Vonage highlights quality and features in new marketing push

Vonage has released the new marketing campaign it announced in its first-quarter earnings report [1], and the company's pitch has shifted from touting its low-cost calling to highlighting features and call quality. The "Sounds Good" campaign is produced by TBWA\Chiat\Day, which Vonage said is a "firm known for creating impactful messaging on highly regarded brands."

"There are three key pillars we're focusing on in the 'Sounds Good' campaign: The high quality and reliability of the service and its low price; the new voice features that can be delivered via the Internet; and that Vonage is straightforward and transparent and offers promotional integrity," said Vonage spokesman Charlie Sahner. "We think these qualities will 'sound good' to consumers."

Andy Abramson at VoIP Watch and Garrett Smith at Smith on VoIP speculated that Vonage's new campaign could be a precursor to an HD voice offering. Abramson said that a Vonage HD Voice offering could lure AT&T Call Vantage customers as well as others who previously passed on Vonage because of concerns about call quality for business uses.

Though the new campaign gives Vonage some appealing selling points, the firm will have to carefully watch how another ad campaign affects its bottom line. Vonage cut marketing cost per customer acquisition to $290 from $319 in the last quarter, and it needs to continue moving in that direction if it wants to reach break even. Sahner said the new marketing campaign would not raise the company's expenses.

"We're buying smarter and more targeted advertising to keep costs down," Sahner said.

For more:
- see the VoIP Watch post [2]
- see the Smith on VoIP post [3]