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 .

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

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. showed promising results in a preliminary human study. citing safety concerns. Hydroxycholoroquine is normally regarded as an anti- CanSino’s vaccine appeared safe for use and produced an immune response in malarial drug that can also treat rheumatoid arthritis and lupus. Officials had most of the 108 healthy volunteers, according to the new study published by decided on a “temporary pause” in testing the drug after The Lancet published The Lancet. It is the second positive but preliminary report this week about one an observational study last week that found that people who took the drug were of the most advanced coronavirus vaccines in development. Moderna Inc. said more likely to die. Several earlier studies had also found no benefit — and its vaccine also induced an immune response and was generally safe and well- possible harm — when the drug was used by COVID-19 patients. The WHO tolerated. CanSino’s results put it among the front-runners that have emerged said it would review safety data. However, Dr. Tedros Adhanom Ghebreyesus from more than 100 coronavirus vaccines in development world-wide. (WHO director-general) reiterated that these drugs are accepted as generally safe for use in patients with autoimmune diseases or malaria. Some officials have expressed support for hydroxychloroquine as a potential cure for the coronavirus, but no WHO Says Africa is Least-Affected by Covid-19 So Far evidence has yet emerged suggesting it’s a proven treatment. Several months into the global coronavirus pandemic, Africa remains the least-affected continent in the world, said the head of the WHO, Tedros Adhanom Ghebreyesus. The continent has just 1.5% of the ECB Is Ready to Expand its Stimulus Program world’s reported cases and just 0.1% of its deaths. The low numbers could be in European Central Bank officials are ready to step up bond purchases next month if part due to lower testing capacity in Africa — although 51 African countries now they consider such a move necessary to combat the economic fallout from the can test compared to 40 some 10 weeks earlier — and many cases may have coronavirus pandemic. The ECB in March unveiled a €750B bond-buying program to been missed. The WHO said the continent’s experience fighting diseases like support governments and businesses in the face of plunging economic growth. The polio, measles, Ebola and yellow fever may have helped. Africa’s lesser exposure minutes of an April meeting suggest the ECB is ready to expand the new bond- to world travel and trade could also be insulating it for now from the spread of buying program at its June 4 meeting, which would help eurozone governments the disease. It has been pointed out that other infectious pandemics eventually finance the battle against the virus if new data suggests the current stimulus is too spread through the continent, just a year later than in Europe and Asia. small.

Source: New York Times, Washington Post

Congress to Decide on Next US In Need of Contact Tracers to Vaccine for General Public is Hospitalizations Tick Up After Coronavirus Bill in the ‘Next Few Reopen Safely a ’2021 Event’ States Reopen Weeks’

Senate Majority Leader Mitch McConnell To safely reopen the US economy, the Former FDA Commissioner Scott US hospitalizations are on a gradual said Congress will likely decide whether to nation needs at least 184,000 contact Gottlieb says widespread availability of a upswing now that every state has pass another coronavirus relief bill in the tracers. Though the jobs can vary, many vaccine for the general public probably begun to reopen nonessential “next few weeks.” Republican support for require minimal previous experience or won’t arrive before 2021. A vaccine businesses and ease restrictions, additional relief has grown in recent just a quick training. The job can usually could be available in the fall for former FDA Commissioner Dr. Scott weeks. McConnell said he wants to see be performed from anywhere, so long as emergency use, authorized only for Gottlieb said. liability protections for businesses and the worker has a good Wi-Fi connection certain populations but not everyone. doctors included in any additional and a phone. Tracers determine who a Florida, Georgia, Virginia, Alabama, legislation. He signaled he could support sick person has been in contact with The space of companies vying to Maryland, Minnesota and others have relief for struggling state and local during their illness and help track produce a successful vaccine is all seen an increase in hospitalizations governments. He did not address another individuals down to stop the spread of increasingly crowded, including since beginning to reopen, Gottlieb round of direct payments to Americans, disease. Moderna, Pfizer, Johnson & Johnson, said. He added that the “national trend though President Trump has said he AstraZeneca, Sanofi, GlaxoSmithKline, is a small uptick.” would support this. Merck and Novavax.

Source: New York Times, WSJ, Washington Post

Global Business Activity Starts to Steady but Recovery Looks Far Off

Business activity in the US, Europe and Japan continued to decline in May but at a slower rate, suggesting any recovery will be exceedingly slow. Surveys of purchasing managers indicate that private-sector activity fell for the third straight month in May. The surveys pointed to continued job cuts and a rise in unemployment dragging on any recovery as affected households cut back on spending. The surveys suggest the three months through June could see even larger contractions in many economies.

In the US, business activity continued to fall but at a less steep pace than before. IHS Markit said its index of manufacturing activity stood at 39.8 in May, up from 36.1 in April. A reading below 50.0 indicates that activity has fallen and the lower the figure, the larger the fall. A measure of activity in the US services sector—representing the broadest segment of the economy—rose to 36.9 from 26.7.

Source: CNBC

In the world of retail, COVID-19 has proven to be a catalyst for a lot of disruptions that have long been underway. With shoppers mostly stuck at home, buying online has been the name of the game. Amazon still has the biggest share of online sales overall, but others are gaining ground: Target’s digital sales are up 141%, Walmart is up 74%, and nonstore retail is up 8.4%.

Meanwhile, familiar mall stores are not looking so lucky. Sales for L Brands tumbled 31% in Q1, and the company announced the closing of 250 Victoria’s Secret and PINK stores. Macy’s has warned investors that Q1 losses may total up to one billion. J.Crew, Neiman Marcus, and JCPenney have all filed for bankruptcy -- and rumors are swirling that Amazon is planning to purchase JCP.

What we are seeing is a widening of the gap between retailers who are gaining shoppers and those whose business is petering out.

At the same time, empty stores and disruptions are leaving space for some to innovate and show their adaptability in times of crisis. Gap, for example, is speeding up its rollout of warehouse robots to manage online orders. Amazon-owned Whole Foods has been converting some grocery locations into “dark stores” to up their game in online grocery delivery. Target has started selling via Instagram Checkout. It will take creativity, flexibility, and purpose to keep and grow customer interest post-pandemic.

In particular, the fashion world is seeing lots of upheaval. In April, Saks Fifth Avenue began talks with 20 brands about ordering clothing when it’s in season, instead of months ahead. Then, 50 brands signed two open letters demanding better ordering cycles and fewer fashion shows. One of the letters calls for brands to stop participating in sales – meaning we may see a leaner Black Friday, Cyber Monday, and Singles Day.

Source: Sellwin Consulting

• As we see various US states relaxing restrictions, we see coinciding movement happening around the country, and interests changing via Search and Digital behavior trends

• We see corresponding dips in in-home media behavior – from TV to Streaming, to Digital News & Entertainment

• Social Platforms truly have emerged as even more dominant through this COVID Crisis, particularly in Mobile

• Some unique cuts of Pinterest Search behavior gives us a window into Generational Mindsets:

• GenZ continues to look for entertainment & inspiration

• Millennials are concerned with family, home and finances

• GenXers are ready to emerge & celebrate, renovate and care for others

• A deep dive on Male audiences shows a desire to get going with Spring/Summer DIY projects

• 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

• 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

14 Continually Increasing Out-of-Home Activity, as States Across the US Begin to Relax Restrictions

+3% +22% -9%

-6% +5% +11%

Source: Ninth Decimal

Home Improvement Computer Accessories Vehicle Dealers Leveling Off Leveling Off Increasing

Online Grocery Delivery Fashion & Style Restaurant Reservations Slowing Down Increasing Ramping Up

Cooking Fast Food Restaurants Restaurant Take Out Leveling Off Leveling Off Leveling Off

Source: TBD

Source: Google Search Data – % growth YOY, Feb-May

Source: Google Search Data, week of 5/10

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

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

Chart 2

Chart 1

Source: Chart 1: YouTube Analy sis of Nielsen Total Ad Ratings, including 22 TAR US studies f or heav y /medium/light TV v iewers; 4/9/18-12/19; Chart 2: YouTube Analy sis of Nielsen N-Power data, 3/16-4/12/20 v s. 2/17-3/15/20

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

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

Facebook usage is +20% DAUs YouTube watch time in Total Average mDAU + +15% daily active +26% MAUs Globally, +12 million up 37% globally with Globally Q1 2020 the US up 25%, with 24% YOY - Twitter’s users across OTT +6% in the US US unique visitors in ad impressions up Living Room Watch highest reported year- video offering - March, reaching 39% North American time up 29% over-year growth rate Prime Video and 60% Search volume 52.2 million (however, Daily Average to date IMDB TV increase YoY CPMs and Revenues Users +10% YouTube TV Average time spent per are down) subscriptions grew Added 14 million Amazon and the 220% increase visitor 476 minutes +35% time spent 40% during average mDAUs since NFL announced in Video views (nearly 8 hours) for the WhatsApp has seen YOY watching March/April 4Q that 11 games will month of March (vs. 320 a 40% increase in ‘Discover’ content be streamed on Top searched minutes for Instagram), usage globally Reporting a 33% Outgoing brand posts Prime Video and categories - fashion an 11% increase over decrease in have decreased by 2.3 Twitch at no (face masks), stay at Jan and 56% increase CPMs in the US posts/day additional cost to home celebrations (zoom since October Prime Members party ideas), food and drink (cooking at home), and beauty (home mani/pedi, skincare)

