Taking the Pulse | COVID Crisis Navigator · moving through and responding to the various stages of the crisis and how brands can best respond. This is the sixth iteration of Dentsu’sCOVID

Taking the Pulse | COVID Crisis Navigator

May 13, 2020

D E N T S U A E G I S N E T W O R K

IntroductionMapping Consumer Signals to Offer Marketing Guidance

As the scale and impact of the COVID-19 outbreak unfolds, consumer attitudes and preferences are evolving in tandem.

To help marketers navigate the shifting road ahead, Dentsu will be regularly publishing findings from a consumer survey. We will map how consumers are moving through and responding to the various stages of the crisis and how brands can best respond.

This is the sixth iteration of Dentsu’s COVID Crisis Navigator. The content highlights shifts in consumer behavior and sentiment since the previous report, interpreting what those signals mean for advertisers and marketers.

You can read previous waves of the COVID Crisis Navigator on our website.

https://www.dentsuaegisnetwork.com/us/en/covid-19


Survey Methodology

This survey was administered through Toluna, an online research panel, on May 8, 2020. Conducted by Dentsu, this survey was distributed among a 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.


• Recapping Recent Events

• Our Framework: The Stages of Crisis Response

• Breakout: Attitudes On Reopening The Economy

• Trending The Data: Core Tracking Questions

• How Brands Can Meet Consumer’s Shifting Needs

• Key Themes & Implications

Agenda








Agenda


Recapping Recent Events: Economy vs. Public Health The worst economic hardship the country has seen in recent history is not only continuing to impact consumers but accelerating the decline of major US retailers. To stem the economic crisis, a majority of governors have moved to partially reopen their state’s economy, despite the potential to exacerbate the health crisis.

Unemployment Rising (Economic Growth Slowing)

Major Retailers File For Bankruptcy

State Gov’ts Push Ahead With Reopening (Despite Little Progress)


Executive Summary:

Figuring it Out

The last week in March, COVID was the number one thing on consumers’ minds. Although the health crisis appeared to be worsening, consumers had not yet internalized the extent of the crisis and grappled with how they should feel (neither positive nor negative). As stay-at-home orders went into effect at a large scale, they made clear that brands were expected to help them navigate this “new normal.”

Uncertainty at its PeakFaced with record job losses and a shift in tone from the gov’t, consumer outlook rapidly deteriorated. As they continued to worry about the health crisis, they also felt a loss of control over their personal lives and finances as well. Media consumption hit an all time high as consumers sought distraction from what they viewed as a worsening situation. Brands were expected to respond and applauded for taking action.

In Search of StabilityWe saw a nation in search of stability. Consumer sentiment trended slightly less negative as they fought to regain control over their personal lives. We saw spending patterns flatten, time spent with media reach a saturation point, and a heightened desire for normalcy. Consumers have come to not only expect brands to act but are paying close attention to how brands respond to the pandemic.

Seeking Signs of ProgressUncertainty continued to hang over the heads of consumers’ every day lives, making it hard for people to hold a positive mindset. Household spending saw the biggest declines to date as the economic crisis continued its grip on American society. Amid everything, brands are being held accountable for doing right by their employees.

Sending Mixed SignalsAs the country tentatively reopens, consumers are torn. On one hand, their outlook is improving, and many want the economy to reopen; on the other, they recognize that health must be prioritized and feel uncomfortable without the guarantee of a vaccine. Division carries over into how they view advertising – half want brands to continue acknowledging the crisis, while the other half want brands to move on.

March 27 April 3 April 9 April 17 April 24

1 2 3 4 65

May 8

In a Continued Holding PatternConsumers appear to have stalled for the past three waves of the survey, unable to mentally move towards recovery even as states’ economies reopen.

As economies reopen, we do see activity resume, however, consumer concern and unease remains.

While they view the crisis as stabilizing and are determined to “get through it” consumers show little sense of optimism and normalcy remains out of reach.








Agenda


Our Framework: The Stages of Crisis ResponseOften, 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 outbreak is spreading. I am uncertain about how it might

impact my day to day life. I am feeling confusion, fear or anger

about preparing.

I am modifying my daily routine. There are moments of

frustration and anxiety, but I’m trying to focus on what I can

control.

I am moving towards settling into a new routine while the

outbreak is evolving. My routine is starting to feel familiar.

I feel there has been progress to reduce the outbreak in the

nation and my community. I am slowly starting the journey back

to my normal routines and schedules.

I am fully reconnected to work and life without having the threat of the outbreak hanging over me.

I am back to my routine from before.

INITIAL SHOCK COMING TO GRIPS LIVING A NEW NORMAL

MOVING INTO RECOVERY

POST- CORONAVIRUS LIFE


Wave 4: The shock wears offAfter seeing a steady influx of respondents identifying with Initial Shock, wave four of our survey indicates a turning point may be in-store. Living a New Normal has incrementally climbed each week, while Coming to Grips sees a renewed influx of respondents.

% of Respondents Who Identify With Each Stage:

24% 33% 26% 10% 7%

25% 42% 25% 3% 4%

27% 32% 28% 5% 7%

18% 36% 33% 8% 5%

MAR. 27

APR.3




APR.9

Q. When it comes to a public health crisis such as the COVID-19/coronavirus outbreak, there are often “phases” of how the response unfolds. Thinking about how the outbreak has impacted you and your daily life, which of the following phases best describes your current situation?

APR.17

PAST FOUR WAVES:

Source: COVID-19 Crisis Navigator: Wave 6 by Dentsu Aegis Network.


Wave 5: In wait & see mode, but anxious to move forwardThis week reveals that Americans feel they have entered a holding pattern. There is little movement across the board. We see a trickle of movement into Moving Into Recovery and Post-Coronavirus Life, as states discuss reopening and anxiety about returning to normal builds.


25% 42% 25% 3% 4%

27% 32% 28% 5% 7%

18% 36% 33% 8% 5%

23% 28% 30% 10% 9%

APR. 3




APR. 9


APR. 17

APR. 24

PAST FOUR WAVES:



Wave 6: In a continued holding patternConsumers appear to have stalled for the past three waves of the survey, unable to mentally move towards recovery.


