Digital Commerce Marketing Delivered...2019/11/04 · Digital Commerce Marketing Delivered Jason Young Chief Media Officer November 2019 Understanding the Shopper via Data Signals

Digital Commerce Marketing DeliveredJason Young

Chief Media Officer

November 2019

Understanding the Shopper via Data Signals

WebBehavior

Digital Promotion

Clips

SocialMediaTrends

Search Activity

StorePreference

TransactionData

2 Copyright © 2019 Quotient Technology Inc. All Rights Reserved.

Using DataSignals to Drive Digital Marketing at Scale► Audience creation

► Content that converts

► Personalization

► Media activation

► Measurement

DataTargeting &Analytics

eCommerce

HolisticDigital

Promotions

CRM

RetailPerformance

Media

Social Influencer

Media


Quotient’s Performance Differentiation

RPM NETWORKQUOTIENT ASSETS

1st PartyPurchase Intent Data

$150 BILLIONIn Retail Sales

+1 BILLIONPromo Activations

per Quarter

Quotient Has This Data From…


+76 BILLIONPurchase Events

Source: Quotient Internal Data

The Quotient Network Delivers Scale

Copyright © 2019 Quotient Technology Inc. All Rights Reserved.Source: 1 IRi (Q4 2018)5

3%

12%

21%

.2%

16% RPM

(Target)

Dole Brand Dollar Volume by Retailers

Opportunity for Data-Driven Grocers

of customers are comfortable exchanging their private information with grocery stores for relevant offers

of in-store sales will be influenced by

digital in 2021

81% 90%

Source: Credit Suisse – Advertising Week Takeaways October 20196 Copyright © 2019 Quotient Technology Inc. All Rights Reserved.

S o u r c e : e M a r k e t e r M a r c h 2 0 1 9

$108.64

$129.34

$151.29 $172.29

$187.77 $201.83

2018E 2019E 2020E 2021E 2022E 2023E

22.9%

19.1%17.0%

13.9%

9.0%7.5%

Digital Ad Spending % Change % of Total Media Ad Spending

48.6%54.2%

58.5%62.3%

64.8%66.8%

Digital Ad Spending in the US2018-2023E $USD B i l l ion

Source: eMarketer March 20197 Copyright © 2019 Quotient Technology Inc. All Rights Reserved.

First Ever Digital Banner from AT&T


Focus Shifts to Mid/Low Funnel Performance Marketing


Focus Shifts to Mid/Low Funnel Performance MarketingMedia Products


US DigitalAd RevenueDuopoly vs. Other*, 2019

Total US Digital Ad Spending$129.1 Billion

Other

$52.4941%

Duopoly

$76.5759%

Source: eMarketer February 201911 Copyright © 2019 Quotient Technology Inc. All Rights Reserved.

Retailer’s Have the Data to Target and Measure

Quality of Contextual Inventory (Search/E-commerce)

Integration Throughout Omnichannel Shopper Journey

(Target)

Nearly 90% of Sales Still Occur in Brick and Mortar Stores

US Net Ad RevenueEstimated $3-4B revenue is from CPG.

Sources: 1. eMarketer, February 2019; 2. www.cnbc.com/2019/04/12/amazons-jeff-bezos-most-us-sales-still-in-brick-and-mortar-stores.html . eMarketer, February 2019.

Emergence of Retail Media


What is Retail Performance Media?

Secure Shopper DataRetailer Purchases & Coupon Intent

Ad ProductsDeliver Targeted Shoppable Advertising

ShoppersProvide Awareness, Trial Ideas,

Savings, & more.

MeasurementProvide Results

CPG Paid Media150+ Sellers Accelerate Demand

Differentiated Offerings & Proprietary Technology

RPM


Copyright © 2019 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, the Coupons.com logo, the SavingStar logo, Elevaate, QMX, Quotient Retailer iQ, and Ahalogy are trademarks or registered trademarks of Quotient Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners. Confidential and Proprietary Information of Quotient Technology Inc. Please Do Not Copy or Circulate. We do not make any guarantees regarding outcomes that this product will meet your company’s unique needs.

According to Media Agencies Worldwide (Who are Programmatic Buying Tech Owners)

Major Challenges of Programmatic Buying

Source: eMarketer February 201814 Copyright © 2019 Quotient Technology Inc. All Rights Reserved.

Challenges that May Impede Their Abilityto Derive Value from Their Data-Driven Marketing/ Media Initiative in 2019 According to US Digital Marketers(% of respondents).

Government Regulation/ Threat of Regulation

Siloed Organizational Structure/ Poor Data-Sharing Protocols

Difficulty in Proving ROI of Our Data-Driven Programs

Lack of Internal Experience (at the Functional/Operational Level)

Lack of Direction/Resources From My Organization’s Leadership

Insufficient Availability/Functionality of Supporting Technology

This Stuff is Hard

Source: eMarketer/Winterberry Group, “The Outlook for Data 2019” partnership with IAB Data Center of Excellence, March 201915 Copyright © 2019 Quotient Technology Inc. All Rights Reserved.

