Intelliquote presentation 060712

1June 7, 2012

Presented to:

Direct Marketing Launch Plan

Agenda

2

Background and Objectives

Online Insurance Marketplace‒ Competitive Landscape

Key Considerations‒ Target Insights

Approach to Market‒ Media Overview‒ Creative Overview‒ Data and Analytics Overview

Next Steps

Background

We all agree that:

Integrating new Direct Response media channels will lead to a successful

launch of 1800 Life Insurance

Key performance metrics (CPQRF and CPARF) have been consistently

weakening over the past 24 months

In conjunction with weakening performance, media spend and monthly

lead volume has also been in decline

3

Primary Objective:9 Introduce new media channels to launch 1800 Life Insurance.com to drive direct term life insurance sales in US market

Secondary Objective: 9 Create brand awareness in support of brand/product launch

Learning Objectives:9 Identify optimal mix for driving cost-effective sales at scale

9 Increase overall lead volume

9 Address Agent Attrition issue

Business Objectives

4

5

Online Insurance Marketplace Overview

Online Life Insurance Marketplace

Insurance companies spent over $18 million for DRTV advertising over the 2011 Calendar Year

Insurance companies spent over $10 million for online advertising over the 2011 Calendar Year

Select Quote leads the DRTV category making up approximately 70% of the spend

AccuQuote leads the Digital category making up approximately 95% of the spend

6

Source: Kantar Media

Life Insurance Market: Annual DRTV and Digital Advertising

Spend

Competitive Landscape

7

Founded in 1995, Matrix Direct offers an excellent selection of personalized life insurance quotes from highly-rated life insurance companies.

Established in 1985, the company pioneered the direct marketing of Term Life Insurance. Today Select Quote claims to be America’s #1 Term Life sales agency.

Since its inception in 1986, AccuQuote has established a leading position in the market. AccuQuote sells a variety of types of life insurance policies, as well as selected annuities.

Competitive LandscapeSelectQuote: Direct Response Ads:

– Offer:– Free insurance quote

– CTA:– Easy to Understand– Clearly Visible in Ad– Not always a click through, sometimes

a phone number

Ads emphasize:– Need to protect family’s future– Different stages of life

– Just Married– New Baby– New House– Raise– Lose your job

Media Type Spend*

Broadcast $4,249,500

Radio $783,400

Online $48,800

Total Advertising Spend $5,081,700

* Spend is calculated from October 2011 – March 2012

8



AccuQuote: Direct Response Ads:

– Offer:– 70% in savings– Free quote

– Prominent CTA:– Short and consistent– Easy to Understand– Clearly Visible in Ad

Ads place a strong emphasis on the need to protect your loved ones in your absence

Media Type Spend*

Online $5,441,200

Print $325,200

Broadcast $295,700



9



Matrix Direct: Direct Response Ads:

– Offer:– 70% in savings– Free quote

– Prominent CTA:– Short– Easy to Understand– Clearly Visible in Ad

Ads place a strong emphasis on the need to protect your family’s future

Media Type Spend*


Radio $173,300

Online $15,800



10


11

Key ConsiderationsTarget Insight

One target, four distinct personas

Minneapolis Married Two young kids Professional Wife is homemaker Sports Family

City Suburb Independent Career Minded Commuter One Adult Child Multi-generational Home

Colorado Springs, CO Young Couple Newborn Starter home Dual incomes

Austin, TX Teenage Children Real Estate Equity Second Generation Upscale Dual Income

Jared, 37 Diane, 47 Brian, 31 & Kim, 29 Charles, 52 & Maria, 50

12

Commonalities are Identified

13

Charles (52) & Maria (50) Jared (37)

Diane (47)Brian (31) & Kim (29)

14

06 00Getting DressedMedia: TV, Radio, Smartphone

08 00CommuteMedia: Radio, Billboards, Transit Posters, NewspapersSmartphone, iPad

12 00LunchMedia: Email, Web Browsing, Smartphone

06 00MailMedia: TV, Magazines, Catalogs

09 00HomeMedia: TV, iPad, Smartphone

AM

PM

Following our prospect throughout their Day

Cross-channel Communication is Considered

15

Approach to MarketMedia Strategy

Optimizing Traditional Marketplaces…

Media Horizons’ long standing relationships with our media partners affords our clients access to premium content and custom solutions at deeply discounted rates

