they could be the next big star. This contest gives them the opportunity to have their videos featured in our campaign, and allows them to share content through their social networks. Their colleges welcome the free PR. TM

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your life. your road trip. road trip app The Your Life. Your Road Trip. App, The Road Trip Builder, creates personalized road trip itineraries. Users calculate driving times and get suggestions for fun, quirky stops along the way. Young Adults can save their road trip and share it with friends through our Microsite.

road trip webisodes Your life. Your Road Trip. Webisodes selects two best friends for a one month adventure across the country. The lucky pair captures their experiences with Flip Video Cameras. Footage and photos depicted on interactive banner ads direct Young Adults to www.YourLifeYourPolicy.com. ome e re we c h , d n la G ra ce 6/25/10

!

On our Microsite, Young Adults can view webisodes and vote on quirky destinations the pair could visit, such as Foamhenge or Graceland. The Microsite goes viral as followers share and discuss videos on their social networks.

road trip contest The Your Life. Your Road Trip. Contest is a back-to-school promotion, where Young Adults submit their ideal itinerary for a chance to win the partner provided ultimate road trip package. Winners receive a Ford Fusion Hybrid, Garmin GPS, Flip Video Camera, and gas card. Contestants use their social networks to spread the word about our contest to get the most votes possible.

This works because: Your Life. Your Road Trip. promotes positive experiences with cars and engages Young Adults in our campaign’s message of personalization.

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campus events Your Life. Your band.

Your Life. Your Move in.

Your Life. Your Band. is a battle of the bands hosted at our targeted college campuses. Student bands will play on the Your Life. Your Policy. stage to compete for a chance to open for the Your Life. Your Spotlight. concert.

Your Life. Your Move In. reaches out to college freshmen during campus welcome weeks at select schools. State Farm representatives help students move in while answering questions about insurance. Our partners provide backto-school freebies such as branded laundry bags and thumbdrives. This raises brand awareness and shows State Farm is there to help.

YourLifeYourPolicy. com offers both live video streams of performances and downloadable songs.

PR

PR

This works because:

This works because:

Your Life. Your Band. shows that State Farm supports what Young Adults care about. It gives them a chance to be center stage, doing what they love. College campuses and Guitar Center will benefit from the free publicity generated by this contest.

State Farm’s helpful presence will resonate with Young Adults as they prepare for newfound independence. We target freshmen before they need insurance so State Farm is top of mind when they become ready-now buyers. TM

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Guerilla Your Life. Your study space.

Your Life. Your luck.

Your Life. Your Study Space. provides a comfortable environment during exam week where students can work. These spaces feature furniture from Target and refreshments from Starbucks and Amp Energy.

Senior Survival Guides educate students on insurance and prepare them for life after graduation. These guides drive them to our Microsite and are an excellent opportunity to capture Forward Thinkers before their upcoming life transition.

The Luck Truck is State Farm’s branded 18-wheeler. It tours the country, handing out giveaways from our partners and educating Young Adults about insurance. They anticipate the Luck Truck’s arrival, and will track its movements on our Microsite. When the Luck Truck rolls onto campus, Young Adults interact with State Farm representatives. They register on the Microsite for opportunities to win prizes

PR

This works because:

This works because:

Energizing snacks and a comfortable atmosphere alleviate stress during exams. This shows that State Farm is there for Young Adults and cares about their needs. Universities benefit by gaining extra study space.

The fun concept, massive crowd, and grand prizes will generate PR wherever the Luck Truck goes. Students will be drawn to Your Life. Your Luck. because of the exciting giveaways and the buzz around campus.

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Guerilla the big red chair

the PhotoBooth

The Big Red Chair is our entrance to our targeted college campuses. This oversized, State Farm branded red chair is placed in the middle of high-traffic areas to catch Young Adults’ attention. They will take pictures to text to their friends or share on social media.

Young Adults never pass up the chance to document fun times with their friends. Branded photobooths, strategically placed in high traffic areas, let them capture moments with friends. Each photo print-out includes a code to obtain digital copies of their snapshots from our Microsite. They share these pictures on Facebook, Twitter, and other social media.

s

This works because:

This works because:

This quirky chair sparks curiosity among Young Adults, generating buzz for our campaign. This will virally spread beyond our targeted campuses to other Young Adults across the country.