27% 32% 28% 5% 7%

18% 36% 33% 8% 5%

23% 28% 30% 10% 9%

22% 29% 32% 11% 6%





APR. 9

APR. 17

APR. 24

MAY 8

PAST FOUR WAVES:


*To see all six waves, please see the appendix.


Wave 6: In a continued holding patternWe wanted to look deeper into Initial Shock as we were surprised that respondents had not moved into subsequent phases. Here is what we found:


27% 32% 28% 5% 7%

18% 36% 33% 8% 5%

23% 28% 30% 10% 9%

22% 29% 32% 11% 6%





APR. 9

APR. 17

APR. 24

MAY 8


Further analysis revealed that the shock is not so “initial” for respondents identifying in Initial

Shock.

Instead, these respondents appear to be unable to move forward: They are more likely

to be personally impacted by the crisis, feel angry about their current situation, and call for

an immediate reopening of the economy.

For deeper analysis, see our audience segmentation.








Agenda


The economic crisis has been growing in consumers’ mindsThe health crisis continues to be the top national issue on consumers minds. At the same time, it’s clear that since this crisis began, consumers are much more concerned about the US economic landscape, including unemployment.

Q. Please pick the top three issues, in priority order, currently most concerning to you.

59%

48%

43%

22%20%

17%19% 18%

17%

14% 13%10%

63%

50%

34%

21%

17% 17%20%

18% 17% 18%

13% 12%

63%

42%

32%

22%19%

17%19% 20% 19% 19%

14% 13%

COVID-19/coronaviru shealth cris is

US Economy Unemployment Climate Ch ange Income Inequality Freedom ofMovement

US Political Landscape Immigration Gu n Control Terrorism Gen der Equality Reproduct ive Rights

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

May. 8 Apr.9 Mar. 27


+11 pts

+6 pts


State economies are beginning to reopen at a local levelA majority of respondents report that their community is either continuing to follow stay-at-home orders or businesses have partially reopened. A smaller portion report that their community is fully reopened.

45%

44%

11%

Current Status Of Respondent’s Communities

My community is continuing to follow STAY @ HOME ordersMy community

has PARTIALLY reopened for business

My community has FULLY reopened for business

Q. Which of the following best describes how your community is approaching “reopening” for business:



Overall, most consumers anticipate reopening the economyHolding steady with wave 5 findings, a majority of consumers want to cautiously reopen the economy, followed by a third who wish to continue following stay @ home orders and a fourth desiring a full reopening.

Q. Recently, there has been a push to reopen the US economy – meaning lift stay-at-home orders and let businesses reopen – how do you feel about that?


27%

38%

35%

April 24

65%Want to reopen the economy in some capacity

Attitude On Recent Push To “Reopen The Economy”

Let’s reopen the economy already!

Let’s start to reopen, but take a cautious and slow approach

I feel that we should continue to follow

stay-at-home orders

May 8

42%

33%25%

I feel that we should continue to follow

stay-at-home-orders

Let’s reopen the economy already!

Let’s start to reopen, but take a cautious

approach

67%Want to reopen the economy in some capacity

+2 points since last fielded Apr. 24


However, their local response influences consumers’ opinionsConsumer’s attitude towards reopening appears to be heavily influenced by how their local government is approaching it, with respondents over-indexing for actions that match their current circumstances.


Q. Recently, there has been a push to reopen the US economy – meaning lift stay-at-home orders and let businesses reopen – how do you feel about that?

Those Under Stay @ Home Orders

Those In Partially ReopenedCommunities

Those In Fully ReopenedCommunities

23%(92i) Let’s reopen the economy already

38%(90i) Let’s reopen but take a cautious and slow

approach

(121i) We should continue to follow stay @ home orders


49%(117i) Let’s reopen but take a cautious and

slow approach

31%(94i) We should continue to follow stay @ home

orders


35%(83i) Let’s reopen but take a cautious and slow

approach

17%(52i) We should continue to follow stay @ home

orders


Continued concern conflicts with a desire to reopen the economy

Q. How concerned are you about the COVID-19/coronavirus outbreak right now?

Despite most consumers saying they are ready to reopen the economy, they remain concerned. In late April it appeared that, while still highly concerned about the crisis, the urgency of that concern had lessened over time. Now, concern appears to be leveling off again at that slightly lower level.

3% 5% 15% 41% 36%

APR. 3

APR. 9

3% 6% 14% 39% 38%

Not at all concerned Slightly concerned Moderately concerned Very Concerned Extremely concerned

Concern about the COVID-19/coronavirus outbreak

MAR. 27

2% 5% 14% 42% 38%

APR. 24 5% 7% 16% 40% 32%

2% 7% 17% 42% 32%MAY 8



Local response does not impact overall level of concern Regardless of whether their community has remained shut or reopened, all consumers remain highly concerned about the COVID-19/coronavirus outbreak.

2%

2%

3%

7%

7%

6%

15%

19%

12%

41%

42%

49%

35%

30%

30%

Concern About the COVID-19/coronavirus Outbreak By Current State Of Respondent’s Communities

Not at all concerned Slightly concerned Moderately concerned Very Concerned Extremely concerned

Respondents that are under stay @ home orders

Respondents whose community has partially reopened

Respondents whose community has fully reopened

Q. How concerned are you about the COVID-19/coronavirus outbreak right now?


MAY 8

76% are very or extremely concerned



>

>

>


However, concern manifests differently based on circumstanceThe isolation of stay at home orders is taking its toll, while partially reopened communities may be feeling conflicted worries between finances and health. Fully reopened communities are less likely to be concerned by specific factors.

Limited interactions are starting to take their toll.

Reopening renews health fears and stokes economic worries.

While still concerned, this group under-indexes across all specific

concerns.

