Nextdoor Insight Series #5: The changing consumption patterns of U.S. neighbors April 2021 Introduction Methodology For the 5th Nextdoor insight series, we All figures in this report are place the spotlight on U.S. neighbors – drawn from GWI’s online 03 Key insights consumers aged 16-64 who have used research among internet users the Nextdoor app/platform in the last aged 16-64. They only interview month. This report focuses on: respondents aged 16-64 and 04 Changing lifestyle figures are representative of Finances – How has this group handled the online populations of each and financial outlook their finances amid the pandemic? market, not its total population. What changes have they made to their daily spending? Each year, GWI interviews over 09 Changing spending patterns 100,000 U.S. internet users aged Media & lifestyle – What are their daily 16-64 via an online questionnaire In this habits, and how have these changed for their Core dataset. Among 16 Vertical spotlights: throughout 2020? What types of media this cohort, there were 4,518 do they spend most of their time on neighbors in the U.S. in 2019, and Missed Nextdoor’s report Auto, CPG, dining, finance, home each day? 7,462 in 2020. improvements, retail, telecom, travel past Insights series? Purchasing behaviors – What was the Indexes are referred to Find them below: impact of COVID-19 on their purchasing throughout this report. Indexes 31 Appendix behaviors and attitudes? How do they are used to compare any given Insights series #1: prefer to shop now, and what are they group against the average (1.00), In an era of social distancing planning for future purchases coming which unless otherwise stated neighborliness is on the rise out of the pandemic? refers to the market average. 32 Methodology Insights series #2: For example, an index of “1.20” Strength in neighbors Brand preferences – How have means that a given group is Insights series #3: neighbors’ expectations of brands 20% above the market average, It starts with a wave changed throughout COVID-19? What and an index of “0.80” means can brands do to better that an audience is 20% below Insights series #4: appeal to them? the market average. 2020 brought us home 02 Key insights They tried new Online shopping is Neighbors hobbies at home and at an all time high, They’ve become more have become but will it last? conscious shoppers spent more time on ‘accidental savers’ media – but most of Neighbors’ online shopping boomed The pandemic has shifted what through the pandemic, and the share of neighbors want from brands. They’re Neighbors put unnecessary spending it was short-lived purchases they made online has grown making more conscious efforts to support on hold in 2020. They acted financially across categories. That said, neighbors local and independent businesses, and cautious and built up cash reserves More time at home meant neighbors’ seem to be craving the in-store experience are demanding brands to behave in a they’ll be looking to spend as their adopted new hobbies and spent longer once again and are losing enthusiasm for more socially and environmentally confidence grows. consuming media. online shopping. responsible manner. 03 01 Changing lifestyle and financial outlook 04 Savings and 1 Positive outlook for finances 2 investments % of neighbors who think their personal finances will get better in the next 6 months % who have savings/investments Aveage Uan Suuan RRua Aveage 1634 eas 35 eas 52 33 37 41 52 33 37 41 56 32 38 47 69 40 44 53 52 35 36 39 47 31 34 37 46 24 43 33 85% 2019 Changing financial outlook Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Along with the rest of the world, neighbors’ 2020 2020 2020 2020 2020 2020 2020 2020 financial confidence suffered as a result of the 88% COVID-19 pandemic. 2020 When the world first went into lockdown, Aveage Femae Mae neighbors’ financial outlook for the next 6 months 52 33 37 41 was bleak. Neighbors reacted by cutting back 51 30 33 39 on unnecessary spending and delaying any large 55 39 46 45 purchases. This cautiousness has paid off and Neighbors have become their financial outlook has now improved, though ‘accidental savers’ – but they’re still yet to be as financially confident as 4 in 10 neighbors they were. Rural and female neighbors are the reduced spending on they’re not as financially least positive about their financial outlook. non-essentials due to confident as they were Cut backs in daily spending have meant some the pandemic Q1 Q2 Q3 Q4 before the pandemic neighbors have become ‘accidental savers’, 2020 2020 2020 2020 building up