November 27, 2009
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Verizon Exiles IPhone to Island of Misfit Toys for the Holidays

Too-Cool Apple Now Finding Itself on the Receiving End of Competitor Ridicule

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Talk about your thinking different.

As everybody knows, the natural order of things is to think of Apple as the hip one, the confident one, the hero, the maverick, the iconoclast, the Marlboro cowboy with a hard drive. Not only has it been so since 1984, when the new Macintosh was famously portrayed as a tool of liberation from the tyranny of the PC "Big Brother," it's been that way since Kevin Costner walked his dog at his beach house because his Apple Lisa (with its proto-mouse) let him work from home all ruggedly and handsomely sunburnished and windblown.

Title: Island of Misfit Toys
Marketer: Verizon
stars
Agency: McCann Erickson, New York
Apple as object of ridicule -- it almost seems to defy the laws of physics.
And, of course, for the last three years, Apple savoir faire has been embodied by Justin Long, who is the quiet and unassuming "Mac" alongside the dumpy, nerdy blowhard "PC," played by John Hodgman. Mac doesn't wish to seem superior, but PC just brings his insecure buffoonishness on himself.

That's how we understand the world. But now everything is topsy turvy, because suddenly Apple is on the defensive.

First came the Windows campaign, which featured attractive "laptop hunters" shopping for computers with all sorts of Mac-like capabilities at low, low, low PC prices. (Apple cried foul on the grounds that all MacBooks don't cost as much as a car ...) Then came Verizon's "There's a map for that" ad, which ridiculed the iPhone's spotty 3G coverage on AT&T vis-à-vis Verizon's superior network. (AT&T cried foul, claiming misleading mapping.)

Then came the $100 million introduction of the Droid, Verizon and Motorola's answer to the iPhone on AT&T, and a campaign almost entirely devoted to the shortcomings of Apple's already iconic smartphone.

That began with a cunning McGarry Bowen teaser employing a very Apple-ish all-white background to inform us -- without mentioning any names -- about the many things the iPhone cannot do. The spot was called "iDon't." ("iDon't have a real keyboard; iDon't customize; iDon't run widgets; iDon't allow open development.") Yowch. And don't expect any holiday truce, either. The group-pummeling of Apple will even take on a Christmas theme.

Hey, look! In that new commercial from McCann Erickson, New York, ... it's the Island of Misfit Toys from the Rudolph the Red-Nosed Reindeer holiday special! Look at all those mistakes from Santa's Workshop, exiled for their various manufacturing defects. There's Bird Fish -- a swimming bird! There's the sinking boat, and the unflyable plane and Trainer the train, with the square wheels on his caboose! Oh, and there's ...

... the iPhone.

"What are you doing here?" asks the spotted elephant. "You can download apps and browse the web."

"Yeah," says Misfit Dolly, "people will love you!" But when the disputed 3G coverage map appears above the iPhone, all the other toys exclaim, "Ohhh."

"You're gonna fit right in here!" giggles the unflyable plane.

Double yowch. The competition has identified some profound weaknesses in the iPhone and is exploiting them mercilessly -- precisely as Apple has mercilessly had its way with the PC for decades. It is, of course, perfectly understandable. Standard operating procedure, really. But come on, admit it: Doesn't it all seem weird? It's like the lady from "1984" tripping as she tries to throw the hammer, or catching Justin Long picking his nose and eating the boogers.

Apple as object of ridicule -- it almost seems to defy the laws of physics.

You know, like those ones from ...

... Newton.

23 Comments
Subscribe to comments on: Verizon Exiles IPhone to Island of Misfit Toys for the Holidays
  By trooke | Duluth, GA November 16, 2009 08:50:06 am:
And, I suspect Apple could not be happier. Competitors are missing a very key point. iPhone affecionados revel in their emotional attachment to the iPhone. They talk about its "cool" factor, the level of enjoyment they derive and, yes, what having the iPhone says about them as a person. While the phone possesses marvelous product capabilities, those are not what bind them to the iPhone.