Source: Usage inf ormation prov ided by each indiv idual platf orm as part of 1Q Earnings Statements, or shared by the partner directly

Source: Pinterest, March/April 2020

Source: iProspect, 2/1 – 5/6/20

Source: iProspect, 1/31 – 5/15/20

Source: Dentsu Aegis Network, Amnet Programmatic Data

Direct-to-Consumer Marketer Insights from

CPM trends (all verticals): +3% from previous week Media spend trends +6% month (all Verticals): over month

-11% from Conversion previous week trends (all verticals): +3.5% month over month -7% from previous week

-11% month over month

Source: MuteSix Internal cross-client metrics, March-May 2020

Direct-to-Consumer Marketer Insights from

Source: MuteSix Internal cross-client metrics, March-May 2020

© 2020 Dentsu Aegis Network 37 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 38 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 39 For more information on how to leverage the COVID dashboards to inform your business, marketing, media or CRM approach, please contact Merkle at [email protected] Dentsu COVID-19 Recovery Navigator May 28th Edition Ongoing COVID-19 Consumer Tracker Shifting from Navigating the ‘Crisis’ to Navigating the ‘Recovery’

While COVID-19 continues to impact America, the crisis, unfortunately, is starting to feel familiar. As consumers become accustomed to wearing masks in public, social distancing and spending more time at home, it’s clear that a ‘return to normal’ may come with changes. Business leaders must start to shift from crisis management to planning for recovery. It is in this spirit that Dentsu decided to transition the seventh iteration of its ongoing US consumer survey from a ‘Crisis Navigator’ to a ‘Recovery Navigator.’ In shifting towards a recovery mindset we hope to better help marketers navigate the road ahead. 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. The Health Crisis, Economic Crisis Are Equal Issues

4. A Cautious Sense The Tide May Start To Turn Selection of 5. Comfort Level In Public, Doing Activities Remains Tepid Findings: 6. When It Comes To Safety Measures, No ‘Silver Bullet’ 7. Home May Be The New Hub, Even After Reopening

8. What Brands Do Right Now Matters, Impacts Future Intent

9. How Consumer Groups are Moving Toward Recovery

10. Key Themes & Implications for Marketers

43 1. In Short: Trends Week-to-Week

Uncertainty at its Peak Seeking Signs of In a Continued Holding Pattern Faced with record job losses Progress and a shift in tone from the Consumers appear to have gov’t, consumer outlook Uncertainty continued to hang stalled for the past three rapidly deteriorated. As they over the heads of consumers’ waves of the survey, unable continued to worry about the every day lives, making it to mentally move towards health crisis, they also felt a loss of control over their hard for people to hold a recovery even as states personal lives and finances positive mindset. Household reopen. As economies as well. Media consumption spending saw the biggest reopen, we do see activity hit an all time high as declines to date as the resume, however, consumer consumers sought distraction economic crisis continued its concern and unease remains. from what they viewed as a While they view the crisis as worsening situation. Brands grip on American society. stabilizing and are determined were expected to respond Amid everything, brands are to “get through it” consumers and applauded for taking being held accountable for action. show little sense of optimism doing right by their and normalcy remains out of employees. reach. March 27 April 9 April 24 May 22 1 2 3 4 5 6 7 April 3 April 17 May 8 Figuring it Out In Search of Stability Receiving Mixed Signals The Nation In Limbo It feels as though the US is sort of We saw a nation in search of As the country tentatively The last week in March, in limbo right now – while many stability. Consumer reopens, consumers are torn. COVID was the number one communities are still shutdow n, sentiment trended slightly On one hand, their outlook is thing on consumers’ minds. less negative as they fought more and more are lifting Although the health crisis improving, and many want the to regain control over their economy to reopen; on the restrictions. Despite cautious appeared to be worsening, personal lives. We saw optimism, most consumers remain other, they recognize that consumers had not yet spending patterns flatten, hesitant to go in public or shop in- health must be prioritized and internalized the extent of the time spent with media reach a store and many plan to continue feel uncomfortable without the crisis and grappled with how saturation point, and a spending more time at home. Still, guarantee of a vaccine. they should feel (neither heightened desire for there is excitement for experiences positive nor negative). As normalcy. Consumers have Division carries over into how like dining out and travel again. stay-at-home orders went come to not only expect they view advertising – half into effect at a large scale, brands to act but are paying want brands to continue It’s become clear this is a moment for brands to step up. More brands they made clear that brands close attention to how brands acknowledging the crisis, respond to the pandemic. have benefited from responding to were expected to help them while the other half want COVID-19 than not. navigate this “new normal.” brands to move on.

© 2020 Dentsu Aegis Network 44 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 NORMAL MOVING INTO RECOVERY CORONAVIRUS LIFE The outbreak is spreading. I I am modifying my daily I am moving towards settling I feel there has been progress I am fully reconnected to work am uncertain about how it routine. There are moments of into a new routine while the to reduce the outbreak in the and life without having the might impact my day to day frustration and anxiety, but I’m outbreak is evolving. My nation and my community. I threat of the outbreak hanging life. I am feeling confusion, trying to focus on what I can routine is starting to feel am slowly starting the journey over me. I am back to my fear or anger about preparing. control. familiar. back to my normal routines routine from before. and schedules.

Source: COVID-19 Tracker, part of the Taking the Pulse series by Dentsu Aegis Network. Online surv ey panels, conducted March 27-29; April 3-4; April 9-12, 2020, respectiv ely

© 2020 Dentsu Aegis Network 45 2b. For The Past Four Waves, Little To No Movement Even as all 50 states have now reopened in some capacity and with hopes of a vaccine in the news, consumer sentiment has stalled over the past month. It feels like a collective held breath as people wait to assess the success of reopening. % 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 six waves, please see the fuller report.

APR. 17 18% 36% 33% 8% 5%

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

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

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

Q. When it comes to a public health crisis such as the COVID-19/coronav irus outbreak, there are of ten “phases” of how the response unf olds. Thinking about how the outbreak has impacted y ou and y our daily lif e, which of the f ollowing phases best describes y our current situation? Source: COVID-19 Crisis Nav igator: Wav e 7 by Dentsu Aegis Network.

© 2020 Dentsu Aegis Network 46 3. The Health Crisis, Economic Crisis Are Now Equal Issues Over the course of nearly two months we’ve watched the US economy slowly become a more prominent issue on consumers’ minds. Now, we’re at an inflection point where the issues are almost equally weighted.

Top National Issues Concerning Consumers (% of respondents who said an issue was in their top 3 choices)

May. 22 Apr. 24 Mar. 27

-10 pts 63% 60%

53% +8 pts 50%49%

42% 38% 34% 32%

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

COVID- US Economy Unemployment Climate Change Income Immigration US Political Gun Control Freedom of Terrorism Racial Equality Gender Equality Reproductive 19/coronavirus Inequality Landscape Movement Rights health crisis

Q. Please pick the top 3 issues currently concerning you the most.

Previously, there was little indication that consumers felt a sense of progress against any aspect of the crisis. Now, as the share of those who say things are “getting worse” declines, a small trickle of respondents say things are “getting better.”

CURRENT Outlook For Each Of The Following:

It’s getting worse It’s stabilizing It’s getting better

Since May 8

The health threat to your community 27% 52% 21%

Your employment and personal finances 30% 52% 18%

Your personal life and routines 21% 58% 22%

Q. Describe your view on the state of the following:

Source: COVID-19 Crisis Navigator: Wave 7 by Dentsu Aegis Network.

© 2020 Dentsu Aegis Network 48 5. Comfort Level In Public, Doing Activities Remains Tepid Despite consumers continuing to remain cautious week to week, there is a small trickle of activity slowly resuming. Fewer people said they were abstaining from activities compared to early May. Still, most remain uncomfortable.

How Consumers Feel Going Out In Public Comfort Level Currently Felt Leaving Home For The Following Reasons

Uncomfortable Comfortable I don’t do this I do this but feel very uncomfortable I do this and feel somewhat uncomfortable I do this and feel fine

My community has Attending religious services/events 61% 12% 13% 14% FULLY reopened for

business Dining out 60% 11% 14% 15%

Children's activities 58% 9% 15% 17%

Working at my office/place of work 53% 11% 17% 19%

48% Socializing 42% 15% 22% 21% 52% My community Leisure activities 41% 15% 21% 24% is continuing to follow STAY @ Non-grocery shopping 38% 18% 22% 22% My community has HOME orders PARTIALLY Health/Medical-related appointments 38% 19% 21% 22% reopened for business Exercising 33% 12% 18% 37%

Grocery shopping 11% 27% 35% 26% RESPONSE HAS NOT MATERIALLY CHANGED SINCE LAST FIELDED ON 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?

