COVID-19 Pulse April 2nd Edition The Dentsu COVID-19 Pulse A weekly curation of key trends and insights for marketers and brands. “We cannot choose the challenges we face, but we can choose how we respond to them.” –Greek Philosopher, Epictetus It is becoming clear that COVID-19 presents a challenge unprecedented in modern times - disrupting nations, economies and lives in ways not thought possible a few weeks ago. Our ability to respond to this change in productive and constructive ways depends on our ability to sift through the overwhelming torrent of news and information: to understand key dynamics and derive actionable insights that allow us as marketers to adap t in meaningful ways to safeguard and enhance the well-being of our people, our brands and our consumers. It is in that spirit that we developed the Dentsu COVID-19 Pulse: to bring together and curate the most up-to-date information, insights and thinking from across the Dentsu network to help marketers navigate the shifting road ahead. We’ll be with you as we push through the immediate crisis into recovery and, ultimately, a return to growth. Our goal is to publish this report on a weekly basis. A final thought (and silver lining). As you will see from our research in this report, consumers are looking for brands to take an active leadership role in helping them weather this storm. That means, more than ever, brands have an opportunity (dare we say mandate) to not just MARKET AT consumers as transactional buyers of products, but MATTER TO people as individuals and members of communities. As devastating as this crisis is, it offers a unique chance for brands to truly live their purpose. We stand ready to support you in this journey. 1. This Week’s COVID-19 Data and Headlines 2. Dentsu Media Marketplace Tracker Contents 3. Dentsu COVID-19 Crisis Navigator 4. Cultural + Consumer Behavior Trends and Insights 5. Insights and Implications by Industry Vertical This Week’s Data & Headlines Global and US Snapshot (as of 4/1/20) Global USA Confirmed Cases Deaths Recoveries Confirmed Cases Deaths Recoveries (+9%) (+12%) (+17%) (+15%) (+28%) (+59%) 859,031 42,322 178,100 188,578 4,054 7,251 China Confirmed Cases Deaths Recoveries % Change % Change (+0.1%) (+0%) (+0%) State Cases from Deaths from Yesterday Yesterday New York 75,983 13% 1,714 28% 81,518 3,305 76,052 New Jersey 18,696 12% 267 35% California 8,548 15% 181 24% Italy Michigan 7,615 17% 259 41% Florida 6,741 18% 85 20% Confirmed Cases Deaths Recoveries Massachusetts 6,620 15% 89 59% (+4%) (+7%) (+21%) Illinois 5,994 19% 99 36% Washington 5,482 4% 225 7% 105,792 12,428 15,729 Louisiana 5,237 30% 239 29% Pennsylvania 4,961 19% 63 24% Source: New York Times, Worldometers, John Hopkins © 2020 Dentsu Aegis Network 5 Top Stories: Global World Leaders Invoking Executive Powers with Little China’s Factories are Almost Fully Back to Work Resistance China’s industrial machine is starting to show signs of recovery. China’s National The pandemic has caused world leaders to invoke executive powers and seize Bureau of Statistics said a measure of factory activity showed a rebound in virtually dictatorial authority. Israel's prime minister has shut down courts and March. The organization, which surveys purchasing managers at Chinese begun surveillance of citizens. Chile has sent the military to public squares factories, said activity rebounded to 52 on its closely watched index, from 35.7 in once occupied by protesters. Bolivia has postponed elections. In Hungary, the February. A number above 50 on the index indicates growing activity, though the prime minister can now rule by decree. Philippines passed legislation giving figure could overstate the improvement. It does not show to what degree factories President Rodrigo Duterte emergency powers and $5.4B to deal with the have resumed production, meaning those that have opened could still be pandemic. operating well below capacity. Invasive surveillance systems in South Korea and Singapore, which However, this does not mean the economy is entirely back on its feet. would have invited censure under normal circumstances, have been Cash-strapped families may be reluctant to spend. Chinese officials said praised for slowing infections. Critics say there are few safeguards to nationwide, major industrial enterprises are operating at an average of ensure that their new authority will not be abused. 