(37%) my mental health and wellbeing

(34%) feeling alone/isolated

113i (47%) catching coronavirus

myself

112i(54%) the country’s economy

266i(8%) none of the above





Q. Which of the following things are you most concerned about at the moment? Please select all that apply.

KEY CONCERNSKEY CONCERNS KEY CONCERNS


Different communities may have different need statesIndividuals in communities that are under lockdown are much more likely to say they need distraction, whereas communities that have either started to or fully reopened say they need security as they navigate towards recovery.

More likely to need DISTRACTION(26%)

113iMore likely to need SECURITY

(34%)

More likely to need EMPOWERMENT

(17%)

111iMore likely to need LEADERSHIP

(20%)

110iMore likely to need SECURITY

(34%)

108iMore likely to need NORMALCY

(27%)




Q. Thinking about how you are currently feeling about the COVID-19/coronavirus outbreak, what are the top three things you need right now? Please select up to three choices.


KEY NEED STATESKEY NEED STATES KEY NEED STATES


Normal activity has yet to resume as consumers remain cautious Overall, most consumers continue to abstain from regular activities such as dining out, going to the office and socializing. Activities such as shopping or socializing still make many of those participating at least slightly uncomfortable.

Q1. In the context of COVID-19, how comfortable do you currently feel going outside of your home at the moment? Q2. Which of the following things, if any, do you currently do outside of the home and what is your level of comfort?

48%52%

How Consumers Feel Leaving Home

Uncomfortable Comfortable

RESPONSE HAD NOT MATERIALLY CHANGED SINCE QUESTION LAST FIELDED ON APR. 24

66%

65%

62%

57%

50%

44%

41%

41%

32%

12%

10%

10%

11%

13%

16%

14%

19%

19%

14%

27%

12%

12%

12%

15%

17%

19%

21%

21%

19%

37%

12%

13%

16%

16%

18%

23%

19%

20%

35%

25%

Dining out

Attending religious services/events

Children's activities

Working at my office/place of work

Socializ ing

Leisure activities

Non-grocery shopping

Health/Medical-related appointments

Exercising

Grocery shopping

Comfort Level Currently Felt Leaving Home For The Following Reasons

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



Those still under lockdown reflect national comfort levelsThose in communities that are continuing to follow stay at home orders are slightly less likely than the general population to feel comfortable leaving their homes and to participate in activities outside of the home.

22%

52%

51%

78%

48%

49%

Fully Reopened

Partially Reopened

Stay @ Home





70%

66%

63%

59%

52%

47%

43%

43%

30%

11%

10%

10%

11%

13%

16%

13%

16%

17%

16%

29%

9%

11%

10%

13%

16%

16%

20%

23%

19%

37%

11%

13%

16%

15%

16%

23%

21%

18%

36%

24%

Dining out




Socializ ing

Leisure activities



Exercising

Grocery shopping

Stay @ Home Communities:Comfort Level Currently Felt Leaving Home For The Following Reasons



Partially reopened communities feel equally – if not more – cautiousDespite reporting that their community has partially reopened, and largely supporting that measure, respondents are still feeling highly cautious about leaving their home overall and partaking in activities.



22%

52%

51%

78%

48%

49%

Fully Reopened

Partially Reopened

Stay @ Home



72%

71%

68%

61%

53%

48%

45%

45%

37%

13%

9%

10%

9%

13%

15%

14%

19%

19%

12%

25%

9%

10%

9%

13%

16%

17%

18%

20%

15%

38%

10%

8%

14%

13%

15%

21%

18%

16%

36%

25%


Dining out



Socializ ing

Leisure activities



Exercising

Grocery shopping

Partially Reopened Communities:Comfort Level Currently Felt Leaving Home For The Following Reasons



As communities reopen fully, activity rises, but consumers remain waryThose in fully reopened communities are much more likely to feel comfortable leaving their homes and many are partaking in normal activities such as dining out or socializing. Even so, a large portion feel at least somewhat uncomfortable doing so – reflecting their continued overall concern about the crisis.



22%

52%

51%

78%

48%

49%

Fully Reopened

Partially Reopened

Stay @ Home



32%

30%

29%

28%

23%

20%

19%

19%

17%

12%

14%

13%

18%

16%

19%

21%

26%

15%

25%

28%

31%

28%

30%

27%

24%

33%

24%

33%

28%

32%

24%

30%

23%

28%

34%

25%

31%

32%

29%

28%


Dining out



Socializ ing

Leisure activities


Exercising


Grocery shopping

Fully Reopened Communities:Comfort Level Currently Felt Leaving Home For The Following Reasons



“Return to normal” has become a rolling deadlineRather than a sweeping mindset shift, respondents’ sense of when things will return to normal appears to be gradually getting pushed back a few weeks at a time. The share of those who say “next year” is slowly growing each week.

Q. Based on the news and updates from the government and health authorities, which of the following best matches how long you think it will take for our way of life to return mostly to normal?

24%

22%

15%

8%

19%

12%

End of May

July Fourth

Labor Day

New Year’s

Sometime next year

It won’t return to normal

When Consumers Think Life Will “Return to Normal”

-6Since last fielded on Ap. 24

+4

46%By July Fourth

-3

69%By 2021

-4

Since last fielded on Ap. 24

Previously 21% said “the beginning of May”

+1

-2

+1

Notably, 53% (221i) of those whose

communities have fully reopened said that life will ‘return to

normal’ by the end of May.

As compared to 20% and 21% of those

under stay @ home orders and in partially

reopened communities, respectively.









Agenda


The country's economy

Family/ friends

catching coronavirus

The health crisis within

the US

Knowing when the crisis will

end

Catching coronavirus

myself

Having enough

money to live on

My mental health/

wellbeing

Hospitals/ healthcare

systems being able

to cope

Being able to buy

necessities for myself/ my family

Feeling isolated/

alone

Businesses collapsing

Paying my household

billsSocial unrest

Vacations/ trips being cancelled

Life events being

cancelled

Losing my job

Looking after children or

pets

Top concerns reflect complexity of the crisisCurrently, concerns over the economy and health are vying to be the most concerning aspect of the crisis. Previously, this was squarely a health crisis for consumers with both individual health and health of loved ones toping concerns.