Currently, it appears that consumers want businesses to take as many precautions as possible such as offering take- away, regularly sanitizing surfaces and even requiring temperature screenings, until it is clear which are crucial to safety. Impact Of Safety Measures On Consumer Willingness to Dine/Shop In-Person It would actively encourage me to shop/dine in-person It would make me more comfortable but still hesitant to shop/dine in-person It would NOT really change my mind; I would still feel hesitant to shop/dine in-person I don’t really care; I plan to shop/dine in-person regardless

Offering curb-side pick-up or take-away 39% 34% 16% 12%

Regularly sanitizing high-touch surfaces 38% 36% 19% 7%

Requiring employees to wear masks and... 35% 37% 17% 11%

Reducing in-store occupancy to ensure... 33% 38% 18% 11%

Requiring customers to wear masks whi... 33% 36% 20% 11%

Post signage to encourage social dist... 32% 34% 23% 11%

Requiring temperature screenings for ... 31% 36% 21% 12%

Q1 As businesses begin to reopen, how do you anticipate the following safety measures would impact your willingness to shop or dine in-person? Source: COVID-19 Crisis Navigator: Wave 7 by Dentsu Aegis Network.

© 2020 Dentsu Aegis Network 50 7. Home May Be The New Hub, Even After Reopening Even as communities reopen, many consumers say they plan to continue with “at-home” habits. Close to two-thirds of respondents said they would continue to shop online, stream TV and spend more time at home in general, while close to three-quarter plan to cook at home. Habits Consumers Plan to “Stop, Start, Continue” After Restrictions Lift

I plan to CONTINUE doing this after my community re-opens I plan to START doing this after my community re-opens I plan to STOP doing this after my community re-opens Not applicable

Cooking at home 72% 14% 9% 5%

Shopping online 64% 18% 10% 8%

Using streaming TV services 59% 16% 11% 14%

Spending more time at home 58% 16% 22% 5%

Checking in with friends/family through video 49% 21% 12% 18% Having acknowledged Brands should Having acknowledged Brands should Limiting my social circle 46% 22% the21% crisis, it is now ok 11% continue to the crisis, it is now ok continue to for brands to go back acknowledge the for brands to go back acknowledge the Gaming 38% 16% 11% to advertising35% as crisis, advertising as to advertising as crisis, advertising as normal is normal Ordering from food delivery services normal 37% 17% normal is 22% 24% inappropriate right inappropriate right now Working remotely 31% 16% 18%now 36%

Attending virtual events 29% 15% 20% 36%

Doing virtual workouts 29% 19% 12% 40%

Using ride-hailing services 21% 18% 16% 45%

Using public transportation 19% 20% 17% 44%

Q. Thinking about any changes to your habits during shutdown orders, are you planning to stop, start, or continue doing any of the following after your community reopens? Source: COVID-19 Crisis Navigator: Wave 7 by Dentsu Aegis Network.

In general, more brands have benefited from responding to the COVID-19 crisis than not. Change in opinion based on a brands’ response is correlated to whether a consumer will consider the brand going forward. 67% 48% Agree: My opinion of some Agree: My opinion of some companies has changed for companies has changed for the BETTER because of their the WORSE because of their response to COVID-19. response to COVID-19. 58% 43% Agree: In the future, I expect to Agree: In the future, I expect to START or continue purchasing STOP purchasing or boycott certain brands because of how they certain brands because of how they responded to COVID-19. responded to COVID-19.

Q How much do you agree with the following statements:

Source: COVID-19 Crisis Navigator: Wave 7 by Dentsu Aegis Network.

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

Couples across various life Established couples, some with Young and established families stages whose concern level is Older empty nesters who are kids still living at home. They are Young couples and singles, half concerned about the impact a of whom have kids at home. They who are struggling to move into strong but tempering. Worried concerned about a second wave second wave could have on their are no longer concerned about recovery and need help about their well-being, they need impacting the economy but are community. They are feeling the threat related to COVID and navigating the impact the health reassurance as they move into feeling optimistic about their stable in their own lives. are ready for fun and crisis has had on their lives. recovery. personal recovery. entertainment.

Concern Level: Very Concern Level: Very Concern Level: Slight/Moderate Concern Level: Extreme Concern Level: Not Concerned Outlook: Mostly Neutral Outlook: Pessimistic & Neutral Outlook: Mostly Optimistic Outlook: Pessimistic Outlook: Optimistic & Neutral Brand Response: Brand Response: Reassuring Brand Response: Optimistic or Brand Response: Serious Compassionate messaging Brand Response: Entertaining messaging around Inspiring messaging around how around adapting to new needs messaging unrelated to the crisis messaging around values safety/precautions brands are helping

*For in-depth audience profiles, please see full report.

© 2020 Dentsu Aegis Network 53 • Help consumers navigate the path forward. As the country starts to re-open, consumers continue to feel hesitant about leaving their homes. This week we saw Information rise as a key need state – potentially reflective of the hesitancy and confusion consumers feel around what is safe/ok as businesses reopen.

• Proceed with caution when re-opening. Consumers are concerned that restrictions will be lifted too quickly. Even with safety precautions rolling out, consumers still express a hesitancy to resume ‘business as usual.’ A slow and cautious approach to re-opening, and transparency/testing around safety measures, are important to build trust.

• Consider long-lasting behavioral changes. Many consumers say they plan to continue habits centered around the home even after their communities reopen. This includes digital consumption such as streaming TV, but also lifestyle changes like limiting their social circle. Marketers must reconsider that the home may now be home base Key Themes & for our interactions. • Consider the unique needs of different groups. A running theme is that this crisis unfolds at different rates for different communities and individuals. Consider how your brand response meets the shifting needs of your core Implications consumers and consider new audiences to drive relevance with.

• Spread optimism to aid recovery: Consumer sentiment is showing signs of cautious optimism. Brands can play a for Marketers key roll in recovery by spreading a sense constructive positivity for the future, while still acknowledging the crisis.

• Don’t just talk about values; demonstrate them. Brand responses during the crisis are having a direct impact on future favorability and intent. Many consumers aren’t simply looking for brands to talk their values but to showcase tangible action as well.

• Adapt/tailor brand responses according to recovery phases. Consumer need states and expectations shift based on the various phases of the crisis, and of recovery. Ensure you strike the right tone and demonstrate appropriate actions as we move into a new normal.

DENTSU AEGIS NETWORK To access more findings & Survey Methodology insights, view the full report.

This survey was administered through Toluna, an For more information: online research panel, on May 22, 2020. Conducted by Dentsu, this survey was distributed among a [email protected] random sample of 1,000+ respondents, aged 18-64 years old and residing in the United States. The survey controlled for nationally representative weighting across age, gender and ethnicity (using latest publicly available US Census numbers). Additionally, respondents represented a variety of backgrounds across education, household income and region. Cultural and Consumer Behavior Trends and Insights May 28th Edition Rising Trends

1. The Economic Divide 2. Moving on Out 3. The Impact on Gen Z Widens

1. The Economic Divide 2. Moving On Out 3. The Impact on Gen Z Widens

While the working class suffers, the rich get richer.

© 2020 Dentsu Aegis Network 58 The Crisis Lays Bare US’s Deep Economic Divide – And Widens It As many face financial insecurity and unemployment at the hands of COVID-19, the rich have continued to get richer.

The rich continue to get richer as we Essential workers risk their lives, but Meanwhile, unemployment slide into recession hazard pay nears its end continues to rise

The wealth of America's billionaires increased by nearly 10% over just three weeks as the COVID-19 crisis took hold

Sources: Twitter, CNN Business, TIME, Slate. The Atlantic, US Department of Labor

1/3 of Americans already had debt in collection pre- pandemic 60MM people globally are expected to be pushed into ”extreme” poverty

3x demand at food banks (and growing)

Sources: McKinsey , US Department of Labor, TIME, The Guardian, World Economic Forum

The Digital Divide

157MM 3.7B Americans people globally don’t use Internet at broadband speed have no access to internet at all

“Without a proper broadband connection, these communities can’t start or run a modern business, access telemedicine, take an online class, digitally transform their farm or research a school project online” - Brad Smith, President of Microsoft

Source: World Economic Forum

1. The Economic Divide 2. Moving On Out 3. The Impact on Gen Z Widens

While the working class suffers, the Experts predict a mass exodus from rich get richer. cities to suburbs post-pandemic.

