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Dentsu Pulse | a Spotlight on Black Lives Matter a Biweekly Curation of Key Trends and Insights for Marketers and Brands

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Dentsu Pulse | a Spotlight on Black Lives Matter a Biweekly Curation of Key Trends and Insights for Marketers and Brands pulse: Embarking on the Road to Recovery June 11th Edition For more information please contact [email protected]​ Dentsu Pulse | A Spotlight on Black Lives Matter A biweekly curation of key trends and insights for marketers and brands “If you are neutral in situations of injustice, you have chosen the side of the oppressor.” – Desmond Tutu The Dentsu Pulse was “born” in mid-March as a response to the COVID-19 crisis. It was designed to bring together the most updated information, thinking and actionable insights from across the Dentsu network to help marketers understand the disruptive consumer, media and marketplace changes brought on by COVID-19 and our collective response to the health crisis. As the health crisis subsided and evolved into an economic crisis, we intended to pivot our content to be more recovery focused. But at a time when we had planned to focus on the “re-opening of the economy,” we are keenly aware that another epidemic is affecting (and transforming) American lives: racial inequality. The killing of George Floyd is yet another injustice piled onto the disproportionate suffering of Black communities during the COVID-19 pandemic. It demands to be acknowledged – as do the hundreds of thousands of protesters marching nationally and globally to voice their frustrations, grief and anger over the systemic racism at play. As conversations about systemic racism are reshaping the nation’s discourse and policies, it is becoming clear that business and brands can no longer stand on the sidelines. We continue to be committed to helping marketers adapt in meaningful ways in times of crisis. As such, we have dedicated a significant portion of this edition to provide research insights and guidance on this important topic. We’re also committed to looking within our own organization to identify ways through which we can be part of a path forward -- towards a diverse, just and inclusive industry and future. 2 This Week’s Summary 1. THIS WEEK'S DATA AND HEADLINES Protests broke out across the United States in response to the murder of George Floyd, a Black man, under the knee of Derek Chauvin, a Minneapolis police officer. Similar protests have broken out across the world, spreading to over fifty different countries and prompting examination of domestic legacies of racism, discrimination, police brutality, colonialism, and slavery. In response to widespread demands to reform and defund police departments, Democrats in Congress have unveiled a bill to address police violence, while municipalities across the country have begun to take individual action to divert police funding and ban chokeholds and other neck restraints, among other initiatives. 2. DENTSU POV ON HOW BRANDS CAN RESPOND TO & SUPPORT RACIAL EQUALITY It is clear from recent weeks that systemic racism against Black Americans continues to be a source of immense pain in America. It is also clear that both consumers and brands are standing up against this crisis with renewed energy and force. Dentsu has pulled together a framework for brands to think through how to respond to the current moment, support racial equity and take action towards a future of equality. 3. DENTSU MEDIA MARKETPLACE TRACKER This week we continue to see consumer interests and media habits evolve, as states re-open and relax stay at home orders. For example, Search behavior shows us a clear indication with in-the-home needs on the decline and increases seen in out-of-home areas such as Restaurant Reservations, Fast Food, Auto Dealerships and Retail. Conversely, more recent data sources reflect the focus by Americans on gathering information, foster and becoming part of the national conversation around Black Lives Matter and racial Injustice. For example, recent Digital and Mobile data reflect a significant increase in Social, News and Government information consumption, and declines in recovery-related areas such as Car Rentals, eCommerce and Restaurant Reservations. Finally and importantly, our friends at Amplifi and Merkle make the case for marketers to consider a locally-driven media recovery approach, including lots of supporting data and rationale, and some proprietary Dentsu resources to help businesses inform their recovery strategy. 3 This Week’s Summary (continued) 4. DENTSU COVID-19 RECOVERY NAVIGATOR At a time where we had planned to focus our consumer survey on “reopening the economy,” we are keenly aware of another pandemic – racial injustice against Black Americans. The eighth iteration of the Dentsu Recovery Navigator takes into account the cultural moment we’re in, dedicating a bulk of the report to consumer sentiment towards ongoing racial injustice faced by Black Americans and national protests; with an eye towards how consumers want brands to respond in support of racial equality. 