Pulse: Navigating the New Normal

April 8th Edition For more information please contact [email protected] Dentsu Pulse | Navigating the New Normal A weekly curation of key trends and insights for marketers and brands.

“We cannot choose the challenges we face, but we can choose how we respond to them.” –Greek Philosopher, Epictetus

It is becoming clear that COVID-19 presents a challenge unprecedented in modern times - disrupting nations, economies and lives in ways not thought possible a few weeks ago.

Our ability to respond to this change in productive and constructive ways depends on our ability to sift through the overwhelming torrent of news and information: to understand key dynamics and derive actionable insights that allow us as marketers to adapt in meaningful ways to safeguard and enhance the well-being of our people, our brands and our consumers.

It is in that spirit that we developed the Dentsu Pulse: to bring together and curate the most up-to-date information, insights and thinking from across the Dentsu network to help marketers navigate the shifting road ahead. We’ll be with you as we push through the immediate crisis into recovery and, ultimately, a return to growth. Our goal is to publish this report on a weekly basis.

A final thought (and silver lining). As you will see from our research in this report, consumers are looking for brands to take an active leadership role in helping them weather this storm. That means, more than ever, brands have an opportunity (dare we say mandate) to not just MARKET AT consumers as transactional buyers of products, but MATTER TO people as individuals and members of communities. As devastating as this crisis is, it offers a unique chance for brands to truly live their purpose. We stand ready to support you in this journey.

2 This Week’s Summary

1. COVID HEADLINES The US confirmed the highest number of confirmed cases across the globe. The most heavily affected states include New York, New Jersey, Michigan, California and Louisiana but all 50 states report infections at this point. With the exception of a few holdouts, social distancing initiatives are now in place across most states. The US government delivers a grim outlook and advises citizens to hunker down as President Trump warns of “painful 2 weeks ahead. Unemployment claims hit a new record high and economic conversations are shifting from a “slower then expected recovery” towards the likelihood of a recession.

2. MEDIA MARKET PLACE TRACKER While digital usage is still shifting, the extreme growth we’ve seen in key areas such as Entertainment, News, Ecomm, has started to level off in the past week; this growth has resulted in opportunity for Digital marketers, decreasing CPM/CPC’s overall. Dentsu performance agency MuteSix provides us a look at how DTC marketers are capitalizing on the moment. As we all know Streaming TV has been exploding during this time, with Netflix and YouTube leading the way; this week will see the entrance of a new competitor: Quibi, a mobile-only, short-form content streaming service (for access to a recent Dentsu-Google proprietary study on Video Streaming behavior, please click through to the extended version of this week’s Media update). Google and Amazon search data gives us a unique view into the new and shifting “homebound” consumer reality. Dentsu Media Investment arm Amplifi outlines three possible scenarios of how the Media marketplace will evolve over the course of 2020, along with in-the-moment advisory and recommendations.

3. DENTSU COVID-19 CRISIS NAVIGATOR The theme of this week’s survey results is “nowhere to run, nowhere to hide.” Respondents previously denying the severity of the outbreak are now experiencing “Initial Shock”, while the majority of US consumers are moving into the “Coming To Grips” phase. Sentiment has turned from ambiguity to negative as no clear end is in sight and the economic impact is spreading. Consumers are increasingly looking for distractions as evidenced in streaming video & entertainment replacing news and social media as the media channel seeing the biggest bump in usage. In this time of uncertainty, consumers’ inclinations is to stick with ”tried & true” brands they trust - although willingness to try new products or brands differs across generations.

3 This Week’s Summary (continued)

4. CULTURAL & CONSUMER TRENDS The COVID-19 crisis has forced society to make vast changes in a very short amount of time. The unprecedented uncertainty has both revealed and exacerbated underlying tensions in American culture, many of which many have a significant impact on consumers’ mental health and wellbeing. This week’s rising trends highlight a selection of those tensions – from American’s unhealthy relationship with productivity to the negative impact of a constant news cycle to how American values of self-reliance and generosity are being redefined. Most importantly, we outline ways in which companies and brands can best respond to consumers’ current experiences amid the crisis and rise to meet new needs.

4. INDUSTRY VERTICALS • Financial Services: Seeing upside as result of trading volatility and credit extensions • Media & Entertainment: Video viewing explodes while networks adjust • Travel & Hospitality: Airlines raise $17B in bank loans and lobby for bail-out while some US hotels are on verge of bankruptcy • Automotive: Sector sees continued decrease in demand as branded searches drop by 11-14% and “dealerships near me” by 25% • Retail: While in-store retails continues to suffer (see report for latest foot traffic trends), eCommerce and grocery demand continues to grow • Luxury & Beauty: Pressure builds as disruption from the pandemic could wipe out the industry’s cumulative sales gains over the past 5 years • High-Tech & B2B: Big tech mobilizes to address COVID-19 while the electronics industry continues to work through supply chain issues • Health & Wellness: Digitally connected work-out providers are succeeding while health insurers re waving COVID-19 treatment costs • CPG: Sales continue to rise, but supply chain concerns as panic buying and stocking-up continues • Restaurants: The trauma experienced by restaurants is starting to ripple through the supply chain, affecting farmers, distributors and food banks • Insurance: Insurers warn of legislative repercussions as congress discusses insurance pay-outs and considering Pandemic Insurance Act • Non-Profit: Decline in donations while food banks are coping with unprecedented demand

4 1. This Week’s Data and Headlines

2. Dentsu Media Marketplace Tracker

Contents 3. Dentsu COVID-19 Crisis Navigator

4. Cultural and Consumer Behavior Trends and Insights

5. Insights and Implications by Industry Vertical This Week’s Data and Headlines April 8th Edition Spread Trend: Global and US (as of 4/8/20)

Total Cases (Millions) 1.6 1.4 1.44 1.35 1.2 1.27 1.20 1.0 1.12 1.02 0.8 0.94 0.86 0.6 0.78 0.66 0.72 0.4 0.40 0.2 0.31 0.34 0.37 0.12 0.14 0.16 0.19 0.22 0.24 0.28 - 29-Mar 30-Mar 31-Mar 1-Apr 2-Apr 3-Apr 4-Apr 5-Apr 6-Apr 7-Apr 8-Apr World USA

Total Deaths (000s) 90 80 83.41 70 74.77 69.43 60 64.69 50 58.89 53.18 40 47.20 42.31 30 37.77 30.86 34.07 20 10 2.22 2.58 3.14 4.05 5.10 6.08 7.12 8.45 9.62 10.94 12.86 Source: New - York Times, Worldometers, John Hopkins 29-Mar 30-Mar 31-Mar 1-Apr 2-Apr 3-Apr 4-Apr 5-Apr 6-Apr 7-Apr 8-Apr © 2020 Dentsu Aegis Network 7 World USA Global and US Snapshot (as of 4/7/20)

Global USA Confirmed Cases Deaths Recoveries Confirmed Cases Deaths Recoveries (+7%) (+12%) (+8%) (+9%) (+18%) (+10%)

1,447,893 83,412 309,183 400,549 12,857 21,711

China

Confirmed Cases Deaths Recoveries % Change % Change (+0.1%) (+0.1%) (+0.1%) State Cases from Deaths from Yesterday Yesterday

New York 142,384 8% 5,489 15% 81,802 3,333 77,279 New Jersey 44,416 8% 1,232 23%

Michigan 18,970 10% 845 16% Italy California 17,620 8% 450 17% Louisiana 16,284 10% 582 14% Confirmed Cases Deaths Recoveries (+3%) (+4%) (+5%) Massachusetts 15,202 10% 356 37% Pennsylvania 14,945 14% 250 40% Florida 14,747 8% 296 17% 135,586 17,127 24,392 Illinois 13,549 10% 380 24%

Georgia 9,156 21% 348 18%

Source: New York Times, Worldometers, John Hopkins

North America Europe

The US recorded the In Europe, Italy, Spain, France and highest number Germany are the most affected countries of confirmed cases with 2.2K, 3K, 1.6K, and 1.3K cases per across the globe. million people, respectively. Spain recently Top affected states overtook Italy in having the highest in US include New number of confirmed cases amongst York, New Jersey, European countries. Michigan, Louisiana, and California. Asia China being the origin of the pandemic has the highest number of cases in Asia. Other worst-hit countries in Asia include Malaysia and South Korea with 4K and 10K confirmed cases, respectively. South America Amongst South American countries MEA Australia Brazil, Ecuador, Chile, and Peru are the Iran, Israel, and Saudi Arabia are the most most affected. affected countries in Middle East. Although the Australia recorded around 5K confirmed whole African continent is affected, the number cases until now with 232.2 cases per million of confirmed cases is very low but is increasing people. Australia recently announced at a steady pace. countrywide lockdown for 6 months.

Source: New York Times, Worldometers, John Hopkins

China Says It Is on the Path to Recovery Global Recession Could Last a Long Time; EU May Break Up China confirmed 32 new cases but recorded no new deaths, marking the first Global economic impact is now expected to last into next year and maybe time since Wuhan was locked down. China also confirmed an additional 30 beyond as governments restrict businesses, impeding consumer-led asymptomatic cases, which the government is categorizing separately from economic growth. Losses to companies and plummeting stock markets reflect other cases. Nine of those cases were imported. an economic alarm. Economists have gone as far as saying the 2008 crisis was a dry run for this. Additionally, China’s National Bureau of Statistics said a measure of factory EU leaders have warned that coronavirus could lead to the break up of their activity showed a rebound in March. However, this does not mean the union. The coronavirus pandemic, is deepening fault lines within Europe. The economy is entirely back on its feet. Chinese officials said nationwide, major continent is struggling with Brexit, political fallouts from the 2015 migration industrial enterprises are operating at an average of 98.6% of capacity, and surge, and rising rates of autocracy. The economic impact of the coronavirus nearly 90% of employees at these businesses are back at work. is expected to have dire consequences for the continent.

