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Young Adults are consumed by countless responsibilities and socialcommitments*. School. Jobs. Pick-up basketball games. Movies. Concerts. They told us they perceive themselves to be the single busiest generation ever. They use social media to enable every aspect of their busy lives.** They told us they don’t use their time to think about getting in a car accident or having their apartment robbed. They are preoccupied with balancing their hectic schedules and searching for new ways to connect.

More than anything, Young Adults value their time.

Young Adults told us State Farm is “outdated, expensive and a hassle.” They told us the insurance agent is “unnecessary, an extra complication, and an added built-in cost.”

Circle Advertising’s campaign addresses these misconceptions by positioning State Farm as:

• A value and a convenience, saving Young Adults time.• Competent users of social media, meeting Young Adults where

Young Adults meet.• The pre-eminent insurance agent network, freeing Young Adults to

do their thing.

In the pages ahead we will present to you the strategies and programs that reinforce State Farm’s positioning to Young Adults. You will see that at Circle we don’t just tell you what we will do, we show you what we did.

Circle Advertising’s 53 members, hired in September, presented the 4thAnnual Warlocks and Witches Ball in October. This served as our initialteam-building exercise, where we conducted our first wave of primaryresearch among Young Adults to gain insights into their attitudes about insurance. Our three-month research initiative culminated on February 4 in a Chapman sound stage with Rompe, a five-hour event where we translated our research into key campaign insights leading to our creative Big Idea. Our Big Idea rationalizes a logical, research-based advertising strategy, media plan, promotional program, PR calendar, and creative executions. Through implementation, we tested two of our signature events: the “Get Covered” promotion and the “Next Breath” PR event. Again, we don’t just tell you what we will do; we show you what we did.

Every Circle Advertising member is an expert in social media. When you hire Circle, you inject social media into your marketing DNA.

When a Young Adult experiences an unfortunate situation that requires an insurance solution, it is a State Farm agent who steps in and takes charge, Freeing Young Adults to continue with their busy lives. Feel Free shows State Farm not only insures the cars, laptops, TV’s and bikes of Young Adults, it insures what they value most.

Their time.

*source: “60 Minutes – The Millennials are coming.”**source: “CBS - The Age of the Millennials.”

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OBJECTIvEsWe set and executed five research objectives to guide our campaign and ultimately build a lasting relationship between Young Adults and State Farm.

• Recognize Independent Young Adults’ current views of Auto and Renters insurance• Analyze State Farm’s top competitors in the Auto insurance industry• Discover profitable approaches to reach our demographic effectively• Test various State Farm brand identities for recognition, recall and reinforcement of brand positioning• Attract and maintain Independent Young Adults

• Largest market share in the Auto insurance industry• Agent-based business model• Long history of growth and success

• Disproportionately low penetration of Young Adult market• Ignorance of agent benefits• Inconsistent advertising• Social media

• Reposition State Farm to Young Adults • Leverage State Farm’s Agent benefits• Exploit social media• Target Hispanics

• Multiple agent-based models: Allstate, Nationwide, Farmers• Young Adult preferences for online communication• Highly saturated insurance market• Young Adults’ perception that agent based model

is outdated

We will correct Young Adults misconceptions and leverage the Agent network

we set out to understand Young Adults...

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TOTALSURVEYS

man on the street interviews

professionalinterviews

events

focusgroupsdiaries

general insightsurveys

parentsurveys

independent youngadult surveys

psychographic surveys

hispanicsurveys

get coveredattendees

next breathattendees

mediadiariesagentdiaries

Branding focus group that provided insight on the effectiveness of State Farm’s messaging and recall versus its competitors

Initial research surveys and impressions were conducted at the Warlock’s and Witch’s Ball

Man on the Street Interviews at UNLV that provided valuable qualitative research insights

californiahotspots

collegecampuses

warlocks & witches attendees

6 different types of research gave us over 6,000 research impressions and led us to key insights into our target demographics

research impressions

Before we could better Young Adults’ lives by being there, we wanted to understand how to turn our audience into brand advocates. We found out where, when and how to reach them in the most relevant and exciting way.

Research diaries granted us insight on State Farm’s current physical work environment. Our media diaries revealed the vast number of messaging vehicles our markets are exposed to everyday. We utilized the high turn out at our three events to approach our audiences in a non-intrusive way. Professional interviews with auto collision specialists, social media experts, lawyers and the director for the Stanford Institute for Economic Policy gave us insights on Young Adults in relation to insurance.

...and found out they don’t understand you

4 * “U.S. Demographics are Changing… Are Your Marketing Plans Ready?” study by The Nielsen Company

We split Young Adults into three audiences to tailor our approach to each segment. This allowed us to place our ads strategically, plan events and choose partnerships that are relevant to their lives.

of Independents live in an off-campus apartment or house (without a parent or guardian)

of Independents have the same insurance provider as their parents or guardians

of Independents have State Farm insurance

of Transitionals regard their family as the most trusted resource when it comes to choosing an insurance company

of surveyed Hispanics spoke both English and Spanish fluently

want Good Rates/Prices want honest and trustworthy representatives

of the total online population is made up of Hispanics and is expanding more than 50% faster than the overall US online population*

more likely to download digitial content than the average US adult internet user*

want their claims paid fairly and promptly

PrImary - IndEPEndEnTs

sECOndary: TransITIOnal

of Transitionals said price was one of the determining factors when choosing an insurance company

of Transitionals said having an insurance agent would influence their final decision

TErTIary: HIsPanIC

There are 17 million Independents between the ages of 18 and 25 in the US that we can align with. They are extremely price-sensitive and for the first time are purchasing insurance without their parents’ assistance. They crave convenience, which causes them to prefer online models.