Q. Which of the following things are you most concerned about at the moment? Please select all that apply.


CONSUMER SENTIMENT

TOP FIVE

48%47%

43%

40% 40%

35%33% 33%

31% 31% 31% 30%29%

25%

22% 22% 22%

46%

52%

45% 44% 45%44%

30%

41%

36%

28%30%

36%

24%

18%

21%23%

17%

Top Concerns About the Crisispercentage of respondents who ranked each concern as in their top three

May 8 Apr. 3


A sense of immediate crisis is replaced by a sense of stagnationWhile stability is increasing and crucial to consumers’ sense of wellbeing, there is still no sense of momentum or progress against the virus or the personal impact as few respondents view any aspect of the crisis as “getting better.”

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

34%

36%

26%

50%

49%

56%

16%

15%

18%

The health threat to your community

Your employment and personal finances

Your personal life and routines

Personal Outlook For Each Of The Following:

It’s getting worse It’s stabilizing It’s getting betterSince Mar. 27


CONSUMER SENTIMENT


Determined to “get through it,” but no sense of optimismTwo months or so into the crisis, consumers have their “new normal” figured out – they are feeling more prepared, in-control, and trying to keep perspective by feeling grateful. Yet, they continue to be stuck emotionally – continuing to feeling isolated, fearful, bored and frustrated – perhaps feeling fatigued or still grieving the normalcy they’ve lost.

Q. How are you currently feeling about the COVID-19/coronavirus outbreak?

ISOLATED CONNECTED|-46-50 50

FEARFUL HOPEFUL|-40-50 50

FRUSTRATED CALM|-34-50 50

BORED ACTIVE|-50 50

OVERWHELMED IN-CONTROL|-50 50

Net Emotional Sentiment(For each respective pair: % who identified with positive emotions subtracted by % who identified with negative emotions)

ANGRY GRATEFUL|-50 50

-20

-14

-22

-4

-22

-4

-38

APR. 3APR. 24MAY 8

-20

4

4

-22-24

-26

HELPLESS PREPARED|-14-50 50-2 4

CONSUMER SENTIMENT



Consumers top ‘Need States’ have remained consistentSecurity continues to be the top need state for consumers, however, with a lesser share of respondents. Stability has risen in importance this week, overtaking Normalcy for the number two spot. Positivity continues to be prioritized along with Reassurance, Distraction and Freedom.

30%

27%25%

24%22% 22% 22%

20%18%

17% 17% 16%15% 15%

12%

36%

21%

28%

23%22% 22%

25%

16%18%

15%17% 17%

14% 14%12%

36%

24%23% 23%

25%

21%22%

19%

15%14%

15%

19%

16%15%

12%

SECURITY

STABILITY

NORMALCY

POSITIVITY

REASSURANCE

DISTRACTION

FREEDOM

INSPIRATIO

N

LEADERSHIP

COMPANIONSHIP

FUN

INFORMATIO

N

EMPOWERMENT

SUPPORT

BELONGING

Top Prioritized Need Statespercentage of respondents who ranked each need states as in their top three

May. 8 Apr. 9 Mar. 27

Q. Thinking about how you are currently feeling about the COVID-19/coronavirus outbreak, what are the top three things you need right now? Please select up to three choices.

CONSUMER SENTIMENT

TOP FIVE



Spending patterns continue to prioritize necessitiesWhile not a huge variance in spending since the first wave of our survey, certain trends are reflected such as a decrease in spending on household necessities, personal care products, and at-home entertainment after initial ‘panic’ buying boosts.

CONSUMER BEHAVIOR


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AlcoholAt-home

Entertainment

Automotive Baby Care Beauty ConsumerElectronics

Clothing &Accessories Dining Out Food/Drink

Delivery Grocery Health &Fitness

HomeImproveme

nt

HouseholdNecessities

(toiletpaper,

cleaner)

LuxuryGoods

Out-of-home

Entertainment

PersonalCare &

Medicine

Snacks &Soft Drinks

Travel(hotels,

airlines, carservices)

May. 8 -5 3 -25 -4 -23 -27 -27 -35 8 25 -13 -17 19 -35 -40 -5 6 -39

Apr. 17 -12 1 -42 -19 -40 -42 -48 -60 0 30 -28 -27 22 -55 -58 3 6 -60Apr. 9 -6 11 -24 0 -27 -27 -35 -43 10 22 -15 -13 21 -32 -36 6 9 -39Mar. 27 -14 6 -30 3 -31 -33 -20 -48 3 26 -17 -19 29 -34 -43 11 7 -42

-70

-60

-50

-40

-30

-20

-10

0

10

20

30

40

Net Intent to Increase/Decrease Category Spending Over the Next Two Weeks(% who said they intend to spend more money subtracted by % who said they intend to spend less money by category)

May. 8 Apr. 17 Apr. 9 Mar. 27


Some brands win, some lose from shifted purchasing habitsThe current period of reduced spending is also a time that may set the tone for future spending patterns. 43% are not necessarily missing the brands they’re spending less on and 38% are considering continued purchasing from new brands they ‘ve tried since the outbreak began. 37% of respondents said they can’t wait to start purchasing favorites again.

There are brands I am currently spending less on that I can’t wait to start buying more of again.

There are brands I am currently spending less on that I don’t miss and can live without.

There are new brands I am currently spending more on that I will keep buying after stay-at-home measures end.

Q. How much do you agree or disagree with the following statements:


CONSUMER BEHAVIOR

Sentiment On Shifted Purchasing Habits - Brands

37%

43%

38%

35%

35%

39%

28%

22%

22%


Caution around spending is slowly softeningConsumers are still feeling very hesitant around spending, however, as some economies start to reopen, we see a slight decrease in those feeling cautious about spending and a decrease in those reporting they are postponing purchases.