Asia Tightens Restrictions on Coronavirus Global Cases Have Topped 1.4M; Several Asian countries have tightened controls after new infections and lax Death Toll Crosses 82,000 observance of voluntary curbs threatened their successes in restraining the The number of cases surpassed 1M world-wide and at least 82,000 have died in new coronavirus. Japan has declared an emergency. Singapore has also 109 countries. The U.S. has more than 400,000 cases, more than a quarter of the experienced a surge in new virus cases, prompting the government to global total. The CDC advised all Americans to wear cloth masks in public, and announce significantly tighter restrictions that are set to last through May 4. the government maintains social distancing and not masks are key to slowing the Officials said people hanging out in public cannot be tolerated anymore. spread.

As fears over the pandemic rises, world leaders are invoking executive powers and seize virtually dictatorial authority. Countries around the world have begun surveillance, deployed the military among other actions to track the virus.

Source: New York Times, Washington Post

President Trump Invokes Defense Some Businesses Aren’t Eager to Take Past Two Weeks Have Wiped Out All Production Act Government Aid Jobs Created Since 2016

President Trump announced he was Some corporate leaders are unsure of the potential The past two weeks wiped out all the economy’s job gains since invoking the Defense Production Act, a terms of the grants and loans authorized by the the 2016 election. More than 6.6M Americans applied for 1950s law, to help shore up dwindling stimulus legislation last week. Boeing CEO, David unemployment insurance benefits last week. A report from the supplies of masks and other supplies. 3M Calhoun, has suggested that they could raise money Labor Department is expected to show a net loss of jobs for the will help produce these. elsewhere if it found the government’s terms too first time since late 2010. Economists on Wall Street expect a loss onerous. of 100,000 jobs, with a rise in the unemployment rate to 3.8%. 3M had said that it was speeding up production of N95 masks and that it With revenues declining and losses piling up, some The Congressional Budget Office said on Thursday that it planned to increase output in the US by companies may be desperate that their chief expected unemployment to top 10% in Q2 2020 - as high as the 30% next year. The company usually executives accept terms like a temporary ban on last recession - and to remain at 9% at the end of 2021. Till the makes about 400 million masks a year. companies buying their own shares, a condition that coronavirus pandemic, the economy had created jobs for 113 airline executives have said they are willing to accept. months in a row. A net total of 22.2M jobs were created in a Others may accept aid simply because the public steady if not always spectacular expansion. wants them to.

Source: New York Times, WSJ, Washington Post

© 2020 Dentsu Aegis Network 11 This Week's Top Policy Stories As cases in the US climb, government responses to curb the spread of the disease have been using containment as pressure on the healthcare infrastructure rises

US Steps Up Containment Efforts A Healthcare Battle

• One day after announcing many American companies are now producing ventilators, the White House said • President Trump extended social distancing guidelines to emergency stockpiles of protective medical supplies were near empty. US governors ordered more people to April 30, backing down from his previous comments that stay at home as a result. he hoped the country could go back to work by Easter. • Many hospitals and doctors are also struggling with a financial squeeze as coronavirus patients are • President Trump added the next two weeks will be overwhelming health-care facilities and there is a drop off in regular doctor visits, emergency-room arrivals and difficult as the US struggles with containment and lucrative surgeries vital to most hospitals’ bottom lines. More healthcare workers are also falling sick. healthcare shortages. • Governors have urged hospitals to stop elective procedures. Hospitals have canceled surgeries and are • President Trump also has invoked the Defense preserving PPEs. Many patients have avoided hospitals under stay-at-home orders. Production Act. • To help with healthcare efforts, the FDA has granted an emergency approval permitting the use of two long- • The government said deaths from the pathogen are used malaria drugs - hydroxychloroquine and chloroquine - to treat patients who are hospitalized with expected to be between 100,000 and 240,000, coronavirus, despite little evidence the drugs would be effective against the virus. despite social distancing measures. • The generic drug maker Sandoz, a division of Novartis, donated 30 million pills of hydroxychloroquine and • More governors across the country have ordered stay-at- Bayer donated one million doses of chloroquine to the national stockpile. home measures including Maryland, Virginia, Arizona, • Several health insurers have agreed that they will waive cost-sharing related to hospital stays and other out-of- Pennsylvania, Florida, Georgia, Mississippi and Nevada. pocket costs. Health insurers that have announced this include Humana, Cigna, Aetna among others.

Source: New York Times

StimulusStimulus Package Package May NotNot BeBe Enough Labor Markets Furloughs

• Legislators in the US are planning for yet another emergency-spending package. Many • The labor department this week reported • Companies that announced furloughs this expect the debate to begin late April. The ideas being floated include extending the $2T that 6.6M filed for unemployment, up week include Macy’s, Gap, and media package to make the benefits last longer, as well as plugging in likely holes in the hastily from last week's 3.3M. company - Gannett. Fiat Chrysler is asking assembled bill. The idea could be like a New Deal-style jobs program to help the country • Economists don’t expect the sector hiring salaried employees to defer a portion of with an expected recession. booms to offset the millions of job losses their salaries. Disney executives said they • The US detailed terms of the new loan program to help SMBs. Borrowers will be charged forecast in the months to come. Many of would take pay cuts. just 0.5% interest and the loans will be forgiven as long as they keep their employees on the job shifts will prove temporary. A Becker • Boeing is expected to begin offering early their payrolls for two months. Friedman Institute study found that only retirement and buyout packages to its • Meanwhile, Federal officials are trying to set up a new system to send coronavirus stimulus 34% of American jobs can be performed at workforce. checks to Americans, raising new fears that technical glitches and mismanagement could home. Many jobs such as teaching are • Many companies are suspending or undermine the recovery efforts. difficult to do remotely. In 2018, fewer than reducing the contributions they make to • Companies are calling on the President to drop tariffs placed on foreign goods. The 25% of Americans worked from home at all employees' 401(k) accounts to save cash, President is now considering an executive order that would defer tariff payments on some on a given day. rather than cut health benefits. imports, though not cancel the levies outright.

Debt and Borrowing

• As revenues dwindle, companies are racing to conserve money and in good shape” ahead of the crisis, non-financial corporations with enormous debt loads - tap as much credit as possible. borrowing mostly for buying back stocks and paying dividends to shareholders, which may trigger • The economic fallout from the coronavirus poses challenges for small banks across the country. a wave of corporate defaults. Community banks must balance helping SMBs with protecting their own bottom lines. • Federal Reserve Chair Janet Yellen said while the banking and financial sector was in “generally

Source: New York Times

Airports, Automotive US Foot Traffic Continues Even As Grocery Stores Field Restaurant Industry Foot Long Lines, Crowd Control Also Compromised by Precipitous Decline Traffic Crippled Measures Cut Foot Traffic Foot Traffic Decline

As the US closed its borders and While long lines were seen outside As more states issued stay-at-home, As non-essential travels diminished, more states issued stay-at-home most grocery stores, many of them restaurants operate on take-out and foot traffic to national airports orders, the foot traffic in all observed have implemented crowd control and delivery only. This shift hit CDR (91% decreased by 86% from the week of industries continued to decline. limited store hours. These changes decrease from the week of 1/20) over 1/20. contributed to the decrease in grocery twice as much as QSR (49% With roughly half of Americans staying Visitations to auto dealerships store foot traffic since mid-March; a decrease from the week of 1/20) at home, discretionary activities similar pattern was observed for big since not all CDR were well-equipped continued to decline (74% decrease diminished. More specifically, foot from the week of 1/20) and are box stores. for takeout orders. traffic to shopping malls and movie expected to decrease further until the theaters decreased by 94% and 97%, Foot traffic to grocery stores and big situation is under control and respectively, in comparison to the box stores decreased by 33% and consumer confidence returns. week of 1/20, the first confirmed case 19%, respectively, in comparison to in the U.S. the week of 1/20.

Source: NinthDecimal

Boeing to Offer Early Tensions Start to Break Out Xerox Drops Gun Sales Between Employers and Retirement, Buyouts Workers HP Merger Plans Increase

Boeing is expected to begin offering Tensions are breaking out between Xerox Holdings Corp. is pulling the Americans purchased 1.9M guns in early retirement and buyout packages employers and workers as some plug on its hostile bid to buy larger March, the second busiest month but the company's CEO said the companies aim to keep producing and rival HP Inc. after the coronavirus ever for gun sales after January 2013. company could raise money employees push back over health pandemic undermined the copier People are fearful that the pandemic elsewhere if it found the government’s concerns and other issues. maker’s ability to pull off the debt- could lead to civil unrest, and gun stimulus terms too onerous. laden merger. Even as the business is booming, sales have been increasing. Some airlines plan to ask the workers at Amazon and Whole Foods Gun stores have been qualified as Transportation Department to share are worried about safety. Whole Foods essential businesses during the domestic flying between them to Market workers are asking for pandemic. maintain service to smaller cities, but expanded sick pay, hazard pay and federal conditions for accessing up to health care coverage for part-time $50B in aid rule out what is normally and temporary workers. considered anticompetitive behavior

Source: Wall Street Journal

Social Media Conversations

• Mentions were up nearly 2M from 4/6. Some of the new conversations were related to live sports events being cancelled. • Conversation remains negative due to mentions of disease, deaths and crisis. More conversations around unemployment and stimulus payouts are expected this week.