For that reason, the recent efforts to relate product deficiencies will fail. For sure, some IT folks who live for product advantages will pay attention but the greater population will see these efforts as, once again, "they just don't get it!"
  By Kevin | New York, NY November 16, 2009 09:22:27 am:
Dear trooke (commenter #1):

Study up on segmentation and targeting (and spelling). Verizon isn't trying to attract "iPhone aficionados."
  By BlueOlive | Florence, AL November 16, 2009 10:08:16 am:
Let's face it. It's just good advertising and those of us that have been doing this for 20+ years admirer the "thinkers" of the campaigns and wish we too had been in those think-tanks.

On the filp side, MAC does have the advertising advantage to classify all non-MACs as PCs; PCs on the other hand are not only trying to claim their share of the PC market, but must also deflect MAC. Our agency lives in both worlds of MAC/PC and we are at peace (most of the time), but regarding mobile service, we are now all on at&t, but strictly for the iPhone. If iPhone had launched on Verizon it would have OWNED the mobile market. So this shows that a superior product can live well on an inferior foundation.

at&t should appreciate the life-line iPhone has given them; however, if rumors are true and iPhone will be available on Verizon in 2010, I fore see a huge segment of customers move back to Verizon and just like the misfit toys, the iPhones with be accepted and loved, even with their "flaws"...
  By Quantify | Teaneck, NJ November 16, 2009 10:16:54 am:
Agree with Kevin. The current campaign is clearly targeted at the phone geek population - people who have already seen the flaws of the iPhone device, and are suspicious of Apple's closed ecosystem. Heck, the "bomb" campaign was a parody of a variety of sci-fi flicks...tons of inside references. And let's not forget where the name Droid originated...

Question - will the campaign continue in the sci-fi geek vein? Or will it go mainstream at some point? I'm wondering if there's a master plan here to create a Droid brand with geek cred, and then disseminate that to the masses.
  By tommyzman | Oak Ridge, NJ November 16, 2009 10:21:51 am:
Agreed, Kevin. Iphone's product loyalty is right up there with Coke, and nobody is gonna mess with that. Verizon is targeting the go-zillions of people who have yet purchased a smart phone, with the goal of hammering away at Apple's market share.

But the problem with all of this is that based on the explosion in technology, someone will come up with a phone way cooler than the Droid... probably sometime in the next ten minutes.

BTW... I don't think that "app" is really a word...

Tommy Z . publisher, planetZman
The Last Great Bastion for REAL Men
http://www.planetzman.com
http://www.twitter.com/planetzman
  By ewfickle | Charlotte, NC November 16, 2009 10:29:46 am:
Dear Kevin-

Your comment about segmentation and targeting is misguided. Did you miss the part of the article that mentioned a $100 million campaign for the droid? There is no targeting going on in the bulk of their buying - it is a "spam everyone" campaign. The Verizon attack campaign is likewise a blanket effort - they bought network prime and network news.

Both campaign most certainly are targeting iPhone aficionados - those with and those without iPhones.

What those marketers are missing is that people just don't care for the BS - the "map for that" is transparent. It has about as much credibility as a Palin ad - and most of all, AT&T and iPhone users know it. No one browses the web on their smartphone from Death Valley, or the swamps of Southern Louisiana.

What matters to smartphone users is that they are smart, and they work well, in all the ways that we want them to. Open source is for techies. If we wanted a real keyboard we would be okay with a smaller screen. The mainstream wants a robust, stable device, which is why the droid will never have a market share like the iPhone.

