Nextdoor Insight Series #5: The changing consumption patterns of U.S. neighbors April 2021 Introduction Methodology

For the 5th Nextdoor insight series, we All figures in this report are place the spotlight on U.S. neighbors – drawn from GWI’s online 03 Key insights consumers aged 16-64 who have used research among internet users the Nextdoor app/platform in the last aged 16-64. They only interview month. This report focuses on: respondents aged 16-64 and 04 Changing lifestyle figures are representative of Finances – How has this group handled the online populations of each and financial outlook their finances amid the pandemic? market, not its total population. What changes have they made to their daily spending? Each year, GWI interviews over 09 Changing spending patterns 100,000 U.S. internet users aged Media & lifestyle – What are their daily 16-64 via an online questionnaire In this habits, and how have these changed for their Core dataset. Among 16 Vertical spotlights: throughout 2020? What types of media this cohort, there were 4,518 do they spend most of their time on neighbors in the U.S. in 2019, and Missed Nextdoor’s report Auto, CPG, dining, finance, home each day? 7,462 in 2020. improvements, retail, telecom, travel past Insights series? Purchasing behaviors – What was the Indexes are referred to Find them below: impact of COVID-19 on their purchasing throughout this report. Indexes 31 Appendix behaviors and attitudes? How do they are used to compare any given Insights series #1: prefer to shop now, and what are they group against the average (1.00), In an era of social distancing planning for future purchases coming which unless otherwise stated neighborliness is on the rise out of the pandemic? refers to the market average. 32 Methodology Insights series #2: For example, an index of “1.20” Strength in neighbors Brand preferences – How have means that a given group is Insights series #3: neighbors’ expectations of brands 20% above the market average, It starts with a wave changed throughout COVID-19? What and an index of “0.80” means can brands do to better that an audience is 20% below Insights series #4: appeal to them? the market average. 2020 brought us home

02 Key insights They tried new Online shopping is Neighbors hobbies at home and at an all time high, They’ve become more have become but will it last? conscious shoppers spent more time on ‘accidental savers’ media – but most of Neighbors’ online shopping boomed The pandemic has shifted what through the pandemic, and the share of neighbors want from brands. They’re Neighbors put unnecessary spending it was short-lived purchases they made online has grown making more conscious efforts to support on hold in 2020. They acted financially across categories. That said, neighbors local and independent businesses, and cautious and built up cash reserves More time at home meant neighbors’ seem to be craving the in-store experience are demanding brands to behave in a they’ll be looking to spend as their adopted new hobbies and spent longer once again and are losing enthusiasm for more socially and environmentally confidence grows. consuming media. online shopping. responsible manner.

03 01 Changing lifestyle and financial outlook

04 Savings and 1 Positive outlook for finances 2 investments % of neighbors who think their personal finances will get better in the next 6 months % who have savings/investments Aeage an uuan ua Aeage eas eas

52 33 37 41 52 33 37 41 56 32 38 47 69 40 44 53 52 35 36 39 47 31 34 37 46 24 43 33

85% 2019

Changing financial outlook

Along with the rest of the world, neighbors’ financial confidence suffered as a result of the 88% COVID-19 pandemic. 2020

When the world first went into lockdown, Aeage emae Mae neighbors’ financial outlook for the next 6 months 52 33 37 41 was bleak. Neighbors reacted by cutting back 51 30 33 39 on unnecessary spending and delaying any large 55 39 46 45 purchases. This cautiousness has paid off and Neighbors have become their financial outlook has now improved, though ‘accidental savers’ – but they’re still yet to be as financially confident as 4 in 10 neighbors they were. Rural and female neighbors are the reduced spending on they’re not as financially least positive about their financial outlook. non-essentials due to confident as they were Cut backs in daily spending have meant some the pandemic before the pandemic neighbors have become ‘accidental savers’, building up reserves of cash they’ll be ready to spend once the pandemic subsides. GWI 2019-2020 (avg. of waves conducted between Q2 2019–Q4 2020) 4,518 (2019), 7,462 (2020) neighbors in the U.S. aged 16-64

Changing lifestyle and financial outlook 05 Changing interests & hobbies 3 % of neighbors who are...

