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. Total only has no active cases. The two Ecuador, and Colombia. cases in Africa are also increasing at a high rate, reaching countries hope to have a travel over 212K. Worst-hit countries include South Africa, Egypt bubble (for travel between them) in and Nigeria with 55K, 38K and 13K cases each. place by September.

Source: New York Times, Worldometers, John Hopkins

© 2020 Dentsu Aegis Network 8 Top Global Stories of the Week Murder of George Floyd Prompts Global Protests Germany to Lift Travel Ban on European Countries George Floyd’s death under the knee of Minneapolis police officer Derek Germany will lift its travel ban on 29 European countries, including Britain and Chauvin has sparked a wave of protests across more than 50 countries, Iceland, on June 15 and replace it with travel advisories. If regional infections including the UK, Canada, France, Israel, and Australia. The murder in the US should mount, bans to specific countries could be reinstated. has also sparked renewed domestic discourse on issues of racism within these countries, such as debate around the unequal treatment of Black Britons, the WHO Says Virus Has Not Yet Mutated Significantly largely unexamined violence of European colonialism, and renewed calls for The WHO said the coronavirus has not mutated in a way that would significantly justice for Adama Traoré, a young Black Frenchman who died in police custody change how it spreads among humans or how lethal it is. Worldwide, scientists of asphyxiation in 2016. and virologists are collecting virus samples and comparing the genetic sequence in each in order to track its evolution. Scientists have so far found only “normal changes” in the virus. Moscow Reportedly Set to Lift Some Restrictions Moscow has begun to lift certain restrictions, including self-isolation and UN General Assembly Cancelled scheduled walking times. Cafés with outdoor seating are set to reopen on June 16. Moscow has been the city hardest hit by the coronavirus Tijjani Muhammad-Bande, the president of the United Nations General outbreak in Russia, where there are over 476,000 confirmed cases of the Assembly, said that world leaders would not come to New York for their virus, and just under 6,000 reported deaths. annual gathering in September, a first in the U.N.’s 75-year history.

Italy Sees New Protest Movement Whose Leader Says Virus ‘Eliminated’ in New Zealand Pandemic ‘Doesn’t Exist’ New Zealand has “eliminated” the coronavirus domestically and will lift nearly all restrictions except for border controls, Prime Minister Jacinda Ardern announced. A new anti-government, populist movement is emerging in Italy modelled on The virus infected 1,504 people in New Zealand and killed at least 22, according France’s “Yellow Vests” movement. Calling themselves the “Orange Vests” or “Gilet to data compiled by Johns Hopkins University. “We are confident we have Arancioni,” the movement is led by a retired police general who has called for the eliminated transmission of the virus in New Zealand for now, but elimination is not government to resign over its handling of the coronavirus crisis. Described as a a point in time, it is a sustained effort,” Ardern said. “Not only have we protected “rightist-libertarian” and “turbo populist” movement by the Italian media, the leader New Zealanders’ health, we now have a head start on our economic recovery.” of the “Orange Vests,” former Carabinieri General Antonio Pappalardo, has said that the coronavirus pandemic did not exist.

Source: New York Times, Washington Post, The Guardian

Protests Continue Across US in Democrats in Congress Unveil Bill President Trump Calls to Revoke Cities Across US Consider Response to Floyd’s Murder to Rein Police Brutality Section 230 Police Reform, Defunding

Two weeks after George Floyd’s death in On Monday, June 8th, Democrats in In reaction to Twitter labelling one of In response to widespread calls to Minneapolis, demonstrations against Congress introduced legislation to end President Trump’s tweet on mail-in defund and reform police police violence continue across the US, excessive use of police force, and voting as needing fact-checking, and departments, municipalities have largely peacefully calling for justice for improve the ease of identifying, tracking, hiding his tweet glorifying violence in begun to take action, starting with Floyd and countless other Black victims of and prosecuting police misconduct. The response to the Minneapolis protests, banning chokeholds and other neck police brutality. bill would also reduce immunity for police Trump called to revoke Section 230 of restraints. officers accused of misconduct. the Communications Decency Act. On Tuesday, June 9th, George Floyd was In Minneapolis where protests laid to rest in Houston, where he was While Democrats are expected to pass Section 230 establishes that users, not originated, city officials have pledged raised. His grave lies beside his mother’s. the legislation through the Democrat- the websites that host their content, are to dismantle the police department held house, President Trump and the responsible for what they post, while and start over. In Los Angeles, Mayor Republican-held Senate have yet to permitting websites to remove offensive Eric Garcetti unveiled a proposal on indicate any reform they would accept. content and lies without fear of being Sunday, June 7th to divert $100 to sued for bias or free speech violations. $150MM from the LAPD to programs that would benefit communities of color.

Source: New York Times, WSJ, Washington Post, CNN, Vanity Fair

Shutdowns Prevented Nearly 5M Senate Approves Bill to Change May Jobs Report Records Confirmed Cases in the US, Study PPP Loans; Bill Moves to White Largest Monthly Job Gain, Ever Shows House

Population-based interventions like stay- The Senate passed a bill to give Unemployment fell in May, with 2.5M at-home orders and business closures recipients of small business loans during jobs added to the US economy, prevented 4.8M confirmed coronavirus the pandemic more flexibility in how they defeating expectations. This increase cases in the US, according to a new spend the aid. The bill will now head to represents the largest monthly job gain study. The study looked at more than the White House for sign-off from the on record. 1,700 policy interventions rolled out in six President. countries that were among the first hit by However, this job gain follows after Covid-19: the US, China, South Korea, The bill reduces the share of loan money historic rates of job loss, with 20.5M Italy, France and Iran. The researchers small business have to spend on payroll Americans losing their jobs in April and a found that lockdowns helped those in order to get the loan forgiven, to 60% 14.7% unemployment rate. May’s countries avoid 62M confirmed cases. from 75%. Recipients have six months to unemployment rate stood at 13.3%, with use the money, rather than two. It also 1 in 7 Americans in the labor force extends the June 30 deadline to rehire unable to find work. workers.

Source: New York Times, WSJ, Washington Post, CNN, Vanity Fair

US Economy Officially Hit Recession Levels in February

The United States’ sharp economic downturn amid the coronavirus pandemic has officially been declared a recession by the National Bureau of Economic Research. The NBER, which is the official arbiter of recessions, determined that the US entered a recession in February after seeing a peak in monthly economic activity. The recession ends the longest economic expansion in US history, which the NBER said lasted 128 months, or almost 11 years.

Analysts said while this is the deepest recession since WWII, it will also be the shortest. The bureau’s database showed no other recession that had lasted less than 6 months. Most economists believe the recovery has already begun.

Source: CNBC, NYTimes

Coronavirus Stimulus Funds Largely Depleted After Nine Weeks Nine weeks after Congress approved its largest-ever economic relief measure to counter the coronavirus pandemic, most of the direct cash assistance has been spent or committed.

The Cares Act – Direct Cash IRS Payout The Cares Act included a projected $1.2T in direct aid, The Treasury Department said Wednesday that the ranging from expanded unemployment benefits and Internal Revenue Service has made 159M stimulus forgivable business loans to cash payments for payments totaling more than $267B, reaching everyone households, hospitals, cities and states. Of the total for whom the government has enough information. The $1.6T in aid, roughly $1.12T, or about 70%, has been Congressional Budget Office (CBO) has said consumers distributed. may be slow to spend that money as long as social- distancing measures keep many at home and businesses Direct cash assistance is just one form of coronavirus- closed. related spending; but some economists say it has the biggest impact because it is intended to fill the void in The CBO projects the economy will begin to recover in the economic activity created by social-distancing second half of the year. Even so, it expects the economy measures. The pace of spending and its impact are at will be smaller at the end of 2021, and the jobless rate will the center of a debate over how much more money is be more than twice as high. Meanwhile, government needed to support economic recovery. spending to replace lost personal and business income is running out.

Source: CNBC

Coronavirus Stimulus Funds Largely Depleted After Nine Weeks (Cont’d) Nine weeks after Congress approved its largest-ever economic relief measure to counter the coronavirus pandemic, most of the direct cash assistance has been spent or committed.

SBA Funding Payout to States Airline Industry Payout The Small Business Administration allocated all of As of May 20, the Treasury had disbursed $144.3B A separate, $32B payroll-support program the $349B initially appropriated for forgivable of the $150B Coronavirus Relief Fund, created to for the airline industry is almost exhausted. loans under the Paycheck Protection Program. help states, territories and tribal governments offset Lawmakers in April passed a second round of expenses stemming from the pandemic. Some funding, bringing the total to $660B. Of that, states have been slow to pay out the weekly $600 in $510B, or 76%, had been committed as of May enhanced jobless benefits that Congress authorized. 30. The Senate approved a bipartisan bill to The benefits, worth nearly $270B, are meant to last extend the timeline of PPP and increase the at least through July, and in some cases until the eligibility of small businesses after several end of the year. Some states haven’t yet decided businesses said the program was ill-suited to their how to spend the grants they received to cover needs. The bill, which passed the House last costs related to the virus. It isn’t clear how many week, now needs clearance from the White businesses that received payroll protection loans are House. spending the money.

Source: CNBC

Retail was already in a period of rapid transformation before any of us knew what COVID-19 was, and worldwide shutdowns brought on by the pandemic have acted as a catalyst for many changes that were already underway. Now that the nation is slowly reopening, it is becoming clear which retailers survived through the crisis and which ones are being dealt their final blow.