Young Adults love uploading pictures and broadcasting their lives on social media networks. Friends will comment on pictures and spread the buzz about Your Life. Your Policy. This will direct traffic to our Microsite and engage Young Adults in our contests and events. TM

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your life. your rewards. Your Life. Your Rewards.

Your Life. Your VIP Status.

Your Life. Your Rewards. is an incentive program designed to retain Good Neighbors. They earn points for being safe drivers, getting good grades, and participating in Your Life. Your Policy. Points are redeemable on our Microsite for giveaways from our partners. Information about Your Life. Your Rewards. can be found in printed bill inserts and online. The inserts will educate Good Neighbors about other State Farm products and bundling options.

Good neighbors earn VIP status once they obtain a certain number of reward points. Their State Farm VIP status earns them exclusive access to events, special gifts, and luxury giveaways. These customers share their rewards with others, such as taking a friend with them to the Your Life. Your Spotlight. concert.

This works because: The rewards program retains Good Neighbors by making them feel appreciated and valued. They love the sponsored prizes from our partners. Our campaign stimulates conversations between Good Neighbors and other segments by allowing VIPs to share their privileges. Educating on bundling options will lead to successful cross-selling, ultimately increasing State Farm’s bottom line. TM

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Microsite www.YourLifeYourPolicy.com is the central hub that connects Young Adults to our campaign. Live Twitter Feed Shows up to date tweets on what our target is saying with the #YLYP tag.

Layout A contemporary aesthetic resonates with our target market and makes them feel confident in their navigation experience.

“Magnifying� Nav Bar Integrates a youthful interface with easy to recognize icons that display the section name when scrolling over.

Social Media Links Allows visitors to share our site on social media, like Facebook and Digg.

Welcome Screen

Section Name Displayed

Rollover

Road Trip Planner

Select Icon

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sponsorships ALTERNATIVE SPRING BREAK

Scholarship america

State Farm sponsors Alternative Spring Breaks, where students volunteer to improve poor conditions around the world. These trips are generally out-of-pocket expenses for Young Adults. State Farm supports community involvement by subsidizing these costs.

Scholarship America’s mission is to make college education possible for all students. For every Young Adult that registers on www.YourLifeYourPolicy.com, we will make a contribution to Scholarship America in their honor.

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PR

Julie Kordahi

PR

This works because::

This works because:

Sponsoring these humanitarian efforts helps reinforce State Farm’s caring image, which resonates with our target market.

Our segmentation is based on higher education. This sponsorship increases the amount of Young Adults with higher education, increasing our target market. This fits with State Farm’s Education Excellence Initiative.

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partnerships Your Life. Your Policy. fosters mutually beneficial relationships with our partners. We enhance our partners’ brand awareness through an increase in product exposure. In turn, they provide us with products relevant to Young Adults’ lives and increase publicity for our campaign. Partners

Objective

Strategy

To obtain Amp energy drinks for events

Show that State Farm is Brand recognition in there during stressful times competitive market

$960,000

Provider of vehicle To obtain discounts for history reports Senior Survival Guides

Help target make informed purchase decisions

Introduce new consumers to product

$625,000

Small handheld video cameras

To obtain cameras for incentives and prizes

Get Young Adults to engage with our campaign

Gain exposure as a new brand

$151,800

4th largest Auto manufacturer

To obtain Ford Fusion Hybrids for contests

Incentive for Young Adults to participate in events

Increase interest in new $3,850,000 Ford Fusion Hybrid

GPS navigation manufacturer

To obtain GPS systems as incentives

Associate auto insurance with positive experiences

Introduce product to younger demographic

$751,500

One hundred schools in the US

To serve as liaison with Target Young Adults where campaign and students they are

Gain PR and improve student life

Free

Largest musical internet retailer

To obtain incentives for Support local bands and campus events provide incentives