Changing leisure time 100 erising at east tie a ee

Neighbors, like the rest of the There’s evidence that many of to get back to eating out at Interested in cooking world, had to adjust and adapt these behavioral changes are restaurants, and they were around Interested in live events their daily lives during lockdown. actually short-lived. Across most 20% more likely than the average Interested in gardening Without the option to go out behaviors and interests, we saw U.S. consumer to be keen to get 80 to restaurants or events, they a peak during the first couple back to visiting cinemas. Eating fast food weekly explored new hobbies at home. A quarters of the pandemic, but ating ot at restarants ee March 2021 Nextdoor poll found this has dropped off slightly. Interest in live events declined isitng the inea onth that 42% of neighbors took up While part of the decline could heavily throughout the year, but a new hobby because of the potentially be attributed to the rose slightly through the summer – 60 pandemic, with rates rising to changing of seasons, it may also perhaps in part due to neighbors’ around 50% in New York. be in part due to the country higher comfort with outdoor rather slowly re-opening to varying than indoor events. In February Exercising became more of degrees and people adapting to 2021, 71% of neighbors were a priority, and many took up a new ‘normal’. uncomfortable with the idea of new hobbies like cooking and large indoor events, compared 40 gardening. In the absence of What’s interesting is there are to 65% who were uncomfortable dining out, fast food consumption signs that getting out has, at least with large outdoor events. This took off too, as local restaurants temporarily, lost its attraction. change suggests that in the began diversifying and offering Neighbors are less likely to describe coming summer months neighbors take-out options. People also themselves as social/outgoing may show higher interest in these 20 turned to the Nextdoor platform now than they were, suggesting events again – especially as more to connect with others during this the pandemic has led to a ‘FOGO’ neighbors qualify for and receive time, and some of the fastest (fear of going out). That said, once the vaccine with continued rollout. growing groups were centered restrictions ease, neighbors seem Looking ahead, in March 2021, GWI Q4 2019 – Q4 2020 around helping neighbors to find relatively keen to get back to a 28% said they were most looking 4,518 (2019) & 7,462 (2020) 0 neighbors in the U.S. aged 16-64 . new normal. forward to attending music platonic or romantic relationships In March 2021, 44% 4 1 2 4 of neighbors said they are excited concerts once restrictions ease. 2019 2020 2020 2020 2020

Changing lifestyle and financial outlook 06 Hobby uptake through the pandemic 4 Desired activities post-lockdown 5 % of neighbors who said the pandemic led them to take up a new hobby % of neighbors who are most looking forward to doing the following when restrictions end

42 49 46 45 44 43

44 36 28 21 20 19 15 104 121 098 103 087 100 094

atng at a stng the Attending ong to ong to the stng Getting a restarant cnema msc pbsbars gm msems harctbeat concerts treatment

GWI March 2021 Zeitgeist 318 neighbors in the U.S.

Index figures are versus average U.S. consumer and show likelihood of doing/being something e.g. 1.21 = 21% ahead of average

erage Ne or alorna eorga ashngton North arolna In March 2021, 53% Since the start of the Nextdoor March 2021 member poll among 44,005 respondents of neighbors said pandemic, the proportion they wanted to have of neighbors who describe In a March 2021 Nextdoor member poll, 42% of neighbors the vaccine as soon themselves as ‘social/outgoing’ said that the pandemic had led them to take up a new hobby as it’s available has fallen from 46% to 42%

Changing lifestyle and financial outlook 07 Changing media behaviors 6 Neighbors average time spent on the following (h:mm)

2:57 3:09 2:25 2:49 1:51 2:00 1:22 1:30 1:12 1:32 0:41 0:55

Changing media time 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 With stay-at-home orders issued, with other social platforms, especially neighbors found themselves with more with newer and ‘younger’ services 16% of time on their hands. As a result, media like Snapchat and TikTok; about 75% neighbors roadcast nline on ocial media usic nline ames consumption boomed and neighbors of neighbors don’t use each of these a mobile streaming streaming consoles spent more time glued to their screens. platforms. Even for bigger names like haven’t Nearly 50% of U.S. neighbors were Instagram and Pinterest, over 50% spending over two hours a day on haven’t visited at all in the last month. visited their smartphones at the height of the Social media overlap outbreak last summer, up from just over Watching online TV is another Facebook 16 40% at the end of 2019. behavior that’s taken off during the As a % of neighbors who visited in the Nextdoor at least once per month 36 pandemic among neighbors – and it 47 58 54 52 Gaming and music streaming also looks like the growth is here to stay. past month 74 74 74 73 became increasingly popular among While enthusiasm for most media has Did not visit Also visited neighbors, and it’s no surprise that waned over time, the growth in online social media time grew too. The TV among neighbors has sustained 84 average neighbor now spends 2 hours itself. Their love of TV extends across 64 53 a day on social media, up from 1 hour a variety of genres, but they stand 42 46 47 50 minutes in 2019. It’s likely that a out the most from the average for 26 26 26 27 large share of this time is spent on the streaming/watching lifestyle content GWI Q1 2021 Nextdoor platform itself. Neighbors (e.g. around gardening and cooking), 2,628 neighbors in have relatively limited engagement talk shows and reality TV. the U.S. aged 16-64