Transitionals are in between dependence and independence. This movement provides the perfect opportunity to engage our market at a time when they want to be considered adults.

Young Adults look for three leading factors in insurance:

Our Hispanic target is as well-versed in pop culture as any group in the US. Their definition of culture revolves around work, life and play. They also display a higher usage of mobile Internet and cell phone features, allowing us to connect to them through fresh initiatives.

we found 3 different markets...

5* Source: http://www.statefarm.com

There are three barriers separating State Farm from connecting with Young Adults. Understanding and overcoming these barriers will allow State Farm to communicate its message effectively. This is a necessary step in developing our strategy.

lOw InvOlvEmEnT mIndsETInsurance ranks low on the Young Adult priority list, creating another barrier for State Farm. Their limited knowledge of insurance keeps them from discussing it, making it difficult to engage them.

“I don’t think car insurance has ever come up in a conversation with my friends” – Male, 21, Brand Awareness Focus Group

GEnEraTIOnal dIsCOnnECTYoung Adults experience higher brand bombardment than any generation before them. Over-saturation of the market has made them immune to messaging, especially in brands they cite as irrelevant. With brands that engage them however, brand loyalty is extremely high. State Farm is not this brand.

• 11 out of 12 Young Adults correctly identified the State Farm logo • Of those 11, less than half could recite the tagline

aGEnT mIsCOnCEPTIOnTo Young Adults, Agents seem outdated and boring. They view Agents as pushy and associate them with car salesmen. Presenting the value that an Agent offers will motivate Young Adults to switch providers.

“I wouldn’t trust the Agent, just because I’d know he’d be trying to sell me stuff…” –Female, 20, Focus Group Participant

“I could have gone down there to talk to someone, but that would have been a waste of time,” Female, 22, Focus Group Participant on talking with a representative after an accident

While the majority of Young Adults do not see the benefits, those with an Agent express deep appreciation for their services. Translating this to the rest of our market is key to creating incentive to switch providers.

“I really like having an Agent, they especially helped me when I got in a wreck and was in a time crunch.” –Female, 22, Man on the Street Interview

...with three different barriers

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After breaking through the barriers the second phase addresses the Occasions of Opportunity. These are the five periods in which Independents, Transitionals and Hispanics are motivated to think about, interact and even switch insurance providers. All executions and messaging will hit at least one of the following Occasions of Opportunity.

PurCHasInG a CarPurchasing a high-ticket item, such as a car, immediately brings insurance into Young Adults’ minds. By focusing on competitive pricing and the personal touch of an Agent, State Farm can generate interest for their services.

GraduaTIOnThis is a generation of aspiration. Whether heading into college or the professional world, fiscal success and responsibility dominate their consciousness. State Farm has an opportunity to assist Young Adults as they take the next step.

dIssaTIsfaCTIOn wITH COmPETITOrsAs individuals experience dissatisfaction with their providers, a key Occasion of Opportunity opens for State Farm. Available and helpful Agents motivate Young Adults to switch to State Farm.

to be effective, timing is everything

mOvInG (Off CamPus/OuT Of THE HOusE)When moving out on their own, Young Adults’ mindsets transition from dependent to independent as they begin to realize the value of material property. This is an Occasion of Opportunity for State Farm to better lives by providing peace of mind in the form of Renters insurance.

aCCIdEnTsFifty-six percent of Young Adults said they primarily think about insurance after getting into an accident. State Farm can reinforce the value of the Agent by emphasizing the time an Agent saves.

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A brand is no longer what we say or do, but what people think and say about us. Goals must be meaningful to our audience, in their terms, not ours. Because the insurance industry is a slow yielding industry where significant monetary returns can’t be expected within a single year, we developed a framework that measures long-term brand value.

The current ROI model doesn’t take into account the full make-up of a brand. We developed a framework to measure the return on idea.

We analyzed the industry and found a lucrative position that State Farm can own.

finding our place and investing in ideas

We will reposition State Farm as valuable and convenient. The valuable and convenient position is currently vacant, allowing State Farm to capture first-mover advantages. Repositioning State Farm allows it to become more appealing to Young Adults and differentiates it from other agent-based competitors, such as Allstate.

RETURN ON IDEA(3yr long term)

PERCEPTION MAP(where we want to be)

top of mind perceptionof quality

relevancy

currentpercentage

projectedpercentage

current

percentage

projectedpercentage

18%

8%

10%

BRAND OBJECTIVES

45%

92%

19%

22%

16%

being there trust compentencydifference awareness

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Information on the insurance industry as well as Young Adults was presented to find correlations, niche markets, insights and initiatives that have yet to be explored. As a part of the process, each of our departments displayed its findings on boards assembled in a large room. Our research included:

• The history and core principles of State Farm• Insights into Young Adults’ mind sets• Creative trends in insurance advertising• Artistic trends on a global scale• Corporate responsibility campaigns• Emerging media• A yearlong calendar of nationwide events

understanding conventions...

Before developing our own ideas, it was imperative to understand industry conventions and market perceptions. Without a complete understanding of what already exists, it was impossible to break these norms and establish resonant messaging.