Oddly enough, your snarky spelling comment illuminates the terminal failure of these ads - so much like political attack ads. When you don't have substance or a superior product, and you know you can't convince people that you do, ATTACK!
  By hershelr | LOS ANGELES, CA November 16, 2009 10:43:55 am:
iPhone enthusiasts (I can't spell that other word) often come off like Republicans: they must defend their dogma at all costs, and they're never wrong. In fact, they're so sure they're right that the rest of the world is just noise. In fact, for the time being, anyone forced to use AT&T to use this toy can't really judge the iPhone's capabilities, since they can never hold a signal long enough to make a judgment (or any other kind of) call. Anyway, loyalists are only loyal until they finally try something else. It's like escaping from a cult. Once they get away and undergo serious deprogramming, they have a shot at experiencing real life again, as healthy members of society.
  By dstivers | NY, NY November 16, 2009 11:00:07 am:
Some interesting comments here and each bare some relevance to my own experience. I was an iPhone early adopter and currently I am still an iPhone user. From a multimedia device perspective it is the best I have ever known. However as inherent techie, I am often seduced by the next best thing, especially as I cant use my iPhone in my own apartment in NYC. Thats right, virtually no service. So despite my love for my device, the Droid has caught my eye. That fact may be what the Verizon campaign is all about. Yes it is about grabbing those users who have said they will not buy an iPhone because it is on AT&T, but also those non-core users who like the phone, but cant bear the horrible service. I know the Droid will not be as good from a comprehensive user experience perspective but at the end of the day, its still a phone and service is paramount. To me I am egalitarian in my technology, I own both a PC and MAC and I think both have their merits. That said, the best solution for me may be a Nano for my music and Droid for my phone. Unfortunate, but that is just reality. SO maybe if Verizon can chip away at some of the iPhone users leveraging a pain point which has become apparent, combined with bringing in users who Fear the AT&T network (I will not buy an iPhone because of AT&T), they can capture a user base that makes their giant ad spend worth it.
  By Kevin | New York, NY November 16, 2009 11:11:28 am:
To commenter ewfickle (nice name btw):

You proved you know less about marketing than trooke.

a) $100 million for a campaign means nothing about segmentation when the market opportunity is in the $ billions. Especially when it is a launch.

b) how can someone WITHOUT an iPhone be an iPhone "aficionado"? check your dictionary for help.

an obvious Apple fanboy...
  By Mikki | Green Bay, WI November 16, 2009 11:18:25 am:
We're currently on AT&T and can't wait until our contract is up so we can switch to Verizon. 'Nuf said.
  By Simon | New York, NY November 16, 2009 11:38:40 am:
These ads are undeniably compelling, and definitely will appeal to the folks who are contemplating smart-phones, and also to those with knee-jerk reactions against the iPhone simply because of its popularity.