Source: Netbase

• Last week, we shared a number of media marketplace trends, including:

• Video Viewing is exploding, across the board – Linear, VOD, OLV, OTT, CTV, you name it – it’s up, up and away as families hole up at home the majority of the time

• The news of the official postponement of the Olympics and, along with the halting of entertainment programming production, its projected impact on Network/Streaming schedules toward the latter part of the year

• The enormous increases seen in Digital and Social consumption, and how influencers and brands are changing the way they approach content, reflecting the new life and media reality here in the United States

• This week, we provide you with some new and different in-depth insights:

• Digital behavior continues to shift, reflecting fast-changing consumer needs and mindset – offering a view into the consumer mindset and also, opportunity for some businesses

• MuteSix provides us an interesting look into how DTC advertisers in key categories are capitalizing – and delivering on key consumer needs in the moment (home fitness, beauty/skincare, etc.)

• New data from Nielsen illustrates the extreme growth of Streaming behavior in the moment, dominated by Netflix and YouTube (note: Subscription vs. Ad-Supported)

• A recent (January 2020) study by Dentsu / Google illustrates that even pre-COVID-19, Streaming was already clearly emerging as the future of TV viewing, both ad-supported and subscription VOD

• Amplifi provides us their view of how the US Media marketplace will evolve over the course of 2020, along with in-the-moment advisory and recommendations

18 Digital Usage Still Shifting, but Leveling Off This Week

Source: Similar Web, week of 3/30 v s. 3/23

• Overall biddable impressions are on the rise (News up, Sports Down)

• Spend overall is lower, which ultimately has led to lower CPM’s (-18%)and CPC’s (-17%).

• We will continue to monitor these trends.

Source: Dentsu Aegis Network, Amnet Programmatic Data

CPM trends Direct-to-Consumer Insights from (all verticals):

+4.4% from previous day

Media spend -1.7% from previous trends week (all Verticals): -37.0% from -1.8% from previous month previous day Conversion trends +5.1% from (all verticals): previous week -6.4% from -5.7% from previous day previous month -0.5% from previous week

+53.7% from previous month

Source: MuteSix Internal cross-client metrics, March 2020

Source: Google Trends data, March 2020

Source: Google Trends data, 3/8-3/14/20 v s. prior 7 day s; Feb-Mar 2020

Search Search Term Frequency Rank #1 Product Title #1Column1 Conversion#2 Product Share Title toilet paper 1 Silky & Smooth Soft Professional Series Premium 3-Ply Toilet Paper, Home Kitchen Toilet Tissue, Soft, Strong and Highly10 Rolls Absorbent Toilet Paper, Hand Silky Towels & Smooth for Daily Soft Use Premium (10 Rolls) 3-Ply Toilet Paper, Kitchen Hand Towels for Daily Use - FNP01 white hand sanitizer 2 Amazon Brand - Solimo Hand Sanitizer with Vitamin E and Aloe, 32 Fl Oz (Pack of 4) Artnaturals Alcohol Based Hand Sanitizer Gel (2 Pack x 8 Fl Oz / 220ml) Infused with Alovera Gel, Jojoba Oil & Vitamin E - Unscented Fragrance Free Sanitize lysol spray 3 10 Seconds Disinfectant & Deodorizer (Case of 12),White,US Lysol Bathroom Cleaner Spray, Island Breeze, 48oz (2X24oz) n95 mask 4 10 Pcs Air Purifying Respiratory Filter, 6 Layer Particulate Respirator with Activated Carbon Dustproof for Pollen Dust3M Gas8511 Allergy Respirator, PM 2.5 N95, Cool Flow Valve (10-Pack) paper towels 5 Scott Paper Towels Choose-A-Sheet, 6 Mega Rolls, 102 Paper Towels per Roll Brawny Smart Flex Paper Towel Rolls, 2 Count clorox wipes 6 Clorox Commercial Solutions Disinfecting Wipes, Lemon Fresh, 75 Wipes Each (Pack of 6) Clorox, CLO30824, Healthcare Hydrogen Peroxide Disinfecting Wipes, 95 / Each, White face mask 7 5 Pack Anti Pollution Protective Face Shield Face Cover for Women & Men - Black LIHIRONER Disposable 3-Ply Face Earloop Sanitary Masks for Offices-Pack of 50and Outdoor, Blue lysol 8 Lysol Bathroom Cleaner Spray, Island Breeze, 48oz (2X24oz) Lysol Neutra Air Sanitizing Spray Air Freshener, Aerosol, Energizing Citrus Zest, 16 Ounce thermometer 9 Best Digital Thermometer, Rectal and Oral Thermometer for Adults and Babies,High Precision Thermometer for Fever,Digital Accurate Medical and Thermometer Fast Readings for (2Pcs) Armpit Oral 60s Fast Reading LCD Temperature Meter for Children Adult disinfectant wipes 10 CaviWipes Metrex Disinfecting Towelettes Canister Wipes, 160 Count Clorox Healthcare Hydrogen Peroxide Cleaner Disinfectant Wipes, 95 Count Canister - Pack of 6 (30824) masks for germ protection 11 50 Disposable Face Masks Surgical Medical Dental Industrial Quality 3-Ply New 20pcs Face Mouth Cover Disposable Guard tool Surgical masque anti pollution 3 Layers for protection puzzles for adults 12 Willow Creek Press - 1000 Piece Puzzles for Adults - Underwater Dogs Jigsaw Puzzles Series -Splash Jigsaw Puzzles 1000 Pieces Puzzles Aegean Sea Puzzles for Adults mask 13 50 Disposable Face Masks Surgical Medical Dental Industrial Quality 3-Ply New SentGa 50 PCS, 50pcs, 0307-sjx-120 Count disinfectant spray 14 Clorox, CLO30824, Healthcare Hydrogen Peroxide Disinfecting Wipes, 95 / Each, White 10 Seconds Disinfectant & Deodorizer (Case of 12),White,US face mask medical 15 50 Disposable Face Masks Surgical Medical Dental Industrial Quality 3-Ply New Disposable Earloop Face Mask,Thick 3-Ply Medical Masks with Elastic Ear Loop,Breathable Non-woven Dust Filter Face Mask, Breathable and Comfortable for Dust, Pollen Allergens（20PCS） thermometer for adults 16 Best Digital Thermometer, Rectal and Oral Thermometer for Adults and Babies,High Precision Thermometer for Fever,VEDIK Accurate Basal Digital and Fast Thermometer Readings (2Pcs) - Fast Reading, Auto Turn Off, 1/100th Degree High Precision lysol disinfecting wipes 17 Clorox Commercial Solutions Disinfecting Wipes, Lemon Fresh, 75 Wipes Each (Pack of 6) Clorox Disinfecting Wipes, Bleach Free Cleaning Wipes - Crisp Lemon, 35 Count lysol wipes 18 Clorox Commercial Solutions Disinfecting Wipes, Lemon Fresh, 75 Wipes Each (Pack of 6) Clorox Disinfecting Wipes, Bleach Free Cleaning Wipes - Crisp Lemon, 35 Count nintendo switch 19 Nintendo Switch with Neon Blue and Neon Red Joy‑Con - HAC-001(-01) Nintendo Switch w/ Neon Blue & Neon Red Joy-Con + Mario Kart 8 Deluxe (Full Game Download) - Switch charmin toilet paper 20 Cottonelle Ultra ComfortCare Soft Toilet Paper with Cushiony CleaningRipples, 36 Family Mega Rolls Charmin Ultra Soft Cushiony Touch Toilet Paper, 24 Family Mega Rolls = 123 Regular Rolls pulse oximeter 21 CONTEC LED CMS50M Pulse Oximeter,SpO2 and PR Value Waveform Blood Oxygen, Carrying Case, Neck/Wrist CordCONTEC OLED CMS50NA Pulse Oximeter,SpO2 and PR Value Waveform Blood Oxygen, Carrying Case, Neck/Wrist Cord masks for germ protection n95 22 FENGGE 5PCS Balaclavas, ᴋɴ95 ᴍᴀsᴋ for Air Pollution, Dustproof Mouth Cover, ᴋɴ95 Disposable Face ᴍᴀsᴋ for ɢerm10 Protection, Pack Disposable Men Women Breathing Adult Protection Child ᴍedical | Protect ᴍᴀsᴋ Yourself for Work From and Germs Home and White Pollutants | Keep out elements masks 23 50 Disposable Face Masks Surgical Medical Dental Industrial Quality 3-Ply New 0Pcs Disposable 3-Layer Masks, Anti Dust Breathable Disposable Earloop Mouth Face Mask, Comfortable Medical Sanitary Surgical Mask Blue rubbing alcohol 24 Laboratory-Grade Denatured Ethyl Alcohol, 95%, 500mL - The Curated Chemical Collection - Not for Use on Body orSwan Skin Isopropyl Alcohol, 99%, Pint, 16 OZ vitamin c 25 Nutricost Vitamin C with Rose Hips 1025mg, 240 Capsules - Vitamin C 1,000mg, Rose Hips 25mg, Premium, Non-GMO,Nature Gluten Made Free Vitamin Supplement C 1000 mg, 300 Tablets, Helps Support the Immune System† (Packaging May Vary)

Source: Amazon Search Trends, 4/3/20

Daily meeting participants jumped from 10M in December to 200M in March.