We developed a process called Rompe (pronounced: rome-peh) that allowed us to understand trends and evaluate creative executions, promotions, public relations initiatives and media strategies in the marketplace. Industry analysis and audience research was presented to give weight to our insights. Rompe, from the Spanish word “to break,” serves as our catalyst in understanding trends and norms that help us discover how to differentiate State Farm from its competitors.

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...and breaking them

Our team spent 90 minutes walking through the exhibits taking notes, analyzing and discussing findings.

This free-form environment fostered insights that guided the direction of our entire campaign, culminating in a three-day process leading up to our Big Idea.

Key findings included:

• State Farm is a company that betters people’s lives by being there• Animated characters or live-action spokespeople ultimately alter

the Agent• Online-based companies utilize gimmicks and superhero personalities

to make up for the lack of a timesaving Agent

Altering the Agent is untruthful and contrary to State Farm’s beliefs; we must celebrate the Agent for what they do

We also discovered there were three basic ideas that drove advertising executions in the insurance industry:

• Altering reality• Altering the Agent• Celebrating reality

We determined the best approach was to celebrate real-life situations and the Agent who enables you to experience them. State Farm’s strength, as a real-life company with real-life values, should be celebrated and not compromised.

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Brand IdEaBettering people’s lives by being there.

BIG IdEafEEl frEEThe Now What? campaign perfectly illustrated Young Adults reacting to property damage scenarios, leaving them in a state of panic and uncertainty. We have coined this gasp, the Inhale Moment. The moment after the Inhale is the key to communicating our message to Young Adults. This is the moment that State Farm customers count on their Agent. The moment when they realize their time is not compromised. The moment they Feel Free.

CrEaTIvE vIsIOnsTaTE farm aGEnTs EnaBlE yOu TO ExHalE, and Carry On.Inhale moments are universally overwhelming. State Farm agents make a difference in people’s lives by offering support and saving time, allowing customers to exhale and carry on with their lives. It is this vision that manifests the Feel Free moment in a practical way.

TOnEThe tone is lighthearted, empathetic and assuring. This remains consistent with the core principles of State Farm and embodies the message of Feel Free.

ExECuTIOnsAll executions will seamlessly integrate into the above ideas and the tag line, Feel Free.

Translating Our Insights Into Executions

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It is important to understand the stage of the relationship State Farm shares with Young Adults. There are five stages in the State Farm/Young Adult relationship, each with tailored executions to maximize effectiveness.

InTrOduCTIOn Create interest and build familiarity with the Feel Free campaign.

InCrEasE awarEnEss Build a presence, create brand advocates and spread the Feel Free message.

POsITIOnInG Define the value of State Farm services, participate in the Feel Free conversation and inform potential customers of the benefits of choosing State Farm.

strengthening State Farm’s relationship with Young Adults

rEInfOrCInG valuE Demonstrate specific benefits of State Farm that empower customers to Feel Free.

affIrmaTIOn Emphasize post-purchase services and reward State Farm advocates for spreading Feel Free.

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PaIdAnything we purchase, including traditional advertising. Vehicles include: television, radio, print, outdoor and digital.

• :30 spot - ABC, ESPN, Galavision, Univision

• Print - Allure, SI, Motorcyclist • Online - Yahoo! Telemundo,

Hulu takeovers, Keywords & Paid local search

OwnEdAny existing touch point we have, such as our agents, offices and Web sites that enhance and reinforce our message. It is usually overlooked and often turns out to be the most cost-effective.ex. buildings, shopping bags, fleet

• Branded postage • Big Red Couch • Collision Card

CrEaTEdAny new media vehicles that have been designed and created specifically by us to deliver our message uniquely.ex. spectaculars, phone applications, branded video games

• Parking lot takeover - major sporting events and concerts

• iPhone Game - Go, Play, Win! • Guerilla Executions

EarnEdAnything that gives our audience an opportunity to invite us into their lives, making State Farm a topic of conversation through word-of-mouth and PR endeavors.

• Viral Video • Next Breath • World Cup - Kick-Off

It is no longer a matter of what brands can do, but what they should do. Media can no longer be defined as traditional or non-traditional, but as every interaction between the brand and its audience*. In order to re-frame our perspective in a way that encapsulates and facilitates every interaction between State Farm and Young Adults, we will approach our planning with four media categories.

* Source: TBWA/MediaArtsLab

as media habits evolve, so must we

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After evaluating the Barriers, Occasions of Opportunity and stages of Brand Awareness, we evaluated the media vehicles that would best fit into each stage of the campaign.

We will use paid media to support the introduction phase of the brand cycle by creating brand interest and building familiarity.

media and research: a winning pair

We will reinforce value using created media because it demonstrates State Farm’s service benefits.

We will use earned media to reach Young Adults and build a presence and brand advocates.

We will employ owned media to translate the positioning phase of the brand cycle to Young Adults and define State Farm’s value.

We will use created media to place emphasis on post-purchase services and reward State Farm advocates.

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To respect and refresh State Farm’s established style, our Creative Strategy will encompass the following elements to deliver all messaging:

• We will connect the perception of value with State Farm Agents by positioning them as time savers.

• We will remain effective and relevant to Young Adults by creating executions that are artful, visually arresting and on their terms.

• We will increase retention and pass-along rates by adding value beyond the medium itself using take-aways.

• We will always portray Agents as trusted, helpful and knowledgeable.