Changing lifestyle and financial outlook 08 02 Changing spending patterns

09 Nextdoor ecommerce COVID-19 purchasing behavior changes 7 brand mentions Since the pandemic began, % who agree with the following statements when thinking about purchases Growth in brand mentions on Nextdoor in last year (Q1 2021 vs Q1 2020) Changing shopping attitudes Large purchases: eighbors erage social netorer Small purchases: eighbors erage social netorer It’s no surprise that neighbors’ there’s been a boom in online shopping behaviors were shopping that has expanded forced to change abruptly and into a variety of industries. + % 61 41 19 24 17 22 12 19 drastically when the world shut 187 48 34 16 17 13 15 11 15 down. When all non-essential Neighbors still kept local stores were shut, consumers businesses in mind during went into a frenzy; and while these difficult times and % the frenzy has died down, continued to support them as +98 neighbors are still shopping much as they could – with over more frequently – both in a fifth of neighbors saying general and online – than they they rely more on local/ were before the pandemic. independent businesses now +80% than they did pre-pandemic. They’ve adapted to new conditions by buying more More generally, when we ask Nextdoor Q1 2021 vs Q1 2020 products online and doing them whether they would so more frequently. This isn’t rather shop at big vs local a short-lived trend, it’s one retailers, the latter wins for that’s continuing even now. this group. This is something Neighbors have been buying that’s particularly important to more online for both larger neighbors, and especially those (61%) and smaller purchases in rural areas (68% say they (41%) than the average prefer local retailers) – and this bu more use loalt rel more on sho more social networker. Online is particularly clear when we items online oints more independent reuentl shopping was already popular compare them to other groups businesses pre-pandemic, but without like Facebook users. the option to shop in-store GWI Zeitgeist February 2021 156 neighbors and 1,934 social media users in the U.S. aged 16-64

Changing spending patterns 10 Big vs local retailer preferences 8 Support for local businesses 9 % who would rather shop from the following types of brands / businesses % who say they’re supporting local businesses more now than before the pandemic

ig retailers ocal retailers

Average neighbor Average social media user 23 20 19 17 17 13 12 212 185 172 157 152 115 106 2 22 46 54 2 22 50 50

3 22 45 55 3 22 50 50

4 22 44 56 4 22 48 52

r 3 Sbrbn erge eighbors Urbn eboo Rural neighbors rban neighbors neighbors neighbors neighbors neighbor with children neighbors sers

2 22 41 59 2 22 51 49 GWI March 2021 Zeitgeist 318 neighbors in the U.S.

Index figures are versus average U.S. consumer and show likelihood of doing/being something e.g. 1.21 = 21% ahead of average

3 22 42 58 3 22 47 53 A fifth of neighbors rely more on 4 22 32 68 4 22 47 53 independent/local businesses

GWI 2020 7,462 neighbors and 73,814 social media users in the U.S. aged 16-64 than they did pre-pandemic

Changing spending patterns 11 3 in 4 neighbors think brands Brand choice influencers 10 should be doing more to % who... address environmental issues eighbors erage social netorer

48% 43% 47% 38% 42% 38% 37% 31%

Brand choice influencers

When much of the world locked down, the decisions. As many as 3 in 4 neighbors think environment appeared to get a new lease brands should be doing more to address of life and showed signs of a rapid recovery. environmental issues, and they generally hold But what also came was a waste problem; brands to higher standards than other social Want brands to Sa reies rom other Want brands to Want brands to be sociall resonsible customers encourage be eco-friendly suort local suliers takeaway food, PPE usage and growing online media users. them to bu shopping led to a mountain of waste piles.

Their call on brands to be better extends GWI Q4 2020 3,371 neighbors and 16,375 social media users in the U.S. aged 16-64 Neighbors are a very environmentally- beyond environmental impact into social conscious group. They’re 30% more likely than responsibility, with nearly half of neighbors the average U.S. consumer to say they always saying they want brands to be socially recycle, and they’re planning to take action to responsible – which compares to 43% for reduce their impact. In the next six months, 3 the average social networker. In addition, in 10 say they plan to buy more sustainable another cause that has become widely products, while 36% want to cut back on the supported by neighbors amid the pandemic plastic and packaging they use. is support for small, local and independent businesses, and they’re 20% more likely than Brands need to reduce packaging Now more than ever neighbors are actively the average social networker to want brands and source recyclable packaging considering a brand’s environmental and to support local suppliers. social impact when making purchasing to win over neighbors

Changing spending patterns 12 Environmental brand actions 11 % of neighbors who want to see brands do more of the following when it comes to environmental issues

IDX Create products with recycled packaging 74 148

Create products with less packaging 68 136

Use less chemicals in products/use more natural ingredients 55 126

Offer more affordable eco-friendly products 53 111

e more transarent about their sustainabilit racticesolicies 45 127

artner ith local enironmental grous 38 137

onate to enironmental grouscauses 33 110

GWI January 2021 Zeitgeist 132 neighbors in the U.S. aged 16-64

Index figures are versus average U.S. consumer and show likelihood of doing/being something e.g. 1.21 = 21% ahead of average

Changing spending patterns 13 2019 vs 2020 purchasing 12 % change in the number who have bought these items in the last 3-6 months