Source: Zoom

• Americans streamed 85% more minutes of video in March 2020 vs. March 2019 • The average person streamed 36% more minutes over the last four weeks • Binge watching increased more than 25% the last two weeks • Interestingly, Netflix actually dropped a share point month over month, but total volume is up across the board • With the launch of Quibi on Monday, we will have a new platform to add into the “Others” bucket

Source: Nielsen, March 2020 v s. 2019

Launch Stats: Mobile-ONLY (no TV app) $4.99 with ads $7.99 no ads

Debuting with 50 original series: High-quality episodes of 10 minutes or less per installment, designed for people to watch mobile / on-the-go (or for now, in-between Zoom calls).

10 Launch Partners, including: T-Mobile, Procter & Gamble, PepsiCo, Anheuser-Busch InBev, Walmart, Progressive, Google, Taco Bell, Discover and General Mills

2020 Marketplace scenarios: 1. Spend displaced, budgets shifted to H2 but full year growth remains unaffected. 2. Spend reallocated significantly, brands focus on the short term. Digital sees a rise while Traditional (particularly OOH) media suffer based on new media consumption patterns. Delays to major campaigns; advertisers shift focus to e-commerce.

----- U.S. scenario likely falls somewhere in-between 1 and 2 ----- 3. Severe disruption heightens the potential for an advertising recession. Advertisers focus on the short-term goals; permanent cancellations of most events. Companies accelerate their digital transformation.

Source: Amplif i, Dentsu Aegis Network

Client spend Media price indexed to baseline per quarter

Dynamic fluctuations in supply and demand Media price fluctuates in tandem with client spend *if Sports does not return, could come down even more

Source: Amplif i, Dentsu Aegis Network

Overall Recommendations: Channel Recommendations:

• Across all media types advertisers and agencies should enable • For non-cancelable previously-booked TV/Radio inventory, consider ‘quick change’ to creative messaging to suit the evolving situation shifting to meet consumer at-home needs or COVID-support efforts • For budget that is flexible, work with media companies to reallocate • Shifts will occur to Digital based on flexibility and versatility: ad spend to respond to shifts in media consumption • Frequency-capping should be re-evaluated and optimized; • Media vendors can be expected to show more openness to secure understand consumer tolerance for information and messaging ad spend continuity by offering incentives such as: media spend volume credits, research credits, creative services • Brand safety measures with the right keywords should be reinforced to avoid negative association with the virus • To secure the best possible deals we recommend elevating conversations to cross-platform media owners to identify • Now is the time for test and learn campaigns, as many people opportunities across all their assets and establish a framework that staying home will feel like they have more time than usual allows media investment to be fluid across all while transferring • Prioritize Publishing investment with trusted partners and on their digital benefits inventories; consider creative/editorial activations with Magazines for • There is a need for more frequent tracking of media consumption “escapism” purposes trends to enable all parties to identify better insights in real time • OOH – short term presents an opportunity to take advantage of relatively favorable pricing and reduced competition for consumer attention; our position is % shortfall in performance will be matched by media vendors in the form of value

Source: Amplif i, Dentsu Aegis Network

View report>

For more information: [email protected] Dentsu COVID-19 Crisis Navigator April 8th Edition Weekly COVID-19 Consumer Tracker Mapping Consumer Signals to Offer Marketing Guidance

As the scale and impact of the COVID-19 outbreak gains speed, unfolding at different paces throughout the country, consumer attitudes and preferences are evolving in tandem.

To help marketers navigate the shifting road ahead, Dentsu will be regularly publishing findings from a consumer survey (weekly in the near-term). We will map how consumers are moving through and responding to the various stages of the crisis and how brands can best respond.

This is the second iteration of Dentsu’s COVID Crisis Navigator. The content highlights shifts in consumer behavior and sentiment since the previous report, interpreting what those signals mean for advertisers and marketers. This is an excerpt of a fuller report. Access the full report> 1. The Economic Impact Weighs Heavy on Consumers’ Mind

2. Consumer Outlook Trends Negative

3. Streaming Video Sees a Spike in Use

Selection of 4. Established Brands Have a Leg Up During Crisis

Findings: 5. Consumer Need States Shift Slightly

6. Branded Actions (or Lack of) Carry Increased Weight

7. A Framework for Understanding Consumers’ Response

8. How Brands Can Reach Consumers in Different Stages

34 1. The Economic Impact Weighs Heavy on Consumers’ Minds While the COVID-19 health crisis continues to be the most pressing issue on consumers’ mind, economic and employment concerns are rising amid a record number of job losses, unemployment applications and government relief measures.

Top Issues Concerning Consumers (% of respondents who said an issue was in their top 3 choices)

Apr. 3-4 Mar. 27-29

62% 63% + 6 pts + 8 pts

48%

42% 40%

32%

22% 22% 19% 19% 19% 20% 19% 18% 17% 16% 16% 15% 15% 14% 14% 13%

8% 8%

COVID-19/coronavirus US Economy Unemployment Climate Change Income Inequality Freedom of Movement Gun Control Terrorism Immigration US Political Landscape Gender Equality Reproductive Rights health crisis

Q. Please pick the top three issues, in priority order, currently most concerning to y ou.

Source: COVID-19 Tracker, part of the Taking the Pulse series by Dentsu Aegis Network. Online surv ey panels, conducted f rom March 27-29 and on April 3-4, 2020

Personal Outlook:

Q. Describe y our v iew on the state of the f ollowing:

Source: COVID-19 Tracker, part of the Taking the Pulse series by Dentsu Aegis Network. Online surv ey panels, conducted f rom March 27-29 and on April 3-4, 2020

© 2020 Dentsu Aegis Network 36 3. Streaming Video Sees a Spike as Consumers “Disconnect” As consumers grow weary of bad news and the true boredom of being home sets in, time spent “disconnecting” into streaming video services sees the greatest increase in use. Previously, online news & social media saw the sharpest gains. Increase/Decrease in Media Use Compared to Normal

% of Respondents that said % of Respondents that said Net Increase/ Decrease Media Change from Mar. 27-29 More Time Less Time In Time Spent

Streaming video services 58% 9% +49 +12

Online news 57% 11% +46 +7

Social media 56% 10% +46 +6 Video chat or messaging +42 +5 services 51% 9%

Online video 51% 10% +41 +9

Live TV 52% 12% +40 +8

Streaming music/audio 46% 14% +32 +4

Recorded TV 39% 16% +23 +3

Newspapers 29% 20% +9 +5

Magazines 26% 20% +6 +2

Radio 26% 23% +3 -2

Q. Are y ou currently spending more, less, or the same amount of time using the f ollowing compared to how much y ou normally would? *Of those who said they use the f ollowing. Net intent was calculated by subtracting the percentage of those who said they are spending more time f rom the percentage of those who said they are spending less time on each of the f ollowing. Source: COVID-19 Tracker, part of the Taking the Pulse series by Dentsu Aegis Network. Online surv ey panels, conducted f rom March 27-29 and on April 3-4, 2020

© 2020 Dentsu Aegis Network 37 4. Established Brands Have a Leg Up During Crisis Across categories, most consumers are sticking by the brands they’ve long trusted. Consumers reported being most open to new brands in Entertainment (as they seek fresh activities to pass the time) and, interestingly, Household Necessities – one speculation: this may be due to the scarcity of staple products.

Current Brand Purchasing Preferences Brands I know and trust New brands for a sense of variety

Over-the-counter Medicine 76% 24%

Personal Care 73% 27%

Beauty 71% 29%

Consumer Electronics 71% 29%

74% Alcohol 69% 31% Of respondents say they Grocery/Food 68% 32% are more likely to stick to tried-and-true brands Health & Fitness 67% 33%

they trust right now. Clothing & Accessories 67% 33%

Household Necessities (toilet paper, cleaner) 61% 39%

Entertainment 61% 39%

Q1: Thinking about purchasing products during the current situation, do y ou agree or disagree with the f ollowing statements? Q2: Thinking about purchasing products in the f ollowing categories during the current situation, are y ou sticking to brands y ou know and trust or are y ou try ing new brands f or a sense of v ariety ? Source: COVID-19 Tracker, part of the Taking the Pulse series by Dentsu Aegis Network. Online surv ey panels, conducted f rom March 27-29 and on April 3-4, 2020

© 2020 Dentsu Aegis Network 38 5. Need States Shift Slightly Towards Prioritizing Normalcy While consumer needs did not change much from the previous week, slight shifts indicate that people may be getting the hang of their ”new normal,” but they also crave a return to the way things were.

Current Need State

Apr. 3-4 Mar. 27-29

39%

36% +2 pts +2 pts -3 pts

27% -2 pts 25% 25% 24% 24% 23% 23% -2 pts 23% 22% 21% 21%21% 20% 19% 19% 17% 16% 16% 15%15% 15% 15%15% 15% 14% 14% 12% 10%

SECURITY STABILITY POSITIVITY DISTRACTION INFORMATION FUN SUPPORT BELONGING

Q. Thinking about how y ou are currently f eeling about the COVID-19/coronav irus outbreak, what are the top three things y ou need right now?

