AARP Financial Marketing Plan

1. AARP Financial Marketing Plan Achieving our social and financial mission DRAFT

2. Overview Achieving our social and financial mission 2 The “Do More Than Dream” Tour 4 Why it works 6 Tour communication plan 7 The media mix 20 How much it will cost 30

3. Achieving our social andfinancial mission • Helping Americans save more for retirement • Demonstrating AARP Financial’s new vision for the American investor • Engaging AARP members and prospective members • Involving the entire AARP organization • Building assets in the AARP Funds • Targeted rollout allows for ramp-up from pilot tonational marketing Demonstrating our commitment to helping members and investors create a more secure financial future.

4. A region-by-region national rollout • A grassroots approach that brings your messageto the mass market • Supported by a major internal launch event • Integration of advertising, public relations, Internet and direct mail delivers synergies and increases effectiveness • Great opportunity to involve local state offices, volunteers and AARP Outreach Group • Regional marketing allows for media testing and cost management • National campaign overlay simultaneously increases awareness among target AARP members Market-by-market media and direct response campaigns tied to local events

5. The “Do More Than Dream” Tour • A unique advocacy and educational initiative in key regional markets • A grassroots approach that brings our message to the mass market • Creating opportunities to increase response rates to our direct marketing efforts Dreaming alone can’t get you to your goals. To build a secure financial future, you must do more — especially when you’re over 50.

6. Why a tour? • “Recent studies show that passive educational tools that rely on print media, newsletters and brochures generally work only modestly well to increase savings, while high-touch educational efforts, seminars and one-on-one phone and in-person counseling have been effective.” ANNAMARIA LUSARDI • Pension Research CouncilThe Wharton School

7. Why it works • Reaches out to our audience • Targets key demographic areas • Increases potential for free press and strongpublic relations • Flexible, cost effective, exciting • Generates excitement and word-of-mouth buzz The tour creates opportunities to fulfill our social and financial mission.

8. Tour communications plan • Tour events and seminars in prominent locations (e.g., Home Depot or mall parking lots) • One-month local media saturation (TV, radio, newspaper, billboards) • Regional direct mail and email campaigns timed totour events • Public relations initiatives to generate local press coverage • “Do More Than Dream” microsite featuring tour blog • Multiple opportunities to invest (on-site, direct mail, direct-response print/TV/radio, online, call center) • Tour kickoff event in DC for national press coverage • Tailor events to local audiences The tour is scheduled to run from September to mid November 2006.

9. Tour route selection criteria • Rollout markets were selected on the following criteria: • A minimum of 0.5% of U.S. households (551,000 per market) • This allows for a big enough sample base for meaningful measurement projections • Adults 50–64 make up a minimum of 20.7% of the market’s population* • This equates to a 93 index versus the average U.S. market (22.4% of the U.S. adult 18+ populationis aged 50–64) • Adults 50+ make up a minimum of 39.4% of the market’s population** • This equates to a 101 index versus the average U.S. market (39.% of the U.S. adult 18+ populationis aged 50+) • Active AARP members by selected states make up a minimum of 0.67% of the entire 22 million AARP households • For the purposes of this document we have provided prototype media plan costs for two sizes of markets • Large markets (1.4% of U.S. households or more) • Midsize markets (0.7–1.3% of U.S. households) • * Demographic definitions as per AC Nielsen. Does not include St. Louis, MO. • ** Does not include Anaheim, CA

10. Top marketsAdults 50–64 • In selecting large and midsize markets, the tour routes focus on strong concentrations of both age segments, adults 50–64 and 50+.

11. Top marketsAdults 50+ • In selecting large and midsize markets, the tour routes focus on strong concentrations of both age segments, adults 50–64 and 50+.