Average Neighbors Faceboo neighbor with children users

oe & urniture ites +11 +15 +9

ectronics +11 +11 +10

Medicines & healthcare items +8 +9 +6

Purchasing behaviors utootie & transort +6 +10 +6

Neighbors have been financially cautious they’ve been buying more than other eisure & entertainent +5 +7 +2 through the pandemic, with many cutting social platform users – especially those back on non-essential spending. who have children. Financial products +3 +10 +4

ersona care ites +2 +3 +2 Looking at how purchases have changed The other good news is that with their since 2019 at a category level shows that additional pent up savings, neighbors are coho +2 +6 +4 it’s actually only a couple of areas that eager to get back spending. In fact, when have declined – specifically travel and you compare the end of 2019 with the end Household products +1 +2 +3 personal items. of 2020, this group is now more likely to roceries +1 +1 +1 say they’re planning to buy all categories That said, there are a number of than they were in 2019 – showing how Personal effects 0 0 -1 categories that have actually seen confidence and purchase intention has growth – and more growth than average. managed to rebound so strongly. The ersona ites -3 +1 +1 Over the last six months, they’ve been only exception to this is travel and leisure, investing more into their homes – with but neighbors are still 23% more likely rae & eisure -17 -13 -14 home and furniture purchases seeing than the average social networker to be an 11% increase compared to 2019. planning to spend on travel and leisure in And across other key categories like the next six months. GWI 2019–2020 (avg. of waves conducted between Q2 2019–Q4 2020) electronics, automotive and healthcare, 4,518 (2019) & 7,462 (2020) neighbors and 75,625 (2020) Facebook users in the U.S. aged 16-64

Changing spending patterns 14 Planned major purchases 13 % who plan to make major purchases in the following categories in the next 3-6 months

65 54 43 51 33 48

2019 2020 2019 2020 2019 2020

ravel and leisure lectronics ome and furniture items

41 42 30 34 23 26

2019 2020 2019 2020 2019 2020

ersonal items inancial products utomotive and transport

GWI 2019–2020 (avg. of waves conducted between Q2 2019–Q4 2020)

4,518 (2019) & 7,462 (2020) neighbors in the U.S. aged 16-64

Neighbors are more eager to get spending now than they were at the end of 2019

Changing spending patterns 15 03 Vertical spotlights

16 Hybrid & electric 14 Driving frequency 15 car ownership % of neighbors who drive a car more than once a week % of neighbors who own the following types of car 70 60 75 74 74

Hybrid Auto

Despite 7 in 10 neighbors driving more than once a week, car 7% purchasing declined across all audiences in 2020 compared to 2019. 2019 Cars were one of the major purchases neighbors chose to delay as a erage ra ral ra eighors ith result of COVID-19. eighor children

Towards the end of the year, neighbors started making delayed purchases again – showing that the market decline is purely 9% temporary and is picking back up. Looking to the next six months, 2020 Car purchase intention the outlook for automotive looks positive too. Around 1 in 5 say % of neighbors who plan to purchase a car in the next 6 months they’re planning to buy a car in this time period, with younger and urban neighbors particularly ahead.

Neighbors are starting to consider hybrid and electric vehicles – speaking to their eco-friendly attitudes and behaviors. The number 17% 23% 23% 20% who currently have a hybrid vehicle has ticked up since 2019 and Electric 099 132 132 115 mentions of Tesla on Nextdoor have grown by 90% YoY – meaning mentions of Tesla have now outstripped other car brands. 2% 2019 In terms of brand preferences, they’re more likely than the average erage eighor ra ears Neighbors with children U.S. consumer to have a Toyota or Honda, but there are key differences based upon where neighbors are living. In particular, 3% those in rural locations are twice as likely as those in urban areas to 2020 GWI 2020 7,462 neighbors in the U.S. aged 16-64 have a Ford, and are similarly ahead for having a Chevrolet. Index figures are versus average U.S. consumer and show likelihood of doing/being something e.g. 1.21 = 21% ahead of average

Vertical spotlights 17 Favorite car brands 16 Nextdoor car Car purchases 17 % of neighbors who currently own the following car brands brand mentions % of neighbors who have purchased a car in the last 3-6 months Growth in brand mentions on Nextdoor in last year Toyota Honda Ford Chevrolet Nissan 24 23 21 21 23 (Q1 2021 vs Q1 2020)

erage eighor 17 14 14 13 9 Honda, Toyota and Chevy are the most mentioned car brands ra eighors 16 11 10 11 8 on Nextdoor.

The car brands

with the highest 4 1 2 4 ral 2019 2020 2020 2020 2020 eighors 16 14 20 18 7 increase of mentions over the past year include COVID-19 impacted car sales in Tesla (+90%), 2020, but only slightly: 22% of aerage 15 12 14 12 8 Chevy (+16%) and neighbors have bought a car in BMW (+10%) 2020, down from 24% in 2019

GWI 2020 7,462 neighbors in the U.S. aged 16-64 Nextdoor Q1 2021 vs Q1 2020 GWI 2019–2020 (avg. of waves conducted between Q2 2019–Q4 2020)

4,518 (2019) & 7,462 (2020) neighbors in the U.S. aged 16-64

Vertical spotlights 18 69% of those who began using Online grocery shopping 18 Online makes curbside pickup for grocery % who have purchased groceries online in the last month up a bigger shopping are planning to continue Average Neighbors share of CPG neighbor 40% with children 43% once the outbreak is over +31% change since 2019 +35% change since 2019 sales now

