Case Study for Agency
03-1014996-939

XM Satellite Radio

Key Challenge
XM Satellite Radio launched its nationwide service in the fall of 2001.
After an impressive launch, the brand’s awareness growth leveled off at
36% in Q1 2002 and remained flat for 15 months. Searching for an agency
that could help them hit subscriber goals and break the flat awareness
levels, XM hired our firm in May of 2003. The agency’s objectives were
to create a unique positioning for XM and develop a campaign that would
drive subscriber growth in Q4 2003.

The Insight
After poring over quantitative data and competitive analyses, as well
as speaking with hundreds of current XM enthusiasts and the management
team, we developed a strategy based on an insight that tapped into the
emotional connection XM advocates had with the brand:
XM gives you more of what you like-you can always find something that
makes you feel great, no matter where or what you’re doing.

Creative Strategy
Because we had dual goals of building brand awareness and driving
subscriptions, we recommended television, radio, print and business
building non-traditional ideas to accomplish our goals. The creative
needed to overcome the consumer mindset of “Why XM? Why pay for radio?”
by using the emotional benefits reinforced with the rationale to shift
people from “paid radio” to an experience they can’t live without. The
creative therefore highlights the passionate relationship listeners
have with their XM Satellite Radio to the point where they never want
to be without it.

Media Strategy
Our media strategy was three-fold: create a dominant presence, mobilize
and unleash the XM nation and aggressively drive XM into mass media.
To create a dominant presence, our media program consists of almost 40
weeks of media activity. Dominance was also created through
entitlements and sponsorships that served as brand pedestals to help XM
stand out.

Mobilizing and unleashing the XM nation required us to target those
people most likely to buy the product. They are people who spend a lot
of time in their cars, are passionate about music, news and sports and
are early adopters of new technology. We also needed to identify those
that were most likely to influence others. We used a new media tool
called the Simmons Tipping Points (inspired by Malcolm Gladwell’s book)
to identify and connect with individuals who would accelerate word of
mouth.

Lastly, in an environment where consumers have more control and can
easily avoid advertising messages, we decided to work with various
media, including FX, Speed Channel, the History Channel and Rolling
Stone to organically embed our brand into their content.

Results
The new campaign launched in the third quarter of 2003, and the client
could not be happier with the results we have helped them achieve to
date. Aided awareness grew significantly in September to 42%, XM’s
first growth in five consecutive quarters. This helped the company
achieve its goal of one million subscribers by the end of October 2003.
In 2004, XM’s awareness continues to grow with 55% aided awareness. In
Q4 2004, subscribers have now topped 3.7 million, outpacing our key
competitor 3 to 1.