CONSUMER BEHAVIOR

Q. Which of the following apply to you? Please select all that apply.


66%68%

62% 64%

55% 57%

46%50%

46%44%

41% 40%

Mar. 27 Apr. 3 Apr. 9 Apr. 17 Apr. 24 May. 8

Personal Impact of the Crisis

I am feeling more cautious about how I spend my money

I am actively postponing purchases due to uncertainty


As the crisis persists, digital media habits are fluctuatingAfter we saw a drop in self-reported media usage a couple weeks ago, consumers seem to be re-engaging as the lock down drags on (what else is there to do!). New this week, we look at reported time spent gaming across three different devices.

Social media Streamingvideo services

Video chat ormessaging

servicesOnline video Online news Live TV Streaming

audio/music Recorded TV Newspapers Magazines Radio MobileGaming

ConsoleGaming PC Gaming

May. 8 44 42 41 40 34 32 32 23 10 7 7 31 25 23Apr. 9 35 35 31 30 33 31 25 15 15 12 0

Mar. 27 40 37 37 32 39 32 28 20 4 4 5

0

5

10

15

20

25

30

35

40

45

50

Net Increase/Decrease in Media Use Compared to Normal(% who said they are spending more time subtracted by % who said they are spending less time with select media)

May. 8 Apr. 9 Mar. 27

Q. A

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NEW THIS WEEK

CONSUMER BEHAVIOR



Consumers consistently want to see brands take actionConsumers have been clear since the first wave of our survey: while they do want to see relevant communication from brands, actions speak louder than words.

Q. Many brands and companies are trying to decide how best to respond to the COVID-19/coronavirus outbreak. Which of the following do you MOST want to see from brands? Please pick your top 3 in priority order.

49%46%

43%

33%

27%24%

22% 21% 20%

15%

48%50%

41%

34%

22%25%

15%

21%19%

14%

Brands looking aftertheir employees

Brands donating time,money, products, tocauses/those in need

Brands offeringdiscounts at this time

Brands responding tothe outbreak

Brandsacknowledging the

outbreak

Brands helping meget through my day

Brands advertising asnormal

Brands that help mecontribute to the

response

Brands that help metake my mind off of

what is going on

Brands staying silenton the issue

Initiatives Consumers Want To See From Brands (% of respondents who said an initiative was in their top 3 choices)

May. 8 Mar. 27

BRAND EXPECTATIONS



Scrutiny of what brands are saying/doing is heightenedWhile consumer scrutiny of what brands are saying/DOING is heightened right now, there appears to be the beginning of a trend towards fatigue. Since first fielded in mid-April slightly fewer respondents report paying more attention and slightly more report paying less attention.

Q. Which of the following best applies to you? Q. How do you feel about the number of ads you see related to brands responding to COVID-19?

44%

23%

34%

46%

20%

34%

49%

18%

32%

I am paying MORE attention towhat brands are doing/saying

right now

I am paying LESS attention towhat brands are doing/saying

right now

I am paying the SAME amountof attention as usual to what

brands are doing/saying rightnow

Attention Paid to Brands Right Now

May. 8 Apr. 24 Apr. 17

23%

54%

23%28%

50%

22%

27%

52%

21%

There’s too few of them There’s just enough of them There’s too many of them

Feelings Towards # of COVID-19-Related Ads Seen

May. 8 Apr. 24 Apr. 17

BRAND EXPECTATIONS

-5 pts

+5 pts

-4 pts



Consumers want brands to continue to speak to the crisisThe learning is this: Brands will need to ensure they are saying – or better yet DOING – something meaningful and needed (can be as big as building ventilators or as small as entertainment for kids) and authentic to their brand purpose.

Q. When it comes to brands advertising, which of the following statements do you agree with more?

45%55%

May 8

Having acknowledged the crisis, it is now ok for brands to go

back to advertising as

normal

Brands should continue to

acknowledge the crisis, advertising as

normal is inappropriate right

now

BRAND EXPECTATIONS

-3 points since last fielded Apr. 24

+3 points since last fielded Apr. 24


Attitude on Brands Advertising “As Normal” Right Now

48%52%

April 24

Having acknowledged the crisis, it is now ok for brands to go

back to advertising as

normal

Brands should continue to

acknowledge the crisis, advertising as

normal is inappropriate right

now








Agenda


Audience Profiles for the First 4 Stages We are starting to see nuances emerge for how our cohorts are navigating this crisis


They are still overwhelmed, but also getting angry now. They feel the

financial costs outweigh the health threat and are calling for a re-opening.

HELP ME NAVIGATE

They still feel uncertain and negative, but their personal lives are starting to

stabilize. They are seeking both information and distraction.

HELP ME MANAGE

Having adjusted the best they can day-to-day, they want brands to lead on larger issues. They feel the situation

stabilizing and are ready for some positivity.

HELP LEAD & UPLIFT


They feel hopeful, in control, and ready to move on. They are craving their freedom but not at the expense of stability. They

expect brands to help with recovery.

HELP LEAD & UPLIFT


Most likely to…..Looking at their “most likely” attributes helps paint a picture of how they are experiencing the crisis

INITIAL SHOCK COMING TO GRIPS LIVING A NEW NORMAL MOVING INTO RECOVERY

Feel angry(40%, 179i)

Report that their financial situation is worsening

(50%, 139i)

Feel comfortable leaving their house

(65%, 134i)

Want to re-open the economy immediately

(46%, 189i)

Feel somewhat fearful and helpless

(f: 49%, 133i / h: 43%, i133i)

Be concerned about catching COVID

(51%, 128i)

Believe that the health threat is stabilizing

(61%, 121i)

Feel uncomfortable leaving their house

(44%, 135i)

Crave normalcy(30%, 121i)

Crave freedom(36%, 165i)

Feel least affected personally by the crisis

(20%, 153i)

Be in favor of a slow and cautious re-opening

(61%, 144i)

Prefer to continue shelter in place precautions

(39%, 116i)

Mixed opinions between continuing shelter in place vs. re-opening cautiously (shelter: 39%, 118i / open: 42%, 115i )

Want brands to donate time, money, products to

the needy(56%, 133i)

Report that their personal lives are stabilizing

(65%, 116i)



Initial Shock: Help Me NavigateThey have moved from helplessness to anger over the impact the health crisis is having on their lives. As their financial situation worsens, they are calling for the economy to open.