Source: COVID-19 Tracker, part of the Taking the Pulse series by Dentsu Aegis Network. Online surv ey panels, conducted f rom March 27-29 and on April 3-4, 2020

© 2020 Dentsu Aegis Network 39 6. Branded Actions (Or Lack Of) Carry Increased Weight Added impact on both sides: There is both an increase in consumers who think more of brands that take action and an increase in respondents who think less of brands that do nothing or continue business as usual.

Impact On Consumer Perception

I would think less of the brand I expect brands to do this I would think more of the brand

Brands offering discounts at this time 8% 33% 59% +7

Brands donating time money products... 8% 33% 59% +3

Brands looking after their employees 8% 37% 55% +4

Brands responding to the outbreak 8% 45% 47% +6

Brands that help me contribute to the... 9% 45% 46% +3

Brands helping me get through my day 10% 44% 46% +2

Brands that help me take my mind off ... 11% 44% 45% +4

Brands acknowledging the outbreak 8% 56% 35%

Brands advertising as normal 30% +2 55% 15%

Brands staying silent on the issue 57% +2 31% 12%

Q. If a brand did any of the f ollowing things how would it impact y our perception of that brand?

Source: COVID-19 Tracker, part of the Taking the Pulse series by Dentsu Aegis Network. Online surv ey panels, conducted f rom March 27-29 and on April 3-4, 2020

© 2020 Dentsu Aegis Network 40 7a. A Framework for Understanding Consumers’ Response Often, responses to pandemics follow a pattern. As the effects of COVID-19 impact communities at different rates, these stages can act as a guide to shifting public sentiment – though consumers may not always experience them linearly.

THE STAGES OF CRISIS RESPONSE

POST- INITIAL SHOCK COMING TO GRIPS LIVING A NEW MOVING INTO NORMAL RECOVERY CORONAVIRUS LIFE The outbreak is spreading. I am I am modifying my daily routine. I am moving towards settling I feel there has been progress I am fully reconnected to work uncertain about how it might There are moments of into a new routine while the to reduce the outbreak in the and life without having the threat impact my day to day life. I am frustration and anxiety, but I’m outbreak is evolving. My nation and my community. I am of the outbreak hanging over feeling confusion, fear or anger trying to focus on what I can routine is starting to feel slowly starting the journey back me. I am back to my routine about preparing. control. familiar. to my normal routines and from before. schedules.

Source: COVID-19 Tracker, part of the Taking the Pulse series by Dentsu Aegis Network. Online surv ey panels, conducted f rom March 27-29 and on April 3-4, 2020

© 2020 Dentsu Aegis Network 41 7b. Consumers Are Progressing Through the Stages Likely shifts: Respondents previously denying the severity of the outbreak are now experiencing Initial Shock for the first time, while others previously in shock have shifted into Coming to Grips, making it the largest cohort of consumers. % of Respondents Who Identify With Each Stage:

INITIAL SHOCK COMING TO GRIPS LIVING A NEW MOVING INTO POST-

NORMAL RECOVERY CORONAVIRUS LIFE

29 -

24% 33% 26% 10% 7%

MAR. MAR. 27 4

- 25% 42% 25% 3% 4% APR.3

Last week we saw 17% of respondents identify in the last two phases and speculated they were in denial. Over the past week that number Q. When it comes to a public health crisis such as the COVID-19/coronav irus outbreak, there are of ten “phases” of how the response unf olds. has dropped significantly to 7% - people can no longer ignore the Thinking about how the outbreak has impacted y ou and y our daily lif e, which of the f ollowing phases best describes y our current situation? severity of the outbreak. Source: COVID-19 Tracker, part of the Taking the Pulse series by Dentsu Aegis Network. Online surv ey panels, conducted f rom March 27-29 and on April 3-4, 2020

© 2020 Dentsu Aegis Network 42 8. How Brands Can Reach Consumers in Different Stages Our previous report outlined consumer profiles for each of the first three stages. Below we summarize key updates to our understanding of each audience. Full updates can be found in the full report.

INITIAL SHOCK COMING TO GRIPS LIVING A NEW NORMAL

FROM FROM FROM LET ME KNOW IT WILL BE OK IN NEED OF A HELPING HAND IN NEED OF LEADERSHIP Holding out hope and optimism while To combat the uncertainty of adjusting to They have adjusted the best they can in still trying to fully comprehend the a new routine and the growing crisis, their daily lives – focusing on the things situation. Their mindset is still at odds they prioritize security and need help they can control. They want leaders to step with the reality of the outbreak. getting through their day. up and focus on macro-issues at hand.

TO TO TO HELP ME COPE HELP ME MANAGE LEAD & UPLIFT ME Overwhelmed by the gravity and Continue to be concerned about the While their personal lives are stable, they enormity of the situation, they want uncertainty of their situation. As their are starting to feel confined and want brands to inform, connect & support outlook becomes increasingly negative, to bring fun & spontaneity back. them. They can only handle so much; a they are focused on managing personal Continue to want leaders to progress on subset prefer brands stay silent on the needs. the bigger issues. crisis.

INITIAL SHOCK COMING TO GRIPS LIVING A NEW NORMAL

BRAND ACTION: LEAD & BRAND ACTION: SUPPORT BRAND ACTION: HELP UPLIFT

• Let me know I’m not alone • Acknowledge the crisis • Tackle larger issues • Don’t overwhelm me • Provide a sense of security • Uplift my new ‘normal’ • Inform & connect at the local level • Help me get through my day • Enhance my routine

Source: COVID-19 Tracker, part of the Taking the Pulse series by Dentsu Aegis Network. Online surv ey panels, conducted f rom March 27-29 and on April 3-4, 2020

© 2020 Dentsu Aegis Network 44 • Consumer outlook is increasingly negative: Concerns about the economy are heightened as the crisis continues, causing emotional responses to trend negative. Brands who exceed consumer expectations are prioritizing providing help & leadership over driving profit.

• Need states trend toward normalcy: Need states associated with pre-COVID life are increasing in importance – normalcy, freedom and companionship. In fact, consumers are missing everyday interactions and express highest satisfaction with organizations that keep them connected to their communities. Brands who enable a sense of normalcy & connectivity will win favor.

• Reliance on trusted brands is heightened during the crisis: Consumers prefer to buy brands that are tried-and-true across all major categories. Brands should focus on building trust and loyalty Key Themes & and proceed cautiously when launching new products during this time of uncertainty. Implications for • Time spent “disconnecting” with entertainment is on the rise: Consumers continue to spend more time with media, particularly with streaming video. This suggests consumers are looking for a break from negativity. Brands should consider how they can provide more hope and positivity for Marketers consumers.

• Brand expectations climb as consumers progress through the crisis: Consumers move from needing support, to help, to leadership. Brands who plan both shorter and longer-term responses will be most effective in reaching consumers’ shifting needs and maintaining a lasting relationship.

• Experiences matter more than ever: Consumers are settling into new routines and missing their former lives. Brands can add value by recreating experiences to fit their ‘new normal’ and by enhancing consumers’ lives as new routines become mundane.

DENTSU AEGIS NETWORK Survey Methodology Access the full findings. This survey was administered through Toluna, an View report> online research panel, between April 3-4, 2020. Conducted by Dentsu, this survey was distributed among a random sample of 1000+ respondents, For more information: aged 18-64 years old and residing in the United [email protected] States. The survey controlled for nationally representative weighting across age, gender and ethnicity. Additionally, respondents represented a variety of backgrounds: educational, racial and geographic. Cultural and Consumer Behavior Trends and Insights April 8th Edition Rising Trends

1. The Pressure of 2. In Search of 3. Re-orienting Productivity Good News American Values

Many of the trends in this week’s report have an underlying focus on Mental Health. Before the crisis, mental health was a rising topic of interest. We were making strides in our efforts to destigmatize mental illness and taking actions to detox digitally. But COVID-19 has thrown us into times of unprecedented uncertainty. This week, we will explore how the crisis has exposed some of the deepest tensions we experience in our society, and the impact they have on our health and well-being.

1. The Pressure of 2. In Search of 3. Re-orienting Productivity Good News American Values

As we find ourselves with “extra time,” our unhealthy relationship with productivity takes its toll

+2,700 Increase in US search volume for “Paris catacombs virtual tour”

Sources: Google, Trav el & Leisure, Huf f Po, CBS News

Over the past week: +4,050% Increase in US search volume for “when is school opening back up” +1,350% Increase in global search volume for 30MM US students are out of school “free learning websites for kids” – more than half of US school enrollment

Sources: Forbes, WSJ, NPR, Google

51% of 18-33 y.o. feel anxious when they aren’t 1 out of 3 Americans believes their personal use of 75% of employees believe they have more on-the- connected to what their friends are up to. digital has a negative impact on their mental health. job stress than the previous generation. +40% Of Americans are spending more time on their mobile phones +37% Of Americans are spending more time on their laptops

Sources: Quartz, Dentsu’s Digital Society Index, GlobalWebIndex, American Institute of Stress

1. The Pressure of 2. In Search of 3. Re-orienting Productivity Good News American Values

As we find ourselves with “extra To balance the stress stemming from time,” our unhealthy relationship constant bad news, people are with productivity takes its toll seeking out the good

Coverage dwarfs all other news… Headlines are increasingly dire… Occupying the public’s mental energy. 57% of US adults are following news about the outbreak “very closely”

Sources: Axios; Inf egy Social Listening; Inf ormation Is Beautif ul, Pew Research Center

© 2020 Dentsu Aegis Network 54 The Collective Anxiety of Americans Is Rising Daily Like the virus itself, fear and anxiety are contagious. Constant media exposure to negative news is triggering a massive mental health issue as people struggle to break out of the cycle of negativity.