12. National multicity tour routeTour A Tulsa, OK Cleveland, OH Pittsburgh, PA Philadelphia, PA Washington, DC Anaheim, CA Coordinated with Life at 50 event (Oct 26–28) Las Vegas, NV Louisville, KY Albuquerque, NM St. Louis, MO Phoenix, AZ

13. National multicity tour calendarTour A – September through mid November 2006

14. Concentrated market tour routeTour B Cleveland, OH Pittsburgh, PA Washington, DC Richmond, VA Knoxville, TN Louisville, KY

15. 1st location Media kickoff: Thurs–Sun 2nd location Small businesstraffic: Wed–Fri 3rd location Pedestrian traffic: Sat–Mon Concentrated market tour calendarTour B – September through mid November 2006

16. Event agenda

17. Event agenda (continued)

18. Tour route recommendation • Tour A (our recommendation) • Utilizes more of 2006 marketing budget • Hits more markets • Consistent with national market-by-market approach • Tour B • Test approach • Allows for local market saturation, but lessnational exposure • Easier to manage logistically

19. Hello, Pittsburgh! Hello, Cleveland! • Direct mail and email to members and non-members announcing dates and locations • Out-of-home advertising in strategic areas such as commuter routes • Newspaper (traditional and online) and radio advertising in regional media • Initial national launch announcing tour kickoff • Public relations support to generate media and consumer interest • Advocacy and educational approach supportcore mission • Geographic-based paid search advertising • Conduct field survey of local retirement readiness Full-scale media blitz before the tour hits a region

20. Communications plan timeline (per market) #25 Showing (25% of target sees each month) 100 GRP/wk. 100 GRP/wk. Sunday Sunday Friday Wed, Fri Wednesday Thu–Sun Thurs–Sun;Wed–Fri;Sat–Sun • * Option B: May increase media spend per market, due to extended stay per market

21. Print and outdoor advertising • Generate local and national interest in the tour • Drive lead generation • Reinforce brand positioning and messages • Strategic publication selection process based on: • Audience demographics • Editorial relevance • Target audience delivery efficiencies Advertising in AARP publications, regional newspapers, such as the Pittsburgh Post Gazette and financial publications emphasizes the educational nature and advocacy-based focus of the tour.

22. Public relations • Press releases to various national and regional media outlets • Conduct investor polls focused on regional retirement preparedness • Investor poll results released prior to road shows • Local angle generates additional media andinvestor interest The road show allowsAARP to capitalize on the power of the free press.

23. Marketing collateral • Develop retirement checklist, annual financial checkup • Retirement calculator • Create investor information and education series • Produce life-event guides • Create educational seminars • Seminar topics could include: • How to create retirement income to live on • How to retire on your terms • Retirement plans for small business owners Complement core marketing materials with event support.

24. TV and radio • Interviews with senior AARP executives • Local radio spots • Direct Response Television (DRTV) • Infomercials (product and educational approach) Local and national media plans are designed to increase tour attendance and sales of AARP Funds.

25. Direct mail approach • Maximize learning through testing • Use a scientific approach • Deliver constant flow of leads • Focus on inquirers • Drive to all channels Ongoing campaigns are focused on creating brand and product awareness, generating interest in events and increasing sales through educational, multi-channel follow-up.

26. Direct mail campaigns • Invitations with tour dates, locations andseminar topics • Continue to develop AARP Funds’ benefits messages • Promote advocacy and our new vision for theAmerican investor • Free guides could include: • Finding the money: 10 easy ways to save more • AARP Financial’s five principles of sound investing Direct mail provides an effective way to drive consumers to events or to respond to specific offers.

27. Internet advertising • Banner ads on AARP.org and select national sites generate interest in tour • Banner ads on local newspaper sites and emails to local AARP members and targeted non-members generate interest in local event and seminars • Paid search ads (i.e., Google AdWords) targeted to regions, prior to events, lead to tour site • Tour site provides consistent destination as call to action for all media • Product-based banner ads lead to specialized campaign pages to generate leads and direct sales Promotes national mutual funds rollout and overall brand awareness

28. Internet communications plan • Do More Than Dream Tour site includes: • Information about the tour • Online quiz/retirement calculator • Blog about tour with videos • Customized local pages provide survey results andpre-registration for seminars • Collect information in return for alert when Flash-based seminar and/or podcast of seminar is available • Links to AARPfunds.com for more education • Generates interest in tour, leads and direct sales • Leverage AARP.org Leveraging the power of one of America’s most important Internet communities

29. Internal communications • Increase involvement with state offices andAARP volunteers • Increase membership drive potential • Create excitement and participation across the entire AARP organization Build partnerships to reach members, to drive traffic to multiple channels and to provide valuable productsand services.