National exposure among Young Adults

$1,325,000

Popular retail company

To obtain gift cards and Attract Young Adults to furniture for incentives contests and events

Enhance relationship with Young Adults

$3,475,000

Major laptop manufacturer

To obtain customizable laptops as incentives

Attract Young Adults with customizable incentives

Gain exposure in competitive industry

$750,000

Student travel agency

To obtain vacationpackages as rewards

Provide rewards from brand using agents

Partnership with an established brand

$500,000

Popular coffeehouse

To obtain coffee and snacks for events

Attract Young Adults to campus contests & events

Enhance relationship with Young Adults

$800,000

24 hour college TV channel

To show live coverage of Spotlight concert

Extend reach of Spotlight Black Eyed Peas concert

Generate high ratings for concert

$300,000

Energy drink manufacturer

What’s In It For Them

How Much $ Comparable Partners

Colleges across the nation

Total Partner Contribution: $13,488,300

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accountability Your Life. Your Policy. reaches 29.9 million Young Adults with a budget of $40 million, and roughly $13.5 million in partner spending.

Your Life. Your Policy. • • • • •

Attracts Young Adults through positive, relatable experiences Educates Young Adults on how State Farm Agents personalize policies to fit their individual needs Changes perception of State Farm from an old-fashioned brand to one that understands Young Adults’ unique needs Encourages Young Adults to purchase State Farm Auto and Renters insurance Reminds Young Adults that State Farm continues to personalize their policies as their needs change

We measure campaign effectiveness through: • • • • • • • • •

New State Farm Young Adults Auto and Renters insurance policies State Farm current policyholder retention Redistribute survey Traffic to www.YourLifeYourPolicy.com Participants in Your Life. Your Rewards. program Metrics we achieve: Number of VIP Status Customers 18% increase in Young Adult Auto policies. Social Media interaction Contest involvement 17% increase in Young Adult Renters policies. Event attendees 2,860,340,000

53

Total Gross Impressions

4,150,000

Rewards Program Enrollment

100,000

Facebook Fans

Gross impressions per dollar spent

99%

500,000

Retained Good Neighbor Policies

1,000,000

Unique Microsite Visitors

VIP Status Customers

1,000,000

YouTube Views

600,000

Twitter #YLYP Posts

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budget and media flow chart Campaign Rollout & Budget Allocation

Campaign Spending Partners Spending

Media &radi(onal  Newspapers Magazines Shu0le Wraps Bill Inserts TV ‐ MTV U  Posters

$1,000,000.00  $5,000,000.00  $250,000.00  $1,145,000.00 $7,000,000.00 $10,000.00

May Jun Jul Aug Sept Oct Nov Dec Jan 3 10 17 24 7 14 # 28 5 12 19 26 2 9 16 23 6 13 20 27 4 11 18 25 1 8 15 22 6 13 20 27 3 10 17 24

Feb Mar Apr 7 14 21 28 7 14 21 28 4 11 18 25

$300,000.00

Digital/Social  Hulu and MTV.Com Rich Media Banners Microsite SEO Pandora Facebook Ads Website Design Widgets Youtube Videos

$6,000,000.00  $2,500,000.00  $2,062,500.00 $200,000.00  $500,000.00  $300,000.00  $50,000.00  $20,000.00 

3on4&radi(onal Your Life. Your Spotlight. Your Life. Your Roadtrip. Contest Senior Survival Kits Concert Your Life. Your Move‐In. Your Life. Your Rewards. Your Life. Your Band.  Your Life. Your Roadtrip. Webisodes  Iphone App

$1,450,000.00  $400,000.00  $625,000.00  $1,480,000.00  $400,000.00  $1,000,000.00  $950,000.00  $500,000.00  $15,000.00 

$250,000.00 $353,000.00 $625,000.00 $480,000.00 $400,000.00 $1,625,000.00 $850,000.00 $300.00

Guerilla Your Life. Your Luck.  Your Life. Your Photobooth. Your Life. Your Study Space. Red Chair

$1,650,000.00  $140,000 $1,880,000.00  $300,000.00 

$6,725,000.00 $1,880,000.00

Sponsorships AlternaQve Spring Breaks Scholarship America

$1,120,000.00  $1,000,000.00 

Other ConQngency 

Total

Total Budget

$1,052,500.00 

$40,000,000.00

$13,488,300.00

$53,488,300.00

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five-year plan In the next five years, Your Life. Your Policy. will easily extend to more college students, high school students, and parents through social media and user-generated content.