© 2020 Dentsu Aegis Network 62 Pre-Pandemic, City Migration Trends Were Already Reversing Recent years saw signs of cooling urban growth as young adults and families sought more affordable, spacious living.

Overall, the growth rates of big cities have Driven in large part by young adults leaving Many sought the suburbs of big cities declined for four years from 2014 to 2018

Source: Wall Street Journal, “Millennials Continue to Leav e Big Cities,” Sept. 2019;

© 2020 Dentsu Aegis Network 63 COVID-19 May Be A Tipping Point For Those Considering Moves As it becomes clear that cities are particularly susceptible to the spread of the coronavirus and are largely unconducive to stay-at-home lifestyles, many may find the push they needed to move out of mega-metropolises.

Many urbanites are reconsidering dense city By pausing culture and community, COVID-19 The exodus of New Yorkers during the crisis is living amid life with COVID-19 has taken away the main draws of large cities well documented, companies consider as well

the number of new apartment leases in “The heartbeat of what we do is Manhattan fell -71% 71% to a decade-low. in gathering, the community of where we live. That’s what keeps me in the Bay Area. It’s certainly not the rent, which is crazy. When everything we do was canceled, my response was, ‘Gosh, then, can we go to the country?’ ”

Lisa Pezzino in The Wash Post

Source: Harris Poll, conducted May 2020; Douglas Elliman and Miller Samuel

© 2020 Dentsu Aegis Network 64 The “Stickiness” Of The Trend Will Depend On A Few Factors While life with coronavirus may make suburban living more attractive for those who can work remotely, the US also faces a recession and many Americans have been battered financially by the crisis.

Remote work (for those who can) heightens Employers are reportedly considering reduced On the other side, a recession could the appeal of suburban living staff, satellite offices in the suburbs discourage people from picking up and moving, even if they’ve thought about it

1. The Economic Divide 2. Moving On Out 3. The Impact on Gen Z Widens

While the working class suffers, the Experts predict a mass exodus from Gen Z turns to self-sufficiency as rich get richer. cities to suburbs post-pandemic. their future is threatened.

Members of the same generation are shaped in lasting ways by their collective experiences:

Americans who came of age during the Great Depression transformed expectations of government.

Millennials who entered the workforce during the 2008 recession helped create the gig economy.

Faced with coming of age during the post-COVID recession, Gen Z is the next generation whose world view will be shaped in lasting ways.

Sources: TIME, New York Times, Morning Consult

Employment has dropped most Gen Z is concerned about future education Evidence from past recessions point to drastically for younger workers and employment prospects a lasting disadvantage

-25% Studies* that followed Drop in employment among 20-24 y.o. 63% college graduates who between March and April are worried the pandemic entered the job market will impact their education for years to come during 1979-80 and 2008 recessions found that both -19% groups had lower Drop in employment among 20-29 y.o. employment rates and between March and April 59% lower incomes over the are worried the pandemic next decade than those will impact their career who graduated during non- -12% prospects recession years Drop in employment among workers in their 50’s between March and April

Sources: New York Times, Morning Consult, *Studies f rom the Univ ersity of California Berkeley and Univ ersity of Rochester

© 2020 Dentsu Aegis Network 68 Lack of Trust in Institutions Causes a Rise in Self-Sufficiency Gen Z is assuming responsibility for their own futures in absence of effective leadership, which may be heightened in response to the pandemic.

Low trust in government & big business to equal the playing field Self-sufficiency is rising in importance among Gen Z 85% ⇾ Just 7% of Gen Z put “a lot” of trust in people of positions of power, given recent Say their future is determined by choices they make or things they can events. 43% trust people in positions of power control “some,” while 35% say “not much” and 16% say “not at all.” 8 in 10 ⇾ Just 6% of Gen Z “strongly agree” that Say saving money is important to them the world is a fair place, while 13% during the pandemic “somewhat agree”, 23% “somewhat disagree” and 42% “strongly disagree.” 56% Believe they have the potential to impact the world

Sources: Morning Consult, New York Times

1. The Economic Divide 2. Moving On Out 3. The Impact on Gen Z Widens

While the working class suffers, the Experts predict a mass exodus from Gen Z turns to self-sufficiency as rich get richer. cities to suburbs post-pandemic. their future is threatened.

• Serve the underserved. Think about how your business can play a bigger role to support the growing number of consumers who face income and resource challenges. Especially as the world moves online, many of the pivots marketers are making may only serve well-off consumers.

• Moving can act as a point of entry for marketers. It is a moment when people build new routines, try new things, learn their local neighborhoods and, yes, switch brands and services. If COVID-19 catalyzes an urban exodus, marketers need to be ready to help a new audience transition to suburban living.

• Migration patterns also impact business operations. Leaders will need to reassess how their workforces operate cohesively and effectively. B2B marketers may find that different methods of communication are needed to engage remote clients as more businesses is done online.

• Lead with Empathy. Gen Z has been a coveted target for many marketers. Look beyond Gen Z stereotypes to empathize with their current situation and provide support, hope, and solutions that enable their own creativity and ideas.

71 Insights and Implications by Industry Vertical May 28th Edition Financial Services High-Tech & B2B Slide 75 Slide 97

Media & Entertainment Health & Wellness Slide 78 Slides 101

Travel & Hospitality CPG Slide 81 Slide 104

Auto Restaurants Slide 85 Slide 107

Retail Insurance Slide 89 Slide 112

Luxury & Beauty Non-Profit Slide 95 Slide 115

73 Mobile Wallet Usage Surges, Strong Shifts in Consumer Banking Behavior • Fear of worsening economic circumstances continues to influence consumer spending and saving: • 50% of polled stimulus recipients plan to save their stimulus payments • 59% of people are spending less since the pandemic hit • 66% have changed their view onsaving money, with 34% claiming that they are saving more than before the pandemic • The pandemic has also changed consumer’s banking behavior, with a marked shift away from cash. • 45% of respondents claim that they have permanently changed how they interact with their bank, with 31% of respondents claiming that they will use online or mobile banking more moving forward • With hygiene concerns with using physical currency, mobile wallets have seen a huge surge in usage. • In the past thirty days, 45% of consumers have used a mobile wallet payment platform. Of those Financial consumers, 51% have used PayPal; 28% have used Venmo; and 20% have used Apple Pay. • This Week’s Headlines: Services • Federal Housing Finance Agency establishes new capital framework for Fannie Mae, Freddie Mac: The new rule would require the mortgage giants to maintain capital cushions worth over $100B, with the goal of ensuring they continue to provide a backstop for the mortgage market during downturns. • Banks brace for forbearance program expiry dates: Forbearance is almost at a close for people who received mortgage forbearance under the CARES Act. Out of the $150B in loans, banks are unclear, however, on how many borrowers will default • IMF predicts banks to face profitability challenges through 2025: The IMF warns that bank profitability will be under pressure for the next five years due to low interest rates. The Fund’s assessment is based on a simulation of nine advanced economies. While cost-cutting and higher fee income should help banks, the IMF warned that these measures are unlikely to fully relieve the pressure, and cautioned lenders against taking on excessive risks once the economy begins to recover. Source: Yahoo Finance, PYMTNS, MX, The Financial Brand, American Banker, Bloomberg Brand Actions | Financial Services

London-based Railsbank launches financial inclusion Mastercard has expanded its worldwide commitment to Bank of America announced they are supporting initiative LighteningAid to help those in need. LighteningAid financial inclusion by pledging to bring a total of 1 billion longtime partner Khan Academy as they work to enables government departments, NGOs and community people and 50 million micro and small businesses into the #KeepEveryoneLearning. Customers can access groups to distribute financial support directly to those in digital economy by 2025. free online resources to help plan schedules and need affected by COVID. Financial support can be instantly lessons to help parents teaching at home. credited to the person in need, 24 hours a day, 7 days a In addition, the company will offer tools to 25 million female week. entrepreneurs to fuel business growth. To reach 1 billion people, the company will tap a variety of solutions, including wage digitization, digital wallets and apps, partnerships with mobile networks and more. Mastercard’s latest pledge builds on its 2015 financial inclusion effort to bring financial services to 500 million people by 2020, which was a success.

Aite Group American Express Aite Group shared insights that can American Express offers eligible customers a complimentary year of help trading and asset managers 'Calm Premium Membership' which navigate through COVID-19 pandemic. includes services such as guided meditations, sleep stories and more.

Capital One

UBS Capital One, through a small UBS shares insights from its Chief video in Q&A format, shares how Economist about 'economic life after customers can protect COVID-19' and why we may need a less themselves from scammers. global world after the crisis.

