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Pulse: Embarking on the Road to Recovery

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Pulse: Embarking on the Road to Recovery pulse: Embarking on the Road to Recovery May 28th Edition For more information please contact [email protected] Dentsu Pulse | Embarking on the Road to Recovery A biweekly 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 represents a transformational force unprecedented in modern time. The ripple effects of what started out as a health crisis are not only disrupting nations, economies and lives in the short term but – as is becoming increasingly clear – will reshape the fundamental ways we live, work, socialize, consume, trade and travel. Our ability to respond to these changes in constructive ways depends on our ability to sift through the overwhelming torrent of news and information: to understand key dynamics and derive actionable insights that allow us as marketers to adapt in meaningful ways and develop roadmaps for a recovery. It is in that spirit that we developed the Dentsu Pulse: to bring together and curate the most up-to-date information, insights and thinking from across the Dentsu network to help marketers navigate what is turning out to be an increasingly shifting road ahead. We’ve been with you as we’ve pushed through the most immediate crisis. And we’ll be with you as we press forward onto the road to recovery. It is becoming increasingly clear that progress won’t always proceed ina straight line. But progress will be made, ambiguity will give rise to clarity and together we’ll map out a way forward into the next normal and a return to growth. 2 This Week’s Summary 1. THIS WEEK'S DATA AND HEADLINES This past weekend, the US death toll reached 100,000, while experts warned that a vaccine for general public use most likely will not arrive before 2021. With all fifty states at some stage of reopening, hospitalizations for coronavirus have begun a small uptick. In order to further reopen the country and economy safety, the US needs a taskforce of at least 184,000 contact tracers. Congress is weighing whether to pass another relief bill in the next few weeks, with Republican support for additional relief growing in recent days. 2. DENTSU MEDIA MARKETPLACE TRACKER As various US states further relax restrictions and people begin to re-enter society, we see movement happening around the country, coinciding with continued declines in in-home media usage across the board, and interests changing via search and digital behavior trends. Social platforms truly have emerged as even more dominant through this COVID crisis, particularly in mobile. Our partners provide us some unique cuts of Pinterest Search behavior, giving us a window into different generational mindsets. We continue to see ongoing week-on-week upticks in Performance Media Markets across Dentsu Media’s client base, as consumers become more receptive to online promotions and offers, and competitive activity grows. And this week, we provide a special Resource Showcase, featuring Merkle COVID Dashboards combing geographic, COVID, financial and demographic data to help inform Marketers’ re-entry strategies across business, marketing and media. 3. DENTSU COVID-19 RECOVERY NAVIGATOR For the fourth straight week there is little movement within Dentsu’s Crisis Response Framework. It feels as though the US is stuck in a sort of limbo as some communities remain shut while others lift restrictions. Despite cautious optimism, most consumers remain hesitant to go in public or shop in-store and many plan to continue spending more time at home even after lockdown orders are lifted. Still, there is excitement to start spendi ng again on ‘normal’ experiences like dining out and travel. Throughout this crisis it is clear brands have an opportunity to step up. Our research suggests that more brands have benefited from responding to COVID-19 than not. 3 This Week’s Summary (continued) 4. CULTURAL AND CONSUMER TRENDS As coronavirus has battered American life, it has become very clear that our underlying social fabric may never bounce back to the way things ‘used to be.’ This crisis has made it impossible to ignore existing inequalities in America, it has started to accelerate the waning allure of mega-cities, and it has already left a mark on the next generation. This week we dive into the details of those trends, as well as unpack what they mean for marketers. 