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Touching The Soul of African American Consumers

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Table of ContentsOverview Page 3Objectives Page 5Promotional Strategy Page 6Event Opportunity Page 72001 Promotional Summary Page 8

2001 Radio Promotions Page 9Doug Banks Morning Show Page 102001 Media and Public Relations Page 112001 Sneak Previews Page 122001 Verizon Employee Initiatives Page 132001 Media Results Page 14

2001 Event Recap Page 152001 SBMF Concert Video Page 162001 Audience Demographics Page 172001 V-Team Recap Page 18

2001 Verizon Branding Page 192001 Audience Comments Page 252001 SBMF Research Findings Page 26

Upcoming 2002 Opportunities Page 27Highlights Page 28Key Dates Page 29National and Local Promotions Page 30

2002 SBMF Sponsorship Benefits Page 322002 Sponsorship Recommendations & Program Enhancements Page 35

2002 Timeline and Key Dates Page 39

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Overview

The Soul Beach Music Festival presented by Verizon, a musical spectacular, was hosted by Actor/Comedian Bill Bellamy, and featured contemporary and old school soul music artists such as Erykah Badu, Angie Stone, Jill Scott, Maze featuring Frankie Beverly, Ron Isley & the Isley Brothers, Musiq, Eric Benet and others.

This event was created with the help of the Greater Miami Convention & Visitors Bureau and event sponsors Pepsi, American Airlines, Kmart and Crown Royal, to celebrate the world’s best music and to bring the sounds of neoclassic soul to the masses. This gathering of great soul artists in concert took place May 31 through June 2, 2001 at the Miami Arena in Miami, Florida.

The event was supported by a Sneak Preview tour of Chicago, Los Angeles, Washington, D.C. and New York, featuring Angie Stone with guest appearances by local radio personalities. Additional support was in the form of radio promotions, Internet (e-mail) advertising and press conferences. Festival attendees were encouraged to visit the website, soulbeachmusicfest.com, to book travel packages to Miami.

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Overview – continued

The first annual Soul Beach Music Festival, presented by Verizon, was an overwhelming success. An estimated 7,000 people traveled to Miami to launch the newest and most talked about music festival of the year. The soulful performances by the festival’s artists, coupled with highly successful ancillary events (i.e. after parties, beach activities and the Crown Royal Comedy Show), secured Soul Beach’s position as one of the top music festivals in the country.

The success of Soul Beach’s inaugural year provides a strong foundation for building a “World Class” annual event that benefits sponsors, guests, and the local community.

As presenting sponsor of the inaugural Soul Beach Music Festival, Verizon experienced heightened recognition and exposure in conjunction with a successful event that’s poised to grow in size and importance in the arena of cultural music festivals. The 2001SBMF met the initial corporate objective to sponsor an event that Verizon could own. Since there was no title sponsor in 2001, from a consumer perspective it was Verizon signature event.

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Objectives

• Build awareness of Verizon’s presence and involvement in the African American Consumer Market (AACM)

• Strengthen relationship and build brand equity among Verizon West and East consumers through continued involvement with SBMF

• Develop national promotion and local brand building activities in key Verizon markets synergistic with scheduled direct response advertising

• Utilize event marketing opportunities to help drive awareness, build targeted consumer databases and maintain a year-round Verizon presence

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Promotional Strategy

Establish brand relevancy by addressing the interests of the target market

Utilize media and promotional vehicles to promote Verizon’s support of the Soul Beach Music Festival

Target: African Americans 18-49 (Verizon target 25-45)

Geography: National, with emphasis in 14 key radio markets, along with coverage in 30 national markets via ABC Radio Networks’ Doug Banks Morning Show

Communication Drive AA consumer entries into Soul Beach Music Objective: Festival Sweepstakes to add to database