© 2020 Dentsu Aegis Network 76 Huge Ad Revenue Decline for Networks, Future of Movie Theaters Bleak • In April, major legacy television networks experienced 30% to 50% declines in national television advertising revenue, as major advertisers reduced spend on prime-time entertainment and other daytime programs. The severity of this decline is compounded by the lack of sports programming. • ViacomCBS was down 43% in advertising revenue for its CBS Television Network and its cable networks. • Comcast networks reported a 33% loss in advertising revenue. • Fox’s advertising revenue declined 46%, largely related to the pause of Major League Baseball and NASCAR. • Disney was down 33.3%, with ESPN, its sports TV network, crippled by the lack of sports. • If given the option to watch new releases at home or in a theatre as of today, 70% of consumers would rather watch new movies at home. • 37% of respondents say they plan to attend movie theaters less often, up from 28% in March, and 10% say they may never go again, up from 6%. • 52% of respondents claim that they will continue to attend fewer public gatherings even once the CDC says it is safe to do so. This widespread concern about safety in public spaces will continue to impact the entertainment industry. • 39% of respondents say they will attend major indoor concerts less often, up from 33% in March; 36% say they’ll Media & attend theme parks less often, up from 26%; and 33% say they’ll attend theater and performing arts venues less often, up from 29%. Entertainment • This Week’s Headlines: • CBS reveals fall schedule, kept vague in order to manage viewers expectations: Unlike other networks, CBS has revealed a fall schedule that strives for normalcy, despite the pandemic, by unveiling the lineup of shows the network hopes to have on air eventually. • Apple buys older shows for TV+, in order to compete with rivals: Apple Inc. is acquiring older movies and shows for its TV+ streaming service in order to build content to better compete with Netflix, Hulu and Disney+. • John Krasinski's 'Some Good News’ sells to ViacomCBS: John Krasinski’s feel-good web series has gained significant publicity during the last few months of the pandemic, highlighting “good news” and cheerful entertainment in a time where people are looking for it most. ViacomCBS has licensed this series and while Krasinski will continue to be involved as an executive producer, he will not host new episodes. Source: Media Post, Hollyw ood Reporter, Variety, Bloomberg, Yahoo • Condé Nast lays off or furloughs nearly 200 US staffers: Condé Nast is providing severance packages and job- placement resources to employees who are getting laid off. For those furloughed, the company has agreed to cover the full cost of their healthcare premiums. Brand Actions | Media & Entertainment

The LPGA eTour Live will feature eight professionals As Broadway executives debate different strategies for ATP players can choose from a variety of 4,000 courses from the LPGA and Symetra Tour. The online matches reopening theaters following the COVID-19 pandemic, a across business, technology, data science, personal will be held twice per week via the World Golf Tour Buffalo-based start-up company named EagleHawk has development, and mental well-being, learning new skills that online video game owned by Topgolf, and players will developed drones to spray disinfectants in Broadway will serve them throughout their playing and non-playing compete in seven matches over four weeks on the theaters. careers, delivered by the world’s top university educators. eTour, across nine holes on digital courses that are replicas of real-life golf courses.

Verizon Media Sony Pictures Verizon Media’s Yahoo launched a ‘Reset Sony Pictures encouraged customers to enter its #stayhomewithSPTV competition to win exciting Your Mindset’ event for a thoughtful weekly prizes from their favorite shows along with conversation about overcoming adversity and a grand prize of 'The Ultimate Sony TV Binge living with uncertainty. Bundle.'

Fubo TV EVO Entertainment With a detailed chart, Fubo TV helps EVO Entertainment updated customers that customers select their team as the bowling is back in its theaters with phase 2 of its industry see re-opening of sports. re-opening plan.

© 2020 Dentsu Aegis Network 79 Flight Bookings Increase, Travel Industry Unemployment Hits 51% • Airlines begin to see consumers hesitantly book flights again, with airport foot traffic up 10% WoW for the week ending 5/17. • Southwest Airlines flights are 25% to 30% capacity, whereas the carrier previously expected its flights to run at 10% capacity in May. United Airlines will restore some capacity in July, while Delta reported that sales have exceeded refunds in recent days. • According to the US Travel Association, the unemployment rate in the travel sector has hit 51%. • Travel spending during the Memorial Day weekend is likely to have plunged to $4.2B, a third of 2019’s $12.3B. • Americans have become more optimistic about the possibility of future trips. • 30% polled state that they may travel by 2021, at the earliest; 21% hope to travel by the end of this year; 15% say they will possibly travel in the fall; 13% say travel is not on their radar; 11% will likely travel by this summer if restrictions are lifted; and 20% will travel as soon as possible. Travel & • This Week’s Headlines: • Hotels fund more cleaning by cutting amenities: Various hotel chains are scrapping amenities, including daily housekeeping visits, hot breakfast buffets, and even complimentary toiletries, in order to pay more Hospitality for cleaning and personal protective equipment in order to rebuild consumer confidence. • Feds grant approval for 15 airlines to halt service to 75 airports due to low demand: United Airlines and Delta Air Lines won tentative approval to halt flights to 11 airports, while JetBlue Airways Corp, Alaska Airlines and Frontier Airlines were approved to stop flights to five airports each. The US Department of Transportation has promised that all airports will continue to be served by at least one carrier • MGM reopened its first US properties on Memorial Day: Following roughly two months of complete closure, the properties are open at limited capacity of 50%. In casinos, tables and slot machines will be arranged to abide by social distancing requirements, and valet parking will be discontinued. • Memorial day weekend drew crowds across the US: On Florida’s Gulf Coast, crowds were so large that authorities shut down parking lots due to overflow. In Missouri, people packed bars and restaurants at the Source: Wall Street Journal, Hotel New s Resource, US Travel Lake of the Ozarks, a vacation hot spot, with little mind for social distancing. Association, PYMNTS, Skift, Travel Pulse, Market Watch US Airport Foot Traffic Trends

United Airlines is collaborating with Clorox and the Cleveland Canada's Fairmont Hotel MacDonald launches social Clinic on a new initiative, United CleanPlus, in order to shape distancing wedding packages. The wedding package efforts to minimize points of contact and promote social called 'Just Me & You, Let’s Say “I Do"' is available distancing for travelers. from June 1 to Aug. 31 and will help couples in planning small summer wedding celebrations, with up Clorox will consult with United on its disinfection practices to 14 people invited. and provide travelers further sanitization amenities. Cleveland Clinic experts will offer advice on all parts of the flying experience to ensure that United stays abreast of the latest practices and technologies.

Las Vegas

Anticipating Pent-Up Demand, Las Vegas has unveiled the city’s “Reimagined” ad campaign Delta that depicts various Vegas Strip imagery and outdoor recreation activities while a voiceover Delta highlights what safety measures states when the time is right, Vegas will are taken inside the airplanes. reopen. The new effort is designed to help keep the destination top-of-mind as other states slowly begin to reopen and travelers begin to plan vacations. So far, there is no date set for the reopening of Las Vegas casinos.

Southwest Airlines

MGM Southwest Airlines shared MGM resorts shared wine serving tips to thoughts from its CEO on get the best at-home wine experience. Southwest’s promise to keep employees and customers healthy.

© 2020 Dentsu Aegis Network 83 Auto Dealership Foot Traffic Sees Fifth Week of Consecutive Growth • Worldwide electric car registrations are set to decrease 18% in 2020, less than anticipated, while those of combustion engine cars are set to drop 23%. • Visitation to auto dealerships increased 5% WoW for the week ending May 17th, showing growth for 5 consecutive weeks. • In addition to the positive impact of “here for you” messaging from automakers taking hold, stimulus payments leading to Americans taking advantage of offers such as no interest leases, and deferred payments, many dealerships are beginning to reopen. • Overall, however, auto dealership foot traffic is down 25% vs. pre-COVID levels. • This Week’s Headlines: • Rental car giant Hertz files for bankruptcy: The rental company is the second largest in the US after Enterprise, based on sales, fleet size, and location. Hertz missed a lease payment last month, and convinced creditors to wait until Friday, May 22nd before declaring a default. Creditors refused to grant another extension. • GM delays resumption of second shift at three North American truck plants: Due to a shortage of parts from Auto Mexico, GM is unable to resume a second shift at its reopened truck plants yet. Mexican auto parts production only resumed this week. • Large pickups accounted for nearly 21% of all light vehicles sold in the US in April. Historically, this pickup segment is 13% to 14% of total sales. • Ford temporarily closes two reopened plants after three workers test positive for coronavirus: The Chicago, Illinois, and Dearborn, Michigan factories build vehicles key to Ford’s profitability, including the Ford Explorer, Lincoln Aviator crossovers, and F-Series pickups. • Nissan and Renault shelve merger plans in order to repair their alliance: The companies have shelved plans to push towards a full merger, and instead are focusing on establishing a more equitable partnership in order to more effectively recover from the pandemic. Nissan has long felt that Renault has not paid its fair share for the engineering work done in Japan. Both car manufacturers are set to announce restructuring plans this week. Source: Bloomberg, CNBC, Ninth Decimal, MediaPost, Reuters • Renault owns a 43.4% controlling stake in Nissan, which in turn owns a non-voting 15% stake in Renault. Auto Dealership Foot Traffic Trends

Uber Eats launches 'Family Style Meals' to save families money on delivery orders. The company’s new feature is located in the Uber Ford donated 200,000 face shields to U.S. military bases, and to Eats app and features meals meant for sharing. Some participating areas where U.S. troops are deployed as part of Memorial Day restaurants will offer a curated menu listing a combination of items promotions, with the hashtag #ProudToHonor. offering value and savings. Others will focus primarily on larger portions that can feed multiple members of your family.