Retail Dive reports that we could see up to 25,000 permanent store closures in the U.S. this year, with 55% - 60% of them in malls. That’s more than double the closures that happened last year. The once-iconic brands Macy’s, JC Penney, and Brooks Brothers are among the names that are currently exploring bankruptcies and closures.

Just when it seemed we were approaching normalcy, retailers were hit with a different type of loss. Nationwide protests have sprung up across all fifty states to combat police brutality and systemic racism. Although the demonstrations were mostly peaceful, some major cities saw a rash of looting that damaged small stores and big box retailers.

Upscale shopping districts like Soho in NYC and Rodeo Drive in LA have been impacted. Nordstrom, Target, Walmart, and CVS have announced store closures due to damages, and Adidas has announced that all U.S. stores will be closed “until further notice.”

But brands are focused on the bigger picture. Many of the same retailers that experienced looting are turning attention away from their losses and toward their stance on social justice issues.

Versace, Gucci, Yves Saint Laurent, and H&M are among the high-profile names that have released statements announcing solidarity with the Black Lives Matter movement. Now, more than ever, it is important for brands to have a voice and take action in the larger cultural conversation and make it clear what their values are. Customers are demanding it.

Source: Sellwin Consulting

Systemic racial inequality and injustice against Black communities continues to be a source of divide in the US – from the streets of Minneapolis to the disparities inflicted by COVID-19. Nationwide mass protests have spread globally. There is momentum. More voices are joining in and more brands are stepping up.

While there is no one way to “step up”, the following document will outline a framework for marketers to think through initial and ongoing ways to contribute to and support efforts for racial equality. There is no silver bullet, or ”quick fix” - real change will only stem from deliberate action over time.

Dentsu is committed to guiding brands to respond in impactful and constructive ways. As such, this POV reflects a compilation of consumer data, research from credible organizations, input from Dentsu’s diverse employees and will be further evolved to incorporate ongoing consumer research.

DENTSU AEGIS NETWORK This Moment is Different: Expectations for Brands are Elevated

Leaving hesitancy behind COVID-19 as a catalyst for Brands face heightened Stepping into leadership brand responses expectations Initial brand responses to the events of the With 1 in 5 Americans citing past week mark a tide change from the level Then COVID-19 hit. With all consumers On the heels of COVID-19, the leadership as a top need state, of brand involvement we saw in 2013 when affected by the same crisis (albeit to expectation for brands to acknowledge consumers are looking to brands to #BlackLivesMatter was born and in 2016 varying degrees), brand participation and respond to the racial equality take action. And some brands have th when Colin Kaepernick took a knee. In the was swift and steady. Consumers movement is higher today. In a poll already. Between May 26 to June nd past, there has been a hesitancy on the part started paying closer attention to brand fielded by Morning Consult, 71% of 2 , Nike pivoted on their famous of marketers to insert themselves into communications. Only a few weeks into Americans say it’s important for a slogan to “Don’t Do It,” YouTube political and societal conversations given the the crisis, Dentsu’s own research found business leader to address racial pledged to donate $1 million towards often polarizing nature of these topics. And that 67% of consumers reported having inequality, and 64% say these leaders police reform, and Nickelodeon went yet the percentage of consumers who say a more positive opinion of brands based should help handle the protests off-air for 8 minutes and 46-seconds they choose, avoid, or switch products based on their response, while 43% plan to occurring as a result of George Floyd’s in a powerful PSA to educate children on a brand's stance on societal issues has stop purchasing brands due to a death. Scrutiny will be high for not only on racism. been increasing steadily, growing from 51% lackluster (or lack of) response. what brands SAY, but what brands DO. in 2017 to 64% in 2018-19, according to Edelman.

+13% 67% 71% 1 in 5 Increase in percentage of consumers of consumers reported having a more of Americans say it’s important for a Americans cite leadership as a top who say they “choose, avoid, or switch positive opinion of brands based on their business leader to address racial need state products based on a brand's stance on response to the COVID-19 crisis inequality societal issues”

Source: Edelman Source: Dentsu COVID Crisis Nav igator Source: Morning Consult Source: Dentsu COVID Crisis Nav igator

Wary consumers call out …Requiring a dual approach virtue signaling… of support AND action

61% of consumers feel that 72% of consumers believe too many brands use societal brands have a responsibility issues as a marketing ploy to drive social change, including racial equality

Source: eMarketer October 2019 Source: Dentsu Recov ery Navigator, June 2020

Brand Example: Specialized Bikes acknowledged that their industry is part 1) Invest in Learning & 2) Acknowledge Your History of the problem and encouraged Understanding community discussion on ways they could do better. They actively engaged with people who gave responses, Invest in education and training to If taking action is new for your become an effective ally. Brands including following up in DMs to brand, acknowledge that. discuss ideas in greater detail. like Allbirds and The Citizenry are Explain why you are choosing using their social platforms to to respond and what that openly admit that they are still response entails. Similarly, learning what the “right” path brands will be held responsible forward is. Meanwhile, Ben & for past actions and will need to Jerry’s - already an established take accountability. ally - is helping educate customers by linking to valuable resources, like the ACLU.

“Ask people what they need, stand in concert with those who’ve been doing the work longer than you, listen, ask more questions than talk. Those are all the hallmarks of the people I’ve seen who are the most effective.” - DeRay McKesson, Activist

20 Immediate Actions: …And Follow Through With Action

Brand Example: Lego pulled 3) Voice Your Support 4) Back Support With Action advertising support behind their police sets and committed to donating $4 million to “organizations dedicated to Nearly a quarter of adults said that 73% of consumers want brands to supporting Black children and they would have a less favorable show how they are helping educating all children about racial view of a brand if they didn’t make communities in times of crisis. Figure equality.” an official statement regarding out where your organization can be current racial injustice. Understand most effective. In the meantime, a that voicing your support requires a good first step is to donate. There are commitment to listening to the many national organizations such needs of Black Americans and as Color of Change or Black Lives following through with action. Matter, as well as local organizations.

Source: Morning Consult Source: Dentsu COVID Crisis Nav igator

“The edict of ‘open your purse’ in the face of empty platitudes from celebrities, multi-million pound media platforms and corporations is really something to witness. People refusing symbolism and demanding wealth redistribution and material action.” - Jade Bentil, Black Feminist Historian

21 Ongoing Actions: Become An Agent of Change

1) Don’t Just React, 2) Be a Conduit of 3) Commit to Respond Change Diversity

Brands should not be Consumers are looking to Change starts from simply reacting to the brands to step in where within. If brands don’t pressure of the protests national leadership is not. have diversity reflected but responding to Today’s businesses have in their own teams, they ongoing injustice. Stand power and permission to cannot support causes with and support affected help facilitate real change. in the right ways. communities, even when Consider how your brand Commit to diverse the spotlight is not can partner with teams and diverse shining. What will you do organizations, businesses, leadership. Foster an when the fires die out? or voices already fighting inclusive work culture How will you support for a future of racial that listens to, supports those communities? equality and help them and celebrates diverse make that vision real. perspectives.

"Consumers are savvy enough to peel back the optics. How are you investing and impacting my community? We need brands to show up - not just give us words." - Deadra Rahaman, Founder and President of Society Redefined

22 Ongoing Actions: Become An Agent of Change

4) Commit Media 5) Champion Diverse 6) Keep the Support Perspectives Momentum Going

Anyone can (and should) Media is riddled with Set goals, timelines, express their support on implicit bias. Commit to acknowledge when organic channels. Brands increasing positive changes are enacted who change their representation of Black and highlight messaging via paid media talent in ads to combat investments. channels are elevating the negative stereotypes. Transparency and magnitude of their support accountability are key to and commitment to this being a true ally. issue.

”Blacks are not dumb enough to ignore when you deem things a tragedy and when you do not. And for all the messaging I’ve seen some brands in ’solidarity’ they have been spread through organic sharing... why are you all so afraid to put media budget behind those messages if you do, in fact, stand with us?” - Belinda Smith, Global Diversity Ambassador at the World Federation of Advertisers

23 The Bottom Line

Silence comes at a price Today’s consumers are paying more attention to how brands respond in times of crisis. 46% of consumers report paying MORE attention to brand communications than they did pre-COVID. And silence comes with a price: 56% of consumers say they have no respect for businesses that remain silent on important issues (Edelman Trust Barometer). Brands’ swift and increasingly direct responses to the protests reflect consumer expectations for brands to weigh in on issues of racial equality.

If you know what to believe, you know how to behave

We want to acknowledge that entering the conversation is not easy – but marketers have an opportunity to use their platform for real change. While brands are facing a highly polarized cultural and political environment and face likely backlash as they enter the conversation, consumers increasingly find it unacceptable for brands to stay silent and view “neutrality” as a cop-out. The best way for marketers to move forward is to have a clear understanding of their brand’s purpose, commit to causes according to their brand’s values and, Source: Adweek importantly, listen to a diversity of perspectives. And embrace the fact that a brand – like a person – can’t be all things to all people.

Sources: Dentsu COVID Crisis Navigator, Dentsu COVID Recovery Navigator, Morning Consult, Ted Talks, Edelman, The Drum, AdAge, Adweek, eMarketer

• This week we continue to see consumer interests & 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.

• Traditional Media usage coincides with this, as in-home TV, Streaming and Mobile Video usage all show multi-week declines.