98.6% of capacity, and nearly 90% of employees at these businesses are back at work. Africa: Half of All Jobs May be Lost Austria Requires All Residents to Wear Face Masks Austria will require all residents to wear face masks when they shop for groceries Nearly half of all jobs in Africa could be lost because of the coronavirus. The starting this week, as experts question the prevailing guidance that healthy people UNDP warned that the crisis would disproportionately affect developing countries don’t need to wear masks. The WHO said that masks should only be worn by in Africa and elsewhere, taking a toll on education, human rights, basic food people who are sick and those who are caring for them, and that there is little data security and nutrition. Overpopulation, poor waste management, pollution and showing that they protect the general public in everyday life. But some experts traffic were all identified as factors that threatened a developing nation’s chances and government officials say they could offer some protection. Masks have been of recovering from a coronavirus outbreak. in short supply for front-line medical workers, and officials are trying to discourage hoarding and panic-buying by people all over the world. Source: New York Times, Washington Post © 2020 Dentsu Aegis Network 6 Top Stories: US Social Distancing Deadline Extended 01 02 President Trump Suggests Coronavirus FDA Grants Approvals to Use 2 Malaria Drugs Testing is No Longer a Problem The FDA has granted an emergency approval permitting the President Trump told governors that the chronic lack of kits to use of two long-used malaria drugs to treat patients who are test people for the coronavirus is no longer a problem. However, hospitalized with coronavirus, despite little evidence the drugs governors said it was a different picture on the ground. President would be effective against the virus. Trump also said many American companies were now producing ventilators and the US would soon have supplies to send to The decision allows companies to donate supplies of two hard-hit Europe. related drugs — hydroxychloroquine and chloroquine — to the Strategic National Stockpile. The drugs will then be distributed American companies like GE Healthcare and Ford are expected to hospitals for use in patients who have coronavirus. to produce 50,000 ventilators in 100 days. The President's comments indicate that the shortage of equipment will be ending The generic drug maker Sandoz, a division of Novartis, donated soon. 30 million pills of hydroxychloroquine and Bayer donated one million doses of chloroquine. Other companies are ramping up their production of the drugs and may donate more supplies. Source: New York Times, WSJ, Washington Post © 2020 Dentsu Aegis Network 7 Top Stories: US Social Distancing Deadline Extended 03 04 05 06 3 out of 4 Americans Will Calls to Free Inmates Healthcare Workers Are New York Mayor Asks for Be Ordered to Stay at Two weeks ago, the coronavirus Getting Sick Help as 911 System Home entered New York City's jail system. In emergency rooms and intensive Overwhelmed Fears have grown of the potential of a care units throughout New York City, Maryland, Virginia, Arizona and New York Mayor Bill de Blasio called public health catastrophe in the medical professionals are panicking Washington DC have issued stay-at- on the federal government to help cellblocks where thousands are being as their colleagues fall sick. home directives to try to slow the held in close quarters. provide critical equipment to the city’s overstretched hospital system. Some virus’s spread. People in Arizona will The federal government announced patients are now being left behind in have to stay at home till April. Florida 650 people have been released so that it was relaxing many of its usual their homes as the health care system governor has favored local action over far, but the rate of infection has safety standards for hospitals so they cannot handle them all. statewide mandates. continued to climb, and by this week, could expand services to fight the 167 inmates, 114 correction staff and pandemic — rules including what The city’s 911 system has been Roughly three out of four Americans 20 health workers had tested positive counts as a hospital bed; how closely overwhelmed by calls for medical are or will soon be under instructions and two correction staff members had certain medical professionals need to distress apparently related to the to stay indoors, as states and died. be supervised; and what kinds of virus. Typically, the system sees localities try to curb the spread of the health care can be delivered at home. about 4,000 Emergency Medical coronavirus before their hospitals are These broad but temporary changes Services calls a day. overwhelmed. will last the length of the national emergency. Source: New York Times, WSJ, Washington Post, BBC © 2020 Dentsu Aegis Network 8 USA: COVID-19 Conversation Social Media Conversations • Mentions are up 2M from 3/30. • Conversation remains negative due to mentions of disease, deaths and crisis but users are expressing worries over coronavirus spreading through money, and people being afraid for grocery stores being cleared out. Source: Netbase © 2020 Dentsu Aegis Network 9 Top Stories: Economy Scams Taking Advantage of the Too Much Corporate Borrowing Will Healthcare Stocks Help Lead Wall Street Situation are Starting to Emerge Hinder Recovery Higher Stocks on Wall Street rose as investors bid up shares State and local authorities are receiving Federal Reserve Chair Janet Yellen said while the of health care companies as they reported progress complaints as scammers try to cash in on banking and financial sector was in “generally in good on products that could help with the outbreak.