General Motors

General Motors talks about its commitment to electric vehicles and highlights the features of its new battery system for electric vehicles. Mercedes Benz

Mercedes-Benz is planning to unveil 2020 models of its vehicles online.

FCA

FCA highlights various safety features of Jeep Gladiator. According to J.D. Power, pickup trucks and mid size pickups are amongst the top selling vehicle range since the outbreak.

© 2020 Dentsu Aegis Network 87 Retail Sales Plummeted in April, while eCommerce Soared • US retail sales plummeted a record 16.4% in April, following on March’s 8.3% decrease. • The retailers that took the biggest hits in April compared to March were clothing and accessories (78.8%), electronics and appliances (60.6%) and furniture and home furnishing stores (58.7%). • Compared to April 2019, clothing and accessory sales were down 89.3%. • eCommerce continued to soar in April • eCommerce traffic was up 30% YoY in April and 15% MoM. Conversion rates were up 22% YoY and 18% MoM. • Amazon still has the biggest share of online sales overall, but others are gaining ground: Target’s digital sales are up 141%, Walmart is up 74%. • Social media also delivered 89% more traffic to retail sites compared to April 2019. • Apparel and footwear retailers are expected to feel shock from the pandemic into 2021. • Moody’s analysts estimate that EBIDTA for apparel retailers could fall between 50% to more than 100% for the year, as store closures, discounting, and lowered demand take their toll. • In 2021, earnings may still be 15% to 35% below 2019 levels. Retail • Foot traffic to grocery stores and big box stores has levelled off, with a (-9%) and (-6%) decrease WoW respectively. • This Week’s Headlines: • Pier 1 liquidates: After filing for bankruptcy protection in February, the home good retailer filed in May for court approval to end its retail operations and sell its inventory once state closures are lifted. • Target reports 141% digital growth, 278% growth in same-day services during pandemic: Target’s comparable sales rose 10.8% in Q1, with digital sales accounting for 9.9 percentage points of increase of that comparable sales increase. Also heavily contributing to the increase was the 278% growth in Target’s same-day services – pick up, drive up, and Shipt – in Q1. • Simultaneously, increases costs and declines in sales of high-margin products negatively affected Target’s profits: operating income fell by more than 50% YoY to $468MM, while the company’s gross margin rate fell four and a half percentage points to 25.1%

Source: Chain Storage, Retail Div e, AdWeek, Moody ’s • Walmart shuts down Jet.com four years after acquiring it for $3.3B: With Walmart.com sales up 74% according to its last earning statements, the company made the announcement, explaining that Jet.com had been “critical to accelerating our omni strategy.” Grocery Store Foot Traffic Trends

Ikea has designed a set of manuals to fight Squadded Shopping Party lets consumers shop remotely with Amazon built a UV light bulbs-covered robot to kill lockdown boredom, including teaching people friends in online fashion stores. Users of the website can COVID in warehouses and Whole Foods stores. at home how to build fortresses, caves and simply open one of the online fashion stores listed, sign in and wigwams out of furniture and household invite their friends to join their squad, then shop together. items. When adding items to their Squadded wishlist, their friends will be able to interact, give their advice by creating a poll or share their favorite looks and create outfits.

Lowe’s Walmart

Lowe's says finding a dedicated Walmart shared the work of one of its workspace for kids, which would be a department managers who is a "lyrical home for all their school and art genius". The Walmart employee talks supplies, can be tricky at times. The about how we can win the fight against company suggests a project to bring the coronavirus by sticking together. about this transformation on The company thanks the associate for #TransformationTuesday. “showing his spark”.

Macy’s Lululemon Macy's informs customers that the Third in a series of six digital Peace on company raised more than $1M for the Purpose meditation tools in partnership Meals on Wheels America COVID - 19 with the UN Foundation, Lululemon Response Fund that provides meals shares “Responding to Challenge” to and support to the elderly during the help people navigate stressful pandemic. The company thanked situations during the pandemic. everyone for their contribution.

© 2020 Dentsu Aegis Network 93 Designers Call for Shift in Fashion Calendar, Beauty Brands Social Activity Stalls • Many beauty brands have begun disappearing from social media conversations during the pandemic. • Pattern89, an AI platform for digital advertising that tracks paid ads across Facebook and Instagram, has found that images of lipstick across social media platforms has fallen 98% in April 2020 compared to April 2019. Similarly, the word “makeup” has fallen 91%, and the word “stylist”, 92%. • Designers and retailers are calling for a shift in the seasonal fashion calendar in order to deliver clothing to stores in the relevant season. • The traditional seasonal fashion week calendar revolves around cruise, pre-fall, Spring/Summer, and Autumn/Winter shows, shown many months ahead of the actual seasons in order to allow for retail buying. • Gucci has announced plans to shift to a twice-yearly schedule showing seasonless clothing. Luxury • This Week’s Headlines: • Antiviral fabrics receive attention from luxury shoppers: Albini Group, a leading fabric supplier for companies such as Armani, Prada, and Zegna, has developed a new fabric in collaboration with Swiss & Beauty textile innovation firm HeiQ. Tests with a virus similar to COVID-19 called 229E demonstrates that the chemically treated fabric can likely destroy coronaviruses a few minutes after contact. • Burberry profit falls by more than 50%: Store closures and stock writedowns weighed dragged down profit margins, but the luxury retailer sees a strong recovery in parts of Asia. • Amazon breaks through into designer fashion: Once an unlikely partner to high-end fashion, the global pandemic has prompted many luxury brands to rethink their stances on Amazon. The CFDA brokered a deal for American designers to sell on the platform, while Amazon is also in talks with the British Fashion Council.

Source: Vogue Business, Variety , AdAge, Adweek Brand Actions | Luxury & Beauty

CRA-Carlo Ratti Associati unveils Pura-Case, a portable Amazon, Vogue, and the Council of Fashion Designers of America Ulta Beauty has announced the launch of a new wardrobe purifier that uses ozone to remove most micro- have partnered on digital storefront help designers impacted by the organisms, bacteria, and viruses from clothes and fabric. The pandemic. Entitled “Common Threads: Vogue x Amazon Fashion,” GlamLab virtual try-on feature as an alternative to product testing in-store, even as the chain of beauty project aims to address the needs of the “new normal”. Once the site will offer products from 20 creatives including Adam stores reopens 180 of its doors. a piece of garment is hung inside the case, an air purification Lippes, Batsheva, Derek Lam, and Alejandra Alonso Rojas.Amazon system by ozone treatment cleans and deodorizes the Fashion is also donating $500,000 to a CFDA/Vogue Fashion Fund fabrics. initiative to help fashion manufacturing workers such as pattern makers and tailors.

© 2020 Dentsu Aegis Network 95 Coronavirus Contact-Tracing Apps Begin to Roll-Out • Switzerland launched the first coronavirus contact-tracing app using Google and Apple’s joint exposure notification API, The Swiss Army. Hospital workers, and civil servants can now install SwissCovid. • The notification system is designed to alert individuals to potential exposure to confirmed cases of COVID-19, while preserving location and identity data privacy. Currently, public health agencies can use the API in apps released to the general public. Google and Apple have already granted API access to multiple US states and 22 countries across 5 continents. • However, while Switzerland welcomed usage of the API and its data, rollout of similar technologies in other countries, such as the United States, requires legislative approval and participation • This Week’s Headlines: • Facebook launches Facebook Shops: Facebook Shops, a free platform, will allow business to set up product listings on their Facebook Page, Instagram Stories, or in ads. Eventually, the platform will enable High-Tech businesses to sell to customers through the chat features of Facebook Messenger, WhatsApp, and Instagram Direct Messages. & B2B • Facebook to reopen offices at 25% capacity starting in July: The reopening will involve employees working in multiple shifts and taking temperature checks. Facebook will limit meeting room capacities, create 6-foot berths around work stations, keep office gyms shuttered, and replace cafeteria buffets with grab-and-go meals. • Facebook’s earlier announcement allowing employees who are able to work remotely through the end of 2020 still stands. • Shopify announces new products: The new releases include Shopify Balance, a merchant account with no fees and no minimum balances, and Buy Now, Pay Later, allows merchants to give customers the option to split their payments into four equal installments with no interest or additional fees.