• We will create executions that are cross-cultural, respecting the assimmilation of our Hispanic market.

• We will maintain the substantiality of our message by placing the Feel Free logo in a three dimensional environment and reflect the Feel Free moment by having a wisp move fluidly through the logo.

With these elements combined with the previously presented guides, we are confident that our executions will maximize effectiveness for both the messaging of the Feel Free campaign and its successful reception.

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PrInT ad “dInnEr”Our print ads portray the seamless transition from the Inhale to Exhale moment as the Young Adult is empowered to carry on from setbacks in her day. She experiences the Feel Free moment when she realizes her Agent is there and she can enjoy her evening.

PrInT ad “rOadTrIP”A CD takeaway inserted in magazines gives the owner 25 free song downloads from FeelFree.com.

radIO “fEEl frEE wEEKEnd”To create brand presence on the radio, State Farm will sponsor three days of commercial-free radio in 18 major markets throughout the entire year.

using well-established mediums to reach our market

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kicking off our campaign:30 second spot - “Carry On”

Male steps out of undamaged car

Eats sushi at the table

Appears in front of an office

Walks away from car in backwards motion

Waves and walks away from table backwards

Enters a conference room full of businesspeople

Keys fly from his hand into another hand

Walks out of restaurant

Papers fly from the table into his arms

Walks backwards into a sushi bar

Jogs onto a soccer field

Walks by his car, now damaged

Sits down with his date

Juggles soccer the soccer ball

Appears worried, seeing his car

Talks with her over a finished meal

Dribbles backwards down the field

Gives his keys to the agent and smiles

The design of our :30 second spot will give the illusion that each scene is placed directly next to each other. The Young Adult’s motion is uninterrupted as he transitions from scene to scene. The production design simulates the idea that he can move from one event to another without stopping to deal with an unexpected event.

This spot will launch at the beginning of the World Cup in June and help to build awarness for the Feel Free campaign. It will air on both ESPN and Univision, capturing our Independent and Hispanic markets. The spot will run from June 2010 until March 2011 with a pulsing strategy that alternates air time with our radio spots.

The Young Adult’s seamless transition between events in his day establishes the idea of constant motion, reinforcing the value of a State Farm Agent as a time saver. By running the commercial in reverse, we shift the focus from his accident to the Feel Free moment that follows. He is able to live life normally because his Agent takes care of the accident.

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Cars.COm HOmEPaGE TaKEOvErA webpage takeover will load a site that appears to be destroyed. Users will watch the site piece itself back together, followed by the Feel Free logo appearing on the page.

GOOGlE adwOrdsInsurance related keywords will place our site at the top of the online search. Twitter testimonials will replace standard call-to-actions.

Hulu PaGE TaKE OvErA State Farm Agent will enter the screen and invite the viewer to watch their show commercial-free. The Agent interacts with the website, pulling away the ad to allow the show to continue.

making the online connection...

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Bus sHElTErBus shelter takeovers will generate brand experience on public transportation. Those waiting to board the bus will experience the Feel Free message, illustrated by the big red couch decal.

OuTdOOr BIllBOard“GamE TImE”The ad portrays the seamless transition from the Inhale to the Exhale moment as our Young Adult is empowered to carry on from his unforeseen event. This billboard is one of two that will be used. One will mirror the magazine print ad and the other will create brand awareness, using State Farm red and the Feel Free logo.

TransIT audIO POsTErs Underground transit systems will feature audio posters allowing Young Adults to plug-in their headphones and enjoy relaxing natural sounds and music before their busy commute.

...and bringing it home

Bus wraP/InTErIOr TaKE-OvEr(Not Pictured)The bus wrap will depict a damaged car and a helpful Agent opening the doors of a bus, separating passengers from the accident. For non-drivers, the interior bus takeover will use vinyls to create an apartment-like setting featuring items that are covered by Renters insurance.

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Policy Number: Y 3547961

_______________

Driver’s License: D9801359_______________

_______________

Address:421 Grand St. Orange, CA 92867_______________

Name: John Smith

State/License Place: CA/GIW868

Policy Number: Y 3547961_______________

Collision Card

_______________

Driver’s Licence: D9801359_______________

_______________

Address: 421 Grand St. Orange, CA 92867_______________

Name: John Smith

State/License Place: CA/GIW868Persons involved in accident:_______________All witnesses:_______________

Policy Number: Y 3547961_______________

_______________

Driver’s License: _______________

_______________

Address: _______________

Name:

State/License Place: Persons involved in accident:_______________All witnesses:_______________

Policy Number: _______________

THEIR INFOYOUR INFO

Agent Name/Number: Alex Diez_______________

Policy Number: Y 3547961

_______________

Driver’s License: D9801359_______________

_______________

Address:421 Grand St. Orange, CA 92867_______________

Name: John Smith

State/License Place: CA/GIW868

Policy Number: Y 3547961_______________

Collision Card

_______________

Driver’s Licence: D9801359_______________

_______________

Address: 421 Grand St. Orange, CA 92867_______________

Name: John Smith

State/License Place: CA/GIW868

Persons involved in accident:_______________

All witnesses:_______________

Policy Number: Y 3547961______________________________

Driver’s License: _______________

_______________

Address: _______________

Name:

State/License Place:

Persons involved in accident:_______________

All witnesses:_______________

Policy Number: _______________

THEIR INFO YOUR INFO

Agent Name/Number: Alex Diez_______________

COllIsIOn CardsCollision Cards will allow State Farm customers to Feel Free from worry, knowing they have all the necessary information to exchange after an accident.

fEEl frEE wEBsITEFeelFree.com will include information on our initiatives, contests and will link to our social media networks and the State Farm homepage.