Up to 75% off published rate cards

Premium media properties purchased at direct response rates

“First look” access to new opportunities

Custom solutions for “360” integration in cross-platform publications

Maximize impressions with minimum investment

16

Engines that learn over time where new consumers can be found algorithmically and value impressions accordingly in a real-time bidding environment

…in Tandem with Dynamic Marketplaces

17

http://www.lumapartners.com/resource-center/lumascapes-2/

Moving Toward an Optimal Media Mix

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Strategy begins with a 2 week Phase I and rolls out over phases Goal: Create a cross-platform infrastructure for driving incremental orders

at scale

Week 1-2 Phase I

Test and Learn +Week 5

• Benchmark strategic and diagnostic measures

• Establish a performance baseline

• Apply DR best practices

• Apply operational best practices

• Apply Phase I media tactics to remainder of budget

• Eliminate wasteful inventory and heavy up in top performing placements

• Roll-out creative best practices (e.g. dynamic creative)

• Add/subtract channels, partners, price models

• Leverage triggered/rules-based messaging

• Gain visibility into optimal media mix

• Programs at maximum potential and scale

• Direct Customer Database CRM initiatives

Phase I PHASE III PHASE IVPHASE II

Stabilize & Optimize+Week 3

DR Platform

Recommended 2013 Brand Launch PlanChannel January February March April May June July - December

Paid SearchSpend $125,000 $100,000 $90,000 $90,000 $90,000 $90,000Cost Per Lead $110 $105 $105 $105 $105 $105Leads 1,136 952 857 857 857 857

Digital MarketingSpend $62,500 $75,000 $105,000 $105,000 $137,515 $172,000Cost Per Lead $95 $95 $85 $85 $85 $85Leads 658 789 1,235 1,235 1,618 2,024

DRTVSpend $62,500 $75,000 $90,000 $105,000 $122,500 $140,000Cost Per Lead $125 $105 $100 $100 $100 $100Leads 500 714 900 1,050 1,225 1,400

Total Budget Spend: $250,000 $250,000 $300,000 $300,000 $350,000 $400,000 Continue to SCALE SPEND as results improveTotal Cost Per Lead: $108.97 $101.79 $100.25 $95.47 $94.60 $93.44 While DECRESING Cost Per LeadTotal Leads: 2,294 2,456 2,992 3,142 3,700 4,281 And INCREASING number of Leads

Total Spend Paid Search Only: $250,000 $250,000 $250,000 $250,000 $250,000 $250,000Total Cost Per Lead Paid Search Only: $110 $110 $110 $110 $110 $110Total Leads Paid Search Only 2,273 2,273 2,273 2,273 2,273 2,273

Difference Spend: $0 $0 $50,000 $50,000 $100,000 $150,000Difference Cost Per Lead: -$1.03 -$8.21 -$9.75 -$14.53 -$15.40 -$16.56 This is a WINNING ScenarioDifference Leads: 22 183 720 870 1,427 2,008

Note: JFM scenario assumes no incremental budget to launch new channels

Would need to address natural Agent Attrition issue prior to ramping up spend

Continually optimize mix to maximize performance across all channels. As budget grows, possibly

incorporate DR Radio and DR Print

MHI Creative Overview

20

The Media Horizons design team concepts creative with direct response principals in mind, incorporating best practices for eliciting response from our clients’ target audiences

All new creative development projects include:

- Presentation of two concepts- Three rounds of revisions on one selected concept- Proofreading- Coding (digital)- Final file preparation and release to printer/publication (print)

Rates do not include purchase of rights-managed talent, audio, artwork or photography

Brand Collateral Rate CardLogo/Brand Identity DevelopmentStrategic Brief: 5 Hours $975Project Management: 20 Hours $2,250Creative Development: 20 Hours $4,500Graphics Production/Illustration: 16 Hours $2,000

Grand Total Logo Development: $9,725

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DRTV Rate CardShort Form Creative Development (:60 and :30 spots)Creative Brief/Strategy Development: 10 Hours $2,000Project Management: 40 Hours $4,500Creative Development: 50 Hours $11,500Producer (Pre-Production): 5 Hours $575

Grand Total SF Creative Development: $18,575

Short Form Creative Production (:60 and :30 spots)TBD Based on Chosen Creative Concept:

$85,000 - $150,000

Digital Rate CardFlash BannersConcept, client revisions and animated back up GIFS

$2,000 per set (300 x 250, 160 x 600, and 728 x 90 units) $175 for each resize thereafter

Rich Media Created based on approved flash concept in one size

Starting at $2,500 per concept depending on functionality

Functionality menu:- Product carousel- Video- Social sharing (Facebook, Twitter, forward to a friend)- Polling- File download (coupon, PDF)- Data capture - Alerts (text, email price drop alerts)- Calendar reminders - Dynamic feeds (store locator, product selector)- Expandable (expands beyond the dimensions of the

banner space upon user interaction)- Overlay (appears to “float” over web page content on a

transparent background layer)

Email Copywriting, design, client revisions and coding

$1,800 per concept (HTML and text)

Landing Pages Copywriting, design, client revisions and coding.

Does not include form functionality

$2,800 per page

RevisionsGeneral revisions to copy and/or artwork not requiring layout/format changes

$175 per banner

$175 per email

$175 per landing page

Examples include: - Promo code update- Price change - Call to action change- Product shot update

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23

Pilot Approach: Digital

Strategies

Intelligently target users who are in-market for term insurance

Leverage data from trusted sources to connect ads with primary targets

as they surf the internet, creating targeted reach at direct response rates

Identify incremental audience segments that look and behave like original

target audience defined by retargeting and/or 3rd party data sources

24

Pilot Approach: Digital (cont.)

Tactics

Modeling & Targeting:

9 Build lookalike models from existing High Value Customers to determine selects for online targeting in display, email and lead-

generation:

Race/Ethnicity Profession Age Dwelling Type Education Level Credit Forecasting # of Children in HH Life stage: New Mortgage, New Parent, Newly Married, Recently Divorces

9 Utilize abandoner and search retargeting

9 Intersect users who have demonstrated an interest in specific product categories as measured by user’s online browsing, search

activity, and purchase activity (including activity at 1-800-Insurance.com)*

9 Secure pay for performance media (where available)

9 Utilize Dynamic creative to customize the conversation for a diverse target set

*Assumes pixels can be dropped. 30 day view-through / click-through window recommended

Buying & Optimization:

9 Predictive and real-time bidding: algorithmically optimizes audience design, budgets and bid pricing in real-time

9 Dynamic optimization: Use of conversion, exclusion and retargeting pixels for immediate and on-going campaign

optimization based on a deduped order count*

Strategies

Efficiently and effectively pace campaign spend over the course of the month– Refine spend via a day-parting analysis– Determine optimal use of budget

Expand top-performing components while working to improve or eliminate under-performing segments

In addition to Google and Bing, PPC campaign can incorporate Facebook, Yelp and other venues

Maximize Search results through coordination with other marketing efforts (digital and traditional)

Ensure effective mobile campaign component with dedicated account and budget

25

Phase I Approach: SEM

Testing & Reporting:

Test segmenting program spend via top-performing geographies and markets

Ongoing testing including A/B, ad copy, landing page– Work with web designer to ensure landing pages are optimized for conversion

Consider test campaigns in Spanish, Mandarin or other languages

Content Targeting Test– Placement could include sites catering to new parents, retirement planning, etc.

Reporting:– Get Call Center data to help monitor campaign success– Consider implementation of Google Analytics

26

Phase I Approach: SEM (cont.)

Phase I Approach: Broadcast

Competitive Analysis: Based on industry competitive research, Select Quote had control of the

advertising space for 2011, spending nearly 4 times the amount the next competitor, Matrix Direct. Combined, the category spent more than $18 million in SF DRTV in 2011 for a placement of more than 25,000 spots.

More than 90% of the spend focused on a :60 creative length spot, with the balance split between :30’s and :120’s.

The total category spend for 2011was split across Cable TV, Spot TV and Syndication, with Cable TV accounting for 88% of the total spend.

Full analysis completed, comparing the following categories for each advertiser:

‒ Top 10 stations, based on frequency of air‒ Local broadcast market selection‒ Breakdown by daypart (cable & spot)‒ Total units and airings by daypart

27

Phase I Approach: Broadcast

Approach to Market: Utilize :60 creative length spot for launch (with some testing of a :30 in phase

2 of plan)

Focus majority of spend on Cable TV category, targeting combination of stations and markets with successful competitive usage but also testing into niche “look-alike” stations and markets based on demographic profile of current usage.