• However, more current data sources available to Dentsu (e.g., Location, Digital, Social) reflect the focus by Americans to gather information, foster and become 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.

• Recent Location data does show traffic increases to Shopping Malls and Casual Dining Restaurants which are clear signs of re-opening, but we also observe visits to QSR and Auto Dealerships flattening out, which is likely to be a result of Americans attending protests vs. COVID-related behavior.

• 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.

26 While out-of-home activity continues to accelerate with state re-openings, recent data illustrates Americans have more important things on their mind.

Home Improvement Computer Accessories Cooking Slowing Down Slowing Down Slowing Down

Online Grocery Delivery Restaurant Take Out Fast Food Restaurants Slowing Down Slowing Down Increasing

Fashion & Style Vehicle Dealers Restaurant Reservations Increasing Increasing Ramping Up

Source: Google Search Data, week of 5/24

+29% -1% -1%

+1% +22% +1%

Source: Ninth Decimal

© 2020 Dentsu Aegis Network 31 Sports Leagues are Beginning to Implement New, Creative Partial Season Models – However, Not All Are Settled Yet Coronavirus League Updates 6/8/20 League As of… Status The league currently plans to begin the season on time with full stadiums, but is planning for hypothetical contingencies. Coaching staff can return to facilities as part of the 100 total staff allowed back, subject to state and local restrictions. Teams will 6/4/2020 host training camp at their own facilities. International games were cancelled. MLB made an updated proposal for the 2020 season to its players' union, moving to have a 76-game season with players getting 75% of their prorated salaries that includes a $200 million postseason pool for the players and a postseason that ends no 6/8/2020 later than Oct. 31. This propostal is likely to be denied by the MLBPA due to the playoff caveat that says players would only get 50% of their prorated salary if the postseason is canceled. The MLB Draft will be held remotely on June 10-11. 30 players represented their clubs in the MLB The Show Players League tournament.

Both owners and players approved the 22-team restart plan with 8 regular season games and playoffs at Disney World Orlando. Training camp begins Jun 30 and games begin Jul 31. In some cities, team facilities are open for optional workouts. The NBA 6/5/2020 Draft is set for Oct 15 and the draft lottery will be Aug 25. The ‘20-21 season will likely start Dec 1, 2020.

The NHL will play a 24-team, conference-based playoff for the restart of the season using two ‘hub’ cities for games. Team facilities can open for limited, voluntary workouts. NHL postponed the scouting combine, NHL Awards and NHL Draft. International 6/8/2020 games for the 2020-21 season were postponed.

NCAA fall football anticipates starting as scheduled. Voluntary athletic activities for football and basketball can resume June 1. The Division 1 2020 basketball tournaments were cancelled as well as all remaining winter and spring NCAA championships. 5/20/2020 Spring sport athletes may be granted an extra year of eligibility.

6/2/2020 The 2020 Summer Olympics in Tokyo were moved to Jul 23-Aug 8, 2021. The games could be simplified and have fewer spectators.

MLS approved its new CBA and will hold a tournament with all teams in Orlando. Teams will report to the ESPN Wide World of Sports Complex in about 3 weeks. The tournament will last no longer than 30 days and games in each teams’ home markets 6/5/2020 could resume when they return. Teams can return to full-team training after their individual club plans are approved. Multiple events including the All-Star Game (Jul 29) were cancelled.

NASCAR Cup Series returned May 17. Xfinity races began May 19. The latest update of the schedule includes races through Aug 2. The Cup Series will finish with the All-Star Race (Jul 15) at Charlotte Motor Speedway. NASCAR is considering allowing fans 6/4/2020 later this month.

6/8/2020 The Indianapolis 500 is now Aug 23. IndyCar had a successful return at Texas Motor Speedway. The Grand Prix of St. Petersburg will serve as the season finale on Oct 25. Fans are expected to return in August.

The PGA Tour will resume Jun 11-14 with the Charles Schwab Challenge. The PGA Championship will be Aug 3-9, the U.S. Open will be Sept 17-20, the Ryder Cup will be Sept 25-27 and the Masters will be Nov 9-15. The 149 th British Open was moved to 6/5/2020 2021. PGA Tour Champions will blend the ’20 and ’21 seasons. Limited fans will be allowed to return for the first time at the Memorial Tournament on Jul 16-19.

6/2/2020 The ATP and WTA Tours suspended play until the end of July. The US Open is still considering 2020 options including a doubleheader in New York. The French Open is now Sept 27-Oct 11. Wimbledon and the rest of the grass court season were cancelled.

5/31/2020 UFC fights returned in Jacksonville on May 16th, and began this Saturday at the Apex facility in Las Vegas. UFC will host fights every Saturday through June 27 at the facility in Las Vegas.

5/19/2020 Belmont Stakes was rescheduled for Jun 20th. The Kentucky Derby was moved to Sept 5th. The Preakness Stakes is now Oct 3rd.

UEFA moved the men’s 2020 European Championship to summer 2021. The ‘21 Women’s European Championship will be in 2022. Champions League and Europa League intend to be completed in Aug. Bundesliga returned May 16. La Liga will return Jun 5/29/2020 11. EPL will return Jun 17. Serie A will return Jun 20. Ligue 1 cancelled the season.

Source: Amplif i, Dentsu Aegis Network

Source: Nielsen Total TV Usage Lev els – April/May 2020

Source: Nielsen Total TV Usage Lev els – May 2020

Source: Nielsen-measured Mobile App Engagement, P18+ Android Users Jan-May 2020

Source: Similar Web Analy tics, Last 30 day s (May /June 2020)

• Policy review of threats of state use • Fact-checking “misleading” or • Elevating content on racial justice, • Regularly updating YouTube community of force incorrect Tweets such as resources for how parents guidelines • Review of our policies around voter • Proactively taking-action on any can talk to their children. • Removing violative content, raising up suppression coordinated attempts to disrupt • Highlighting organizations users authoritative content, reducing the • Review potential options for handling the public conversation. can support. spread of borderline content and violating or partially-violating content • Actively investigating hashtags • Elevating educational information rewarding trusted creators (e.g. content flags) and suspending spam accounts about systemic racism in America. • Partnering with lawmakers and civil • Increase transparency in the decision- • #DiversifyYour Feed - scan the • Additional information can be found society around the globe to limit the making process QR code or follow the handle here spread of violent extremist content • Review decision-making processes @TwitterTogether to view and online. to ensure diversity of voices/thoughts read our curated list of voices from • Limiting recommendations of borderline • Initiate a workstream for building underrepresented communities and content and harmful misinformation products to advance racial justice. marginalized groups. • Updated harassment policy to better • Build a voter hub to increase • Additional resources on messaging protect creators and users while making get-out-the-vote efforts. in times of crisis can be sure YouTube is still a place for open • Additional information can be found found here and here debate and exchange of ideas here • Disallowing offensive/abusive language that target protected group status in any context, for any individual (regardless of public figure status). • For additional information, please contact your Google Account Team Source: Inf ormation prov ided by each indiv idual platf orm

© 2020 Dentsu Aegis Network 38 Performance Media Markets, showing recent & consistent growth, take a pause, as marketers make room for the National Conversation. Search Spend Sees Continued Spending Growth, Driven Largely By Tech And Retail

Blackout Tuesday Source: iProspect, 2/1 – 5/6/20

Blackout Tuesday Source: iProspect, 1/31 – 5/15/20

Source: Dentsu Aegis Network, Amnet Programmatic Data

Direct-to-Consumer Marketer Insights from

CPM trends (all verticals): -1% from Media spend previous week trends +3% month (all Verticals): over month

+2% from Conversion previous week trends (all +3% month verticals): over month -18% from previous week

-20% month over month

Source: MuteSix Internal cross-client metrics, Apr-June 2020

Direct-to-Consumer Marketer Insights from

Source: MuteSix Internal cross-client metrics, Apr-June 2020

Amplifi Local Investment Why National Clients Should Consider a Local Plan

Speed to Market Customized Strength in Recovery is Provides Messaging drives Local Media Usage Staggered / Regional Competitive Relevance / and Trust Advantage Response

Stay @ Home: 38% (112i) Reopen Cautiously: 38% (100i) Fully Reopen: 24% (89i)

Stay @ Home: 31% (91i) Reopen Cautiously: 37% (97i) Fully Reopen: 32% (118i) Stay @ Home: 38% (112i) Reopen Cautiously: 33% (87i) Fully Reopen: 29% (107i)

Stay @ Home: 32% (94i) Reopen Cautiously: 43% (113i) Fully Reopen: 25% (93i)

Source: COVID-19 Tracker, part of the Taking the Pulse series by Dentsu Aegis Network. Online surv ey panels, conducted April 24, 2020

Staggered Speed to Recovery Market

Mar19 vs. Mar20 Apr19 vs. Apr20 % Change % Change 22% 21%

17% 15% 15% 14%

11% 10% 9% 8%

Methodology LPM+PPM SET-METER + PPM SET-METER + RPD CODE READER + AVERAGE RPD

Source: Nielsen Local Weekly TV Usage Update thru 05.03.2020

50% 26% -32% Listen to more audio Spend more time Spend less time on AM/FM, streaming listening to audio in listening to radio in or mobile their home their car