COllaTEral rEdEsIGn(not pictured)All collateral materials will be redesigned to match the Feel Free campaign.

it’s been there, whether you knew it or not

BIG rEd COuCHSitting areas in State Farm offices will be supplemented with red, branded couches. These allow the Agents to build a more comfortable and relaxing environment in their office, mirroring the support and comfort an Agent provides.

State Farm Agents will send greeting cards on special occasions to their customers. For example:

“Whole wide world meet Austin. Austin, meet the whole wide world.

Take some time to get to know each other.”

GrEETInG Cards

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TODAY,parking is on us

552-558

44USA

For about the price of 4 STAMPS, you could add Renter’s Insurance

BrandEd usPs sTamPs State Farm branded stamps remind our market of the low cost of Renters insurance.

BrandEd PaCKaGInG TaPE Branded packaging tape will act as a reminder of our brand at one of the Occasions of Opportunity, moving.

auTO KITAn auto kit includes everything a Young Adult would need if something were to happen to their car.

GO. Play. wIn.Go. Play. Win. is an iPhone game that prompts users to take pictures of State Farm logos encountered in everyday life. This interaction encourages them to visit various State Farm offices where they can find clues to win a variety of prizes.

mOvE-In KIT A move-in kit will provide commonly forgotten items used during the moving process for our Transitional market.

ParKInG lOT TaKE-OvErState Farm will utilize major sporting events and concerts for their parking lot take-over initiative. They will buy out the entire lot, covering the cost of parking for attendees. Instead of a traditional parking voucher, they will receive a State Farm branded free parking pass for the entire day.

Example: Parking lot takeover of Lady Gaga concert, MLB Playoff games and music festivals.

BIKE TIrE sPOKE InsErTCopy: Renters insurance covers your bike everywhere you go. So go somewhere.

laPTOP vInyl sTICKErCopy: Sometimes the best office work is done outside the office so Renters insurance can cover your laptop ANYWHERE you go.

if it doesn’t exist, we’ll make it

sms PlaTfOrm (not pictured)State Farm customers can send a text to a specific number, which will return a text with their policy information.

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After you experience the Inhale and Exhale moment, there is always the Next Breath.

nExT BrEaTH OBJECTIvEs•Developapublicservicecampaigncommunicatedthroughsocialmedia•Reach150,000YoungAdultsthrougheventsandsocialmediaefforts•Gatherawarenessandsupportforlocalandglobalcharities

prefer to contribute to charities focused on child wellbeing and disaster relief

prefer to volunteer for a charity

prefer to donate money

prefer to attend a concert instead of a sporting event, gala, carnvial or others

would not donate.

prefer to donate in other ways

rEsEarCH Of yOunG adulTs*

nExT BrEaTH CamPaIGnNext Breath supplements the Feel Free campaign by empowering Young Adults to pass on the Feel Free moment through giving. Next Breath’s social media and promotional events enable participants to emulate State Farm values: mutual trust, quality and being there. Next Breath will launch its social media campaign after the initial launch of Feel Free.

EvEnTWe tested our Next Breath event and chose to benefit UNICEF. It featured three expressions of feeling free: art, music, and writing.

• ART - Local artists donated pieces and made them available for purchase with proceeds going to UNICEF

• MUSIC - A live karaoke band allowed attendees to let go of inhibitions while singing on stage.

• WRITING - There were two boards placed at the entrance of the event. One was titled, “What makes you Stressed?” while the other read “What makes you Feel Free?” Attendees wrote on the board to share their experiences with each other.

To further publicize the event, live tweeting was displayed on a projector enticing attendees to tweet and share the experience with their online communities with the hashtag #nextbreath. The incredible success of the event determined that it could be rolled out nationally in support for UNICEF.

*based on a psychographic survey of 533 independents

giving the gift of giving

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wE arE TraInEdCircle Advertising incorporates talent from a spectrum of majors at Chapman University, the most dominant being Public Relations and Advertising (PRA). Internet Communications, a required course of PRA is dedicated to the study of social media and its effects on marketing. Required reading includes top selling social media books:

• Twitterville: How Businesses Can Thrive in the New Global Neighborhoods

• Naked Conversations: How Blogs are Changing the Way Businesses Talk with Customers

• Groundswell: Winning in a World Transformed by Social Technologies

Case studies and strategies featured in these books were used collectively to shape the curriculum. Outside of the classroom Circle Advertising attended two major events that featured experts on social media. A presentation by Seth Godin, author of Linchpin and an interview with Chris Brogan, author of Trust Agents, provided valuable insight into the ever-changing realm of social media.

wE arE aCTIvEWe used twitter to inform followers of the progress of Circle Advertising (#chapmanpra, #nsac) and promoted our events by linking to our Facebook event pages. We also developed hash tag channels within the #nsac channel to communicate internally. Circle Advertising dominated the conversation that existed in the #NSAC channel by maintaining over 80% of the tweets from October 2009 – March 2010. Near the completion of this book, the conversation eventually spread to NSAC participants across the country and created conversation. Proof of our influential strategy with social media was given to us when schools across the nation began to implement Circle Advertising-created hash tags and jargon into their conversations.

