MagicJack to Consumers: Just Do the Math to See the Value

MagicJack is a fairly familiar name with consumers as things stand, thanks to a regular infusion of marketing that encourages users to look to replace phone service with Internet access and a small device. But a new switch in MagicJack's marketing looks to broaden its appeal still further, particularly in times where households are watching every penny with increasing frequency. MagicJack's new marketing makes things fairly simple, and encourages potential users to “do the math” on several fronts.

The new MagicJack ads focusing on the “do the math” tagline are set to hit most kinds of media—print, radio and television alike—and were created in both English and Spanish to get maximum reach in the United States. Along with the marketing mix that looks to provide maximum reach, MagicJack is also putting out a clear message: MagicJack saves money, and plenty of it.

It's being considered a “brand refresh,” the first in the company's seven years of operation, and it also represents the first major marketing push take under the company's new management team. While previously, the company focused on an “as-seen-on-TV” style of advertising, the new advertising instead focuses on the sheer value that the MagicJack system can deliver. The advertising, meanwhile, essentially looks to make it clear to customers that, once all the numbers are crunched, MagicJack will deliver a great value in phone service at shockingly low prices.

Given that MagicJack service runs at $29.95 for a year, or $99.95 for five years, it's certainly worth considering, especially once those yearly rates are broken down by month, meaning that MagicJack service—which includes unlimited local and long-distance calling—can be had for as little as $1.66 a month, which is a substantial savings against phone company standards of around $30 a month for basic landline service. But it's not just about price; MagicJack took home Frost & Sullivan's 2013 Consumers' Choice Award for its ease of use and its overall quality, making it look like a sound solution for users.

Of course, that's the issue that MagicJack may have to overcome here; looks like. While it's a great move to focus on price—especially so in a weak economy—there's an issue here that may be hurting MagicJack more than price issues: customer awareness. For MagicJack to really make an appeal to customers, there's one thing that may well do it: selling the devices with one free month of service. Right now, many potential customers aren't exactly aware that a high-speed Internet connection can function as a voice service (otherwise known as Voice over Internet Protocol, or VoIP), and even those that are have some concerns. How well would MagicJack work with one particular service or another, particularly when the issue of bandwidth caps comes up? After all, bandwidth caps are still an issue for many users, and users are left to wonder just how much bandwidth MagicJack service would take up, as well as other technical issues. Offering a free month, or maybe even two, of service would allow users to better see MagicJack's impact over a typical span of time without requiring that year's commitment. Granted, the “year's commitment” is low-priced, but $30 is $30, especially these days.

Still, MagicJack has a good point and it's making that point clearly. MagicJack service is shockingly inexpensive, especially compared to other providers. This may not be enough to get users in on the action, however, but only time will tell just how well it all works out.