52.8%

34.7%

33.3%

29.2%

25.0%

22.2%

PLATFORMS PRODUCTS SERVICES

Audience

Retail Performance Media

Media Execution

Analytics

Promotions

Retailer.com

Programmatic Display

Social

Campaign Planning

Audience Building

Creative/Content

Trading Desk/Buying

Measurement/Insights

Digital Commerce Marketing


Data Management PlatformAudience

The Quotient FormulaUsing DSP-based split management features

P1 Brand Buyers(retailer specific only)

P2 Category Buyers(retailer specific only)

P3 Store Shoppers(retailer specific only)

P4 Q Audience Category Buyers (limited to retailer geographies)

P5 Any Client Mandated Segments(Client 1P segments)

P6 Geo-Behavioral(through Polaris)


Platform

Media Execution

Creative Toolset• Proprietary Rich Media Ad Server• Dynamic Creative Optimization

Meta DSP (Demand Side Platform)• Buy Inventory Mapped to Audience

Segments• Bid Optimization• Inventory Access Across All Channels

Integration Into Analytics Platform


Analytics Platform

On-Demand Insights & Measurement


TRADING DESK / BUYING

PLANNING & AUDIENCE BUILDING

CREATIVE

MEASUREMENT / INSIGHTS

Platform

Media Services


Digital Commerce Marketing DeliveredMedia Products

2 121 Copyright © 2019 Quotient Technology Inc. All Rights Reserved.

Digital Commerce Marketing DeliveredMedia Products


>

Digital Commerce Marketing DeliveredMedia ProductsAhalogy Social Influencer


Quotient’s DIGITALperformance differentiation

1.5Xvs. Industry Norms

0.8X-5Xvs. Industry Norms

2.3Xvs. Industry Norms

► Stricter conversion-based metrics

► Measurement aligned to strategy

& campaign

► Performance-driven &

optimization focused

KPI-Driven Programs

$3.75Return on Ad

Spending

RETURN ON AD SPEND STORE VISITS EXPANSION RATE

15.5%Store

Visitation Lift

0.65%Expansion

Rate


showWe Have Captured

CPG Demand


What’s Next?


Copyright © 2019 Quotient Technology Inc. All Rights Reserved.Sources: 1. Quotient Internal Reporting (Q1 2019); 2. Chain Store Guide (52 weeks ending Fall 2018; 3. Supermarket News 2018 and Public Financial Statements

Quotient Audiences100M+ 250M 2,500+ $150B

Buyer Audiences1 Modeled Audience1 Audience Segments1 In Annual Retail Sales2

• Proprietary purchase signals –Interest, intent and redemptions for brands and categories.

• Exclusive retailer partnerships – POS and loyalty card purchase data. Deep longitudinal view of customers.

• Demo data enhancement – With relevant 3rd party partnerships

• National footprint• Custom segments powered by

machine learning• 20K+ stores covered3

• Weighted category + brand segments

27

Addressable Market Opportunity$400M

Beverage Category – 58MM targetable IDs available to reach 1:1 or use for seed audience to model-up sub-segments

Targeted Audience SegmentsC

SD C

ateg

ory

Buye

rs

Price Sensitivity

Rarely Buy on Deal Sometimes Buy on Deal Usually Buy On Deal

LIG

HT 5.4 MM 5.6 MM 4.1 MM

MED

IUM

2.3 MM 4.4 MM 3.3 MM

HEA

VY 1.0 MM 4.8 MM 5.4 MM

12.5MM Deterministic IDsWithin Media Prime Prospect to Reach Directly or Model Up

Copyright © 2019 Quotient Technology Inc. All Rights Reserved.28

► CPC Bidding Model

► Customer segmentation & targeting

► Promotion automation

► Managed service/self serve

Sponsored Products

Sponsored Search

Quotient E-Commerce Offerings

of Amazon Advertising Revenue65%


Shoppable Brand Experiences

Quotient E-Commerce Offerings

On-Site + Offsite Shoppable MediaShoppable Brand Pages


Quotient Has Signed Agreement to Acquire Ubimo

An Incremental Base of Customers and Partners

Including leaders in adjacent markets like Digital Out-of-Home

Customer Interfaceand Infrastructure

To support Quotient’s ability to support self-service commercial

relationships for media programming

Data Management andMedia Activation Platforms

That can be fully integrated into our existing Quotient platforms to drive better results & efficiency in

campaign deployment

Valuable Data AssetsThat will enhance our offerings

on both the targeting and measurement fronts

A Leading Data and Media Activation (DSP) Platform

And a World Class Team of 40+ Data Product, Data Science, and Ad Technology Experts with a Product and Engineering Office in Tel Aviv


► Strengthens Quotient’s targeted media solutions

► Drive expected cost efficiencies and have a positive effect on gross margin

► Accelerates the development of Quotient’s self-service platform

Signed Definitive Agreement to Acquire Ubimo


Quotient has made Digital Commerce Marketing a reality for

Brands, Retailers & Consumers


Documents

Digital Commerce Marketing Delivered...2019/11/04 · Digital Commerce Marketing Delivered Jason Young Chief Media Officer November 2019 Understanding the Shopper via Data Signals