BRAND ACTIONS: SHOW ME PROGRESS I DON’T OVERWHELM ME I EMPOWER & CONNECT AT THE LOCAL LEVEL

Behaviors Need States Brand Expectations

Feeling the financial impact and ready to re-open

• 44% say their ability to work has been affected, and 47% say their income has been affected (125i)

• 50% say their employment/personal finances are getting worse (139i)

• 65% claim they feel comfortable leaving their home, and 46% want to reopen the economy immediately (189i)

Sentiment

Increasingly angry over the impact of the crisis

• They continue to feel isolated (51%, 175i), fearful (44%, 188i), helpless (44%, 221i), frustrated (44%, 151i), and overwhelmed (39%, 191i)

• Anger has risen 10 points from last week to 40% (179i) and they are “extremely” concerned about the crisis (50%, 157i)

Need support & connection at the local level

• In need of inspiration (105i) and empowerment (129i)

• They feel isolated and need a community connection - support (125i) and belonging (155i)

• They are now in need of information to help navigate their situation (i113)

Want brands to help them navigate the situation

• They are more likely to want brands to step in now – 60% are paying more attention to what brands say and do (138i)

• 25% want brands to help them contribute to the response (118i)

• 30% want brands to help them through their day (128i)

• A subsegment (20%) prefer that brands stay silent (132i) and not overwhelm them

Top Concerns: Personal

Vacation/trips being canceled (30%, 118i)

Losing my job (25%, 116i)

Feeling isolated / alone (39%, 128i)

Caring for others (30%, 139i)



Coming to Grips: Help Me Manage They still feel uncertain and negative, but they are starting to stabilize. They are still concerned about the health threat but are starting to see their personal lives improve.

BRAND ACTIONS: ACKNOWLEDGE THE CRISIS I REASSURE ME IT WILL BE OK I HELP ME GET THROUGH MY DAY


Feeling the impact and proceeding with caution

• 62% are more cautious about how they spend their money (110i)

• 44% feel uncomfortable leaving their homes (135i)

• 39% believe we should continue to shelter in place (116i), while 43% believe we can start to re-open if we do so cautiously (102i)

Sentiment

Uncertainty mixed with negativity…but to a lesser degree

• More are shifting from “extremely” to “very” concerned about the crisis (50%, 118i)

• Half feel that the health threat is starting to stabilize (51%, 101i)

• They feel somewhat: isolated (49%, 122i), fearful (49%, 134i), and helpless (43%, 133i)

• They feel somewhat: frustrated (44%, 131i) and overwhelmed (41%, 127i)

Craving – and feeling – more stability

• They feel their personal lives are starting to stabilize (62%, 111i)

• They need information (119i) and reassurance (109i)

• They also need inspiration (111i) and distraction (106i) to make the most of their days

Appreciate a helping hand

• 48% are paying MORE attention to what brands do/say right now (110i)

• 31% want to see brands respond to the outbreak (112i)

• A quarter want to see brands help them get through the day (25%, 104i) or help take their mind off things (21%, 108i)

Top Concerns: Health/Well-Being

Healthcare being overwhelmed (40%, 121i)

My mental health (43%, 128i)

Buying necessities (38%, 120i)

Catching COVID (51%, 128i)



Living a New Normal: Help Lead & UpliftThey have adjusted the best they can on their own, and now need to see leadership & progress against the larger crisis. They are also ready for some positivity and fun.

BRAND ACTIONS: TACKLE LARGER ISSUES I UPLIFT MY DAY I SHOW ME PROGRESS


Getting into the groove of things, cautiously

• 62% are more cautious about how they spend their money (109i)

• 39% believe we should continue to shelter in place (118i), while 42% believe we can start to re-open if we do so cautiously (115i)

SentimentCalm, cool, and as collected as possible (“somewhat”)

• Only 23% are “extremely” concerned now (73i)

• They believe that life is starting to stabilize – from the health crisis (116i), to their personal lives (116i) to their finances (126i)

• They feel higher levels of being somewhat connected (24%, 121i), hopeful (35%, 130i), and calm (32%, 121i)

• They feel somewhat more active (31%, 121i) and prepared (48%, 121i) than other groups

In need of leadership, ready for positivity

• Cohort with the highest ranking for normalcy (121i)

• They are in need of leadership (111i)

• They are ready for positivity (109i), reassurance (109i) and fun (107i)

Want to know brands are tackling the larger issues

• 59% want brands to look after employees (120i)

• 56% want brands to donate time, money, products to the response (122i)

• The majority believe that there are just the right amount of COVID-related ads coming from brands right now (60%, 111i)

Top Concerns: Societal/Health

Healthcare being overwhelmed (37%, 113i)

The US economy (55%, 114i)

The health crisis overall (50%, 116i)

Family/friends Catching COVID (54%, 116i)



Moving into Recovery: Help Lead & UpliftThey feel hopeful, in control, and ready to move on. They are craving their freedom but not at the expense of stability. They expect brands to help with recovery.