Utilize competitive research to also do a deep-dive on creative executions of all competitive ads during creative development process

Phase 1 plan includes initial test flight of weeks 1 and 2, followed by initial optimization in weeks 3 and 4. Full optimization of plan achieved by week 7

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29

Approach to MarketAnalytics & Attribution Strategy

30

Measurement Tools

Proprietary HorizonView reporting and analytics system

9 Order attribution

9 Digital tracking

9 Model development

9 Lifetime Customer Value analysis (LTV) and CRM

9 Mail delivery tracking

9 Call center lead scoring and performance analysis

9 Call center & financial forecasting

31

Measuring Cross-Channel Convergence

Source: Visual adaption of Impact Radius chart, October 2011

http://www.impactradius.com/blog/insight/marketing-challenges-in-2012-3-truly-integrating-online-and-offline-media.html

Challenge: channel attribution is necessary but doesn’t work for optimization. “The customer is channel agnostic 1.”

Risk: optimizing out of “contributing” media exposures prior to a conversion can adversely impact sales volume

Solution: evolving attribution methodology to include “assist conversions” or fractional cross-channel attribution

32

Appendix A:Competitive Landscape

33

External Pressures:Insurance Industry


ING

MetLife Northwestern New York Life

Prudential

Life Insurance Marketplace

Mean Life Insurance Coverage*

34

1992 1998 2004 2010 $-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

Any**Individual***Group

* Coverage is in 2010 dollars.** “Any” includes individual, group and service members’ coverage (SGLI/VGLI)*** Includes life insurance sold face-to-face and through direct means.Sources: PR Web & ORC International

Other Notable Trends:

2008 financial crisis caused a large decline in life insurance sales

In 2010, insured individuals owned on average $154,000 of total life insurance coverage.

In 2010, the average amount of individual insurance coverage decreased by two times that of group coverage – $12,0000 vs. $6,0000

In 2011, life insurance sales reached the highest reported growth margins in the past 30 years.

Trends in the Life Insurance Marketplace

Shift from term to permanent insurance among insured adults – when a period of a term policy ends people are less likely to extend/renew the coverage– Single men and women, husbands and wives are more likely to rely on permanent

insurance as their only individual life insurance– Almost 2 in 3 insured adults have some permanent insurance as part of their individual life

portfolios

Adults carry enough insurance to replace their personal incomes for an average of 3.6 years– High-income adults carry the most life insurance in terms of the lengths of time they can

replace their personal incomes– Men with personal incomes of over $100,000 can replace their incomes for the longest

time– Middle-income women with personal incomes of $50,000 to $99,999 carry the smallest

amounts of life insurance in relation to their personal incomes

In 2010, only 1 in 10 insured adults owned both permanent and term insurance

35

Customer Adoption

Term life insurance sales trending down Low rates for younger people, much higher rates for older people

Majority of term insurance purchased by 25 – 44 year olds

Sales have increased in the 55+ age group

36

Recent shift among insured adults from buying term life insurance to permanent life insurance; however term still represents 65% of coverage

Source: ORC International & LIMRA Research

Types of Individual Life Insurance (Insureds)

Total Adults Men Women Husbands Wives Single* MenSingle* Women

2004 2010 2004 2010 2004 2010 2004 2010 2004 2010 2004 2010 2004 2010

Permanent Only 44% 53% 42% 52% 45% 54% 41% 49% 45% 52% 46% 68% 42% 70%

Term Only 37% 37% 37% 36% 37% 37% 35% 38% 37% 39% 40% 23% 41% 25%

Both 19% 10% 21% 12% 18% 9% 24% 13% 18% 9% 14% 9% 17% 5%

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Any Permanent 63% 64% 63% 64% 63% 63% 65% 62% 63% 62% 60% 77% 59% 75%

Any Term 56% 47% 58% 48% 55% 46% 59% 51% 55% 48% 54% 32% 58% 30%

Other Notable Trends:

2010 Top 10 Insurance Companies: Term Life Issued ($ 000s)

2010 Rank Company/Group Term Life Issued

1 ING USA Life Group $87,007,767

2 Northwestern Mutual Group $86,438,585

3 Metropolitan Life & Affiliated Cos $81,526,493

4 State Farm Life Group $65,878,257

5 Primerica Group $64,995,079

6 NY Life Group $55,807,875

7 Prudential of America Group $53,336,104

8 Aegon USA Group $50,878,605

9 SunAmerica Financial Group $40,852,125

10 Legal & Gen America Group $39,543,526


2010 Top 10 Insurance Companies: Term Life in Force ($ 000s)

2010 Rank Company/Group Term Life In Force

1 RGA Group $1,522,897,986

2 Aegon USA Group $1,385,368,401

3 Swiss Reins Group $1,354,102,348

4 Prudential of America Group $966,331,508

5 Metropolitan Life & Affiliated Cos $931,059,999

6 ING USA Life Group $886,667,849

7 Munich Amer Reassurance Co $737,169,920

8 Northwestern Mutual Group $714,869,453

9 Genworth Finl Group $708,049,456

10 SunAmerica Financial Group $657,839,965

Source: ORC Inernational

37

Competitive LandscapeTop 10 Life Insurance Companies

Based on Overall Advertising SpendCompany Total Advertising Spend*

Metlife Inc. $75,993,600

New York Life $62,224,700

Northwestern Mutual $54,318,700

AARP $47,465,000

Mutual of Omaha $14,543,500

State Farm Mutual $13,386,500

Prudential Financial Inc. $10,337,200

Nestle SA (Gerber) $9,429,000

Allstate $9,247,600

Massachusetts Mutual $6,815,500

38

* Advertising Spend time period: March 2010 to March 2012Source: Kantar Media


Top 10 Insurance Companies Based on Broadcast Advertising Spend

Company Term Life Issued

MetLife $65,350,300

AARP $43,818,600

Northwestern Mutual $38,085,500

New York Life $17,105,100

State Farm $12,882,800

Lincoln Heritage $7,914,200


Allstate $3,589,500

Prudential $2,323,200

Aviva $1,267,700

Top 10 Insurance Companies Based on Online Advertising Spend

Company Term Life Issued

MetLife $8,174,000

AARP $3,402,800

Prudential $2,147,500


Allstate $976,800

HSBC $845,300

Mass Mutual $370,700

USAA $365,400

New York Life $323,100

Aviva $295,400


MetLife: Direct Response Ads:

– Offer– Rates as low as $14/month

Ads emphasize:– Protecting family

40


Media Type Spend*


Online $8,174,000

Print $930,600

Radio $143,300


* Spend is calculated from March 2010 – March 2012

Competitive LandscapeNew York Life: Direct Response Ads:

– No offer– Passive CTA:

– “Learn how”– “Click here for more information”

Ads emphasize:– Low cost– Industry reputation– Securing your future

41


Media Type Spend*

Print $41,618,100


Radio $3,162,100

Online $336,100




Northwestern Mutual: Brand Awareness Ads:

– Click through but no clear CTA

Ads emphasize:– Building a foundation for the future

42


Media Type Spend*


Print $16,196,600

Online $33,500

Radio $3,600

Total Advertising Spend $


Competitive LandscapeING – Life Insurance: Direct Response Ads:

– No offer– CTA:

– Easy to Understand– Clearly Visible in Ad– Passive

Ads emphasize:– Need to protect family’s future

Flash ads speak to protecting yourself at different stages of life (See next slide)

– Marriage– Education Costs– Family

Media Type Spend*

Digital 36,700


43



44

ING: Digital Flash Creative


Competitive LandscapePrudential: Direct Response Ads:

– Offer:– Free insurance quote

– CTA:– Easy to Understand– Clearly Visible in Ad

Ads emphasize:– Need to protect family’s future

Flash ads speak to protecting yourself at different stages of life (See next slide)

– New House– Education Costs– Family

Media Type Spend*


Print $2,253,100

Online $2,147,500



45


Competitive LandscapePrudential: Digital Flash Creative

46


47

Appendix B:Digital References

What is a DSP?

A demand-side platform is a system that allows advertisers to manage multiple ad exchange and data management accounts through one interface.

By utilizing a DSP, marketers can access and manage bids for banners via a DSP’s “seat*” on an exchange, as well as the pricing for the data that they are layering on to target their audiences.

Additionally, much like Paid Search, using a DSP allows marketers to optimize based on set Key Performance Indicators.