Timing: January – May, 2001

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Event Opportunity

Involvement with event/entertainment vehicles generates appeal, excitement and results. According to the latest Yankelovich AA monitor, 42% of African-Americans in general keep up with the latest trends in movies, music and TV. Additionally, corporate music sponsorships are widely thought of as excellent vehicles for targeting ethnic groups. The Soul Beach Music Festival provides an opportunity for Verizon to be the first telecommunications company involved with this premier property. As a result of being an inaugural sponsor and the branding equity already built, Verizon’s corporate identity will only be enhanced with its continued participation. Following are some of the benefits:

Increased community awareness

Consumer/brand visibility among target audiences

Strengthen consumer intent to use Verizon services through event involvement

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2001 Promotional Summary

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2001 Radio Promotions

SBMF selected markets – Gross Impressions

Markets Planned

Launch Date Planned End Date

Campaign Schedule

(days)

Gross Spot buy

Radio Partners GRP's

Gross Impressions

Atlanta, GA 1/22/01 2/12/01 21 76 WALR 104.1 65.3% 859,210Philadelphia, PA 1/22/01 2/12/01 21 42 WDAS 105.3 50.0% 1,576,700Detroit, MI 1/22/01 2/12/01 21 315 WMXD 92.3 120.0% 1,500,000Chicago, IL 1/22/01 2/12/01 21 75 WVAZ 102.7 76.0% 1,200,000Baltimore/Washington, DC 1/22/01 2/12/01 21 54 WHUR 96.3 55.8% 1,206,000New York, NY 1/22/01 2/12/01 21 38 WBLS 107.5 23.6% 1,100,000San Francisco, CA 2/5/01 2/26/01 21 61 KISQ 98.1 36.0% 1,500,000Los Angeles, CA 2/5/01 2/26/01 21 39 KJLH 102.3 10.9% 1,012,100Raleigh/Durham, NC 2/5/01 2/26/01 21 62 WQOK 97.5 256.0% 1,750,000Dallas, TX 2/5/01 2/26/01 21 80 KRNB 105.7 76.0% 1,250,000Charlotte, NC 3/1/01 3/22/01 21 65 WBAV 101.9 75.0% 1,100,250

Additional Markets Selected by Verizon:

Tampa, FLBoston, MARichmond, VA

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Doug Banks Morning Show

It's a V-Thing with Verizon Sponsors (l-r) Ken Rye (Burrell Communications Group), Jim Smith, June Harland Fohsta, Doug Banks, Gregg Smith and Dana.

Bill Bellamy brings surprise guest Larenz Tate to the broadcast.

Give me a “V” for the V-Girls!

Doug announces the Cha Cha Challenge winner (a Verizon employee!) and the V girls!

It’s a Doug Banks thing. Thank you early risers for coming to the show. We hope you enjoyed your breakfast!

Smile for the camera! Are you sure you’re not a Verizon girl?

They pack it in for the DBMS broadcast.

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2001 Media and PRCable TV (local in Miami)Radio

11 Soul Beach Markets5 Verizon Markets30 ABC Radio Markets (Doug Banks Morning Show)

Newspaper/Magazines (local in Miami)Press Releases/Media AdvisoriesPress Conferences

April 4, 2001 – International Press Center, Miami AirportJune 1, 2001 – Miami Arena

Pre-Event and Post-Event CoverageThe Miami Herald Ebony Magazine

Sun-Sentinel (Broward Metro) Jet Magazine

The News and Observer (Raleigh, NC) The Deseret News (SLC, UT)

The Orlando Sentinel PR Newswire

AP Wire Service The Detroit News

Launch.com St. Petersburg Times (FL)

NBC-6 Miami South Bend Tribune (IN)

Impact Weekly (NY Sneak Preview) Lee Bailey’s EURWEB

BRE Magazine/Black Radio Exclusive Los Angeles Sentinel

Palm Beach Daily Business Review iMusic Week

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2001 Sneak Previews

Date City Venue Attendance SweepstakesEntries

April 26, 2001 Los Angeles, CA Key Club 325 62

May 2, 2001 Washington, D.C. Club 2K9 900 58

May 4, 2001 New York, NY Club SOB’s 400 81

Three Sneak Preview winners were chosen on-site in each market, with the names randomly drawn from entries completed prior to the beginning of each concert.