Source: CNBC, Bloomberg, Tech Crunch, Shopif y , BBC Brand Actions | High-Tech & B2B

Facebook recently announced “Facebook Google Maps is encouraging consumers to Adobe and Live Nation launched a video-editing contest to Shops,” a feature offering organizations free “take a virtual travel day” with its mascot, celebrate Marshmello’s latest single, Be Kind. Fans are invited to digital storefronts directly through Facebook “Pegman from #StreetView.” The company is create a short video based on bringing kindness to the world and Instagram. Shops was created with the highlighting spots around the world as it urges using Adobe’s video-editing applications including Premiere Pro intentions of supporting small businesses by those staying at home to explore the “Street and After Effects. Ten winners will have their creation included giving them the means to feature View” feature in its app. A 1-minute video was in an official fan video and win an Adobe Creative Cloud merchandise. Businesses will be able to shared on their socials to show users Street subscription, while the grand prize winner will also receive a connect with customers through WhatsApp, View capabilities. virtual meet and greet with Marshmello. Messenger or Instagram Direct to answer questions, offer support and more. The challenge is part of the “Adobe Creativity Tour,” an ongoing partnership between Adobe and Live Nation. Additional challenges will be announced during the summer.

SAP Salesforce Salesforce highlights its newly SAP talks about strategies for small launched Work.com and how it can businesses to navigate the current help businesses to safely reopen. It business environment. also highlights some of its features.

Nokia Oracle Nokia achieves world-record 5G Oracle talks about how much speeds in tests performed on base businesses are saving by leveraging station equipment that was being their cloud services. It also provided a deployed in major US carriers' link to a calculator so users could commercial networks. The company compare costs. shared updates about its achievement.

Dell Juniper Dell shares an update about its Juniper is hosting its online event, partnership with Google Cloud Juniper Summit in June. This event will platform. This partnership aims to focus on new technologies for develop more robust and integrated networking and communications. cloud solutions.

Samsung Electronics Cisco Samsung shares update about the Cisco shares highlights how it can help expansion of its chip making factory. connect temporary field hospitals at mobile, pop-up, or drive-through locations.

Sources: Twitter

© 2020 Dentsu Aegis Network 99 Primary Care Practices Face Uncertain Futures, Healthcare Marketers Shift Priorities • Healthcare marketers’ media spending and paid advertising is down 38.5%. • The pandemic has also shifted the type of marketing initiatives prioritized by healthcare marketing teams. Crisis communications is now the top priority for 48% of healthcare marketers, compared to 32% before the pandemic, followed by content marketing and email marketing. The two biggest drops in healthcare marketers’ priorities due to the pandemic were in paid advertising and branding. • In midst of pandemic lockdowns, primary care physicians throughout the country face pay cuts, furloughs, short supplies, and potential permanent closures. • 51% of primary-care physicians are uncertain about the financial future of their practice, while 13% may close their doors over the next month. • Such closures would leave communities unequipped for a second coronavirus outbreak, result in lowered vaccination levels for children, and the foregoing of treatment by chronically ill patients. • While many physicians have applied for PPP, no dedicated federal money has been set aside to support Health & primary care during the pandemic. • From telehealth to remote monitoring tools, digital health companies are experiencing a huge surge in growth, Wellness bolstered by a health insurance industry that is now paying for these non-traditional services while sheltering in place, • Teladoc competitor American Well (Amwell) just raised almost $200 million in private capital, and Omada Health, which helps patients manage chronic disease, raised $57 million. Virtual mental health is another hot area: Mindstrong announced a $100 million financing, after LifeStance pulled in $1.2 billion in April. • This Week’s Headlines: • WHO agrees to independent review of pandemic response: More than 100 countries have called for an independent review of WHO’s handling of the pandemic. • Gilead to start selling Remdesivir in coming weeks: Gilead Sciences’ initial donation of 1.5MM doses of Remdesivir, a broad-spectrum antiviral medication used in experimental COVID-19 treatment, will be exhausted by early summer. After that, the biotech firm will begin charging for the drug, citing potential for a “multi-year commercial opportunity.” Source: CNBC, US News, Fierce Pharma Brand Actions | Health & Wellness

New York state has partnered with drugstore giant CVS California-based tech company NetObjex launched an app to Health to double capacity of COVID testing to reach help US workers return to work by enabling people who test 40,000 COVID diagnostic tests per day. The drugstore positive for COVID-19 antibodies to get a TSA PreCheck™ style chain and other pharmacies have highlighted they have clearance. The app, called COVID PreCheck, uses secure health professionals and real estate like parking lots to blockchain technology to connect the verified identities of users safely conduct tests for Americans. with their test results, and upon verification, displays a QR code which can then be shown to employers.

GSK

GSK talks about how the company is Roche working to fight against COVID - 19. In Roche is assisting those on the one of its facilities the company is frontlines of COVID - 19 by working conducting large-scale testing, with with some of the main hospitals to samples being transported daily to its supply protective gear for healthcare labs from hospitals and medical staff. centers.

Novartis Cleveland Clinic Novartis says that it is committed to Science Based Targets (a joint As employees are returning to offices, initiative by CDP, UN Global Compact, Cleveland Clinic gathers resources WWF, and WRI that enables from experts in the field as well as the businesses to take swift climate action CDC to help employers develop and by setting ambitious emissions) and implement plans to ensure workplace believes in ambitious climatic actions to safety during the pandemic recover from COVID-19.

© 2020 Dentsu Aegis Network 102 Plant-Based Meat Alternatives Trending, Shifting The Norm in the Food Industry • Plant-based eating has become a huge movement in recent years, with US sales of plant-based foods having grown grown 11 percent in the past year, bringing the total plant-based market value to $4.5B. • With meat scarce and more expensive during the pandemic due to meat processing plant shutdowns, consumers have shown increased interest in a vegan lifestyle. • As the closing of restaurants, hotels, and schools have left farmers with no buyers for more than half of their crops, farmers have been dumping fresh milk, tossing eggs, and plowing under millions of pounds of ripe produce back into the soil, following on the heels of weeks of concern about food supply shortages during the pandemic. • Dairy Farmers of America, the country’s largest dairy cooperative, estimates that farmers are dumping as many as 3.7 million gallons of milk daily. A single chicken processor is smashing 750,000 unhatched eggs every week. • This Week’s Headlines: • FDA loosens food labelling restrictions due to supply chain shortages: To minimize supply chain disruptions and CPG give producers more flexibility, the FDA is allowing food manufacturers and vending machine operators to temporarily sub product ingredients in and out without updating their labels as long as the food item doesn’t contain gluten, sulfites or food allergens. • Orange juice sales skyrocket, as consumers look for a natural immunity boost: US orange juice retail sales in the four-week period ending April 11 increased 46% YoY to 44 million gallons, the most since January 2015. This spike in orange juice consumption can be attributed to consumers seeking natural immunity-boosting remedies. • Despite the high demand, adverse weather has made it difficult to produce and distribute oranges, causing prices to increase by as much as 2.7% to $1.27 per pound, from the usual 94 cents per pound. • Other citrus drinks are also seeing significant sales growth. Natalie’s Orchid Island Juice has seen their sales of orange and grapefruit grow 50% in the second half of March.

Source: FoodDive, PR NewsWire, Fox Business Brand Actions | CPG

Chobani is teaming up with Seamless to get some of its products into New Yorkers’ homes Coors Light launched the Clone Machine tool to help Unilever is relaunching a self-sanitizing shopping while supporting City Harvest, a local food remote workers create their own convincing body cart handle that slides across shopping cart rescue organization. Consumers can order $12 doubles for their video calls. With the tool, users can handles and dispenses a thin layer of disinfectant pantry care packages that include four cups of save a :30 video and use it as a Zoom background for between-use cleaning. Chobani Greek yogurt, a carton of Chobani the next time they need to escape. Oat Plain Barista Edition and a product from one of the yogurt marker’s incubator brands. To date, Chobani says it has donated more than 4 million cups of yogurt since the pandemic hit.

Bed Bath & Beyond Unilever Bed Bath & Beyond announces its new Unilever partnered with Heineken in Brazil, initiative, Bringing Home Everywhere, that to produce a special line of Cif sanitizing will provide $10M in essential home items cleaner to help vulnerable families during to those on the frontlines of the pandemic this time of crisis. and communities in need.

PepsiCo Mars Incorporated PepsiCo talks about Stacy’s Rise Project that supports female-founded businesses through Mars talks about its efforts to respond, funding, mentorship and community. The recover and build resilience for all company believes that these resources stakeholders so that people throughout would help today’s women succeed, the value chain can thrive during the crisis especially when it is becoming difficult to as well as bounce back after the thrive during the coronavirus crisis. pandemic.