Fear-based stories are shared more widely Emotional health is a casualty. than moderate POVs… 77% of US adults are either concernedabout the coronavirus outbreak

Source: COVID-19 Tracker, part of the Taking the Pulse series by Dentsu Aegis Network. Online surv ey panel, conducted f rom March 27-29, 2020

© 2020 Dentsu Aegis Network 55 Changing Media Habits to Amplify the Good Consumers are changing their media consumption habits to reorient themselves around stories of resilience, bright spots of human kindness and ingenuity or even rallying around good-old-fashioned silliness.

Some of the fastest-growing conversations online Growing amount of content dedicated to spreading good news. are around “Staying Positive.”

For fun, John Krasinki started “Some Google Search Trends Good News.” His first video landed at the 54% top of YouTube’s Trending page. of US adults want to see more “positive stories” in the news.

More than “tips on how to stay healthy” and “topics not related to coronavirus”. The only thing they wanted to see more was “recovery rates”. Retailer Reformation has started sending out newsletters containing uplifting stories.

Source: Google Coronav irus Dashboard; Global Web Index

1. The Pressure of 2. In Search of 3. Re-orienting Productivity Good News American Values

As we find ourselves with “extra To balance the stress stemming from American values are being redefined time,” our unhealthy relationship constant bad news, people are as the economic toll hits those with productivity takes its toll seeking out the good previously self-reliant

© 2020 Dentsu Aegis Network 57 US Safety Net Has Failed Those That Embody Our Values The very same people who are a source of pride for embodying American self-reliance – gig workers, SMBs, hourly- workers, side-hustlers - have seen their sources of income evaporate overnight.

US culture prides itself the ability to earn one’s success. Now, those who embody the American Dream of self-reliance are being disproportionately hit. 86% of employed US adults work Businesses with fewer than 50 in service industries employees shed 90,000 30% jobs in March. of the US workforce is held by the self-employed and the workers they hire.

Source: Labor Department, 2019; Pew research Center, 2019

© 2020 Dentsu Aegis Network 58 Pride in Self-Reliance Is Becoming Self-Sabotage The over-valuing of self-reliance has given the idea of needing assistance a stigma that many can’t shake, even in a crisis. Americans need help asking for help.

Many have never asked for aid before… An immediate need, yet an identity crisis… Shame keeps many from getting the help they desperately need.

In Phoenix, Raven Green, a 28-year-old single mother of two young girls, turned to GoFundMe after losing all three of her jobs… abashed at having to ask for help, couldn’t bring herself to share it [the campaign] on social media. “I don’t want people to know that I’m struggling like this,” she said.

In St. Louis Park, Minn., Scott Theusch, 61, a mechanic, filed for unemployment benefits for the first time... He set aside his deeply felt conviction that people who had to seek the aid, which is largely funded by payroll taxes on employers, weren’t trying hard enough.

Source: New York Times; Forbes, New York Times, ‘Nev er Thought I Would Need It’: Americans Put Pride Aside to Seek Aid”, April 2020

© 2020 Dentsu Aegis Network 59 Enabling the Other American Value: Generosity While self-reliance and individualism are defining American values, our country also has a history of generosity. As people seek ways to connect with those in need – brands have an outsized role to play.

Consumers are wanting and expecting brands to help them lend a hand. 25% 43% of Millennials & Gen X of consumers would think want to see brands help more of a brand that helps them contribute to the them contribute to the response response (120i) (And another 46% EXPECT brands to do that).

Source: COVID-19 Tracker, part of the Taking the Pulse series by Dentsu Aegis Network. Online surv ey panel, conducted f rom March 27-29, 2020.

1. The Pressure of 2. In Search of 3. Re-orienting Productivity Good News American Values

• Do more with less. While it may be tempting to provide consumers with additional resources or activities, consider how you can alleviate – not add to – the pressures they are feeling to ‘do more.’ • Reimagine media routines and rituals. Similar to “digital detox,” people are seeking a “bad news detox.” Think about ways to connect consumers with positive content they might not otherwise have seen and create new content that fills this new need. • Help people ask for help. With an outsized influence on culture, brands are well-positioned to reduce the stigma and shame around asking for help. They can offer tips & resources, as well as create experiences that make the process feel less burdensome. • Help people help others. Consumers are looking for ways to contribute to the crisis response at the same time as those hardest hit are struggling to ask for help. Brands can help bridge the gap by using their platforms to make needs visible and creating tools that connect resources to demand.

62 Insights and Implications by Industry Vertical April 8th Edition Financial Services Seeing Upside of Trading Volatility, Credit Extensions • Because of coronavirus-related market volatility, trading is booming. Banks could post an increase of as much as 30% in their first quarter trading revenues, with Citigroup and JPMorgan conservatively anticipating increases in the “mid single-digit percentage range”. • Lending volumes at large US banks are soaring, and expected to grow further in coming months, as they extend credit to companies and individuals whose incomes have been compromised. • Between March 11 and 18, American banks grew their loan books by $243B, twice the amount they add to their loan books in a typical year, bringing bank lending to a total of $4.1T. • Mortgage delinquencies could bankrupt the payment system. With millions losing jobs and income, the mortgage delinquency numbers will likely spike in April and worsenin May. • If about a quarter of all borrowers receive loan forbearance for six months or longer, demands on servicers could exceed $75B and climb well above $100B, easily bankrupting the mortgage finance system. • This Week’s Headlines: Financial • Federal Reserve allows banks to take on more leverage: The leverage ratio, a key limit on big banks’ indebtedness, will be temporarily relaxed. For one year, the biggest U.S. banks will no longer have to add their Treasuries and reserves into the basket of assets they are required to maintain capital for, Services significantly reducing capital requirements. This change, effective immediately, will reduce capital demands by 2% overall. • Visa’s consumer spending has sharply declined, even online: Overall, Visa consumer spending has declined -4% in the US, -19% overseas. Visa forecasts mid-single-digit percentage Q2 revenue growth. • Major financial firms are taking no-coronavirus-layoffs pledges: PayPal, Bank of America, and Morgan Stanley have offered job-safety assurances to employees. • Many banks waiving fees during the pandemic: Includes ATM, credit card, late loan payment, service charge reversal, and overdraft fees. Multiple institutions are also offering deferment on loan payments. • Bank of America will allow 50,000 mortgage customers to defer payments: If customers have lost income as a result of the pandemic, they can defer payments for three months Source: CNBC, Bloomberg, Reuters, Mintel, Financial Times, JD Pow er, The Financial Brand, Aite Group, Bloomberg Video Viewing Exploding, While Networks Adjust • Video viewing is exploding across the board. In the last week of March, Americans streamed 156 billion minutes of television, compared to 115 billion during the last week of February. • Americans streamed 85% more minutes of video in March 2020 vs. March 2019. • Binge watching increased more than 25% the last two weeks of March. • Netflix had the biggest share of streaming minutes during the last week of March with 29%, followed by YouTube at 20%, Hulu at 10% and Amazon at 9%. • Local TV viewership has grown, increasing to 30.9% of all quarter-hours tuned across broadcast the week of March 9. Share of overall broadcast viewership for drama, participation variety(TV that depends on viewership participation), situation comedy, and feature film has also increased. • Radio maintains listener trust. Currently, 60% of Americans of adults 18 and older hold radio in high regard and trust it to deliver timely information about the current COVID-19 outbreak. 83% of Americans are listening to as much or more radio as they were before the pandemic. • Mobile gaming jumped 24% in the last two weeks of March. Almost half (45%) of U.S. consumers are playing new mobile games on their smartphones. One-third (33%) of consumers said they play games on their smartphones Media & multiple times a day, a gain of 8% during the two-week study period. • This Week’s Headlines • Fox, Discovery, AMC To See Mostly Double-Digit Ad Declines For 2020: Fox cable networks’ US Entertainment advertising is projected to decline 8%, while its news stations’ advertising will be up 8% (versus previously projected 12% increase). Discovery is predicted to decline 11% in US advertising (against previously projected 1% increase) and 13% in international advertising (versus previously projected 5% increase), with significant impacts from loss of Tokyo Olympics for its Eurosport network. AMC Networks will decline 17% in US advertising (versus previously projected 6% decline). • For the 2008-2009 financial crisis, national broadcast TV recorded five consecutive quarters of negative ad growth and national cable only had two negative quarters. • NBCUniversal to Permanently Reduce Linear Ads: NBCU had long-term plans to reduce linear ads and has accelerated its timetable in response to COVID-19. NBCU did not specify how much ad time will be reduced, or whether the changes will involve eliminating ad pods entirely or reducing their size. The ad Source: iHeartMedia, Nielsen, AdWeek, Axios, SemRush, Media reductions will affect news programming, late-night NBC and Bravo shows, reality programming, Marketer, Variety, MediaPost competition shows, and other cable originals. Airlines Raise $17B In Bank Loans, Some US Hotels on Verge of Bankruptcy • Preliminary analysis estimates air travel may not recover until Q1/Q2 2021, with a faster recovery pace for domestic travel than long-haul and international travel. • Worldwide, airlines raised more than $17B in bank loans in March. • US carriers were the most active, borrowing $12.5B. Globally, Delta Airlines was the top borrower in March, obtaining $5.6B in bank loans, followed by Singapore Airlines, which secured a $2.8B bridge loan, and United Airlines, which raised $2.5B. • With 90% fewer passengers flying in March versus this same period last year, US air carriers continue to trim flights. American Airlines, United, Southwest, and Delta are planning additional flight cuts for May. • As non-essential travels diminished, foot traffic to national airports decreased by 86% as of 3/29 from the week of 1/20, the case of the first reported coronavirus case in the US. • The threat of widespread hotel bankruptcy in the US looms. The US contains approximately 56,000 hotels, with an estimated 25,000 at risk of closing in the next few weeks, at least temporarily. 10% to 15% of hotels may go bankrupt in this same time period. • This Week’s Headlines: • Boeing and Airbus Halting American-based Production: Boeing has suspended 787 production at its South Travel & Carolina plant until further notice, while Airbus has halted production at its A220/A320 facility in Alabama, citing slump in demand, high inventory levels at sites, and government recommendations. Hospitality • Saudi Arabia Sovereign Wealth Investment Fund Takes 8.2% Stake in Carnival Cruises: As of April 3rd, Saudi Arabia’s new stake is worth $369.4M. The sale is expected to generate enough cash for Carnival to survive without revenue for the rest of the year and into 2021. While Carnival shares rose 20% after the sale disclosure, Carnival has still seen share prices tank more than 80% over the last month. In the week prior to the sale, Carnival raised a total of $6.25B in debt and equity financing, including the sale of $500MM in new shares. Carnival serves nearly 11.5M travelers a year, roughly 50% of the global cruise market. Royal Caribbean and Norwegian Cruises are also looking for cash. Norwegian has tapped an existing $1.55B credit line, while Royal Caribbean secured a $2.2B loan, in March using its ships as collateral. • Cruise Ship Bookings Are Up For 2021: Booking volume in the last 30 days for 2021 is up 9% versus the same time period last year. This volume, however, includes individuals applying their future cruise credits from sailings cancelled this year.