Professional Interview with social media expert and author of Trust Agents, Chris Brogan

social media is our forté

wE arE awarE In past campaigns we have incorporated Facebook, YouTube, and Blogs yielding incredible results. Feel Free gave us the perfect opportunity to use these mediums in conjunction with Twitter. We designated a Twitter Task Force to research and educate the team on Twitter and maximize its potential with tools such as Tweetdeck. We observed conversations that involved State Farm directly (@statefarm) as well as indirectly (tweets that included #statefarm or “state farm”). We found three influential insights:

• Many people unknowingly gave positive testimonials regarding their experiences with State Farm

• @StateFarm created organic conversation with followers regarding customer service and initiatives

• De-marketing campaigns were initiated on the grassroots level with twitters such as Angela Russell (@State_Farm_Sucks) and Larry Chiang (@larrychiang)

These three relevant insights became integral when shaping our social media objectives for Feel Free.

“On Twitter, word can spread faster than wildfire. Companies no longer have the option of ignoring the conversation.” – Twitterville

“…shift the focus from products to relationships.” – Naked Conversations

“Our job is to connect to people, to interact with them in a way that leaves them better than we found them, more able to get where they’d like to go.” - Linchpin

“We’ve taken what we’ve learned from our years as “digital natives”…to help you better understand the mind-set required to match your business needs.” – Trust Agents

“People use technologies to get the things they need from each other, rather than from traditional institutions.” - Groundswell

@State_Farm_Sucks

@LarryChiang

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Next Breath will serve as the catalyst in creating new online relationships between State Farm and Young Adults while spreading the Feel Free message.

Next Breath will use these four popular social media tools to maximize the reach of the campaign:

• Facebook• Flickr• YouTube• Twitter

Young Adults want to connect with each other and with brands that have something worth saying. It is important to stay connected and engage conversation in new and relevant ways.

InITIaTIvEs:

THE GIvE away GIvEaway!Utilizing Twitter, State Farm will announce their presence online. Followers of @StateFarm will be randomly selected to have $1000 donated to a charity of their choice. A new follower will be picked everyday for a year. Followers qualify by including their Feel Free moment and tweeting at @StateFarm and #FeelFree. Using the #NextBreath hashtag, @StateFarm will announce contest winners and charities.

nExT BrEaTH fanPaGEFacebook will be utilized in order to help promote the national rollout of the Next Breath event. State Farm will participate in conversations to share their ever-present philanthropy efforts and post opportunities for fans to volunteer at upcoming events. Links to all charities that received $1000 from The Give Away Giveaway will be posted, as well as the names of the donors.

nExT BrEaTH flICKr PaGEThe popular photo gallery site will feature a Next Breath Flickr page. This gives the Next Breath community a place to share their experiences from Next Breath events. The gallery will feature volunteers’ and attendees’ photos and stories from the events.

now it’s yours

sTaTE farm’s yOuTuBE CHannElThe State Farm YouTube Channel will not only be a destination for current commercials, it will be the resource for everything State Farm. This includes all of the videos for Next Breath as well as promotional contests. The mixture of video uploads will work in unison to share the Feel Free idea. Videos include:

• Next Breath Events• State Farm Philanthropic Events• World Cup Promotion – Kick-Off suPPOrT:The social media Taskforce (national level)A division within the Public Relations team called the Social Media Taskforce will maintain accounts and keep tabs on trends in the world of social media, ensuring that State Farm remains ahead of the curve.

“@sfagent” Twitter accounts (local level)The Social Media Taskforce will train State Farm agents on Twitter, ensuring they are competent and able to converse with Young Adults. Implementing Twitter will redefine how the industry utilizes social media to connect to Young Adults. Communicating in a public forum increases Young Adults opinion of trust and transparency of a brand. Below are some examples of typical conversations that would benefit followers:

• Answering basic insurance questions• Local State Farm event information• Discounts that State Farm offers

Marketing materials will feature the Agent’s Twitter handle so customers can follow local conversations.Ex: @SFAgent_JJameson

25

Strategy

Feel Free brings State Farm into communities by extending its reach through live-event promotions. These events break all three barriers and provide a reprieve from the busy lives that Young Adults lead. Each event has been carefully considered to target Independents, Transitionals and Hispanics in various locations.

get CoveredGet Covered incorporates situational sets, a paint splatter station and a dance party to evoke the Feel Free moment. It builds a platform for our audience to relate to, breaking the barrier of Generational Disconnect. It also breaks the barrier of Low Involvement by encouraging our audience to take part in staged accidental sets that remind them of the need for insurance. Get Covered targets Transitionals and Independents in places they hang out: campuses and local hot spots.

We executed Get Covered with two elements that contributed to the Feel Free moment:

SituationsThere were three sets: a robbed apartment, a car with a shattered window and a bike without wheels. Young Adults experienced the Inhale moment as they interacted with these situations. They were excited to participate as each set was designed to look like a photo shoot. During the national rollout, photos from the sets will be posted online and voted on, with the first place photo becoming a print ad.

Paint Splatter dance PartyAs participants transitioned from the situations to the dance party, they were enthusiastic about experiencing the Exhale moment at the paint splatter station. It was a space where they could let go of their inhibitions and carry on to the rest of the event.

