Verizon Wireless will combine its advertising and marketing efforts with that of parent company Verizon Communications Inc. in a move that will help the carrier blend its diverse telecom offerings under the “Verizon” brand. The move also comes as AT&T Inc. works to unify its vast telecom holdings-including its recently acquired Cingular Wireless business-into one entity.
The combination of Verizon Communications and Verizon Wireless’ $1.9 billion advertising and media business marks the first time that the two telecommunications divisions have merged their marketing functions. To date, Verizon Wireless has operated largely independently from its wireline parent company.
Verizon said the move is an effort to create a common look and feel across the company’s lines of business, as well as provide cost savings. It whittles down a roster of more than 20 creative and media-buying agencies to 10.
The carrier’s newly combined marketing effort will be headed by Interpublic Group of Cos.’ McCann WorldGroup. McCann Erickson, part of McCann WorldGroup, has been the advertising agency for Verizon Wireless, and will now be responsible for combined creative duties.
Universal McCann, which had handled planning and buying for Verizon Wireless, now takes on duties for all media buying of both entities. MRM will handle direct marketing, while Momentum takes on sponsorships. RGA, which had worked for Verizon Communications, now takes on digital design duties for both entities.
The losers in the reorganization are Interpublic’s DraftFCB, which was a longtime agency for Verizon Communications, and independent McGarrybowen, which worked for Verizon Communications since 2002.
“The Verizon brand resonates with customers as one strong tradition in providing quality communications products and services,” said John Stratton, CMO at Verizon. “Fewer agencies will allow us to leverage key creative teams and develop one immediately identifiable Verizon brand.”
AT&T, for example, has said that 20% of its savings from its acquisition of BellSouth and its total ownership of Cingular Wireless, now AT&T’s mobility unit, would come from advertising and marketing savings. In the past, Verizon has said that it needed to keep the two companies separate due to Vodafone’s minority ownership of Verizon Wireless.
Lisa Sanders and Brooke Capps are reporters for Advertising Age, a sister publication of RCR Wireless News. Advertsiing Age reporter Alice Z. Cuneo contributed to this report. Advertising Age and RCR Wireless News are both owned by Crain Communications Inc.