© 2020 Dentsu Aegis Network 105 Americans Remain Hesitant to Return to Restaurants • Many Americans plan not to return to dining out even after businesses reopen. This hesitancy will hobble the speed of economic recovery. • Only 42% of those who went to concerts, movies, theaters or sporting events at least monthly before the outbreak said that they would do so in the next few weeks if they could. The rest claim that they will not feel comfortable attending public gatherings for a very long time. • This Week’s Headlines • Postmates adds curbside pickup: This option joins Postmates’ pickup, delivery, and non-contact delivery options, and is an option both for how customers looking to pick up directly from a restaurant and for how restaurants to offer to their customers and drivers. The company claims this method is an Restaurants industry-first. • McDonald's warns franchisees impacted by pandemic of potential to downsize or sell: Due to the pandemic’s significant financial impact on restaurants, it would take millions of dollars for McDonald’s to help all of its struggling US franchises. While McDonald’s will offer temporary funding on a case-by- case basis, franchisee owners must work with headquarters to find a “suitable financial solution,” with downsizing and closures on the table as options. • Bars and restaurants want alcohol delivery to be permanent once pandemic is over: Restaurants and bars are hopeful that the rules can be extended permanently for businesses to sell liquor to go, as it is significantly helping their sales. States are each able to make up their own rules around alcohol and how it can be distributed.

Source: Restaurant Dive, Fox Business, Eater Quick Service Restaurants Foot Traffic Trends

The fast food giant posted on social media that some Chipotle Mexican Grill is leaning heavily on the flexibility of On May 19th, Krispy Kreme gave away dozens of doughnuts restaurants in Germany are handing out DIY social its app and build-your-own meal menu during the to 2020 graduates who showed up at its shops in their caps distance crowns to enforce safety, and to remind guests coronavirus pandemic. The company continued that trend and gowns. The one-day offer was a hit according to the to practice social distancing in a fun and playful way. by highlighting special customization tools on the brand’s chain, which says hundreds of thousands came out to app. The feature, called Complete Customization, allows participate and that it turned off paid media because the customers to swipe on each ingredient to choose portion word-of-mouth momentum and plenty of local news sizes. coverage was strong enough to spread the word.

Chili’s KFC Chili’s says that it is taking steps to ensure As people are locked down at home/social customers’ safety and says that it has their distancing, KFC suggests a few unusual, back. The company laid out the steps it but appropriate for now, places for family has taken, like curbside/to-go, team picnics on Memorial Day, with KFC’s Meal member safety, maintaining 6 feet for Family. distance, and the like to ensure safety and cleanliness.

Sweetgreen Chick-fil-A Sweetgreen talks about the strict safety As customers are preferring deliveries or standards the restaurant is following to pick-up than dining in, an associate from ensure safety inside and outside their Chick-fil-A creates a musical moment in the dining rooms, to enhance “SG drive-thru. The company appreciated the Experience.” gesture and thanks the associate.

© 2020 Dentsu Aegis Network 110 French Court Rules on Business Interruption, Online Traffic to Insurance Agencies Increases • Online traffic to insurance agency websites has crept upwards over the past weeks, above expectations and historical records • This increase underscores the importance in insurance agencies providing effective digital services to support existing customers, acquire new customers, and ensure the success of their own businesses. • This Week’s Headlines: • Coronavirus continues to shake up the workers' compensation market: Each state’s response to workers compensation in the midst of swift unemployment has differed, with potential long-term impacts for the workers’ compensation insurance marketplace. • For instance, the Illinois State Workers’ Compensation Commission voted in April to repeal an emergency ruling that automatically presumed frontline workers who contracted the virus had Insurance done so at work, even if working remotely or not on the job. This move was lauded by insurers. • AXA to pay business interruption claims to restaurants in France after court ruling: A Paris court ruled that insurer AXA must pay Stephane Manigold, a restaurant owner, two months of COVID-19 related revenue losses. • Manigold filed his lawsuit demanding AXA cover his operating losses after the government closed all bars and restaurants in mid-March. AXA initially maintained that only a small number of its clients in the French hospitality sector were covered for pandemic related losses due to special policies purchased previously. • This ruling may set a precedent for business interruption cases to come. If all COVID-19 related losses were ruled coverable by insurance in France, insurers would have to provide compensation of $21.8B per month affected.

Source: Insurance Business Magazine, Wall Street Journal , Insurance Journal Brand Actions | Insurance

Wealth management company StashAway, fintech company Revolut, and insurance broker PolicyPal have joined forces to launch Medical Energizer, a Singapore-based programme to support medical frontliners in terms of finance, Like many insurance carriers, Geico is providing its car insurance insurance and rides benefits. Revolut, a Visa partner, will offer medical customers a break on premiums. With most of America under personnel 3% cashback for every transaction made on their Revolut Visa cards stay-at-home orders, driving is significantly down -- and so are without any caps and up to SG$50 (US$35) ride rebates per week for any ride- accidents. Geico said its policy will give customers a 15% credit sharing services or taxi ride. Medical personnel are also eligible to receive free on six-month policies when they are renewed or if they were investing for six months from StashAway. started between now and Oct. 8. Meanwhile, PolicyPal will offer Personal Accident COVID-19 insurance with a diagnosis benefit of SG$3,000 (US$2,108) and up to SG$2,000 (US$1,405) outpatient medical expenses reimbursement.

Chubb Allstate Chubb donates $1.5M to Feeding To encourage medically trained America to help individuals and families Allstate employees help on the fighting hunger during the pandemic. frontlines, the company provides The company shares a list of food these employees six months of leave. banks and communities benefiting from the donation.

American Family Insurance State Farm State Farm says that it keeps trying to American Family Insurance, on Twitter, talks explore avenues to help customers about the steps the company is taking to during these times of crisis. Hence, the help employees, customers and communities company is reducing auto rates in every during this time of crisis so "they can keep state, which sums up to $2.2B of dreaming." customer savings.

© 2020 Dentsu Aegis Network 113 Large Minority of Nonprofits Suspending Services, Eliminating Positions • According to the Unemployment Services Trust, a provider of HR and unemployment-insurance services for non-profits, 13% of American nonprofits have suspended all or most of their operations, and nearly 17% have eliminated or reduced positions. • Nearly 43% have modified their operations extensively without eliminating positions, while slightly more than 27% have made no changes • Arts and culture nonprofits are facing a huge drop in revenue with their traditional in-person fundraisers and events on pause. • Even with reduced payrolls, the 35,000 organizations in the US that qualify as arts and culture nonprofits are still expected to face a deficit of $6.8B • This Week’s Headlines: Nonprofit • COVID-19 Solidarity Response Fund awards $20M to WFP: The WHO’s COVID-19 Solidarity Response Fund has announced a $20M grant to the World Food Programme. The grant will support the scaling of global logistics distribution systems, which are delivering health and humanitarian supplies to area with the greatest need during the pandemic. • Forbes ranks corporations COVID-19 response policies and philanthropic involvement: Notable philanthropic donations by corporations included AT&T’s $10M donation in support of online learning resources and Starbucks contributing $3M to the United Nations Foundation’s COVID-19 Solidarity Response Fund and Give2Asia.

Source: The New York Times, The Non- Profit Times, Philanthropy Digest Brand Actions | Non-profit

Launched by the United Nations Foundation in partnership with the Swiss Philanthropy The tech giant shares an eight-story building in Seattle with a nonprofit Foundation, the COVID-19 Solidarity Response Fund has raised more than $210 called Mary’s Place to open a unique new type of homeless shelter, million and disbursed over $115 million to date, including $10 million to UNICEF to serving 200 people. The building is divided in half lengthwise: half of it is strengthen health and sanitation systems and $10 million to the Coalition for Epidemic divided for use by Amazon, the other side is used by Mary’s Place. Preparedness Innovation (CEPI) in support of the rapid development of a vaccine.

Habitat For Humanity American Red Cross In order to gain more supporters, American Red Cross, through an Habitat for Humanity asks supporters to share ‘+me’ selfie with the example of a patient who needs regular #HabitatforHumanity hashtag in blood transfusion, highlights how the exchange for a chance to win $50 gift pandemic has impacted them. cards.

Qlik Doctors without Borders Direct Relief in partnership with Qlik Doctors without Borders updated launched an app to understand the spread customers about its weekly talk where of COVID-19 alongside population, social aid workers and medicine, research and vulnerability statistics and facility logistics experts answer questions about information. the humanitarian impacts of COVID-19.

• A day in the life of an essential worker in NYC, as featured in The Atlantic.

• An expose by CNN on how the people at greatest risk from COVID-19 don't look like the people in power.

• A global view on the digital divide from the World Economic Forum.

• A recent survey published by The Harris Poll that shows how life with coronavirus has shifted urbanite’s perception of living in the city.

• A perspective on Gen Z’s future trials in The New York Times.

• TIME Magazine interviewed the Class of 2020 about their future, in their own words.

117 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

For more information about Dentsu, please contact [email protected].