Interesting video here with Verizon's CMO on their marketing strategy. 

While the other networks drove their business by (mostly) promoting their new sexy handsets, Verizon's message was always about the network. Everyone on the other networks find themseves constantly thinking about Verizon (or more specifically about that chap with glasses) when they plead into their phone with frustration "can you hear me now?" Genius.

Verizon's strategy? The network is an extension of the phone. Period. They make the handset manufacturers jump through hoops with their stringent standards. Reading between the lines here, one could almost see them turning down the iPhone a few years ago for not meeting their rigorous requirements. After all, smartphone penetration at the time was only 10%.

However, almost overnight, the iPhone changed the game. For the first time, the handset manufacturer was marketing the phone. Furthermore, Apple was the first company to market a smartphone to a consumer audience in a relevant and meaningful way. The masses wanted the phone, the network didn't matter. Smartphone penetration shot up 40%.

In the shadow of the sexiness of the iPhone, Verizon's network campaigns just didn't seem so cute, charming, and compelling anymore.

Rather than waver from their singular focus (which they considered doing), Verizon stayed true to their course.

This past month alone Verizon has made two huge strides. First was their controversial "Maps" campaign, where they've keyed into the highly publicized frustrations that iPhone users are having with AT&T's 3G network. Contrasting the two maps side by side, the narrator mocks the iPhone ads saying, "there's a map for that." AT&T's legal actions against Verizon for this campaign have only created a perception that they have something to hide.

Second was the release of The Droid—which many are calling Verizon's first sexy device. The Droid runs version 2.0 of the Android operating system. Android is developed by the Open Handset Alliance (a consortium of 47 companies) and most notably has Google's muscle behind it. While not exactly an "iPhone killer", the phone has received rave reviews from the press and from consumers. We've been demoing one in the office and I have to say that it's quite impressive—most notably the phone's integration with Google's services. I'm actually thinking of springing for one myself—look for a review later.

With rumors of a third-quarter deal with Apple for the iPhone, Verizon might not only find themselves back on top, but far in the lead.