5. INSIGHTS AND IMPLICATIONS BY INDUSTRY VERTICAL • Financial Services: ESG investing saw record Q1 inflows. Various venture capital firms • High-Tech & B2B: Wearable device shipments are expected to increase over have announced minority-focused funds. 2019 levels, more moderately than expected due to consumer shifts in • Media & Entertainment: Connected TV ownership continues to rise in US homes. Film discretionary spending, but still bolstered by the appeal of wearables’ health- studios grow increasingly concerned about the backlog of film releases. Major media monitoring features in a pandemic. companies are donating ad inventory and time, in addition to cash donations, to anti- • Health & Wellness: US government selects five vaccine companies as racism organizations. finalists to receive further funding and support. WHO is collaborating with AWS • Travel & Hospitality: Domestic vacation demand rises, while hotel occupancy and airline on tools for more efficient collection and analysis of COVID-19 data. bookings begin to slowly increase as well. Airbnb registered more US bookings from May • CPG: CPG brands continue to gain momentum, as consumer demand for 17 to June 3rd than it did for the same period last year. shelf-stable packaged goods remains high in the midst of high unemployment, • Automotive: Ride-sharing trip requests continue to gradually pick up, while automotive remote work, health concerns, and an uncertain vaccine timeline. sales remain down. • Restaurants: Food tech companies launch new initiatives aimed at connecting • Retail: US retail sales are set to drop 10.5% in 2020, despite gains in eCommerce. unemployed workers with job opportunities and sustaining restaurants. • Luxury & Beauty: Luxury faces anticipated 20-35% contraction for full year 2020. Online • Insurance: Commercial insurance prices rise, while major insurers generally luxury has remained resilient throughout the pandemic, with luxury eCommerce set to agree that riot damage is covered under most property damage policies. represent up to 30% of the overall luxury market by 2025. • Non-Profit: Public outrage to George Floyd’s murder spurs huge increase in nonprofit donations, particularly to bail funds as police arrest peaceful protesters, while nonprofits that rely on foundation grants have so far fared better than nonprofits that are reliant on donors during the pandemic. 4 1. This Week’s Data ​and Headlines​ 2. How Brands Can Respond to and Support Racial Equality Contents 3. Media Marketplace 4. Dentsu Recovery Navigator​ 5. Insights and Implications by Industry Vertical This Week’s Data and Headlines June 11th Edition Coronavirus Pandemic Global and US Snapshot (as of June 10th) Global USA Confirmed Cases Deaths Recoveries Confirmed Cases Deaths Recoveries (+2%) (+1%) (+6%) (+1%) (+1%) (+2%) 7,493,436 419,795 3,805,083 2,066,401 115,130 808,494 Brazil Confirmed Cases Deaths Recoveries % Change % Change (+4%) (+3%) (+22%) State Cases from Deaths from yesterday yesterday New York 401,333 0.2% 30,680 0.3% 775,184 39,797 396,692 New Jersey 167,678 0.3% 12,467 0.8% California 139,931 2.1% 4,870 2.1% Russia Illinois 129,837 0.5% 6,095 1.3% Massachusetts 104,156 0.3% 7,454 0.6% Confirmed Cases Deaths Recoveries Texas 81,434 3.1% 1,920 1.5% (+4%) (+6%) (+8%) Pennsylvania 81,388 0.5% 6,161 1.2% Florida 67,371 2.1% 2,803 1.2% 502,436 6,532 261,150 Michigan 65,182 0.3% 5,955 0.2% Maryland 59,465 1.0% 2,844 1.2% Source: New York Times, Worldometers, John Hopkins Note: Increase ov er y esterday . © 2020 Dentsu Aegis Network 7 Coronavirus Pandemic Weekly Snapshot: Global and US North America Europe North America has the highest number of confirmed cases In Western Europe, the UK has taken over from compared to any other continent. The US continues to lead Italy and Spain with the highest number of cases at Russia the highest number of confirmed cases across the world at 290K; Spain – 289K, and Italy at 235K. The UK over 2M, while cases per million reached 6,243. Top also recorded the highest number of deaths During last two weeks, cases in affected states in US include New York, New Jersey, and amongst European countries. Russia have increased exponentially. California. Over 803K people have recovered while the Russia recorded 493K cases, up from rd death toll topped 115K. 387K last week– the 3 largest in the world after the US and Brazil. But the recorded death toll is comparatively lower at 6.3K. Asia China has reopened its economy as cases slow down. The country maintains its reported cases at 83K. Other worst-hit countries include India - 287K, Pakistan – 113K and Bangladesh- 74K. South America Brazil has the highest number of cases in South America at 775K, Australia | NZ which is 2nd largest in the world, Australia recorded around 7K followed by Peru– 208K and MEA confirmed cases and New Zealand Chile– 148K. Other worst hit In the Middle East, Iran and Turkey continue to report high 1.5K cases. New Zealand currently countries include Chile, Mexico, number of cases – 177K and 173K, respectively.
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