Year One:

The initial rollout of Capitol Advertising’s Your Life. Your Policy.

Year Two:

Your Life. Your Policy. will extend our reach to more Young Adults by expanding to new campuses and increasing user-generated content. The success will attract partners and extend our budget.

Year Three:

Your Life. Your Policy. will extend reach to high school students and parents. Our campaign will target them with informative and humorous TV ads to prompt a conversation about insurance.

Year Four:

Former participants from Your Life. Your Spotlight. and Your Life. Your Roadtrip. will be transitioning again (freshmen will be graduating seniors and graduating seniors will be getting higher paid jobs). They will receive links to videos and road trips they created, reminding them of their enjoyable college experiences with State Farm. Your Life. Your Policy. will continue to build trust and maintain relationships with Young Adults.

Year Five:

A campaign refresh relaunches tactics based on previous success and impact.

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why capitol advertising? Capitol Advertising developed a campaign that achieves the goal of increasing new Young Adult Auto and Renters policies. We do this by establishing State Farm as the leader in personalized policies. Our research-based campaign uses realistic, relatable, and humorous messaging to retain current policyholders, educate the target in an interactive way, and change Young Adults’ perceptions of State Farm. Your Life. Your Policy. resonates with the target market because Young Adults value personalized policies that fit their needs. Our campaign works because we capitalize on the opportunity to differentiate State Farm from the competition.

Your Life shapes Your Policy. Your Needs shape Our Campaign.

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survey Below is a sampling of survey questions and answers that helped uncover our key research insights: 6. The following is a list of factors you might consider when researching insurance. Please rank their importance to you. #1: Having an insurance policy that is tailored to fit my needs: 36% 8. If you are still covered under your parents’ Auto insurance do you plan to stay with their company when you purchase your own Auto insurance? 43% were unsure 12. How long did you research Auto insurance before purchasing? 41% didn’t research at all 24% spent less than a week 15. What are the reasons why you might decide to stay with your insurance company? 93% said my insurance company lowers my rates because I’m a safe driver 81% said that my insurance company is very responsive to my questions and concerns 76% said my insurance company is available to speak with me 24/7 21. How much do you think Renters insurance costs per month? 77% said it cost more than $50 a month 22. How important do you feel it is to have Renters insurance? 37% said very important 24. Why might you consider purchasing a Renters insurance policy? Please check all that apply. 73% said if my parents told me to get it

49% said if I could bundle it with my Auto insurance policy and get a discounted rate 34% said if I learned that it covered my belongings outside of my home 25. If you had to purchase Renters insurance which company would you choose? 64% said unsure 27. How long did you research Renters insurance before purchasing? 54% said less than 1 week 29. How long have you been a customer of your Renters insurance company? 62% said 1 year 30. How likely are you to renew your Renters insurance policy? 62% said they would renew their policy 32. The following is a list of ways to communicate with your insurance agent. Please rank your preference. #1: 55% said on the phone #2: 20% said via email

brand icon or character more memorable 58% said they DON’T like fear tactics 46.How frequently do you use social media? 89% use Facebook at least once a day 32% use YouTube at least once a day 25% use blogs at least once a day 47. How frequently do you post on Facebook? 53% post once a day 48. To what extent do you agree with the following: 86% agree: I pay my bills on time 77% agree: I plan for the future 50. How do you spend your free time? 79% said on the Internet 60% said watching TV 56% said at the gym 19% said looking for a job

33. The following are statements about insurance agents. Please rate your level of agreement. 65% said an agent helps me better understand insurance 45. I pay more attention to insurance advertisements that: 75% said show realistic situations 69% said use humor to teach me something new 65% said use realistic situations to make a TM

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Your Life. Your Policy. Plansbook