Source: Nielsen Flash Surv ey COVID-19 Crisis and Radio Results conducted March 20-March 22 v ia phone 1000 participants A18+ **Participants consider radio: AM/FM, streaming and podcasting

o 23% increase in users at home o 21% increase in TLH on Radio.com o 16% increase in listening hours

o 10% increase smart speaker listening news listenership o 27% increase in smart speaker o o 20% increase in web listeners 20% increase in smart speaker TLH listening o o 25% increase in Smart TV, game 26% increase in TLH on desktop o 115% growth in streams of news/talk consoles etc. o 16% increase in TLH on mobile content

Source: iHeart Radio: internal metrics March 2020, Entercom: internal metrics and Nuv oodoo, 3/9-3/13/20 DAX: internal metrics Tune in, Global terrestrial partners, Slacker 2/24-3/16/20

I TRUST THE NEWS THAT I SEE/HEAR ON THIS MEDIA SOURCE

(PERCENT AGREE)

Source: TVB/Dy nata Coronav irus Media Usage Study April 2020 Total P18+ N = 10,042 (10 states: CA, FL, GA, IL, LA, MI, NJ, NY, TX, WA)

Video Audio

Addressable Respondent County Streaming OTT/VOD Zoned Cable TV Level Data Coverage Audio

Data-driven

Identify consumer Determine the Define campaign actions that serve right KPI for objective as awareness attribution indicators

Attribution Business Outcomes ROI Measurement

© 2020 Dentsu Aegis Network 55 Resource Spotlight: Merkle’s COVID-19 Market Impact Dashboards can integrate marketer 1st Party Data* to uncover unique, industry-specific insights at the Regional, State or County level.

The Economic Resilience Index (ERI), a proprietary Merkle product, is based on data such as the changes in liquidity of assets per capita and the % of cases of COVID-19 per county

• Green indicates counties with the • Although economies will be re-opening at a state greatest likelihood to recovery quickly and the Red indicates level, understanding the unique customer counties that will likely be slow to mindset at a more granular level will help to recover guide an effective and empathetic marketing • ERI ranges from 0 (anticipated strategy at a community level slowest recovery) to 179 (anticipated quickest recover) • Florida has an overall COVID-19 Case Rate of 0.14%, but how the virus’ wake will be felt for a community like Miami-Dade for weeks or possibly months will likely be very different from neighbors to the north in Indian River despite both counties entering the pandemic in a similar economic position – making the personalization for these communities a priority for marketers as the economy reopens

Source: Merkle; * $50,000 f ee cov ers the integration of Client 1st Party Data and regular custom insights f or 1 y ear

© 2020 Dentsu Aegis Network 56 Resource Spotlight: Merkle’s COVID-19 Market Impact Dashboards are now available free of charge to marketers, to inform marketing and/or media strategy, anticipate & capture opportunity.

• When and where will spending start? And, what data do you need to uncover opportunities? These are the burning questions many marketers will need to answer to rebound from the COVID-19 pandemic. • Combining publicly available county-level epidemiological and health care coverage data with Merkle’s proprietary datasets and Economic Resilience Index (ERI), we’ve developed unique views into county & state-level economic impacts. • By understanding how financially solvent a county is in relationship to the overall case rate of COVID-19, an understanding of where communities have a high likelihood of a faster economic recovery can be assessed • Merkle COVID-19 dashboards can be utilized at a regional, state or county level to uncover unique insights into: • Buying Behavior • Discretionary Spend Across Industry • Community Liquidity • Health Care Coverage

Source: Merkle

© 2020 Dentsu Aegis Network 57 For more information on how to leverage the COVID dashboards to inform your Recovery Marketing, Media & Measurement approach, please contact your Dentsu Client Leader. Dentsu Recovery Navigator June 11th Edition A note on the focus of the eighth iteration of Dentsu’s Navigator

At a time where we had planned to focus on “reopening the economy,” we are keenly aware that another ongoing epidemic is affecting American lives – racial injustice against Black communities. This week’s report will primarily focus on sentiment towards the ongoing racial injustice faced by Black Americans, with an eye towards how brands can create constructive change in support of racial equality.

This is an excerpt of a fuller report, which you can find on our website. 1. In Short: Trends Week-to-Week 2. A Framework For Understanding Consumers’ Response

3. Activity Picks Up From May, Many Remain Uncomfortable

4. Racial Inequality: A Crisis Within A Crisis Within A Crisis 5. Different Cohorts Have Different Views Of National Issues 6. Americans Believe That Racial Inequality Is An Unresolved Issue Selection of 7. Most Americans Are Following & Supporting The Protests Findings: 8. Consumers Say Brands Should Respond & Are Paying Attention 9. Brands Should Enter The Conversation But Recognize That Action Is Expected Long-term 10. Brands Expected To Weigh In On Issues Of The Moment 11. Brand Responses Not Likely To Negatively Impact Perceptions 12. The Bottom Line: Staying Silent Hurts Brand Perceptions

13. Key Themes & Implications for Marketers

61 1. In Short: Trends Week-to-Week *To see all eight waves since March 27, please see the full report.

April 24 May 8 May 22 June 5

5 6 7 8

Receiving Mixed Signals In a Continued Holding The Nation In Limbo A Crisis Within A Crisis Pattern As the country tentatively reopens, It feels as though the US is sort of While the country continues to consumers are torn. On one hand, in limbo right now – while many inch towards reopening, ongoing Consumers appear to have stalled communities are still shutdown, their outlook is improving, and for the past three waves of the more and more are lifting racial injustice is consuming many want the economy to survey, unable to mentally move restrictions. Despite cautious national consciousness. Much of reopen; on the other, they towards recovery even as states optimism, most consumers remain the survey results were recognize that health must be reopen. As economies reopen, we hesitant to go in public or shop in- heartening: most Americans prioritized and feel uncomfortable do see activity resume, however, store and many plan to continue acknowledge systemic racism and without the guarantee of a vaccine. consumer concern and unease spending more time at home. Still, support the peaceful protests Division carries over into how they remains. While they view the crisis there is excitement for around the world. Many say view advertising – half want experiences like dining out and brands have the responsibility and as stabilizing and are determined travel again. brands to continue acknowledging to “get through it” consumers show power to speak up – and are the crisis, while the other half want little sense of optimism and It’s become clear this is a moment asking them to take a variety of brands to move on. normalcy remains out of reach. for brands to step up. More brands actions to achieve equality for have benefited from responding to Black Americans. COVID-19 than not.

© 2020 Dentsu Aegis Network 62 2a. 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 I am modifying my daily I am moving towards settling I feel there has been I am fully reconnected to work spreading. I am routine. There are into a new routine while the progress to reduce the and life without having the uncertain about how it moments of frustration and outbreak is evolving. My outbreak in the nation and threat of the outbreak hanging might impact my day to anxiety, but I’m trying to routine is starting to feel my community. I am slowly over me. I am back to my day life. I am feeling focus on what I can familiar. starting the journey back to routine from before. confusion, fear or anger control. my normal routines and about preparing. schedules.

© 2020 Dentsu Aegis Network 63 2b. Initial Signs Of Movement Into Recovery After four waves of little to no movement within our Recovery Framework, it feels like there is some progress towards recovery. The share of respondents identifying as in Initial Shock declined slightly while the share of respondents in Moving into Recovery and Post-C19 Life increased slightly. % of Respondents Who Identify With Each Stage:

INITIAL SHOCK COMING TO GRIPS LIVING A NEW NORMAL MOVING INTO RECOVERY POST- CORONAVIRUS LIFE

PAST FOUR WAVES: **To see all eight waves since March 27, please see full report.

APR. 24 23% 28% 30% 10% 9%

MAY 8 22% 29% 32% 11% 6%

MAY 22 23% 28% 31% 12% 6%

JUNE 5 19% 26% 30% 15% 10%

Q. When it comes to a public health crisis such as the COVID-19/coronavirus outbreak, there are often “phases” of how the response unfolds. Thinking about how Source: COVID-19 Recovery Navigator: Wave 8 by Dentsu Aegis Network. the outbreak has impacted you and your daily life, which of the following phases best describes your current situation?

Since early May, we can see consumers begin to resume everyday activities from dining out to socializing. However, a majority do not “feel fine” doing so, many remain “somewhat” or “very” uncomfortable.

How Consumers Feel Going Out In Public

44% Uncomfortable 56% Comfortable

+4 Since May 8

Q1. In the context of COVID-19, how comfortable are you currently going out in public? Q2. Which of the following things, if any, do you currently do outside of the home and what is your level of comfort?

While the COVID-19 outbreak and ensuing economic crisis remain the top national issues concerning Americans, those concerned about racial equality have doubled since the question was first fielded May 22.

Top Concerning National Issues percentage of respondents who ranked each need states as in their top three

June. 5 May. 22 Apr. 24 Mar. 27

63% 60%

53% 50% 48% 49%

42% 41% 38%

34% 33% 32%

28% 26% 25% 22% 21% 21% 20% 20% 19% 19% 18% 19% 19% 19%19% 17% 17% 17% 17% 16% 17% 16% 17% 15% 15% 15% 15% 15% 15% 14% 13% 13% 13% 13% 11% 10% 10% 10% 8%

COVID- US Economy Racial Equality Unemployment Social Unrest Climate Change Income Inequality Immigration Gun Control Terrorism US Political Freedom of Gender Equality Reproductive 19/coronavirus *New May 22 *New this wave Landscape Movement Rights health crisis

Q. Please pick the top three national issues currently concerning you the most.

Source: COVID-19 Recovery Navigator: Wave 8 by Dentsu Aegis Network.