BRAND ACTIONS: TACKLE LARGER ISSUES I UPLIFT MY DAY I SHOW ME PROGRESS

Behaviors Need States Brand ExpectationsCautiously ready to move on

• 52% are more cautious about how they spend their money (92i) while 20% claim to have not been affected financially (153i)

• 64% claim they feel comfortable leaving their homes (123i)

• 61% believe we are ready to re-open the economy if we do so cautiously and slowly (144i)

SentimentHopeful and in control

• 42% are only “moderately” (145i) or “slightly” (274i) concerned

• The majority believe that both the health crisis (121i) and their finances (111i) are starting to stabilize

• They feel higher levels of being somewhat connected (36%, 184i), hopeful (43%, 160i), and calm (50%, 155i)

• A growing group now feels in control (20%, 149i) and prepared (21%, 155i)

Craving freedom and normalcy

• One third believe their personal lives are starting to improve (159i)

• Cohort with the highest ranking for freedom (165i)

• They are ready for fun (119i), but still crave stability (115i)

Want to know brands are helping with recovery

• 52% want to know brands are looking after employees (106i)

• A third want brands to respond to the crisis (36%. 109i)

• The majority believe that there are just the right amount of COVID-related ads coming from brands right now (58%, 107i)

Top Concerns: Economy/Personal

Life events being canceled (26%, 104i)

Businesses collapsing (32%, 102i)

Vacation/trips being canceled (25%, 102i)

The US economy (55%, 106i)



Audience Profiles for the First 4 Stages We are starting to see nuances emerge for how our cohorts are navigating this crisis

INITIAL SHOCK COMING TO GRIPS LIVING A NEW NORMAL MOVING INTO RECOVERY

• Show me progress

• Don’t overwhelm me

• Empower & connect at the local level

BRAND ACTION: GUIDE

• Acknowledge the crisis

• Reassure me it will be ok

• Help me get through my day

BRAND ACTION: HELP

• Tackle larger issues

• Uplift my day


BRAND ACTION: UPLIFT & LEAD

• Tackle larger issues

• Uplift my day


BRAND ACTION: LEAD & UPLIFT

Consumers are feeling negative and need help

managing their lives. Brands can offer value by

acknowledging their realities and helping them find more inspiration within their daily

lives.

Consumers have adjusted as best they can and need brands to act as leaders.

They want to see brands help with the crisis but also provide some fun and

positivity in their daily lives.

They feel hopeful and ready to move on… but want to make sure that progress

comes cautiously and slowly. Brands should lead the path forward, while helping them find more fun in the interim.

Consumers are overwhelmed and getting angry at the lack of progress. Brands should help them navigate a path

forward by offering empowerment, information,

and connection at the local/personal level.


A preview of audiences who have progressed to “Post Coronavirus Life”While based on a smaller sample size, we pulled out some indicators of what we may see as consumers enter the last phase. These initial findings are directional.

POST-CORONAVIRUS LIFE

Less concerned with all core issues, economy and social unrest rank highest

Top concerns:

• Economy (35%, 72i)

• Social unrest (27%, 96i)

• None of the options listed (34%. 999i)

They have regained a sense of control & connection

• Connected (32%, 284i) • Hopeful (32%, 239i)• Prepared (33%, 244i)• Active (33%, 259i)• In Control (28%, 207i)

They still need leadership and support to properly adjust

• Leadership (137i) and Support (163i)

• Inspiration (124i) and Freedom (119i)

• Distraction (114i)

They are beginning to feel ready to re-open

• 69% claim they feel comfortable leaving their home

• 38% want to reopen the economy immediately (155i) while the remainder are split on the subject



Key Themes & Implications for Marketers

• Help consumers be at peace with their present. It is clear that consumers are struggling to reconcile fatigue from shutdowns with a sense that it is not yet safe to resume activity. While they feel more positive, they are beginning to recognize that going back to “normal” will come with changes. Security and stability remain the top need states.

• Plan and act locally for the most impact. A running theme is that this crisis is local – it unfolds at different rates throughout the country. Consumer need states differ accordingly – those in states who are still sheltering in place are most concerned with mental well-being, while those in states who are re-opening are most concerned about the health threat and the economy. Think about how your brand response can meet shifting needs at the local level.

• Stop reacting to the crisis, start planning long-term. It’s clear that consumers are proceeding cautiously and will for some time. Consumption patterns will not resume as if nothing happened and brand loyalties may shift. Brands will need to rethink consumer journeys and understand friction points to reengagement.

• Proceed with caution when re-opening. Consumers are mixed on whether we are ready to re-open. A good portion still don’t feel comfortable venturing outside their homes. Brands need to be prepared that while economies might reopen, consumers may remain hesitant. A slow and cautious approach to re-opening, and transparency around safety measures, are important to build trust.

• Time spent with media has resumed high levels: After time spent with media started to flatten, it is on the rise again. As consumers continue to shelter in place, they rely on media as their primary form of entertainment and connection, particularly digital and gaming platforms. Brands should still be cautious of burn-out and providing a positive experience.

• Begin to show how your brands role in the crisis is unique. At the beginning of the crisis, brands trying to strike the right tone ended up relying on the same tone. While that’s ok, and consumers continue to look to brands to speak out on the crisis, there are some signs that consumers are looking for more than reassurance and acknowledgement from brands.

• Don’t just talk about values; demonstrate them. As people are looking out for each other more than usual, they’re taking notice of whether businesses are as well. Consumers want to see action from brands and applaud those who contribute to the response.


THANK YOU

About Dentsu Aegis NetworkPart 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].


Appendix


Security: To feel safe from a health or financial perspective

Reassurance: Confidence and optimism for the future

Normalcy: A sense of rhythm and routine

Freedom: To live without restrictions or confinement

Positivity: Reminders that good things persist

Stability: To feel in-controlDistraction: A break from what’s going on.Inspiration: To make the most of my time

Information: Greater clarity on how to shelter-at-home

Leadership: An authoritative voice that gives clear guidance

Fun: Amusement and entertainment.Companionship: Individual connection

Support: Help logistically or emotionally

Empowerment: Feeling educated and prepared.

Belonging: Connection to a community

Consumer Need States List & Definitions


Wave 1: The majority of consumers fall into the first 3 stages First, we asked respondents to self-identify their current situation, to the best of their understanding and perception:



24% 33% 26% 10% 7%

Those that identify with “later” stages (that should reflect a tipping point in the outbreak) exhibit symptoms of denial:

• Post-Coronavirus Life’ respondents are 9x more likely to be not at all concerned about the outbreak (866i)

• ‘Post-Coronavirus Life’ respondents are less likely to say their ability to work has been impacted




MAR. 27



Wave 2: Consumers are progressing through the stagesLikely shifts: Respondents previously denying the severity of the outbreak are now experiencing Initial Shock for the first time, while others previously in shock have shifted into Coming to Grips, making it the largest cohort of consumers.