30. Support at the national level • In addition to the targeted local marketing efforts, we recommend: • Ongoing national direct mail campaigns • National Internet advertising • National advertising with AARP communication channels

31. How much it will costSeptember through mid November 2006 (based on $10 million budget) Creative andproduction $900,000 Creative andproduction $900,000 Remainingbudget $1,385,317 Event planning $895,000 Event planning $965,000 Remainingbudget $4,269,811 Nationalmedia $1,811,465 Nationalmedia $1,811,465 Local media $5,008,218 Local media $2,053,724 TOUR A TOUR B Note: Postage, publicity, survey, entertainment, catering and AARP staff costs are not included

32. Media plan budgetSeptember through mid November 2006 • National Media • Print Advertising AARP Magazine, 50–59 edition; 2 Page 4C ads w/ BRC $797,760 AARP Bulletin, 50–59 edition; 2 Page 4C ads $834,000 Provider Pack $65,000 Wall Street Journal, Washington, DC edition — Page B/W $14,705 • Internet advertising (AARP.org) Fixed position on the Money & Work section of the site (3 mos) $25,000 Run of site (ROS), 500,000 impressions (viewers) (6 mos) $75,000 • Total National Media $1,811,465 • Local Media • Large Market – e.g., Cleveland 4 weeks of DRTV @ 100 GRP per week $144,800 2 FSIs – Cleveland Plains Dealer (Sunday) $63,336 4 1/2 Page B/W ads - Cleveland Plains Dealer (week day) $114,156 2 1/4 page B/W Advertorials $28,000 4 weeks of Radio @ 100 GRP per week $92,460 1 month Outdoor (#25 Showing) $101,000 Fixed position on financial section of newspaper website, per mo. $7,000 Total Large Market $550,752 • Midsize market – e.g., Pittsburgh 4 weeks of DRTV @ 100 GRP per week $128,000 2 FSIs – Pittsburgh Post Gazette (Sunday) $42,203 4 1/2 Page B/W ads - Pittsburgh Post Gazette (week day) $68,040 2 1/4 page B/W Advertorials $17,000 4 weeks of Radio @ 100 GRP per week $57,500 1 month Outdoor (#25 Showing) $58,000 Fixed position on financial section of newspaper website, per mo. $5,000 Total Midsize Market $375,743 Total Local Media– Tour A (5 Large, 6 Midsize) $5,008,218 • Total Local Media– Tour B (1 Large, 4 Midsize) $2,053,724 • Total media – Tour A $6,819,683 • Total media – Tour B $3,865,189

33. Creative and production budgetSeptember through mid November 2006 • Advertising: $400,000 • Print advertising: FSI (revised per market), one national ad, one local ad (revised per market),one WSJ kickoff ad • Broadcast advertising: radio (revised per market), DRTV • Out-of-home advertising: one billboard per market • Online advertising: one national ad, one local ad(revised per market) • Printed literature $200,000(creative only) • Do More Than Dream Kits: prospectus(printing only, not included in budget), Do More Than Dream overview, worksheet • Seminars (3 topics) • Direct mail/Provider pack buckslips • Website $200,000 • Website (including pre-registration as email,blogging/forum component) • Online quiz/retirement calculator with customized output • Podcast • Flash-based seminar • Banner ads • HTML email • Campaign pages for product-based ads • Event support $100,000 (creative only) • Truck interior/exterior signage • Age-based hand-outs • Premiums • Total (Tour A or B) $900,000 Note: Postage, publicity, survey, entertainment, catering and AARP staff costs are not included

34. Event budgetSeptember through mid November 2006 Truck rental for 3 months (Tour A or B) $575,000(includes 2 drivers and one tour manager) Truck ground staff of 3 • Tour A $45,000 • Tour B $90,000 Truck location rental (depending on location type and duration of stay) • Tour A $55,000–$275,000 • Tour B $60,000–$300,000 • Total • Tour A $675,000–$895,000 • Tour B $725,000–$965,000 Note: Postage, publicity, survey, entertainment, catering and AARP staff costs are not included