The degree to which racial equality ranks as a top concern differs by race (higher for Black respondents than white respondents) as well as by political party (higher for Democrats than Republicans).

Black Adults White Adults Democrats Republicans

155i 90i 118i 82i (39%) of Democrats say Racial (30%) of white respondents say (27%) of Republicans say Racial (51%) of Black respondents say Equality is a top concerning Racial Equality is a top concerning Equality is a top concerning issue – their Racial Equality is a top concerning issue fourth top concern issue issue Top 3 concerns Top 3 concerns Top 3 concerns 1. COVID-19 (48%) Top 3 concerns 1. Racial equality (51%) 1. COVID-19 (56%) 2. US economy (43%) 1. US economy (45%) 2. COVID-19 (45%) 2. Racial equality (39%) 3. Racial Equality (30%) 2. COVID-19 (42%) 3. US economy (37%) 3. US economy (37%) 3. Social unrest (29%) 4. Racial equality (27%)

Q. Please pick the top three national issues currently concerning you the most.

Source: COVID-19 Recovery Navigator: Wave 8 by Dentsu Aegis Network.

Most Americans believe racial inequality is an unresolved issue in the US. Black Americans and Democrats are more likely to have strong feelings that it continues to be a significant issue in the US. There are few, if any, differences across generations.

My community has FULLY reopened for business

My communityIt is a is continuingsignificant to follow issueSTAY @ HOME orders

Q. To what degree do you feel that the US has an unresolved issue with racial inequality and racial injustice against Black Americans? Source: COVID-19 Recovery Navigator: Wave 8 by Dentsu Aegis Network.

Over three-quarters of respondents are following the ongoing protests “somewhat” or “very” closely and over 80% of respondents either “somewhat” or “strongly” support the peaceful protests.

How Closely Consumers Are Following The Protests

I am not at all aware

4% 18% I am aware but not actively following them 81% Having acknowledged Brands should Having44% acknowledged Brands should Of respondents supportthe crisis, it isthe now ok continue to the crisis, it is now ok continue to I am following for brands to go back acknowledge the for brands to go back acknowledgeongoing the peaceful protests them very to advertising as crisis, advertising as to advertising as crisis, advertising as closely normal normal is normal normal( Strong is support: 57%, inappropriate34% right inappropriate right now nowsomewhat support: 24%) I am following them somewhat closely

Q. How closely are you following the ongoing protests in response to the death of George Floyd and others in the Black community? Q. Do you support or oppose the peaceful protests in response to the death of George Floyd and others in the Black community? Source: COVID-19 Recovery Navigator: Wave 8 by Dentsu Aegis Network.

As protests have multiplied across the country, major brands have spoken up and acted against racial inequality. Consumers have taken notice, with almost half, 46%, saying they are paying more attention to what brands are saying/doing and 55% saying that brands should get involved.

Should Brands Stand In Support Of Racial Equality For Black Attention Paid to Brand Responses Americans?

55%

37% I am paying the 46% SAME amount of Having acknowledgedI am paying Brands should Having acknowledged Brands should 25% attention as the crisis,MORE it is now attention ok continue to the crisis, it is now ok continue to usual for brandsto towhat go back brands acknowledge the for brands to go back 20% acknowledge the to advertisingare saying/doing as crisis, advertising as to advertising as crisis, advertising as normalthan usual normal is normal normal is inappropriate right inappropriate right now now 17% I am paying LESS attention than usual Yes, brands should get No, brands should not get I'm not sure/no opinion involved involved

Q1. Do you think brands should respond to and take a stance in support of racial equality for Black Americans? Q2. Which of the following best applies to you in the context of the ongoing protests in response to the death of George Floyd and others in the Black community?

Source: COVID-19 Recovery Navigator: Wave 8 by Dentsu Aegis Network.

© 2020 Dentsu Aegis Network 70 9. Brands Should Enter The Conversation But Recognize That Action Is Expected Long-term A high percentage of consumers encourage brands to enter the conversation (even if it’s for the first time), but scrutiny will be high for how they build credibility through action.

When Consumers Feel It Is Credible For Brands To Take A Stand On Racial Equality

38% 37% of respondents say brands should only speak up if they have built up credibility about the issue

Brands should continue to acknowledge the crisis, advertising as 15% 13% 13% normal is 11% inappropriate right 9% now

Any brand should raise their Only if a brand has voiced Only if a brand has taken real Only if a brand has committed Brands should not respond to I’m not sure/don’t have an voice regardless of their past support previously action to support racial to diversity within its own the current racial equality opinion track record equality organization issue

Q. When do you feel it is credible and appropriate for brands to respond to and take a stance in support of racial equality for Black Americans?

Source: COVID-19 Recovery Navigator: Wave 8 by Dentsu Aegis Network.

While all topics are important to consumers, there is more urgency around issues the protests are responding to, including police brutality and Black Lives Matter. For business leaders this goes far beyond the remit of the workplace and speaks to consumers’ belief that brands can create real change.

Aspects of Achieving Racial Equality Consumers Want Brands To Speak Up About & Drive Change

Police brutality/reform 44%

Black Lives Matter 43%

Equal access to education 38%

Equal hiring/promotion practices 36%

Equal access to healthcare 35%

Fair media representation 30%

Community investment 29%

White supremacy 26%

Prison reform 25%

None of the above 13%

Other, please specify 2%

Q. Which aspects of achieving racial equality for Black Americans do you think brands should speak up about and be part of driving an agenda of change? Please select all that apply.

Source: COVID-19 Recovery Navigator: Wave 8 by Dentsu Aegis Network.

Brands have a wide portfolio of actions to choose from if they want to get involved given that a vast majority of consumers feel either positive or neutral about brand responses. This gives brands leeway to choose actions closely aligned with their brand values and purpose.

Impact of Brand Responses On Consumer Favorability

Less Favorably Neutral More Favorably

Commit toCommit ending to racial ending stereotypes racial stereotypes in i... 11% 40% 49% advertising/media

Direct resourcesDirect resources and support and support to affected to affec... 10% 41% 49% communities

Fight for policyFight changefor policy (prison change (prison reform, refor... police 11% 41% 48% brutality, etc.)

Increase diversityIncrease practices diversity practices within theirwithin own t... 11% 42% 47% organization

Partner Partnerwith/support with/support Black black-owned-owned businesses busi... 12% 42% 46%

Change their advertising messages in support of Change their advertising messages in ... 12% 43% 45% racial equality

Issue a statementIssue a statement supporting supporting racial racialequality e... 11% 44% 44%

Donate to non-profit or activist organizations (e.g. Donate to non-profit or activist orga... 15% 42% 42% ACLU, Black Lives Matter, Color of Change, etc.)

Champion and amplify the voices of people of Champion and amplify the voices of pe... color in advertising/media 14% 44% 42%

Help me to support the movement for racial Help me to support the movement for r... equality 11% 47% 42%

Q. Thinking about brand responses supporting racial equality for Black Americans, how would you view companies that did the following? Source: COVID-19 Recovery Navigator: Wave 8 by Dentsu Aegis Network.

Consumers are clear in their expectations for brands to step up right now and in the long run.

70% 54% of respondents are MORE likely to of respondents are LESS likely to support brands that RESPOND support brands that STAY SILENT

Q. How would a brand’s response or lack of response in support of racial equality for Black Americans impact your decision topu rchase its products/services. Please indicate how much you agree or disagree with the following statements:

Source: COVID-19 Crisis Navigator: Wave 8 by Dentsu Aegis Network.

© 2020 Dentsu Aegis Network 74 Key Themes & Implications for Marketers Racial Equality COVID-19 •Use your platform to be an ally for racial equality. A •Look internally. Increasing internal diversity is among majority of consumers support protests and over half • Continue to reassure consumers during COVID- the top actions that consumers want brands to take. say brands should speak up for racial equality. It’s ok 19. Consumer sentiment around the COVID-19 The reality is, to reflect and speak to our increasingly for brands to enter the conversation by first establishing diverse nation, marketers must create a culture that outbreak is shifting in the positive direction, but their voice and then starting to take action. many remain wary of a second wave and hesitant promotes and supports diverse employees at all levels, including leadership. to go out in public. Brands should continue to • Align your response with your brand purpose. The cater to consumers’ new normal and help them data shows that there is no one “right” way for brands to navigate the path towards recovery. •Marketers, commit to fair representation. Brands step up, consumers feel favorably about most types of committing to ending racial stereotypes in ads was the responses, so marketers should heed their purpose and top action that would favorably impact consumers’ values. Key will be ensuring that the response carries • Proceed with caution when re-opening. perception. As shapers of culture and perception, real weight for people of color. Consumers are concerned that restrictions will be marketing leaders must make this a priority. lifted too quickly. Even with safety precautions • Act with specificity. While consumers want to see •Acknowledge your past. Consumers do not believe a rolling out, consumers still express a hesitancy to support for racial equality, generic statements aren’t resume ‘business as usual.’ A slow and cautious brand’s past on racial equality should hold them back going to cut it. Modern consumers want to see brands from responding now; however, brands should be approach to re-opening, and transparency/testing put actions behind their words. Advocating for policy around safety measures, are important to build prepared for scrutiny as they enter the conversation. change and taking internal measures to support The best path forward is to acknowledge your history trust. diversity are among the most important messages for and explain with clarity what you are doing now. brands to share in their responses. • Adapt/tailor brand responses according to •Get involved at the community level. Like the spread of recovery phases. Consumer need states and COVID-19, different communities are having different expectations shift based on the various phases of experiences right now. Consumers are looking to the crisis, and of recovery. Ensure you strike the companies to create positive change in their right tone and demonstrate appropriate actions as community. we move into a new normal.