During the event, participants were given campaign branded shirts and sunglasses. As a partnership, Red Bull provided refreshments for event participants.

making the best of a bad situation

26

THE wOrK ExCHanGE TEamThe Work Exchange Team trains volunteers to work at music festivals across the nation. State Farm will sponsor a concert at each festival for the volunteers that celebrates the work they’ve done, evoking the Feel Free moment. We will emphasize festivals that run from May to June, hitting our Occasions of Opportunity of Graduation and Moving Out.

wOrld CuPThe World Cup Contest motivates users to express their hobbies and passions by re-enacting their favorite moments in soccer history. Videos of these moments will be posted on the State Farm Youtube channel. Viewer votes will determine the winner of an all-inclusive trip to the World Cup. This promotion makes State Farm branded content relevant to the market and breaks the barrier of Generational Disconnect.

sPOnsOrs & ParTnErsHIPs

CarfaxState Farm will partner with CARFAX to create a Common Issues tab, which will include pros and cons of specific car models. This partnership builds State Farm’s brand value and hits the Occasion of Opportunity of Purchasing a Car.

ZInGO dEsIGnaTEd drIvErsZingo Designated Drivers will motorbike to the State Farm customer, put their bikes in the customer’s trunk and drive them home. We will partner with Zingo to celebrate the responsible friend – the designated driver – by giving them a night off to Feel Free with their friends and know everyone has a safe ride home. The partnership will begin in the month of March to hit the Occasion of Opportunity of Graduation, as this is when people begin to think about their next step. Since this program doesn’t reach all of our targeted cities, we plan to work with them to expand nationally.

IKEa ParTnErsHIPA partnership with Ikea will increase awareness of Renters insurance and will hit the Occasion of Opportunity of Moving Out. As a co-promotion, we will set up our staged accidental sets from Get Covered in major cities using Ikea products. Expanding on Ikea’s current initiative, when people take the furniture from the set, the product description will be revealed. Each piece of Ikea furniture will have a traced outline on the floor identifying the name and price of the product in relation to the benefits of Renters insurance.

Hulu.COm – If I Can drEamIf I Can Dream is an online reality show, streamed by Hulu, which follows the stories of five 20 – 25 year-old actors as they chase their dreams of stardom in Hollywood. State Farm will support their endeavors by sponsoring acting coaches for each house member. If one of the participants doesn’t perform well at a casting, State Farm will sponsor another casting call. By presenting the agent as coach, someone that is there, we break the barrier of Agent Misconception.

finding new friends...

27

...and hitting the road

Get Covered will be implemented in parking lots of large music venues and university parking structures nationwide. It will be organized by Everything Events & Entertainment beginning June 2010. Everything Events previous clients include: Disney, Charles Schwab, GEICO, NFL, Gatorade and many more.

Red Bull, a partner of the signature event, will utilize its established infrastructure with its street teams to promote the event in each of the targeted cities, concentrating on college campuses and local hot spots that attract independents.

The first event will take place in New York during the first week of June.

Next Breath regional events will be executed in the same cities as Get Covered but will commence in 2011. Each event will be planned and executed by a passionate State Farm agent “team leader” who will receive help from volunteer street teams, drawn from nationwide charities.

BOSTON620,000BC, BUEmersonHarvardNortheasternMITTufts

NEW YORK8.300.000NYU Barnard

WASHINGTON D.C591,000George WashingtonGeorgetownAmericanHoward

BALTIMORE636,000Johns HopkinsUBaltimore

68CHARLOTTE

7,000Duke,Johnson and WalesUNCQueensKings

MIAMI413,000UMiami

ATLANTA536,000EmoryGeorgia, TechSpelmanMEMPHIS

669,000RhodesUMemphis

PHILIDELPHIA1,540.000TempleUPennPenn State

INDIANAPOLIS798,000UIndianpolias

CHICAGO2,835,000UIllinois

MADISON231,000UWisconsinSt. Paul

MINNEAPOLIS382,000UMinnesota

COLUMBUS754,000Ohio State

HARTFORD124,000YaleTrinityUhartford

DALLAS1,M279,000SMU

AUSTIN757,000UTexasSt. Edwards

DENVER598,000BoulderUDenver

SALT LAKE CITY181,000WestminsterBYUUtahUtah State

PHEONIX132,000ASU

LAS VEGAS607,000UNLV

LOS ANGELES3,849,000ChapmanUCLAUSCLoyola Marymount

PORTLAND582,000

Portland StateReed

Lewis and Clark

SAN FRANCISCO808,000

USFSFSU

Berkeley

national roll out map

PR & promo timeline

OCT.SEPT. NOV. DEC.AUG.JulyJUNE Mar.FEB.JAN. APRIL MAYMay

ca rf ax

“If I ca n Dream”

next breath unisef

WORK EXCHANGE TEAM

zingoWORLD CUP

blogger

next breath

flickr

facebook

twitter

news

IKEA

get covered

28

PAID

EVENTS

254.3 138.6 103.6

12.1 665.6126.4119.950.214.2

660.4879.6

1,360.11,360.11,321.71,321.7

6,915.7 3,457.93,457.9

10,517.4 830.7 32.029.6 14.6

0.87.02.81.11.25.13.12.35.24.25.611.23.0

10.010.014.414.4

14.814.812.57.55.0

159.874.649.4

1.68.1

21.64.5

570.0570.0

58.858.8

n/a

Hanukkah

2010-2011 impressions/000,000 /000

($)/000,000

($)

production cost

TOTAL

Mother’s Day

March Madness

MLK Jr. DayThanksgivingHalloweenLabor DayWorld CupMemorial Day

Graduation

May ‘103 10 17 24 7 14 21 28 5 12 19 26 2 9 16 23 30 6 13 20 27 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 31 7 14 21 28 7 14 21 28 4 11 18 25 2 9 16 23