Each winner received a Verizon duffle bag, a Verizon t-shirt and cap, compact disc case and Verizon pen lights (LA & NY) in addition to a pair of concert tickets for each night of concerts (total of 6 tickets) at the Soul Beach Music Festival in Miami.

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2001 Verjzon Employee Initiatives

Over 311 Verizon employees attended the nightly SBMF concerts

79 purchased 2001 SBMF packages which included hotel, airfare and nightly concert tickets

Verizon provided 2001 SBMF updates to employees via corporate newsletter

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2001 Media Results

Impressions (Verizon)

Radio: 32,552,500

Internet: 500,000

Ebony ad (GMCVB) 250,000

Flyer distribution: 100,000

Email: 100,000

Miami Arena: 45,000

Light post banners: 10,000

SBMF Sneak previews: 3,000

Beach Parties: 1,000

TOTAL 33,560,500

Note: Word of mouth and street buzz not measurable

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2001 Event Recap

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2001 SBMF Concert Video

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2001 Audience Demographics

Total 3 night concert attendance: 18,000Average Concert attendance: 6,000Average nightclub attendance: 1,000

Geographic Snapshot of Audiences:- 18% from NYC/NJ 14% from DC/MD/VA- 10% from FL 9% from Atlanta- 7% from LA 7% from Detroit- 6% from Philadelphia 5% from Chicago

Data Source: SBMF Research Study, Branch Out, 2001

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2001 V-Team Recap

V-team provided the link between Verizon and the on-site consumer’s participation in Verizon-sponsored beach activities and radio remotes

The V-team managed the premium distribution at the beach activities and the Miami Arena concerts to provide maximum brand visibility and sponsorship awareness for Verizon

The V-Girls created a bonus brand identity for Verizon by creatively customizing the Verizon T-shirts and generating an overwhelming interest in how the consumers could acquire the T-shirts

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2001 Verizon Branding

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2001 Verizon Branding

Press Conference – Kickoff April 4 Opening Ceremony – Bayfront Park

Press Luncheon – On-site June 1 Bill Bellamy, Staci & Larenz Tate

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2001 Verizon Branding

Sweepstakes winners and Brunch activities

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2001 Verizon Branding

Verizon activities at the Miami Arena Premium Distribution Team

Verizon suite decorations

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2001 Verizon Branding

Verizon beach ball intermission at the Miami Arena June Fohsta, Musiq, Gregg Smith & Faith Morris

Verizon beach scenes (Karmalita relaxing!)

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2001 Verizon Branding

Beach Activities & Pool Parties

Ken Rye & Evelyn O’Gilvie

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2001 Audience Comments

“This is hot and says a lot about Verizon.”

“This whole week, I’ve been showered with Verizon gifts. Thanks, Verizon.”

“I work for Sprint and only wish they would do something like this in the African American market.”

“I would like to be able to get T-shirts like the V-girls are wearing.”

“Glad to see there are activities and not just the same old party atmosphere.”

“I would love to see some of the artists in the lineup in one of the Verizon commercials.”

“I would like to get more chances to play the games.”

“I thought the overall involvement was smart and you guys had greatcoverage.”

“It seems like you guys are everywhere!