DENTSU AEGIS NETWORK Methodology

This survey was administered through Toluna, an online research panel, on June 5, 2020. Conducted by Dentsu, this survey was distributed among a random sample of 1,000+ respondents, aged 18-64 years old and residing in the United States. The Thank you survey controlled for nationally representative weighting across age, gender and ethnicity/race (using latest publicly available US Census numbers). To access more findings & Additionally, respondents represented a variety of insights, view the full report. backgrounds across education, household income and region.

Media & Entertainment Health & Wellness Slide 81 Slides 96

Travel & Hospitality CPG Slide 84 Slide 98

Auto Restaurants Slide 86 Slide 100

Retail Insurance Slide 88 Slide 102

Luxury & Beauty Non-Profit Slide 91 Slide 104

78 ESG Investing Rises, Venture Capital Firms Raise Minority-Focused Funds • Visa predicts that the COVID-19 crisis may drive a $100B annual shift in spending away from credit cards to debit spending. • While US credit card volume on Visa cards remains down in May from the year previous, debit card volume usage was up 12% in that same month. Visa attributes such shifts to consumer wariness of debt in times of financial crisis. • Visa also predicts that consumers will shift their credit spending to low-fee and no-fee cash-back credit cards, rather than higher-end travel reward cards with annual fees that have been exceedingly popular in recent years. • Environmental, Social, and Governance (ESG) investing has started to gain strength in 2020, with ESG focused funds seeing record Q1 inflows while the rest of the market saw record outflows. Financial • Globally, investments in ETFs tracking ESG indices more than doubled, going from $22.1 billion in 2018 to $56.8 billion by the end of 2019. • In response to the murder of George Floyd and the ongoing protests, various venture capital firms have Services announced minority-focused funds. • SoftBank announced a $100MM Opportunity Fund that will only invest in minority-owned and -led businesses. • Andreessen Horowitz launched its Talent x Opportunity (TxO) with $2.2 million in donations from the firm’s partners.

Source: American Banker, Market Watch Brand Actions | Financial Services

Bank of America announced a $1B and a four-year Goldman Sachs has established the Goldman Sachs Fund for American Express pledged $1MM in two grants for the commitment to support economic opportunity initiatives at Racial Equity to support organizations fighting racial injustice, National Urban League and the NAACP Legal Defense and the local community level in light of economic and racial structural inequity, and economic disparity. Educational Fund. The company will also match employee inequality accelerated by the global pandemic and donations highlighted by the ongoing protests. These initiatives will The fund launched with $10MM from Goldman Sachs Gives, focus health, jobs and training, small business support, and a donor-advised fund that allows the firm’s current and retired Amex also made statements across its social media housing. senior employees to direct grants to support underserved channels expressing its commitment to “standing up” for communities. Goldman Sachs will match employee donations the Black community in America, combating racial injustice, to the Fund. Donations of $25 and under will be matched 3:1. and creating an inclusive organization.

© 2020 Dentsu Aegis Network 80 Connected TV Ownership Rises, Big Media Donating Ad Inventory • Connected TV ownership continues to rise in US homes, accelerating during the pandemic as consumers rely heavily on entertainment. • Currently, 80% of homes with TVs have at least once one connected TV device, streaming device, or smart TV, versus 74% in 2018 and 57% in 2016. • With this increase in connected TV ownership and streaming service subscription, compounded by the reluctance of consumers to enter crowded places like movie theaters, studios and movie theaters are strategizing around effective means of film distribution. • Film studios are becoming increasingly concerned about the backlog of film releases, as premieres continue to be delayed. • Increased competition will cut into potential profit margins, making it much more difficult to find an ideal time to launch a new film. Media & • In light of ongoing nationwide protests in response to the murder of George Floyd, major media companies are donating advertising time and inventory, in addition to cash, to organizations dedicated to fighting racism. Entertainment • WarnerMedia is moving beyond only providing corporate financial support to anti-racism organizations, and is now donating advertising commercial inventory to Color of Change and the NAACP Legal Defense Fund • Comcast has pledged a total donation package of $100MM, with $75MM in direct donations to organizations fighting injustice and inequality facing any race, ethnicity, gender identity, sexual orientation, or ability, and $25MM in media that will be distributed over the next three years. • Viamedia is currently offering free advertising time to anti-racism organizations

Source: Variety, MediaPost Brand Actions | Media & Entertainment

Walt Disney Co. pledged $5MM in donations to All of ViacomCBS’ ten cable channels went Sesame Street partnered with CNN to air Black Entertainment Television is shaking up its social justice reform organizations across the silent on the evening of Monday, June 1st for 8 "Coming Together: Standing Up to Racism,” a programming in an effort to promote US, beginning with a $2MM donation to the minutes and 46 seconds — the amount of time 60-minute special on Saturday, June 6th . The meaningful dialogue and provide strategies to NAACP. The company will also match that Derek Chauvin knelt on George Floyd’s show will talk to kids about racism, the recent address systemic racism and violence against employee’s donations to organizations of their neck. The purpose was to "honor George Floyd nationwide protests, embracing diversity and Black people in the United States. choosing. and pay tribute to other victims of racial building empathy and understanding. violence". The channels flashed the words "I BET will air a series of specials throughout the can't breathe" with the sound of a person month featuring prominent Black leaders. The gasping for breath. first installment, “Justice Now: A BET News Special” will reflect on the killing of George Floyd, the protests, and the underlying systemic racism that led to it.

Alexis Ohanian stepped down from Reddit’s board in TV networks and streaming services are removing Beginning June 10th, Netflix users who search support of the Black Lives Matter movement, calling problematic content from their offerings in light of the “George Floyd” will be served a collection of shows for a Black leader to take his spot. Following his murder of George Floyd and subsequent protests. and movies centered on racial injustice. resignation, Reddit’s board appointed its first Black board member, Michael Seibel (pictured below). HBO Max pulled Civil War epic “Gone With the Wind” Additionally, Netflix is promoting the collection, Seibel is CEO and partner at the startup accelerator from its platform. titled “Black Lives Matter,” to all users in the U.S. Y Combinator, which helped launch Reddit back in with a pop-up recommendation urging viewers to 2005. Paramount Network has canceled long-running police browse the titles. reality show “Cops” for good after earlier removing it from The resignation shined a light on Reddit's issues its schedule. The show has long been criticized for the dealing with hate speech in certain corners of the way it depicts suspects and police tactics. platform.

© 2020 Dentsu Aegis Network 83 Domestic Vacation Demand, Hotel Occupancy, Airline Bookings Rises • Domestic vacation demand has started increasing, particularly around vacation rental properties. • Airbnb registered more US bookings from May 17 to June 3rd than it did for the same period last year. • Hotel occupancy data for the week ending May 30th showed another small rise from previous weeks. • Occupancy stood at 36.6% (down -43.2% YoY); average daily rate at US$82.94 (-22% YoY); revenue per available room at US$30.34 (-62.1% YoY). • Year-over-Year declines remained significant, although not as severe as in previous weeks. • On June 4th, volume of air travel passengers was 15% of last year, compared to 3.6% on April 16th. • By July, some airlines are expecting passenger volume to return to 50% of normal levels. • For example, American Airlines plans to fly 55% of its July 2019 domestic flights and 20% of its July 2019 international flights. Total flights, including domestic and international, will comprise 40% of July 2019 levels. Travel & • In particular, American Airlines will increase flight frequency to Florida in July, as the state’s theme parks reopen, and to Montana, Colorado, and Wyoming as national parks reopen. Hospitality • CDC has created new color-coded system to designate cruises with potential coronavirus exposure. • The US’s ongoing no-sail order is set to expire July 24th. • In this system, cruise ships are assigned a "green," "yellow" or "red" designation: green ships have had no confirmed COVID-19 cases or similar illnesses for 28 days; yellow ships are awaiting test results; and red ships have had confirmed or similar illnesses in the last 28 days. Crew transfers and repatriation via commercial means are now allowed on green ships but not on yellow or red ones. • Airlines continue to adjust their policies to accommodate consumer concerns and fears. • Delta Airlines has extended its policy ensuring planes fly at no more than 60% full through to September; previously, the airline planned to end the policy on June 30th. • United and American have programs in place to notify travelers if their plane is booked over certain Source: USA Today , CNBC, Wall Street Journal, Hospitality News capacity thresholds, allowing passengers to switch to other flights without paying a fee. Brand Actions | Travel & Hospitality

Airbnb voiced its stand with Black Lives Matter via Twitter, pledging to donate $500,000 to the NAACP and the Black Lives Matter Foundation, and to match employee donations to both groups.

© 2020 Dentsu Aegis Network 85 Ride-Sharing Begins to Pickup, while Auto Sales Remain Down • Auto sales in May finished at 1,110,609, a 30.2% decrease from May 2019, but a 57% increase from April 2020. • These May sales result came slightly higher than the Cox Automotive forecast for May, which anticipated auto sales to be down 33% from last year’s levels. • Total YTD auto sales in the US through the end of May 2020 totaled 5.32MM vehicles, down 23% YoY. • Even if sales return to normal levels in the second half of 2020, sales in 2020 would still finish down double- digits versus 2019. • Ride-sharing trip requests have continued to gradually pick-up as countries and regions begin to lift lockdowns, but Auto still remain below prior year levels. • Uber trip requests are now down 70% from 2019, slightly less than April’s 80% drop. The surge in food- delivery orders at Uber Eats in Q1, which has shown no signs of slowing in May, has slightly allayed revenue worries. • Lyft rides rose 26% in May from the previous month.