Nextdoor March 2021 member poll

Frequent purchases 19 % who have purchased the following in the last month

Consumer packaged goods (CPG) eighbors Facebook users

The pandemic paved the way for in purchases among neighbors, and 99 98 92 91 90 89 82 77 67 61 the online grocery industry. Among they’re bigger buyers across the neighbors, online grocery shopping board than Facebook users. This is jumped by 31% in 2020, and that clearly one spending area that has peaks even higher for those who seen a boost through the pandemic. have children. There are clear signs this is set to continue: a March Online makes up a much bigger 2021 Nextdoor Member poll found share of CPG sales now than it did that 69% of those who began in 2019. Across all CPG product using curbside pickup for grocery categories, nearly 4 in 5 neighbors shopping are planning to continue are now making more online than once the outbreak is over. That offline purchases. In addition to roceries Household ersonal care ealthcare lcohol* figure peaked to 77% in Texas. groceries, household products, products ites ites healthcare items and alcohol have

Beyond grocery, CPG categories like also shown major increases in online GWI 2019–2020 (avg. of waves conducted between Q2 2019–Q4 2020) household products, personal care purchasing, compared to 2019. 4,518 (2019) & 7,462 (2020) neighbors, 56,278 (2019) & 75,625 (2020) Facebook users in the U.S. aged 16-64; and healthcare have seen a growth *alcohol data based on those aged 21+

Vertical spotlights 19 Personal care brands 20 % of neighbors who use these brands each week

19% 15% 15% 14% 14% 128 124 121 143 139

Minor purchases: offline to online ratio % of neighbors' purchases made offline

Personal care Groceries Household Healthcare Alcohol* items products items

64 60 69 60 74 65 83 76 91 85

GWI 2020 7,462 neighbors in the U.S. aged 16-64; *alcohol data based on those aged 21+

Index figures are versus average U.S. consumer and show likelihood of doing/being something e.g. 1.21 = 21% ahead of average

Vertical spotlights 20 Nextdoor Fast food vs eating out weekly 21 QSR mentions % who do the following at least once a week Growth in brand mentions on Nextdoor in last year (Q1 2021 vs Q1 2020) Eat fast food at ot at a restarat chage sice

42 8 47 16 45 7 35 21 37 17 32 14 +75%

+37%

Dining Chipotle The inability to eat out has been one of the many major +29% changes to neighbors’ daily lives amid COVID-19.

One major result has been food delivery apps becoming even Nextdoor Q1 2021 vs Q1 2020 eighors Neighbors with children aceoo sers more popular than they were pre-pandemic. Neighbors are 32% more likely to have used the Uber Eats app in the last month, to take advantage of the restaurant takeout options in GWI 2019-2020 (avg. of waves conducted between Q2 2019–Q4 2020) their area. More generally, 56% of neighbors are now turning 4,518 (2019) & 7,462 (2020) neighbors and 56,278 (2019) & 75,625 (2020) Facebook users in the U.S. aged 16-64 to these food delivery apps each month, up 31% since 2019. Younger neighbors in particular have been ordering food delivery more than others, although interestingly, the biggest jump in usage has been seen among neighbors aged 35+. Neighbors favor fast food 1 in 5 neighbors ordered Brand mentions by neighbors on Nextdoor also show clear over indoor dining and this from Uber Eats in the last signs of a comeback for QSR brands. Brands like Whataburger (+75%) and KFC (+37%) have all seen YoY jumps. trend is likely to continue month vs 16% on average

Vertical spotlights 21 Food delivery service usage 22 % who have used an app/website to order hot/take-away food for delivery in the last month

Average neighbor 16-34 neighbors 35+ neighbors Faceboo users

43 56 61 68 37 52 38 47

GWI 2019-2020 (avg. of waves conducted between Q2 2019–Q4 2020) 4,518 (2019) & 7,462 (2020) neighbors and 56,278 (2019) & 75,625 (2020) Facebook users in the U.S. aged 16-64

Food delivery brands 23 % who use these food/ delivery services

20% 10% 109 123

GWI U.S.A. Q4 2020 4,518 neighbors in the U.S. aged 16-64

Index figures are versus average U.S. consumer and show likelihood of doing/being something e.g. 1.21 = 21% ahead of average

Vertical spotlights 22 Planned financial purchases 24 Types of savings & investments 25 % who plan to purchase home contents % who have the following kinds of savings/investments insurance, home-owners insurance or a mortgage in the next 6 months eighbors erage U.S. onsuer hange sine 2019

hange sine 2019 ashsaingsension 82 3 As of Q4 2020, Finance 69 8% of neighbors erage neighbor 18% Amid the pandemic, neighbors took a 21% Stosshares have crypto financially-conservative approach; they 43 14 cut back on non-essential purchases and 28 currency, their spending dipped naturally. As a result, many became ‘accidental savers’. Mutual/managed investment funds representing a Urban neighbors 25% 39 4 34% Not only that, neighbors also took a 22 61% year-on-year long-term approach and invested more increase and in stocks/shares in 2020 than in 2019 – Bonds and they’re notably more likely to have 17 13 putting neighbors investments than average. All in all, the 11 GWI 2019–2020 (avg. of waves conducted proportion who say they have no savings/ between Q2 2019–Q4 2020) 30% ahead of ea estateroert investments has dropped by over 20% 4,518 (2019) & 7,462 (2020) neighbors aged 16-64 since 2019. 15 16 the US average 9