Source: US Trav el Association, Forbes, Bloomberg, USA Today , Seattle Times, • Over 3.3M US Hotel Rooms Available As Temporary Housing For Healthcare Workers: More than 15,000 SemRush, Barrons, McKinsey , NinthDecimal hotels have signed up for the American Hotel and Lodging Association’s “Hospitality for Hope” initiative, which identifies hotel properties that have offered temporary housing for emergency and healthcare workers. Automotive Industry Sales Dropping, Stepping In To Help Pandemic Response • Q1 automotive sales sank 11.8% due to coronavirus, compared to Q1 2019. • Visitations to auto dealerships continue to decline, dropping an additional 15% in the last week of March as the US surpassed China in the number of confirmed coronavirus cases. • Consumers are concerned about various factors when it comes to visiting dealerships: around 70% of consumers are concerned about shaking hands with dealership staff, 67% of them concerned about touching surfaces or objects, while 51% are concerned about using dealership pens or paperwork. • US auto dealers are exploring the use digital channels to improve declining sales. • American automakers are engaged in a growing government partnership to combat coronavirus. Notable US automakers, including Ford and Tesla, have already started manufacturing critical medical devices and personal protective gear for medical professionals. Automakers have also donated vehicles to hospitals and Auto first responders to show their support. • This Week’s Headlines: • Honda, Nissan Furlough Workers As Auto Plant Shutdowns Are Extended: Japanese car giants Nissan and Honda are furloughing thousands of workers across North America, Canada, and Mexico • GM offers manufacturing blueprints for face masks to 600 auto parts suppliers: To encourage the production of PPE for frontline medical and emergency workers, GM has provided detailed specs to its suppliers on necessary materials, equipment, and process. GM expects to have 20,000 masks ready for delivery by April 8th. Once their converted production line is running at full speed, GM anticipates it will be able to produce 50,000 masks every day, up to 1.5M masks a month.

Source: Adobe, Big Commerce, Ninth Decimal While Retail Continues to Suffer, eCommerce and Grocery Demand Grows • By the end of March, eCommerce sales were up 25%, with virus protection product sales collectively up 807% from January 1st to March 11th. Companies that invested in digital transformation are seeing the fruits of these efforts now. • Fastest growing categories in eCommerce (March 2020 vs. March 2019): disposable gloves (+670%), bread machines (+652%), weight training (+307%), computer monitors (+172%), dog food (+159%), craft kits and projects (+117%), hair coloring (+115%), ping pong (+89%), and office desks (+89%). • Notable declines in eCommerce (March 2020 vs. March 2019): luggage and suitcases (-77%), cameras (- 64%), event and party supplies (-55%), automotive mats (-50%), sunglasses and eyeglasses (-43%), camping equipment (-39%), classroom furniture (-35%), golf clubs (-33%), and coolers (-36%). • Grocery both online and offline continues to field significant demand, with heavy burdens on delivery service capacities and potential supply chain consequences. • By the end of March, online grocery sales were up 100%. This sudden surge in online orders has some retailers’ pickup and home delivery operations stressed to the breaking point, despite grocery chains investing to make their pickup and delivery services even more robust. • Due to panic-buying, retailers have been struggling to meet the demand in certain product categories, which may result in supply chain strains. Retail • This Week’s Headlines: • Amazon Postpones Prime Day to “at least August”: Prime Day typically takes place in July, and represents Amazon’s most successful day of the year, surpassing Black Friday and Cyber Monday. In 2019, Prime Day global sales hit an estimated $7.16B USD. • Kroger reports 30% jump in March sales: Shopper stockpiling in March drove monthly sales to highs. • Retailers begin suspending rent payments: Mall and retail owners are increasingly concerned over mortgage payments, as major retailers, including Urban Outfitters, PVH (owner of Calvin Klein and Tommy Hilfiger), Pier 1, and the Cheesecake Factory, announce their intentions to suspend rent payments. Most retailers, whether they announce publicly or not, are expected to skip rent in upcoming months. • DTC Brands Feeling Pandemic Pressures: DTC brand week-over-week spending fell 7% on average between March 2 and March 22. DTC darlings like Everlane, ThirdLove, and Away have laid off and Source: CNBC, Forbes, Business Insider, Stackline, Retail Div e, Cincinatti, Reuters, Ninth Decimal furloughed large swaths of their employee base. Luxury Fashion Shows, Supply Chains Compromised by Lockdowns and Decreased Demand • The coronavirus pandemic may wipe out €30B to €40B in 2020 luxury sales globally, resulting in a loss of the industry’s cumulative gains over the past five years. • As a global recession looms, analysts anticipate continued sharp decreases in luxury consumer spending. • Sales for this year’s spring season at as much as 70% lower than last year. • These decreases are expected to register in Q1 2020 earnings calls. Luxury giant LVMH has already estimated a 10% to 20% decline in revenue for Q1 2020, compared to the same period last year. • The luxury industry felt the impacts of coronavirus earlier than other industries. China is the world’s largest luxury market, with Chinese shoppers account for a third of global luxury spending, and luxury store closures throughout mainland China in December and January have already negatively impacted luxury conglomerates’ revenue. • Country lockdowns and local shelter-in-place orders compromise the luxury industry’s fashion show schedule, Luxury with Paris Haute Couture Week and New York’s Resort 2021 Week (showing spring 2020) cancelled. • Lockdowns also significantly affect the production of luxury goods, with more than 40% of global luxury-goods production taking place in Italy, which is under a country-wide shutdown. & Beauty • Declines in travel may also impact the luxury industry. 20% to 20% of industry revenues are generated by consumers making luxury purchases outside their home countries. • This Week’s Headlines • Major brands delay and cancel garment factory orders, amounting to $3B lost: Brands and retailers, including Primark, Marks & Spencer, and Inditex have attempted to justify these order cancellations with their own financial difficulties and their prioritization of saving jobs in their home countries. Bangladesh has been hit particularly hard, with more than 25% of the country’s four million garment factory workers already laid off without severance or due pay in March. • Major luxury houses, including LVMH, contribute to pandemic response: LVMH has secured an order of 40MM face masks for the French government, to augment its ongoing work to produce hand Source: The Guardian, Times, Bain & Company , McKinsey , The Holly wood Reporter, Forbes sanitizer for the French healthcare system. Multiple maisons are coordinating individual efforts to support local hospitals and emergency responders. Big Tech Mobilizes to Address COVID-19, Electronic Supply Chains Fear Disruption • Electronics companies’ supply chains are feeling the pandemic’s pressure. Computer shipments from China to the US dropped 64% and monitor and TV imports dropped 66% in the first two weeks of March, against a broader 45% drop in total Chinese imports. Some analysts are already worried that the next round of iPhones will be delayed. • Unified communication providers such as Skype, Zoom, and Slack continue to record huge increases in daily user bases. although Zoom faces backlash due to privacy and security issues in midst of widespread “Zoom-bombing”. • Significantly, Slack developed a new integration of video calls from rival Microsoft Teams into its chat app. • Google will help public health officials use its vast storage of data to track people’s movements, creating reports on the degree to which locales are abiding by social-distancing measures. • The “mobility reports” will be posted publicly and show, for instance, whether particular localities, states or countries are seeing more or less people flow into shops, grocery stores, pharmacies and parks. • The data goes down to the county level in the US. Figures will be presented as percentage changes, rather than precise totals, and will only apply to broad categories of location types. High-Tech • This Week’s Headlines: • Google Will Start Lifting Its Ban on Coronavirus-Related Ads in April: Google will allow government entities, hospitals, medical providers, and NGOs to run ads related to coronavirus on its platforms. Google instituted & B2B the ban in February to stifle those seeking to spread misinformation or profiteer off panic. • Major tech companies join WHO’s #BuildforCOVID19 Global Online Hackathon: Microsoft, Facebook, Twitter, Pinterest, TikTok, WeChat, Salesforce, and Slack are among the participants. The hackathon aims to develop software tackling challenges related to the pandemic. Each participating company has committed resources for developers who apply. The site has received close to 20,000 submissions. Winning proposals will be announced on Friday, April 10. • Cyber threats to both health care sector and individual Americans spike: Major agencies including the Department of Health and Human Services (HHS) and the World Health Organization (WHO) have been targeted by hackers in unsuccessful but ongoing attacks. In the US, March saw a 667% increase in phishing emails using mention of the coronavirus to trick individuals into clicking links or downloading attachments that included computer viruses, while cyber criminals have also been capitalizing on the pandemic to steal Source: Tech Republic, The Verge, CNBC, The HIll data and blackmail individuals for money. Digitally Connected Workouts Succeeding, COVID-19 Testing Develops • WHO remains “deeply concerned about the rapid escalation and global spread of coronavirus outbreak,” stating that current government lockdowns are not enough to contain the outbreak. • Consumers are increasingly turning to at-home workouts, with interactive and digitally-connected workout products, such as Peloton and Mirror, anticipated to field increased demands. • While Peloton has had to pause its live classes, close its retail locations, and pause delivery of its treadmill product, it continues to ship its flagship stationary bike. The company also saw total app downloads (distinct from hardware sales) increase five times in March 2020 compared to February 2020, while its total iOS user numbers doubled. Shares of Peloton are up 5% for March. • Shelter-in-place orders and lockdowns have crippled the boutique fitness industry. Classpass reported that 95% of its revenue disappeared in March, and announced lay-offs and furloughs for over 50% of its staff. • In an attempt to stay connected with their customers while studios are closed, boutique fitness studios have Health & largely turned to Instagram Live sessions. These complimentary sessions, however, do not bring in any revenue, and studios remain concerned about the long-term consequences for their industry. Wellness • This Week’s Headlines: • Health insurance companies waiving treatment costs: Companies like CVS Health, Cigna, Humana and UnitedHealth Care have waived coronavirus treatment costs. • Plasma from COVID-19 survivors is being used to help the infected population: Doctors have begun experimenting with blood plasma from coronavirus survivors for current critical patients. This method has successfully been used in treatment of Ebola and H1N1. • Abbott’s point-of-care COVID-19 test delivers results within minutes: The FDA issued an Emergency Use Authorization for Abbott’s ID Now COVID-19 test, which provides clinicians with positive results within five minutes and negative results within 13 minutes.