Something to remember is that Apple has never been interested in dominating market share, which is something people seem to forget all the time. Q3 numbers should serve as a reminder that profit is more interesting to them: with just 2.5% of smartphone market share, Apple made $1.6 billion in profit (compared to Nokia's $1.1 billion - and their 35% market share).
  By Simon | New York, NY November 16, 2009 11:43:10 am:
Another thought regarding Droid's iDon't ad: I'm curious how many average consumers are in the least bit concerned with the iPhone not allowing open development. True, Apple's App Store practices leave many *developers* with a bitter taste, but my bet is that most *consumers* in the market for a smart phone don't care what it took for the developers to get their apps approved.
  By rukallstar2 | Minneapolis, MN November 16, 2009 01:47:17 pm:
the truth lies somewhere in between kevin (do you work on the account?) and the other apple afficiandos (or fans for short) (plus spelling is a sign of discipline, not intelligence). sure there is a huge market that doesn't have a smartphone yet, plus cell phones are often bought based on provider rather than phone, while the i-phone really benefited at&t. it's a not bad spot, pretty good for mccann. and let's be honest, a lot of people don't really care about being hip or stylish or with it. we in the business have an unhealthy fascination with it, hence we got into this business. most people are lame and have other things to worry about than how the whole world still operates like high school. they think we're lame because we're immature, we think they're lame because they care so much about conventional maturity. the gumby old christmas special animation will do the trick. it works for verizon, they don't care if you have loyalty to a phone, they just care that they have a much better network and now there are phones that are functionally and aesthetically in the same league as an i-phone. now if droid proves to be a cultural phenom than that is exactly the best case scenario but not likely. plus htc has good executions out, while droid is spending a lot of money. not sure about the creative product, the strategy is interesting, not sure about the execution. basically like mcbowen's work on miracle whip. it would be a great brief, but as creative it's pretty horrible. droid feels the same way.
  By schwapj | New York, NY November 16, 2009 01:51:33 pm:
I haven't read all of the comments but there is another reason that nobody has mentioned why this ad is effective and, at least in regard to Apple's normal defenses, unassailable. The Droid has absolutely no connection to and nothing to do with "PC"'s. It is a Google phone, and of all the companies in the world that can compete with Apple for cool and hip, Google is definitely one of them--they DEFINITELY get it. It will be well before 2011 when people, including current iPhone owners, start pairing the best mobile network and the best mobile OS in their minds. Also, any Verizon store that puts a demo video on the Driod is going to capture people who were going to use the iPhone as their main multimedia device. Apple's day may not be over, but they're going to have to step it up 3 or 4 notches just to stay even (which, to their credit, they always seem to do).
  By CWXXX1 | Hermosa Beach, CA November 16, 2009 03:07:39 pm:
The Misfit commercial is a brilliant take on a xmas classic. I didn't view it as an attack on current iPhone owners, but a pre-emptive move to keep people from switching to ATT. I recently switched to ATT and got the iPhone, it is truly amazing. However, the spotty/limited coverage is a BIG problem and a huge weakness for ATT. I didn't know the high degree of spotty coverage until I switched. ATT should focus efforts on infrastructure upgrades - having Porsche on dirt roads isn't as fun!
  By Tobias | Franklin, MA November 16, 2009 03:56:53 pm:
Thank you Schwapj; Droid is not a PC! This is not a contest between computer Operating Systems. This not even a contest between smart phones (not yet anyway). It's a battle between Verizon and AT&T. A lot of consumers do not like AT&T (with good reason!) and Verizon's "a map for that" campaign just gives many dissatisfied AT&T users another reason to switch. If Droid is as user-friendly, reliable, and MAC compatible as the iPhone, then Verizon will gain ground - possibly a lot of ground. There is no reason to doubt the creative efforts of Google. Can't wait to try the Droid myself and yes, I own an iPhone. I love my iPhone but I certainly don't love AT&T and they are ones I have to pay every month!

As long as we are comparing apples to apples: Apple is not about being hip and cool. Apple is not fad oriented. The Apple brand has always been about superior quality, ease of use for the end-user, excellent and stylish design, leading-edge technology, consistency, and excellent customer service. It's no wonder Apple products are preferred.
  By CATHY | AURORA, IL November 16, 2009 08:21:58 pm:
Forgive me if I'm repeating what has already been said but the advantage of iPhone/Apple over the competition is the relationship that people have developed with the brand, even in 1984 when Mac was 'pushed' as better than the PC. And for years, Apple has done an adequate job of managing those relationships. As a result, the company has tremendous product loyalty that spreads across two maybe three generations. The competition's angle to simply exploit perceived weaknesses of Apple/iPhone on a product-by-product comparison, I agree, are aimed at those who haven't jumped on the smartphone bandwagon.

A friend of mine experimented with the Droid for several days -- and even considered giving up her iPhone because she's so fed up w/ AT&T. She loved the 'social' applications that the Droid has over what the iPhone offers, but at the end of the day, she had to come back to the iPhone because of the practicale usefulness of the device. She still hates AT&T though. If there's any truth that Verizon will pick up the iPhone in 2010, she'll jump carriers at a heart beat.
  By trooke | Duluth, GA November 17, 2009 10:05:00 am:
Kevin, not only do you display jerk-like tendencies, you miss the point and show your inherent lack of marketing acumen. First, with regard to a misspelled word. The purpose of language is to communicate, not please the anal retentives who see spelling as more important than content. The point regarding advocates for the iPhone brand was not to suggest that ATT is targeting them but to make the point that its success has been driven by its emotional components. And if you think that only the product segments of the smartphone business is all that remains for Apple to target, you are out of touch. The young and youthful about to get their first smartphone are a huge target; the users of competitive phones who find THOSE lacking remain a huge target.

You sound like an IT guy in marketing clothing....