24% 33% 26% 10% 7%

25% 42% 25% 3% 4%

Last week we saw 17% of respondents identify in the last two phases and speculated they were in denial. Over the past week that number has dropped

significantly to 7% - people can no longer ignore the severity of the outbreak.





MAR. 27

APR.3



Wave 3: ‘Progression’ is increasingly complexAs the pandemic threatens other aspects beyond public health (the economy, politics, social fabric), consumers are wrapping their heads around multiple crises at once. Those identifying with Coming to Grips disperse and do not appear to move linearly: Some slide back into shock, while others are able to move forward.


24% 33% 26% 10% 7%

25% 42% 25% 3% 4%

27% 32% 28% 5% 7%

MAR. 27

APR.3




APR.9

Q. When it comes to a public health crisis such as the COVID-19/coronavirus outbreak, there are often “phases” of how the response unfolds. Thinking about how the outbreak has impacted you and your daily life, which of the following phases best describes your current situation?Source: COVID-19 Crisis Navigator: Wave 6 by Dentsu Aegis Network.


Wave 4: The shock wears offAfter seeing a steady influx of respondents identifying with Initial Shock, wave four of our survey indicates a turning point may be in-store. Living a New Normal has incrementally climbed each week, while Coming to Grips sees a renewed influx of respondents.


24% 33% 26% 10% 7%

25% 42% 25% 3% 4%

27% 32% 28% 5% 7%

18% 36% 33% 8% 5%

MAR. 27

APR.3




APR.9


APR.17

PAST FOUR WAVES:



Wave 5: In wait & see mode, but anxious to move forwardThis week reveals that Americans feel they have entered a holding pattern. There is little movement across the board. We see a trickle of movement into Moving Into Recovery and Post-Coronavirus Life, as states discuss reopening and anxiety about returning to normal builds.


25% 42% 25% 3% 4%

27% 32% 28% 5% 7%

18% 36% 33% 8% 5%

23% 28% 30% 10% 9%

APR. 3




APR. 9


APR. 17

APR. 24

PAST FOUR WAVES:





27% 32% 28% 5% 7%

18% 36% 33% 8% 5%

23% 28% 30% 10% 9%

22% 29% 32% 11% 6%





APR. 9

APR. 17

APR. 24

MAY 8

PAST FOUR WAVES:


*To see all six waves, please see the appendix.




27% 32% 28% 5% 7%

18% 36% 33% 8% 5%

23% 28% 30% 10% 9%

22% 29% 32% 11% 6%





APR. 9

APR. 17

APR. 24

MAY 8


Further analysis revealed that the shock is not so “initial” for

respondents identifying in Initial Shock.

Instead, these respondents appear to be unable to move forward: They are more likely to be personally impacted

by the crisis, feel angry about their current situation, and call for an

immediate reopening of the economy.

Feel angry(40%, 179i)

Report that their financial situation is worsening

(50%, 139i)

Feel comfortable leaving their house

(65%, 134i)

Want to re-open the economy immediately

(46%, 189i)




27% 32% 28% 5% 7%

18% 36% 33% 8% 5%

23% 28% 30% 10% 9%

22% 29% 32% 11% 6%





APR. 9

APR. 17

APR. 24

MAY 8


They still feel uncertain and negative, but their personal lives are starting to

stabilize. They are seeking both information and distraction.

Feel somewhat fearful and helpless

(f: 49%, 133i / h: 43%, i133i)

Are concerned about catching COVID

(51%, 128i)

Feel uncomfortable leaving their home

(44%, 135i)

Prefer to continue shelter in place precautions

(39%, 116i)




27% 32% 28% 5% 7%

18% 36% 33% 8% 5%

23% 28% 30% 10% 9%

22% 29% 32% 11% 6%





APR. 9

APR. 17

APR. 24

MAY 8


Having adjusted the best they can day-to-day, they want brands to lead on larger issues. They feel the situation stabilizing and are ready for some

positivity.

Crave normalcy(30%, 121i)

Mixed opinions between continuing shelter in place vs. re-opening cautiously (shelter: 39%, 118i / open: 42%, 115i )

Want brands to donate time, money, products to

the needy(56%, 133i)

Report that their personal lives are stabilizing

(65%, 116i)




27% 32% 28% 5% 7%

18% 36% 33% 8% 5%

23% 28% 30% 10% 9%

22% 29% 32% 11% 6%





APR. 9

APR. 17

APR. 24

MAY 8


They feel hopeful, in control, and ready to move on. They are craving

their freedom but not at the expense of stability. They expect brands to help

with recovery.

Believe that the health threat is stabilizing

(61%, 121i)

Crave freedom(36%, 165i)

Feel least affected personally by the crisis

(20%, 153i)

Be in favor of a slow and cautious re-opening

(61%, 144i)




27% 32% 28% 5% 7%

18% 36% 33% 8% 5%

23% 28% 30% 10% 9%

22% 29% 32% 11% 6%





APR. 9

APR. 17

APR. 24

MAY 8


DIRECTIONAL FINDINGS

Less concerned with all core issues, economy and social unrest rank highest

Top concerns:

• Economy (35%, 72i)

• Social unrest (27%, 96i)

• None of the options listed (34%. 999i)

They have regained a sense of control & connection

• Connected (32%, 284i)

• Hopeful (32%, 239i)• Prepared (33%, 244i)• Active (33%, 259i)• In Control (28%, 207i)

They still need leadership and support to properly adjust

• Leadership (137i) and Support (163i)

• Inspiration (124i) and Freedom (119i)

• Distraction (114i)

They are beginning to feel ready to re-open

• 69% claim they feel comfortable leaving their home

• 38% want to reopen the economy immediately (155i) while the remainder are split on the subject

Taking the Pulse | COVID Crisis Navigator · moving through and responding to the various stages of the crisis and how brands can best respond. This is the sixth iteration of Dentsu’sCOVID

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