Interestingly, a bigger share are now I don't have any savings/investments planning financial purchases than were A greater share of 9 21 in 2019. 1 in 5 neighbors are planning 18 financial purchases in the next six months, neighbors are planning which is a 21% increase compared to 2019. financial purchases For comparison, the growth seen among GWI 2019–2020 (avg. of waves conducted between Q2 2019–Q4 2020) Facebook users is just 9%. than in 2019 4,518 (2019) & 7,462 (2020) neighbors and 99,982 (2019) & 100,863 (2020) internet users in the U.S. aged 16-64

Vertical spotlights 23 Top search queries Interest in DIY/home improvement 26 on Nextdoor % who are interested in DIY/home improvements Neighbors invested their time and money into their Neighbors are Plumber bigger home homes in 2020 52% 53% 62% 128 131 153 improvement Handyman enthusiasts Home improvements than average erage eighor Neighbors with children ral eighors 2020 saw neighbors invest more time and money into their homes. Vaccine Interest in home improvements took off mid-2020, before declining again as neighbors gave up on their lockdown hobbies. That said, they’re still more likely to be interested than average – 52% of neighbors say so, with interest rising to 62% among rural neighbors. Electrician Furniture and home items 27 % who have purchased or plan to purchase home/furniture items While neighbors delayed a number of larger purchases in 2020, many still continued to purchase home and furniture items. 62% Cat g eighor g coser chage sice say they’ve purchased home or furniture items in the last six months, up from 55% in 2019. Online buying of furniture has seen 62 57 26 19 49 45 some strong growth among neighbors: 1 in 4 have bought furniture or home items online in the last six months, compared to 19% among average U.S. consumers. The top search GWI Q4 2020 While DIY interest may have dipped back down, the home queries on Nextdoor 3,371 neighbors in the U.S. & 24,475 internet improvement market looks strong, with neighbors more likely to be users aged 16-64 in the market for home purchases than average. In Q1 2021, the top in Q1 2021 were +13% +14% +35% +46% Index figures are versus search queries on Nextdoor were still mainly focused on the home, mostly focused average U.S. consumer and with searches for plumbers, handymen and electricians among the show likelihood of doing/ Purchased in the last Purchased online in laig to prchase being something e.g. top 5 searches made. on the home oths the last oths i et oths 1.21 = 21% ahead of average

Vertical spotlights 24 In-store vs online shopping preferences 28 % of neighbors who would rather do the following There’s evidence that neighbors may be ‘fatigued’ by online shopping; Sho onine Sho in-store preference for in-store shopping picked Average neighbor 16-34 year old neighbors up slightly between Q3 and Q4 2020 2 22 60 40 2 22 66 34

22 63 37 22 63 37

Retail 4 22 61 39 4 22 63 37 When it comes to preference for in- purchasing clothing, bags, shoes and store vs online shopping, neighbors accessories declining throughout show a clear preference for the latter 2020. But, they’re still buying these – especially younger neighbors. That items at a higher rate than Facebook 35+ year old neighbors said, we’re also seeing a sense of users. Online also now accounts for an ‘fatigue’ set in around online shopping, increased share of shopping than it 2 22 58 42 with interest dropping off between did in 2019, especially for clothing. In March 2021, 2 in 5 Q3 and Q4 2020. This is likely to go neighbors said they hand-in-hand with pent-up demand In terms of fashion brands, neighbors for aspects of the in-store shopping have still been keen to buy their 22 63 37 were still shopping experience, which we’re beginning to favorite luxury brands in the last year. see evidence of. Across names like Calvin Klein, Michael online more than they Kors and Coach, neighbors are ahead 4 22 60 40 were pre-pandemic Expectedly, neighbors made retail of the average U.S. consumer for purchases less of a priority throughout buying in the last year. the pandemic – with rates of GWI 2020 7,462 neighbors in the U.S. aged 16-64

Vertical spotlights 25 Retail purchasing behaviors 29 Minor purchases: offline to online ratio 31 % who purchased the following in the last six months % of neighbors' purchases made offline

eighors chage sice aceoo sers 73 71 66 67 54 47 70 68 53 50 23 19 37 35 17 18 16 12

–11% –7% –9% +4% +1%

lothig ags hoes ragraces ritre

Favorite luxury fashion brands 30 % who have bought from these brands in the last year 2019 2020 2019 2020 2019 2020 2019 2020 eighors erage coser

12 10 11 8 10 7 10 8 8 7 ousehold furniture ags lothing ragrance

GWI 2019-2020 (avg. of waves conducted between Q2 2019–Q4 2020) 4,518 (2019), 7,462 (2020) neighbors in the U.S. aged 16-64

Neighbors made retail purchases less ali lei ichael ors oach alph are Tommy Hilfiger of a priority across 2020, but they

GWI 2019-2020 (avg. of waves conducted between Q2 2019–Q4 2020) 4,518 (2019), 7,462 (2020) neighbors in the U.S. aged 16-64 still shopped more than average

Vertical spotlights 26 Engagement with 5G 32 Mobile network preferences 33 % who say the following best describes % who use the following mobile network them when thinking about 5G connectivity

erion ireess -obie

27 27 15 28 22 17 26 28 15 21 38 7 31 18 16 25 30 16 Telecom

Neighbors are tech-savvy and always ready to at at soe 111 42 get their hands on the newest tech products. As poit i the tre of late 2020, 55% of younger neighbors were keen to purchase or upgrade their mobile phone in the next year.