“The three-day Soul Beach Music Festival at the Miami Arena was atriumph” - Miami Herald

“Black people done got together and had a good time” – Jill Scott, Soul Beach artist

“I’m going to have a ball. It’s going to be fun, fun, fun” – Priscilla Rawls,Soul Beach guest from Maryland

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2001 SBMF Research Findings

As presenting sponsor of the inaugural Soul Beach Music Festival (SBMF), Verizon received heightened brand exposure and recognition throughout the promotional period leading up to and during the eventThe Verizon awareness study, conducted by the Dallas-based research company, Branch Out, throughout the 2001 SBMF showed that:– 92 percent of survey respondents that identified

a festival sponsor selected Verizon– 84 percent of those same respondents who

identified Verizon selected the company first among the festival sponsors

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Upcoming 2002 Opportunities

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Upcoming 2002 Opportunities – Highlights

Timing: June 5-June 8, 2002 (tentative)Description:

Event will begin with opening ceremony June 5, to welcome all attendees with live music, food and dancing

Community outreach program to promote “Verizon Reads” literacy program featuring James Earl Jones

Daily beach events will be held including sports competitions, contests and parties

Concerts featuring today’s top talent will take place Thursday-Saturday at the Miami Arena

Concert after-parties hosted by the hottest South Beach clubs will be held throughout the weekend

Approximately 30,000 attendees ages 25-54 daily

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Upcoming 2002 Opportunities - National and Local Promotions

Radio promotions with trip giveaways will be launched nationally and locally on syndicated programming and local stations in footprint markets

Full page print ads in targeted national publications

Targeted Internet web sites and official festival website www.soulbeachmusicfest.com will feature information regarding the event and the sponsors

- Visitors to the site will have a chance to win trips to the festival

Beginning January 2002 an 800 number will provide event information in addition to identification of festival sponsors

National and local radio personalities will broadcast live from Miami during the week of the festival

Local radio advertising and radio promotion giveaways

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2002 National and Local Promotions – continued

Opportunity for on-air interviews with Verizon executives on the Doug Banks radio show, as well as with radio station representatives of Verizon East and West

Collaborate with a print partner (e.g., Heart & Soul, Carib News) to cover the event from a Verizon angle for added exposure and awareness while simultaneously building relationships with target media

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2002 SBMF Sponsorship Benefits

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2002 SBMF Sponsorship Benefits

Verizon Sponsorship benefits (2002 – 2004)1 Presenting sponsor2 10 tickets per sneak preview3 Brand ID on email distribution4 Brand ID on radio advertising5 Brand ID on print advertising6 Brand ID on soulbeachmusicfest.com 7 Brand ID on 800 number8 Brand ID on all flyers and posters9 Brand ID on Miami Arena stage10 Brand ID on festival press materials11 Signage in Miami Arena12 One Miami Arena Sky box13 Booth(s) in Miami Arena14 2 commercial spots on JumboTrons15 4 All Access passes16 10 passes to each after party17 50 tickets to each concert18 Exclusive ground transportation

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2002 SBMF Sponsorship Benefits

$1,000,000 $600,000 $400,000Benefits Title Sponsor Presenting Sponsor Platinum Sponsor1. Sponsor of sneak previews x 2. Tickets to sneak previews (per market) 30 103. Sponsor of radio trip promotion x x4. Brand ID on radio advertising x x x5. Brand ID on print advertising x x x6. Brand ID on e-mail distribution x x x7. Brand ID on festival tickets x x x8. Brand ID on soulbeachmusicfest.com x x x9. Brand ID on 800 number x x x10. Brand ID on all flyers and posters x x x11. Brand ID on Miami Arena stage x x12. Brand ID on press materials x x13. Brand ID on festival merchandise x 14. Brand ID on festival letterhead x15. Miami Arena sky box x x x16. Dominant venue signage x17. Secondary venue signage x x18. Sponsor village booth x x x19. Commercial spots on Jumbo trons x x x20. Live mentions from stage x x x21. Full page ad in festival program x22. All access passes 12 4 223. Sponsor of parties x x x24. Sponsor of beach parties x x25. Sponsor of opening ceremony x x x26. Sponsor of comedy show x27. Sponsor of closing ceremony x x x28. Exclusive ground transportation x x x29. Tickets to festival (per night) 100 50 2530. Passes to parties 20 10 6

*Benefits contingent on contractual agreement

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2002 Sponsorship Recommendations & Program Enhancements

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2002 Sponsorship Recommendations

Recommendation:Based on the proposed schedule of events, the strong promotion plan outlined by the event organizers and the range of potential benefits that can accrue to premier sponsors, it is recommended that Verizon sponsor the 2002 Soul Beach Music Festival.