reserves of cash they’ll be ready to spend once the pandemic subsides. GWI 2019-2020 (avg. of waves conducted between Q2 2019–Q4 2020) 4,518 (2019), 7,462 (2020) neighbors in the U.S. aged 16-64 Changing lifestyle and financial outlook 05 Changing interests & hobbies 3 % of neighbors who are... Changing leisure time 100 Exerising at east tie a ee Neighbors, like the rest of the There’s evidence that many of to get back to eating out at Interested in cooking world, had to adjust and adapt these behavioral changes are restaurants, and they were around Interested in live events their daily lives during lockdown. actually short-lived. Across most 20% more likely than the average Interested in gardening Without the option to go out behaviors and interests, we saw U.S. consumer to be keen to get 80 to restaurants or events, they a peak during the first couple back to visiting cinemas. Eating fast food weekly explored new hobbies at home. A quarters of the pandemic, but Eating ot at restarants ee March 2021 Nextdoor poll found this has dropped off slightly. Interest in live events declined isitng the inea onth that 42% of neighbors took up While part of the decline could heavily throughout the year, but a new hobby because of the potentially be attributed to the rose slightly through the summer – 60 pandemic, with rates rising to changing of seasons, it may also perhaps in part due to neighbors’ around 50% in New York. be in part due to the country higher comfort with outdoor rather slowly re-opening to varying than indoor events. In February Exercising became more of degrees and people adapting to 2021, 71% of neighbors were a priority, and many took up a new ‘normal’. uncomfortable with the idea of new hobbies like cooking and large indoor events, compared 40 gardening. In the absence of What’s interesting is there are to 65% who were uncomfortable dining out, fast food consumption signs that getting out has, at least with large outdoor events. This took off too, as local restaurants temporarily, lost its attraction. change suggests that in the began diversifying and offering Neighbors are less likely to describe coming summer months neighbors take-out options. People also themselves as social/outgoing may show higher interest in these 20 turned to the Nextdoor platform now than they were, suggesting events again – especially as more to connect with others during this the pandemic has led to a ‘FOGO’ neighbors qualify for and receive time, and some of the fastest (fear of going out). That said, once the vaccine with continued rollout. growing groups were centered restrictions ease, neighbors seem Looking ahead, in March 2021, GWI Q4 2019 – Q4 2020 around helping neighbors to find relatively keen to get back to a 28% said they were most looking 4,518 (2019) & 7,462 (2020) 0 neighbors in the U.S. aged 16-64 . new normal. forward to attending music platonic or romantic relationships In March 2021, 44% 4 1 2 Q3 4 of neighbors said they are excited concerts once restrictions ease. 2019 2020 2020 2020 2020 Changing lifestyle and financial outlook 06 Hobby uptake through the pandemic 4 Desired activities post-lockdown 5 % of neighbors who said the pandemic led them to take up a new hobby % of neighbors who are most looking forward to doing the following when restrictions end 42 49 46 45 44 43 44 36 28 21 20 19 15 IDX 104 IDX 121 IDX 0.98 IDX 103 IDX 087 IDX 100 IDX 0.94 Eatng at a stng the Attending ong to ong to the stng Getting a restarant cnema msc pbsbars gm msems harctbeat concerts treatment GWI March 2021 Zeitgeist 318 neighbors in the U.S. Index figures are versus average U.S. consumer and show likelihood of doing/being something e.g. 1.21 = 21% ahead of average Average Ne or alorna eorga Washngton North arolna In March 2021, 53% Since the start of the Nextdoor March 2021 member poll among 44,005 respondents of neighbors said pandemic, the proportion they wanted to have of neighbors who describe In a March 2021 Nextdoor member poll, 42% of neighbors the vaccine as soon themselves as ‘social/outgoing’ said that the pandemic had led them to take up a new hobby as it’s available has fallen from 46% to 42% Changing lifestyle and financial outlook 07 Changing media behaviors 6 Neighbors average time spent on the following (h:mm) 2:57 3:09 2:25 2:49 1:51 2:00 1:22 1:30 1:12 1:32 0:41 0:55 Changing media time 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 With stay-at-home orders issued, with other social platforms, especially neighbors found themselves with more with newer and ‘younger’ services 16% of time on their hands.