With the latest and greatest mobile technology has come the introduction of 5G. Many neighbors are eager to have access to 5G – they’re 25% at as soo as possile 125 18 more likely than average to say they want access as soon as possible, while over 40% are keen to have 5G at some point in the future. I already have access to 5G 083 11

AT&T and Verizon tie for the top mobile network erage 16-34 ears 3 ears ra Urban Sbrban brands among neighbors, but there are clear neighbor neighbors neighbors neighbors neighbors neighbors divides by location. While those in urban areas I don't know what 5G is 100 12 are loyal to AT&T, rural neighbors are fan GWI Q4 2020 3,371 neighbors in the U.S. aged 16-64 favorites of Verizon – with 38% using the network compared to only 18% of those in urban areas. GWI Zeitgeist August 2020 While these regional preferences may be in 144 neighbors in the U.S. aged 16-64 part due to differences in network coverage, Almost half of neighbors are in the market for a new phone neighbors are brand loyal and need incentives to Index figures are versus average U.S. consumer and show likelihood of doing/being something sway purchasing decisions. e.g. 1.21 = 21% ahead of average in the next year, and 5G enablement could sway choices

Vertical spotlights 27 Neighbors are bigger Travel frequency 34 Vacations abroad 35 travelers than average % who do the following at least twice a year % of neighbors who are planning to purchase a vacation abroad in the next 6 months 17 15 12 11 13

GWI 2019–2020 Travel Have a domestic vacation 120 54 4 1 3 4 4,518 (2019) & 7,462 (2020) 1 Neighbors are big travelers, especially when neighbors in the U.S. aged 16-64 compared to other social platform users like Facebook users. Travel plans were hampered by the pandemic but there are signs that vacations abroad could rebound quite quickly. Summer vacation plans Nextdoor member poll % who say the following about their summer plans 52,876 responses The numbers planning to purchase a vacation ae a shorthal abroad in the next six months is gradually ticking 109 vacation abroad 20 back up and currently over 1 in 4 neighbors say they’re very likely to book a vacation in 2021. These numbers will also surely increase as more % % % % consumers across the world are vaccinated and 30 34 25 11 ae a loghal 111 anning to sta I'm traveling within driving I'm flying to a I'm flying to an countries re-open for travel. vacation abroad 19 hoe this ser distance of my home destination in the U.S. international destination

A 2021 Nextdoor member poll found that staycations were the plan for many neighbors this year. 1 in 4 were planning to fly to a destination GWI Q4 2020 77% Colorado 64% New Mexico in the U.S., while 1 in 3 were planning to vacation States with neighbors Highest Lowest 3,371 neighbors in the U.S. aged 16-64 76% Georgia 65% Michigan within driving distance. Interestingly, those in most and least likely %* %* 75% North Carolina 67% Washington Colorado were the most likely to say they will travel Index figures are versus average U.S. consumer and show likelihood of doing/being something to travel this Summer this summer. e.g. 1.21 = 21% ahead of average * Among states with at least 500 responses

Vertical spotlights 28 Vacation influencers 36 Looking forward 37 % of neighbors who say the following would to vacations have an impact on where they travel for vacation % of neighbors who are most looking forward to the following once lockdown restrictions ease ae or one 35 110 aking a domestic vacation

eathertie o ear 30 114

eaing eeriene 27 102 43% 123

tra eeriene 22 123

Being able to visit friends/family 32% 19 110 109

ne in a ietie eeriene 18 106

aking a foreign vacation Special offers/deals 18 118

GWI March 2021 Zeitgeist

GWI Q4 2020 3,371 neighbors in the U.S. aged 16-64. 318 neighbors in the U.S.

Index figures are versus average U.S. consumer and show likelihood of doing/being something e.g. 1.21 = 21% ahead of average

Vertical spotlights 29 Small spends, big impact

30 Have you experienced a random act Nextdoor 2021 member poll of kindness in your neighborhood? 75% of neighbors say they have been a recipient of a random act of kindness – many of these involved quick purchases to make someone's day.

My husband was out I had a flat tire. A neighbor Just today in ALDI, I let Thank you very much to yesterday morning to get helped with changing the someone go ahead of me the people who bought our mail at the post office. On tire, and bought the new in line. After I loaded my drinks at McDonald’s in his way, he stopped in at tire and put it on for me. groceries into the belt, Grimes yesterday! Sandy's for a coffee. When Thank you, there are angels the cashier told me that he went to pay, Sandy said among us. the same young woman the woman in front of him bought me two Aldi’s bags. bought his coffee. He came I needed that lift. home with a big smile.