By the way, if ATT is using broadcast TV to segment the market, they should fire the marketing guy there... they are buying time on broad reach programming, not narrow niche programs.
  By identity217 | Nashville, TN November 18, 2009 09:26:44 am:
Boy#1 (Apple) chooses Girl A (At&T)...now Girl B (Verizon) is jealous. So, Girl B teases and parades around Boy #1 with other boys.... Result Boy #1 (Apple) now wants to rethink his decision cause Girl B Verizon is lookin' good.

Point is... target this smarget that Blah, Blah.... I bet the campaign changes the minute Apple decides to open it's use to other carriers.... Because Apple has the one thing EVERYONE wants.

LOYAL CUSTOMERS.... and these days that is worth twittering about!!

(and I just play guitar for a living)
  By Kevin | New York, NY November 18, 2009 12:49:29 pm:
trooke:

you must have gotten your marketing degree from the same place you learned to spell. here's a sentence for you: akhfkiahf9bBCLOY. couldn't read it? oh, then maybe spelling is just as important as content.

so because Apple/iPhone owns emotion, then that means all remaining smartphones from here on out will be bought based on emotion? what a dumb assertion.

Verizon is going after about 60 million potential customers. yep, TV is a bad idea for that.

but what do i know? i'm just an "IT guy in marketing clothes." ore sumthing liek thatt.
  By awhetzel63 | New York, NY November 18, 2009 04:38:35 pm:
Fascinating - reading through these responses. Merits of the Verizon ads aside, no other carrier would be going after Apple and the iPhone if they had pioneered a smartphone that looked, felt and operated they way the iPhone does. Apple innovates. Most other companies and competitors don't. They're mostly followers who watch from the sidelines and then try to enter the market by producing a "nearly as good as" product that's cheaper and functions badly. The iPhone is a first-rate product on an "ok" network. Other phones will be merely doorstops and paperweights running on better networks. Pick your poison.
  By Curvin | SaratogaSprings, NY November 18, 2009 07:35:34 pm:
I'm a Mac fan. Have been for years. But I couldn't see myself being the least bit happy with an iPhone. I mean, AT&T? So I waited and waited. And when Verizon introduced the Droid, I bought one. So far, I'm completely satisfied with it. Is it as cool as an iPhone? Yeah.
Here are some commercials (from YouTube) that'll tell you a bit more about the phone and the battle that's about to unfold between Google/Verizon and Apple/AT&T...
"Homing Device"
http://www.youtube.com/watch?v=Jn8jfXHNcfk&feature=PlayList&p=589E930A8EFEC008&playnext=1&playnext_from=PL&index=8
"Surfer"
http://www.youtube.com/watch?v=yk2sUpi0-ko&feature=PlayList&p=589E930A8EFEC008&playnext=1&playnext_from=PL&index=12
  By Commerco | Franktown, CO November 19, 2009 12:08:36 pm:
@tommyzman - I think that you may find "app" is a term of art in IT/Technology - it has been used for years in the industry as a contraction for "application".

@Kevin & trooke - People, please go easy on IT folk, we are really not a bad bunch, perhaps just a bit enigmatic. Being more technical and than marketing focused probably accounts for the difficulties I have with getting Marketers.Org much attention to get it off the ground. Even so, please be kind. ;-)

@Keven - Your arguments are more compelling as regards demographic and strategy.

It is going to be interesting to see the fallout of the Verizon/Google vs AT&T/Apple campaign unfold. I enjoyed the adjunct article to this one by Abbey Klaassen ( at http://adage.com/digital/article?article_id=140602 ). This is going to be a pretty interesting contest between two seemingly well matched teams.

Personally, I have an iPOD, but not an iPhone. I'm also not going for the Droid. While I don't like the limitations of iPhone connectivity, I also don't care much for the data collection and analytics capabilities of Verizon's partner Google (which could put some national intelligence agencies to shame). So, I'll probably just stick with a simple cell phone and wait for a device not offered from the technology equivalent of the "borg" and one not locked in service wise by yet another communications behemoth.

Like any other average consumer, I kind of enjoy both choice and privacy in a world where both seem to be evaporating rather rapidly.
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