Source: http://en.wikipedia.org/wiki/Demand-side_platform*While Valueclick is not a DSP, they have their own exchange seats and competing optimization technology

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What is a Dynamic CPM?

On every ad call, the Exchange holds an auction to find the highest paying ad to serve. What sets this auction apart is the dynamic pricing option for advertisers. Dynamic pricing ensures that the price an advertiser pays for an impression is tied directly to the value of the impression to that advertiser.

The DSP’s ad server predicts the probability of a user’s response to a particular ad, calculates a bid price tied to the value, and determines whether the creative passes the test of ROI.

Source: http://www.adgile.com/dynamic-cpm-pricing/

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Data shows that consumers at this publisher and at this time of day are 3x more likely to engage with the brand

Engine learns over time where new consumers can be found algorithmically

Real-time Bidding: Example Decision Tree

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What is a Universal Smart Tag?

Acts as a “container” and management tool for all adserved media programs

Provides real-time pixel “fire” based on deduped order count within a pre-defined “look back” window

Delivers cross-program path to conversion, exposure to conversion and time lag to conversion insight

Enables “enterprise level” reporting

Reduces page load time

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Appendix C:Sample Audience Insight Reports

(Digital)

Geographic location (DMA, region, and state) and connection speed are the most important predictors of campaign success. Nielsen NE (demographic variable) and browser are also significant.

Attribute Importance

Browser

Nielsen NE

State

Region

DMA

Connection Speed

0 0.2 0.4 0.6 0.8 1 1.2

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Audience Analysis:High/Low Responders

High-Responder Audience Low-Responder Audience

• Connection Speed - Wireless • DMA - Seattle

• Region - Pacific Northwest • State -Washington

• Nielsen NE - Brite Lites, L’il City

• Browser - Chrome

• Connection Speed - DSL

• DMA - Honolulu

• Region - Pacific

• State -Hawaii

• Nielsen NE - Upward Bound

• Browser - Internet Explorer

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Connection Speed

Wireless is the best performing connection speed. This makes sense: people who connect to the internet on a wireless service as most likely to be eligible and interested in the advertiser’s service.

Cable Broadband DSL Wireless Mobile T1 Other -

100

200

300

400

500

600

700

800

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Index % of Imps

55

The campaign is carefully targeted to a small number of major market DMAs. Of these, Seattle is by far the best performing. Honolulu, Raleigh, and Baltimore under-index.

By DMA

DMAs with at least 1% of Imps

Houston, TX Baltimore, MD Seattle-Tacoma, WA

Raleigh et al, NC Honolulu, HI0

20

40

60

80

100

120

140

160

180

0%

5%

10%

15%

20%

25%

30%

35%

40%

Index

% of Imps

56

By Region

Regional performance is determined by the performance of the targeted DMA in that region. Consequently Pacific Northwest (Seattle) is the best performing region and Pacific (Hawaii) is the worst.

South Central Mid Atlantic Pacific Northwest Southeast Pacific -

20

40

60

80

100

120

140

160

180

0%

5%

10%

15%

20%

25%

30%

35%

40%

Index % of Imps

57

As with region, performance of the states is driven by the performance of the targeted DMAs.

By State

Texas Maryland Washington North Carolina Hawaii0

20

40

60

80

100

120

140

160

180

0%

5%

10%

15%

20%

25%

30%

35%

40%

Index % of Imps

58

Chrome is the standout, performing much better than the other three browsers.

By Browser Type

IE Firefox Safari Chrome Other -

50

100

150

200

250

0%

10%

20%

30%

40%

50%

60%

Index % of Imps

59

Windows 7 is the best performing OS. Older versions of Windows do not perform well.

By Operating System

Windows XP Windows Vista Windows 7 Macintosh Other0

20

40

60

80

100

120

140

160

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Index

% of Imps

60

Performance is best from 12 pm – 6 pm, and worst from 12 am – 9 am. This is typical for a B2C campaign.

By Hour of Day

12-2:59 am 3-3:59 am 6-8:59 am 9-11:59 am 12-2:59 pm 3-5:59 pm 6-8:59 pm 9-11:59 pm0

20

40

60

80

100

120

140

160

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Index % of Imps

61

Performance is substantially worse on the weekends.