31 Appendix

you purchase online? Which of these 1 Thinking about all the savings and 8 Typically, which of the following would 14 Which type(s) of car/van does your 22 In the past month, which of the 35 Which of theses items are you/your items did you research online before investments you said you have, you rather do? household own? following things have you done on the household thinking about purchasing purchasing? Which of these items are approximately how much do you think internet via any device? in the next 3-6 months? you/your household thinking about they are worth? 9 Which of these are you still doing more 15 On average, how often would you purchasing in the next 3-6 months? of compared to before the pandemic? 23 say you do the following things? Which of these food/takeout delivery 36 Which of these have most impact on 2 In the next 6 months, how do you think | Which of these items are you/ services do you use? where you travel for a vacation? 10 the following will change? When shopping online, which of these your household thinking about 30 When did you last make a purchase features would most increase your purchasing in the next 3-6 months? 24 Which of these items are you/your from these luxury fashion brands? 37 Which of these are you most looking 3 Which of these things are you likelihood of buying a product? household thinking about purchasing forward to doing when lockdown interested in? | On average, how often Which of these things do you want in the next 3-6 months? 16 Has your household ever owned cars/ 31 Which of these products have you or would you say you do the following brands to do? restrictions ease? motorcycles from any of these brands? your household purchased in the last things? | How often do you typically do 25 What kind of savings/investments do 3-6 months? Which of these items did the following? 11 What do you want to see brands/ 17 Which of these items are you/ you have? you purchase online? Which of these corporations do more of when it comes your household thinking about items did you research online before 4 Did the pandemic lead you to take up to addressing environmental issues? 26 Which of these things are you purchasing in the next 3-6 months? purchasing? Which of these items are a new hobby? interested in? you/your household thinking about 12 Which of these products have you or 18 In the last month, which of these have purchasing in the next 3-6 months? 5 Which of these are you most looking your household purchased in the last 27 Which of these products have you or you or your household purchased? forward to doing when lockdown 3-6 months? Which of these items did your household purchased in the last Which of these items did you purchase restrictions ease? you purchase online? Which of these 3-6 months? Which of these items are 32 Thinking about 5G mobile phone online? Which of these items did you items did you research online you/your household thinking about connectivity, which of these research online before purchasing? 6 On an average day, how long do you before purchasing? purchasing in the next 3-6 months? statements best describes you? spend on the following? | This data is auto-generated based on responses 13 Which of these products have you or 19 In the last month, which of these have 28 Which of these products have you or 33 Which mobile network do you use? If to the Time Spent questions. your household purchased in the last you or your household purchased? your household purchased in the last you have more than one phone, please 3-6 months? Which of these items did 3-6 months? Which of these items did answer in relation to your 7 Thinking about larger purchases you purchase online? Which of these 20 Which of these brands do you use at you purchase online? main handset. (e.g. electronics, clothing) / smaller items did you research online before least once a week? purchases (e.g. groceries, personal purchasing? Which of these items are 29 Which of these products have you or care items) since the pandemic began, you/your household thinking about 21 On average, how often would you say your household purchased in the last 34 How often do you typically do which statements do you agree with? purchasing in the next 3-6 months? you do the following things? 3-6 months? Which of these items did the following?

32 Notes from GWI on their methodology

Introduction users in Egypt, Saudi Arabia and the UAE, where This research is also used to calculate respondents are allowed to complete the survey the “weight” of each respondent; that is, All figures in this report are drawn from GWI’s at 6-month intervals). approximately how many people (of the same online research among internet users aged 16-64. gender, age and educational attainment) are Please note that we only interview respondents represented by their responses. aged 16-64 and our figures are representative Our quotas of the online populations of each market, not its To ensure that our research is reflective of Mobile survey respondents total population. the online population in each market, we set appropriate quotas on age, gender and From Q1 2017 on, GWI has offered our Core survey GWI’s research education – meaning that we interview on mobile. This allows us to survey internet users representative numbers of men vs women, of who prefer using a mobile or are mobile-only Each year, GWI interviews over 688,000 16-24s, 25-34s, 35-44s, 45-54s and 55-64s, and of (who use a mobile to get online but do not use internet users aged 16-64 across 46 markets. people with secondary vs tertiary education. or own any other device). Mobile respondents Respondents complete an online questionnaire complete a shorter version of our Core survey, that asks them a wide range of questions about To do this, we conduct research across a range answering 50 questions, all carefully adapted their lives, lifestyles and digital behaviors. We of international and national sources, including to be compatible with mobile screens. Please source these respondents in partnership with a the World Bank, the ITU, the International Labour note that the sample sizes presented in the number of industry-leading panel providers. Each Organization, the CIA Factbook, Eurostat, the charts throughout this report may differ as respondent who takes a GWI survey is assigned US Bureau of Labor Statistics as well as a range some will include both mobile and PC/laptop/ a unique and persistent identifier regardless of national statistics sources, government tablet respondents and others will include only of the site/panel to which they belong and no departments and other credible and robust respondents who completed GWI’s Core survey respondent can participate in our survey more third-party sources. via PC/laptop/tablet. than once a year (with the exception of internet

33 © GWI 2021