Rationale:

SBMF offers numerous opportunities for Verizon to establish a long-term partnership with the property and an on-going relationship with the consumer that extends beyond the immediate event

Provides national exposure with strong local market extensions in East and West

Potential applications across all business units

Opportunity to market and test bundle offers

Potential research opportunities and lead generation for future marketing efforts

Strong appeal to a younger urban audience as well as busy households

Positions Verizon as a contemporary brand among the AACM

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2002 Sponsorship Recommendations

Recommended Activation:Internet

Use phone cards that require on-line activation to drive traffic to the Verizon and partner websites. Sweepstakes opportunities on targeted websites will provide lead generation and drive traffic for Verizon.

Execute a street marketing campaign to distribute branded phone cards and premiums (e.g., T-shirts) directly to the target.

Street SignageCoordinate placement of Verizon logo on prominent street signage related to

SBMF.

Direct MailPromote sweepstakes with bill inserts and direct mail campaign to new and

existing customers.

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2002 Sponsorship Program Enhancements

Recommended Activation:Public Relations

Position the V-Girls as ambassadors at various SBMF hotels and event venues to serve as V-concierges

Employee Relations ProgramSet up 2002 SBMF V-Hotline to provide latest event info

Employee discounts for 2002 SBMF tickets

Dedicated SBMF staff member to administer program

“Touching the Soul” community outreach initiative

Enlist SBMF artist to perform free concert for inner-city youth to raise awareness of “Verizon Reads” literacy program

Have Verizon spokesperson James Earl Jones read stories during performance breaks in a “Griot” style to the youth in attendance

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2002 Timeline and Key Dates

July 31, 2001 - Sponsorship renewals completeAugust 3, 2001 - Sponsorship commitment letters executedAugust 17, 2001 - Sponsorship contracts executedSeptember 3, 2001 - Soul Beach 2002 launch. Dates and location posted on

festival’s website soulbeachmusicfest.comNext Steps:1) Secure SBMF sponsorship 2) Secure 3 year sponsorship partnership 3) Integrate Soul Beach sponsorship in Verizon radio, TV, and print advertising4) Leverage Verizon Wireless retail outlets to drive in-store traffic and sponsorship fee liquidation

Verizon Soul Beach Music Festival Presenting Title2002 sponsorship investment - $600,000 $1,000,0002003 sponsorship investment - $725,000 $1,200,0002004 sponsorship investment - $875,000 $1,400,000

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Upcoming 2002 Opportunities - Key DatesJune 22, 2001 - Secure venue for Sneak Preview at the National Black MBA

conference in Orlando 9/29/01 (Confirmed House of Blues on 6/22)

July 31, 2001 - Sponsorship renewals complete

August 3, 2001 - Sponsorship commitment letters executed

August 17, 2001 - Sponsorship contracts executed

September 3, 2001 - Soul Beach 2002 launch. Dates and location posted on festival’s website soulbeachmusicfest.com

September 29, 2001 - Soul Beach Music Festival Sneak Preview House of Blues, Orlando FL (artists to be determined)

October 15, 2001 - First draft of SBMF 2002 radio spot

Oct - Nov 2001 - Contact and secure headline talent

December 10, 2001 - “Save the Date” radio campaign begins

January 7, 2002 - National radio campaign begins

March 4, 2002 - Radio promotions begin

March 2002 - Sneak Preview at the National Black Ski Summit

April 3, 2002 - Festival press conference in Miami

April 2002 - New York and Washington, DC Sneak Previews

May 15, 2002 - Sponsor ads for JumboTrons complete and shipped

May 30, 2002 - Sponsor banners shipped

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Touching The Soul of African American Consumers