Source: WHO, CNBC CPG Sales Continue to Increase, Supply Chain Concerns Raised • CPG sales could rise as much as 30% from March to May. • Credit Suisse predicts that U.S. packaged food companies' retail sales will grow by anaverage of 15% to 30% from March to May 2020, based on the massive shifts in eating patterns to more at-home consumption. • Engagement of CPG companies, especially the ones dealing with beauty products, have increased on social media. With people quarantined, beauty companies are engaging with the customers via make-up tutorials, in-house fashion shows, tips and tricks of choosing the right product, in order to maintain consumer connection and bolster declining sales. • While customers have reduced purchases of beauty services which require human contact, like spas, tanning, and waxing, they have moved towards wellness products, such as “immunity-boosting” drinks. • This Week’s Headlines: CPG • Alcohol sales spike: Alcoholic beverage sales jumped 55% in the third week of March compared to the same time a year ago. This growth outpaces the previous week, which saw a 28% YoY sales increase from the year before. • Unilever prioritizes restocking of larger sizes of products: Unilever has prioritized restocking shelves with popular and larger sizes of its products as U.S. consumers stock their pantries, kitchens and freezers with more ice cream, condiments and easy-to-prepare meals. • CPG panic-buying prompts concerns around supply chain pressures: Various CPG companies are working with federal and state officials to ensure critical manufacturing facilities are kept open in midst of shelter-in- place orders. Companies are also recommending the Trump administration temporarily lift restrictions on hours of service for truck drivers to help keep the freight system operational and efficient.

Source: Adobe, Bigcommerce, Food Dive, The New York Times Restaurants Continue to Suffer Immense Trauma • Customer transactions at restaurants fell 42% in the week ending March 29th. As of April 1st, full-service restaurants in all states suffered sales declines of 60%. • The National Restaurant Association Educational Foundation (NRAEF) announced the creation of a Restaurant Employee Relief Fund (RERF) to support U.S. restaurant workers financially impacted by the COVID-19 crisis, with 100 percent of the money raised going to impacted restaurant workers. • This Week’s Headlines: • Entire Restaurant Supply Chain Reeling: With American restaurants crippled, farmers are sitting on produce, food banks that depend on extra produce are looking at shortages, and suppliers and distributors Restaurants face huge cuts in revenue. Restaurants also constitute a crucial part of the $1B wedding and event industry. • Yelp Sets Up Donation Page For Restaurants Without Permission: Yelp planned to automatically set up fundraisers on restaurants’ Yelp pages to help support them. The initiative, however, drew ire from restaurant owners, as Yelp did not inform restaurants of the “partnership,” and opting out was allegedly an arduous process.

Source: Business Insider, National Restaurant News Insurers Warn of Legislation Repercussions • Congress continues to pursue potential legislation around insurance payouts, and is currently considering a Pandemic Risk Insurance Act. The Act would force insurers to compensate businesses for coronavirus- related losses. • Insurers warn that, if passed, the bill could cause a stock market meltdown, presenting the insurance industry with high costs and forcing them to have a massive “fire-sale” of stocks. • Preliminary analysis by McKinsey places the insurance industry’s recovery date into Q4 2020, without accounting for the impacts of legislation. Insurance • This Week’s Headlines: • Auto Insurance Companies Returning $800MM in Premiums: All State and American Family Insurance have announced refunds to customers, as America stalls under shelter-in-place orders. Allstate will refund 15% of premiums paid by its customers in April and May, for a total of approximately $600MM, while American Family insurance will refund $50 per car per household, for a total of $200MM

Source: McKinsey, Reuters, CNN Decline in Nonprofit Donations, Food Banks Fielding Unprecedented Demand • Nonprofit donations’ volume and revenue have been badly impacted. Between the first week of February through the fourth week of March, total mail volume of nonprofit donations declined -11.2% compared to this period in 2019. Through the third week of March, this year-over-year decline was -6.8%. • Social media platforms have made updates to aid fundraising and volunteering efforts. LinkedIn volunteer ads will link up with anexpanded Recruiting for Good program to help bring in more people to work with nonprofits in both volunteer and paid roles. • 1 in 3 new GoFundMe campaigns in the US are tied to coronavirus. Between March 20 and March 24, the number of coronavirus-related campaigns of GoFundMe shot up by 60%, from 22,000 to 35,000. As of March 24th, donors had contributed $60M to coronavirus-related campaigns. • This Week’s Headlines: • US Facing Hunger Crisis as Demand for Food Banks Soars: As the pandemic triggers widespread layoffs, unprecedent numbers of Americans have resorted to food banks for emergency supplies. The demand for food aid has increased as much as eightfold in some areas. About one in three people seeking groceries at not-for-profit pantries last month have never previously needed emergency food aid. The national guard has been deployed to help food banks cope with rising demand in cities including Nonprofit Cleveland, Pittsburgh and Phoenix. • Pandemic May Cause Silicon Valley Elite To Donate Substantively To Local Charities: The Bay Area is home to one of the country’s most pronounced virus outbreaks, with more 1,000 confirmed coronavirus cases as of March 25. The region also faces gaping income inequality, with 53% of households home to just 2% of its wealth. Its homelessness crisis is among the worst in the nation, and four out of every five of its homeless are unsheltered, the highest rate in at least eight years. • In response to this disparity, two major Silicon Valley donor groups, the Silicon Valley Community Foundation and Tipping Point, are trying to raise $60M to help people in the Bay Area cope with the coronavirus. Venture capitalist Ryan Sarver and two others have organized over $300,000 to buy 15,000 meals for hospital workers on the front lines of the crisis in San Francisco. Paul Graham, the billionaire founder of Y Combinator, gave $1M to fund some protective gear needed Source: Tech Crunch, Merkle RMG, Forbes, The by San Francisco hospital workers. Facebook’s Sheryl Sandberg and other tech executives have New York Times, USA Today, CBS sent $7M to a local food bank. Financial Services High-Tech & B2B

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• A New York Times article highlighting our unhealthy relationship with productivity.

• The New York Times also covering the self-reliant Americans who now find themselves needing aid.

• The Harris Poll has conducted a survey of small businesses impacted by COVID-19.

• A must-read for leaders on “peace-time” and “war-time” strategies by a writer from e-newsletter, the Morning Brew. Click to add text

113 This report was prepared through a broad collaboration of Dentsu agencies and functions.

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