Source: Cox Automotiv e, Reuters Brand Actions | Auto

Lyft’s cofounders announced that the company would, through its As announced by Uber CEO Dara Khosrowshahi, the company will transportation access initiative LyftUp, provide $500,000 in ride credit to donate $1MM to the Equal Justice Initiative and The Center for civil rights organizations that facilitating essential transportation and Policing Equity “to support their important work in making criminal equitable access during the recent crises. These organizations include the justice in America more just for all.” Across their social media, the National Urban League, NAACP, National Action Network, Black Women’s company voiced their stance with the Black community and Roundtable and National Bail Fund Network. peaceful protestors fighting against injustice, hatred, and racism.

In Minneapolis specifically, Lyft is donating LyftUp ride credit to Lake Street Council to facilitate rides to volunteers assisting with rebuilding efforts.

© 2020 Dentsu Aegis Network 87 US Retail Sales Set to Drop 10.5% in 2020, Despite eCommerce Increase • US retail sales are set to drop 10.5% overall in 2020, despite significant gains in eCommerce. • Total retail sales will drop to $4.894T this year, a level not seen since 2016. • This drop is steeper than the 8.2% decrease in 2009. • At the same time, eCommerce has increased 18% to reach $709.89B this year, representing 14.5% of total US retail sales. • Offline sales will fall 14% in 2020 to $4.184T, and analysts expect it will take up to five years to return to pre-pandemic levels. • The top growing eCommerce categories will be food and beverage, with 58.5% share, and health, personal Retail care, and beauty, with 32.4% share • Apparel and accessories, the second largest eCommerce category in overall sales, is set to grow only 8.6% as consumers continue to shift spending from discretionary, nonessential categories • The drive towards eCommerce was further underscored by eBay’s surge in sign-ups • The platform added 6MM buyers in April and May, while small business sign-ups surged 55%

Source: Chain Store Age, eMarketer Brand Actions | Retail

In response to the looting of its stores, Nordstrom came out in Sephora is enabling Beauty Insider members to convert In addition to committing $4MM in donations to racial support of the nationwide protests, stating: “We can fix the their shopping rewards points into donations to the National justice organizations, Lego has announced that damage to our stores. Windows and merchandise can be Black Justice Coalition. In this system, 500 points equates announce that it would remove any marketing for any replaced. We continue to believe as strongly as ever that to a $10 donation, 1,000 to a $20 donation, and 1,500 toy sets that include police characters or a police tremendous change is needed to address the issues facing points to a $30 donation. theme. Black people in our country today. The company has also donated $1MM USD to the National The company has sent removal requests to its affiliate While Nordstrom has closed all of its stores in response to the CARES Mentoring Movement, the Center for Urban marketers for product listings and features for more looting, it will continue to pay for all shifts employees may miss Families, the NAACP, the National Black Justice Coalition, than 30 Lego building sets, mini-figures, and as a result of these unexpected closures. and the National Black Coalition on Black Civic accessories that include representation of police Participation. officers.

Following George Floyd’s murder on May 25th, Nike Reebok shared an Instagram post, stating, ”Without the Black Following employee criticism, Adidas announced it is launched a powerful new ad, entitled, “For once, don’t community, Reebok would not exist. America would not exist. making changes to its hiring practices. The sportswear do it,” urging consumers not to pretend there isn’t a We are not asking you to buy our shoes. We are asking you to giant committed to filling a minimum of 30% of all new racism problem in America. walk in someone else’s.” positions with Black and Latinx people. In addition, Adidas will invest $20MM in programs that support In the ad, Nike urged people to acknowledge and take a Black communities over the next four years in the US, firm stand against racism in America. Nike shared this and establish university scholarship programs for ad alongside its hashtag, #UntilWeAllWin, which is the Black scholars. sportswear company’s call for equality that has appeared in past campaigns.

© 2020 Dentsu Aegis Network 90 Luxury Industry Faces Anticipated 20-35% Contraction for Full Year 2020 • The market for personal luxury goods fell by 25% in Q1 2020 as coronavirus spread throughout Asia and then worldwide. • Bain & Company anticipates that for the full year 2020, the luxury market could contract between 20- 35%, depending on the speed of economic recovery. • This represents predicted sales between €180B to €220B, down from an estimated €281B in luxury sales in 2019. • Throughout the pandemic, online luxury has remained resilient, with online luxury purchases increasing throughout the crisis after already experiencing double-digit growth in 2019. Luxury • Luxury eCommerce is set to represent up to 30% of the market by 2025. • A recovery for the luxury industry to 2019 levels will not occur until 2022 or 2023. & Beauty • Market growth is anticipated to resume gradually from that point, reaching an estimated €320-330B by 2025. • The speed of this future market growth depends on luxury companies’ strategic responses and ability to transform their industry in this “new normal,” post-coronavirus.

Source: Bain & Company , CNBC Brand Actions | Luxury & Beauty

Millennial DTC darling, makeup company Glossier released a statement Milk Makeup participated in the #PullUp challenge, releasing data standing in solidarity with protestors fighting against racism, white of the number of Black employees at its corporate and executive supremacy, and the oppression of the Black community. levels, and vowing to improve employment and hiring practices.

In its statement, Glossier also pledged to donate $500K to specific The company also donated $50K to NAACP, pledged to match organizations fighting racial injustice, such as Black Lives Matter, and to employee donations, and issued statements across its social allocate $500K for grants to Black-owned beauty businesses, with more channels in solidarity with protestors and the Black Lives Matter details on this grant initiative to come in later June. movement.

© 2020 Dentsu Aegis Network 92 Wearable Device Appeal Remains, IT Jobs Loss • Wearable device shipments are expected to be up 5% YoY in 2020; this single-digit growth is significantly less than the 17% predicted, and pales in comparison to the 23% growth this sector saw between 2018 and 2019. • Manufacturers now expect to ship 254MM devices in 2020, up from 2019’s 241MM. • This change is attributed to consumers shifting their spending away from non-essentials, High-Tech while also affected by the appeal of wearables with advanced health-monitoring features, particularly with features such as EKG readings and oxygen-level readings. & B2B • Approximately 117,000 IT professionals in the US have lost their jobs since March, according to the latest government employment data. • Analysts predict just over 35,000 net new IT jobs will be created this year and believe normal hiring will resume I Q4 2020.

Source: Tech Crunch, CNBC, Bureau of Labor Statistics Brand Actions | High-Tech & B2B

Twitter has extended acknowledgement of the Black Lives Tik Tok has donated $4MM to nonprofit organizations fighting Verizon CEO Hans Vestberg announced via company Matter across its profile and begun flagging two President racism, put platform investment towards identifying and webcast that Verizon would donate $10MM to social justice Trump’s tweets for violation of Terms & Service, including removing racist content that violates its policies, and is both organizations such as the National Urban League, National glorifying violence. establishing a creator diversity council and developing a Coalition on Black Civic Participation and NAACP Legal creator portal to improve communication and collaboration. Defense and Educational Fund. CEO Jack Dorsey has also donated $3MM to Colin Kaepernick’s criminal justice group. Tik Tok stated that it stands with the Black community and In Vestberg’s words, ”Verizon cannot commit to a brand voiced its commitment to diversity and inclusion. purpose of moving the world forward unless we are committed to helping ensure we move it forward for everyone.”

CEO Satya Nadella stated, “There is no place for hate and racism in our society. Empathy and shared understanding are a start but we must do Both Google and Apple both updated their voice more. I stand with the Black and African American community and we are assistants (Amazon’s Alexa, Apple’s Siri and Google committed to build on this work on our company and our communities. Assistant) to have an answer when asked “Do Black We are using our platform to amplify voices from the Black and African lives matter?” American community.” Now, if you ask Apple’s Siri, “Do black lives matter?” By giving Black employees the space to use Microsoft’s platform to speak the voice will answer, “Yes, black lives matter.” And if up, Microsoft is attempting to amplify their voices and share their asked further, “Do all lives matter?” Siri will explain, concerns and expectations of the company and world. The company has “ ‘All Lives Matter’ is often used in response to the also established a partnership with the Criminal Justice Reform Initiative phrase ‘Black Lives Matter,’ but it does not represent the same concerns. To learn more about the Black Lives Matter human rights movement, visit BlackLivesMatter.com.”

© 2020 Dentsu Aegis Network 95 Government Selects Vaccine Finalists, WHO Collaborates with AWS • The US government has selected five vaccine manufacturer finalists for its Operation Warp Speed project, which aims to deliver safe and effective coronavirus vaccines to Americas by the end of the year. • The finalists are AstraZeneca, Merck, Pfizer, Johnson & Johnson and Moderna. • These finalists will get access to additional government funding, clinical trial assistance, and manufacturing help. • WHO has begun leveraging data analytics and cloud technologies from Amazon Web Services to accelerate global efforts to track, contain, and comprehend COVID-19. • With AWS, WHO recently launched an app to support healthcare workers caring for COVID-19 Health & patients by granting access to WHO’s repository of educational materials, guidance, virtual workshops, and live training. Wellness • AWS and WHO are currently collaborating on tools to enable more efficient collection and analysis of large volumes of COVID-19 related data from around the world.