5. INSIGHTS AND IMPLICATIONS BY INDUSTRY VERTICAL • Financial Services: Consumer use of mobile wallets has surged, led by PayPal. Fear of • High-Tech & B2B: Coronavirus contact-tracing apps, based using Google and worsening economic circumstances has had a heavy impact on consumers’ spending and Apple’s exposure notification API, are rolling out, starting in Switzerland. saving, with many planning to reduce spending and increase saving in coming months. • Health & Wellness: Primary care practices face uncertain futures, while digital • Media & Entertainment: Advertising revenue continues to decline for networks. The health continues to surge. Healthcare marketers shift priorities to crisis future of movie theatres looks bleak, as viewers voice hesitancy about attending public communications and email marketing, with healthcare media spending and functions in the near future. paid advertising down 38.5% • Travel & Hospitality: Airlines have begun to see consumers hesitantly book flights again, • CPG: Plant-based meat alternatives are trending, while food waste has although travel levels remain far below previous years. More than half of those working in significantly increased with farmers unable to sell their produce to their usual the travel sector are unemployed. buyers, such as restaurants, schools, and businesses. • Automotive: Auto dealerships see foot traffic increases for the fifth consecutive week, • Restaurants: Americans are still hesitant to return to dining out even after likely the result of reopening plans, stimulus payments, no-interest leases, and deferred businesses begin reopening fully. Restaurants and bars act accordingly to payment options. create other alternatives to the dining experience. • Retail: Retail sales plummeted a record 16.4% in April, following March’s 8.3% decrease. • Insurance: Insurance companies are seeing an increase in digital activity. The eCommerce continued to soar, up 30% YoY in April. Amazon retains the biggest share of French courts rule that business interruption charges for restaurants must be online sales overall, although Target and Walmart are gaining ground. covered by insurers. • Luxury & Beauty: Designers call for shift in the seasonal fashion calendar, while a • Non-Profit: Non-profits continue to modify their operations in order to stay leading fabric supplier announces a new fabric collaboration that chemically destroys afloat, while some have entirely suspended their operations. Arts and culture viruses only few minutes after contact on clothing. nonprofits are facing huge deficits, unable to host their traditional events that are central to their fundraising calendars. 4 1. This Week’s COVID-19 Data ​and Headlines​ 2. Dentsu Media Marketplace Tracker​ Contents 3. Dentsu COVID-19 Recovery Navigator​ 4. Cultural and Consumer Behavior ​Trends and Insights​ 5. Insights and Implications by Industry Vertical This Week’s Data and Headlines May 28th Edition Global and US Snapshot (as of May 27th) Global USA Confirmed Cases Deaths Recoveries Confirmed Cases Deaths Recoveries (+2%) (+1%) (+3%) (+1%) (+2%) (+2%) 5,792,179 357,467 2,498,707 1,745,803 102,107 490,130 Brazil Confirmed Cases Deaths Recoveries % Change % Change (+5%) (+4%) (+5%) State Cases from Deaths from yesterday yesterday New York 374,672 0.3% 29,553 0.3% 414,661 166,647 25,697 New Jersey 157,818 0.5% 11,341 1.3% Illinois 114,306 1.0% 5,083 3.3% Russia California 101,555 1.8% 3,955 2.7% Massachusetts 94,220 0.6% 6,547 1.1% Confirmed Cases Deaths Recoveries Pennsylvania 73,652 1.1% 5,322 2.5% (+2%) (+4%) (+8%) Texas 59,121 2.4% 1,602 2.5% Michigan 55,608 0.9% 5,334 1.3% 370,680 3,968 142,208 Florida 52,634 0.7% 2,320 2.7% Maryland 48,423 1.5% 2,392 2.5% Source: New York Times, Worldometers, John Hopkins Note: Increase ov er y esterday . © 2020 Dentsu Aegis Network 7 Weekly Snapshot: Global and US North America Europe Europe has the highest number of confirmed The US continues to lead cases compared to any other continent. In the highest number Europe, Spain has taken over from Italy with of confirmed cases highest number of cases at 283K; UK– 267K, across the world at and Italy at 231K. over1.7M cases. Top affected states in US include New York, New Jersey and Illinois. Asia Over 490K people have recovered while the death China has reopened its economy as toll reached over 102K. cases slow down. The country maintains its cases at 83K. Other worst hit countries include India - 158K, Pakistan – 59K and Qatar- 49K, all of which have seen a rapid increase in number of cases in the last two weeks. South America MEA Brazil has the highest number of cases in Australia | NZ South America at 414K, followed by Peru– In the Middle East, Turkey and Iran continue to report 135K and Chile– 82K. Other worst hit high number of cases – 159K and 141K, respectively. Australia recorded around 7K confirmed countries include Ecuador, Colombia Now most African countries are reporting increases cases and New Zealand 1.5K cases. and Argentina. in the low-double digits on a daily basis. Worst hit Australia and New Zealand are countries include South Africa and Egypt with 25K reporting fewer cases because of strict and 19K cases each. lockdown measures. Source: New York Times, Worldometers, John Hopkins © 2020 Dentsu Aegis Network 8 Top Global Stories of the Week Experimental Vaccine from China Shows Positive Early Signs WHO Suspends Hydroxycholoroquine Trial over Safety Concerns An experimental coronavirus vaccine from China-based drugmaker CanSino The WHO announced a temporary suspension of its hydroxycholoroquine trial, Biologics Inc.
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