June ‘10 July ‘10 Aug. ‘10 Sept. ‘10 Oct. ‘10 Nov. ‘10 Dec. ‘10 Jan. ‘11 Feb. ‘11 March ‘11 April ‘11 May ‘11

4th of July

EARNED7.6 8.4 2.0

25.06.03.48.5

30.251.26.6

21.150.745.10.61.8

0.11.37.9

n/a n/an/a0.00.40.0n/a0.4n/a0.00.00.40.00.00.00.10.00.00.0

n/a100.080.057.6n/an/an/a18.04.3

320.5122.442.5n/a7.0n/a

53.695.0

496.8 180.0 0.9

Christmas

twitter: #feelfreefacebook fan pageviral videoPR NEXT BREATHnext breath eventnext breath twitter account The Great Giveaway Giveawaynext breath fan pagenext breath flickrfoursquare badgePROMOTIONAL EVENTSget covered work exchange teamFIFA kick-off contestcarfax sponsorshipzingo sponsorshipikea spectacular“if I can dream” sponsorship

OWNED 885.140.7 0.9 collision cardfeel free websitebig red couchcollateral redesigngreeting cards

28.40.135.0

5.40.10.1

0.10.10.50.10.1

30.035.5

267.4524.0

CREATEDbranded packing tapevehicle kitmove-in kitGo. Play. Win.parking lot take-overSMS platformspectacularsguerillapromotional itemsbranded stamps

11.12.1 3.5 5.1

40.6150.6

6.04.0

178.50.01

0.00.30.3 1.2 2.0 0.20.3 0.3 0.1 0.2

295.5236.4 200.0

165.0 387.0 332.5138.0235.7 5.7

193.1

3,460.0396.1 4.8

grand total

total impressions 1,155,906,600$5,355,766

$38,783,700

total production cost

PRINTmagazine-(OP4C)magazine-insertONLINEhomepage takeoverhulu show sponsorshipkeywords & paid local searchOOHbillboardbuilding corner billboardtransit audio postertransit interior posterbus shelterbus wrapTELEVISION:30spot televisionRADIO3-day station sponsorship

29

Paid

Created

Earned

Owned

$31,338,268

$1,361,119

$845,980

$71,257

Created

Paid

Owned

Earned

$3,459,918

$830,772

$885,136

$179,990

Commission

Contingency

$800,000

$227,610

for parties of 17 million or more, gratuity is included

30

Industry research of successful and unsuccessful campaigns determined this number to be reachable and conservative.*

PITCHState Farm is at a crucial crossroad. Young Adults are transitioning into roles of responsibility and developing habits that will carry on through the rest of their lives. State Farm has a dwindling window of opportunity to reach these Young Adults before they develop brand loyalty elsewhere. This is where we come in.

Young Adults want a brand that understands them and meets them where they meet. Feel Free does that. By re-positioning State Farm as convenient and valuable on all channels, especially social media, State Farm will begin to foster what will later mature into a profitable relationship.

We’ve shown you not only what we will do, but what we’ve done and how it has been effective. In an age of uncertainty, State Farm is currently torn between two seemingly mutually exclusive needs: • Breaking through industry clutter • Remaining true to themselves

Circle Advertising provides a way to do both.

A way to remain true to State Farm’s values and engage in conversation with Young Adults. A way to inspire them. A way to Feel Free to be State Farm.

EvaluaTIOn (mETrICs)

POsT-TEsTInGFeel Free was put through rigorous testing and 81.3% of those presented with it liked the message, stating:

• “Feel Free makes me think of a weight being lifted.”• “The tagline says Feel Free to do what you want, and we will take

care of things for you.”• “The freedom to do whatever you want, and still feel confident that

things will be taken care of the right way.”• “The message sells confidence and security.”• “It makes me think that the agent would have my back so I don’t

have to be there.”• “Selling confidence through a state of mind.”• “To me these ads sell to 18-25 year olds who are on their own for the

first time. They are college aged, away from mom and dad, making a big transition. It shows that with State Farm the transition can be made easy.”

How we calculated the numbersAuto:•714,000customersgained:17MpeopleX4.2%.•$942Mrevenue:714,000customersX$1319.14/yr(averagepremium).Renters (Conquest):•13.6Mpotentialcustomers:17MpeopleX80%(percentageofrenters).•$26Mrevenue:13.6MpeopleX$192/yr(averagepremium).Renters (Up-sell):•145,000customers:5%X2.9M(numberofStateFarmYoungAdultcustomers).•$3.5M(0.7%market)revenue:145,000customersX$24/yr(averagepremium).Profit:•$48.6Minprofit:$971.5MtotalrevenueX5%(industryaveragemandatedbygovt*).

renters:

auto:

We will evaluate our campaign through market share increases and monetary gains.

We will increase State Farm’s market share in the Young Adult Market by 4.2% pts. We predict increases of:

by breaking the barrier of misconception

by breaking barrier ofgenerational disconnect

by breaking barrier oflow involvement

increase inconquest sales

by retaining dissatisfiedcurrent customers

incrase by up-sellingcurrent customers

We will increase market share by 1.7%pts. This percentage breaks down to:

*Source: www.iii.org