By Day of Week

Sun Mon Tue Wed Thu Fri Sat -

20

40

60

80

100

120

140

13.00%

13.50%

14.00%

14.50%

15.00%

15.50%

Index % of Imps

62

Higher income employment groups generally perform better (although the “management” group under-indexes).

By Employment Class

Management Professional White Collar, Mix WC, Service, Mix BC, Service, Mix Mostly Retired -

20

40

60

80

100

120

140

160

0%

5%

10%

15%

20%

25%

30%

35%

Index % of Imps

63

Although this variable is strongly influenced by the model’s geo-targeting it reveals an important fact: town/rural users do not perform.

By Urbanicity Class

Suburban Second City Urban Town/Rural Town Rural -

20

40

60

80

100

120

140

0%

5%

10%

15%

20%

25%

30%

35%

40%

Index

% of Imps

64

Nielsen Social Group is a demographic variable determined by income and location. The best Social Groups are “Urban Uptown” and “Inner Suburbs”

By Nielsen Social Group

The A

fflue

ntial

s

Secon

d City

Soc

iety

Elite S

ubur

bs

Land

ed G

entry

Urban

Upt

own

Micr

o-City

Blue

s

Midd

lebur

bs

City C

ente

rs

Urban

Cor

es

Count

ry C

omfo

rt

Midt

own

Mix

Midd

le Am

erica

Inne

r Sub

urbs

Rustic

Livi

ng

Unclas

sified

-

20

40

60

80

100

120

140

160

180

200

0%

2%

4%

6%

8%

10%

12%

14%

16%

Index % of Imps

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Nielsen NE is a demographic variable determined by age, income, location, and family size. The best performing groups are younger and wealthier, with families.

By Nielsen NE

Upwar

d Bou

nd

Brite

Lites

, Li'l

City

Kids &

Cul-

de-S

acs

Winn

er's

Circle

Secon

d City

Elite

Big City

Blue

s

Urban

Ach

iever

s

Count

ry S

quire

s

Blue B

lood

Estat

es

New H

omes

tead

ers

Bohem

ian M

ix

Big Fish

, Sm

all P

ond

Family

Thr

ifts

Beltway

Boo

mer

s

Mov

ers

& Sha

kers

Young

Influ

entia

ls

Up-an

d-Com

ers

Fast-T

rack

Fam

ilies

City S

tartu

ps

Execu

tive

Suites

Blue-C

hip B

lues

0

50

100

150

200

250

0%

1%

2%

3%

4%

5%

6%

Index

% of Imps

66

Lifestage Group is the final Nielsen variable. It shows Clearwire succeeding in young to middle aged groups.

Lifestage Group

Young

Acc

umula

tors

Midl

ife S

ucce

ss

Young

Ach

iever

s

Main

stre

am F

amilie

s

Accum

ulate

d W

ealth

Afflue

nt E

mpt

y Nes

ts

Susta

ining

Fam

ilies

Conse

rvat

ive C

lassic

s

Strivin

g Sing

les

Susta

ining

Sen

iors

Cautio

us C

ouple

s0

20

40

60

80

100

120

140

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

Index % of Imps

67

68

Appendix

Bibliography Kantar Media. Copyright 2012.

ORC International. Ref. 666107 April 24, 2012

http://www.limra.com/newscenter/newsarchive/archivedetails.aspx?prid=229

Person-Level Trends in U.S. Life Ownership http://media.hbwinc.com/pdf/Person_Level_Trends_in_U.S._Life_Insurance_Ownership_2011.pdf

Person-Level Trends in U.S. Life Ownership http://media.hbwinc.com/pdf/Person_Level_Trends_in_U.S._Life_Insurance_Ownership_2011.pdf

“Term Sales Seen Rebounding-Again,” National Underwriter Life/Health, July 9, 2002

http://daniel-workman.suite101.com/average-term-life-premium-rates-for-men-and-women-age-18-to-24-a343081

http://www.insweb.com/life-insurance/life-stages-life-insurance.html

Northwestern Mutual Life Insurance Co. report based on research conducted by Mathew Greenwald & Associates, November 2010

“Intelliquote, and the Life Insurance Industry as a Whole, Experience Records Growth in 2011; a Trend that is Expected to Continue,”

http://www.prweb.com/releases/intelliquote/life-insurance-sales/prweb9523564.htm

69

Economy & Finance

Intelliquote presentation 060712