Source: Fierce Pharma, Health Analy tics Brand Actions | Health & Wellness

Peloton announced a $500,000 donation to the NAACP’s Legal Defense and Educational Fund. The brand encouraged its followers to speak out against racism, learn how to practice anti- racism, and donate to the NAACP and similar organizations.

© 2020 Dentsu Aegis Network 97 CPG Brands Continue to Gain Momentum • Throughout the pandemic, consumer demand for shelf-stable packaged food has skyrocketed, boosting sales for CPG companies. • For instance, Campbell’s reported that YoY net sales for the quarter ending April 26th were up 15% to $2.2B, beating estimates. • Although stay-at-home orders have begun to lift and restaurants have begun to reopen, high unemployment, remote work, health concerns, and an uncertain vaccine timeline have all contributed to increased CPG sales, with increased demand likely to continue for years. • With unemployment reaching 13.3% in May and potential years until a full economic recovery, many consumers are not able to afford premium produce or a night out. • As consumers spend more time at home, even with lockdowns beginning to lift, grocery demand remains higher than average. • Since the pandemic began, 53% of consumers have made shopping for groceries a higher priority than they did prior to the pandemic. CPG • Analysts predict that the US will see above average grocery consumption for the next two to three years, compounded by permanent closures of many small, independent restaurants, and limited capacity of surviving restaurants. • Three months into the pandemic, the demand for disinfectant wipes and hand sanitizer remains steady at peak numbers, even as most pantry products that saw record sales over the past few months have begun to return to normal levels of demand. • Since mid-April, toilet paper and cereal sales are both down 26%, diapers are down 36%, and salty snacks by 35% on Amazon. • Sales for hand sanitizer and disinfectant remain steady at 100% and 97%, respectively, above last year’s sales on Amazon. • These numbers reflect both continued consumer purchasing and new demand from recently reopened Source: AdWeek, businesses enforcing new cleaning protocols. Brand Actions | CPG

Unilever’s Seventh Generation donated $100,000 to The With its 65 individual consumer goods brands, P&G has Ben & Jerry’s has a long history of speaking out against white Bail Project to ensure the safe and quick release of created the “Take on Race Fund” with an initial supremacy and other social justice issues. In its “Silence is not protestors across the nation, as well as others within our contribution of $5MM. an option” statement released in response to George Floyd’s criminal justice system. murder, the company issued four policy-oriented calls to action, The fund has been established in order “to accelerate Including calling on President Trump and other elected officials “We recognize and validate the pain of the Black and expand this work alongside organizations that fight to lead a formal national process of healing and reconciliation. community and their right to express their frustration after for justice, accelerate economic opportunity, enable our system has repeatedly failed them,” the post continued, greater access to education and health care and make In Ben & Jerry’s words, “We call ourselves a social justice inviting others to donate too. our communities more equitable.” company that happens to make ice cream”.

© 2020 Dentsu Aegis Network 99 Food Service Tech Companies Launch New Initiatives • City restaurants have begun to fear greater impacts from the intersection of COVID-19 closures and police responses to protests, despite the majority of protests across the US being peaceful. • Furthermore, property damage and safety concerns from violent outbursts at occasional protests could diminish near-term consumer interest in dining out, even as many states begin to ease social distancing restrictions and reopen restaurants. • Tech companies within the restaurant and food services industry have launched several new initiatives to connect unemployed workers with potential job opportunities in the industry, and to help restaurants survive and recovery. • DoorDash has launched Main Street Strong, an initiative to help restaurants navigate the recovery phase of the pandemic. This initiative includes a variety of products, programs, and policies focused on helping Restaurants restaurants build their own brands online, grow their virtual businesses, and take control of their customer experience by building digital ordering solutions. • ClockedIn, a new app, is positioning itself as a LinkedIn for food service workers, acting as a cross between a networking hub and an Uber-like marketplace to connect unemployment restaurant staffers and other service workers with local needs and openings.

Source: HospitalityTech, AdWeek, RestaurantDive Brand Actions | Restaurants

McDonald’s launched “One of Us,” a 60-second ad memorializing seven Black Americans killed by police: Trayvon Martin, Michael Brown, Alton &pizza’s 700 employees can take time off for activism efforts Sterling, Botham Jean, Atatiana Jefferson, Ahmaud Arbery and George without fear of losing pay. The pizza chain announced on Sunday, Floyd. June 7th it would offer its employees paid time off (PTO) for activism after George Floyd's death. After listing their names, the ad claims a stance against systemic oppression and violence, and expresses a message of solidarity with the "For those in this pain. For those in this fight. We stand with the victims, their families, and the protestors demonstrating in their Black Community against racial hate and injustice," &pizza memories, ending with the statement, “Black Lives Matter.” tweeted. "In memory of George Floyd & in UNITY always. From this day forward, @andpizza will be giving its employees paid time McDonald’s also announced via the ad that it would donate to the off for activism."' National Urban League and NAACP.

© 2020 Dentsu Aegis Network 101 Commercial Insurance Prices Rise, Riot Damage Covered • US commercial insurance prices increased more than 6% in aggregate in Q1 2020, compared to the year previous. • This marked the second quarter in a row in which price increases surpassed 6% in aggregate. • Price increases were more muted for small commercial accounts, and higher across mid-market accounts, with large accounts nearing double digits. • Workers’ compensation continued to be a notable exception with many carriers reporting rate reductions. • However, these statistics do not yet reflect reactions to short- and mid-term impacts of COVID-19, Insurance including changes in task and employment mix and economic health. • As businesses across the country face major damage from rioting and looting, major insurers generally agree that damage from riots falls under property damage coverage, with variance based oneach individual claim and policy. • To date, however, debate persists on whether business-interruption insurance covers retailers’ and restauranteurs’ pandemic-related losses. Legal battles are anticipated.

Source: InsuranceJournal, CNBC Brand Actions | Insurance

UnitedHealth Group, a Minnesota-based healthcare company, has pledged a $10MM donation and funding for 25,000 employee volunteer hours to help businesses in Minneapolis and St. Paul restore operations.

In addition, UnitedHealth is donating $5MM to the YMCA Equity Innovation Center of Excellence in memory of George Floyd, and establishing and administering an educational trust for his children.

© 2020 Dentsu Aegis Network 103 Public Outrage to Floyd’s Murder Spurs Huge Increase in Nonprofit Donations • Public outrage in response to George Floyd’s murder at the hands of a Minneapolis police officer have spurred widespread donations to numerous nonprofit organizations focused on anti-racism, justice reform, and the like. • Bail networks and organizations across the US have seen a huge increase in contributions. • In particular, Minnesota Freedom Fund (MFF) fielded a huge increase in contributions following Floyd’s murder. MFF has been in operation since 2017, with contributions to the nonprofit totaling $160K over the course of 2017 and 2019. In the last few weeks, MFF has received more than $30MM in donations. • During the pandemic, nonprofits that rely on foundation grants have fared better than other nonprofits that rely on donors and earned revenue. • Of nonprofits that receive grants from staffed foundations, 31% have seen their grants increase during the pandemic; 39% have stayed the same; and 30% have decreased. • This compares favorably to changes in other revenue streams for nonprofits: Nonprofit • Gifts from major donors: 43% have decreased, 42% have stayed the same, and 14% have increased. • Gifts from small donors: 51% have decreased, 31% have stayed the same, and 18% have increased. • Earned revenue: 76% has decreased, 18% has stayed the same, and 6% has increased. • Intersections of race and gender impact nonprofit leaders’ experience during the pandemic. • Among nonprofit leaders of color, 52% said that their foundations and major donors have been very helpful during the pandemic, compared with only 29% of nonprofit leaders who did not disclose their ethnic background. • Among nonprofits led by women, 52% have not had conversations with major donors about how the pandemic might affect financial support in the future, compared with 17% of male nonprofits leaders.

Source: Philanthropy, The Nonprofit Times Brand Actions | Non-profit

Across its social channels, Habitat for Humanity shared how the US for Through the sharing of its COVID-19 Racial Data tracker, Doctors decades has discriminated against renters and homeowners of color, Without Borders shared how communities of color are being another facet of racial injustice. The organization also highlighted its disproportionately hit by COVID-19, further educating their supporters fierce commitment to the equality of all people and its unfailing devotion on the deep and persistent consequences of racism. to the creation of opportunity for all.

• America at the Breaking Point, a view of what happens when social upheaval from the 1960’s meets the divisive politics of today

• An opinion piece in The Drum that questions whether brands can contribute to real change

• A survey from Morning Consult which was one of the first to gut check American sentiment regarding the protests stemming from George Floyd’s death

• Links and guidance on how to get involved from NAACP

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

About Dentsu Aegis Network Part of Dentsu Inc., Dentsu Aegis Network is made up of ten global network brands - Carat, Dentsu, dentsu X, iProspect, Isobar, mcgarrybowen, Merkle, MKTG, Posterscope and Vizeum and supported by its specialist/multi- market brands. Dentsu Aegis Network is Innovating the Way Brands Are Built for its clients through its best-in- class expertise and capabilities in media, digital and creative communications services. Offering a distinctive and innovative range of products and services, Dentsu Aegis Network is headquartered in London and operates in 145 countries worldwide with more than 40,000 dedicated specialists. www.dentsuaegisnetwork.com

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