Digital Disruption · 2019/11/2 · Data driven digital advertising that uses precise audience targeting, personalized creative, frictionless path to purchase, and measurement all

Digital DisruptionServing Shoppers, CPGs and Retailers

Chad Summe

November 2019

Shoppers, CPGs and Retailers

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

3

Our Discussion

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02

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Digital Disruption is Accelerating

Quotient Solving their Challenges

Quotient is well positioned in 2020 and beyond

Copyright © 2019 Quotient Technology Inc. All Rights Reserved.

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CPGsSpend $225B Annually

Trade$97B

ConsumerPromotion

$24B

Shopper$29B

Traditional Ad$30B

Digital$45B

Copyright © 2019 Quotient Technology Inc. All Rights Reserved.Source: Cadent 2017 Marketing Spending Industry Study

Budgets Are Challenged Unlike Ever Before

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BRAND ADVERTISING

z

SHOPPER MARKETING

TRADE & PROMOTIONS


Digital Commerce Marketing[dig•it•al comm•er•ce mar•ket•ing] /noun/

Data driven digital advertising that uses precise audience targeting, personalized creative, frictionless path to purchase, and measurement all aligned to driving incremental sales.


PLATFORMTECHNOLOGY

OMNI-CHANNEL DIGITAL CONTENT

SCALEDAUDIENCES

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Quotient is Digital Commerce Marketing


Digital DisruptionMarket Catalysts


Digital Penetration & Time Spent Has Grown


14%

31%

44%53%

61%

71%76%

81% 83% 84%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

29%

39%

49% 51% 53% 50%56%

SmartphoneTablet

Digital Penetration1

Source: 1. Edison Research and Triton Digital, “The Infinite Dial, 2019,” March 6, 2019. 2. eMarketer, April 2019

Average Time Spent2 (hrs:mins per day)

Digital 6:35

TV 3:35

Radio 1:20

Newspapers 0:11

Magazines 0:09

TOTAL 12:09

Convenience is a Premium


BIG CPG BRANDS

CPGs Are Being Squeezed

Source: CB Insights Disrupting CPG (2018)

STORE BRANDSSPECIALTY AGILE BRANDS

The Pressure is on for CPGs, Who Are Fighting for 1%.


Stack ‘em highlet ‘em fly!


Retail is Transforming

Retailers Look Beyond Their Core Business for Profits


$10B+ in 2018 Ad Revenue

Target

Source: https://www.businessinsider.com/what-amazons-ad-revenue-slowdown-could-mean-2019-4

Quotient’s Solutionto their Challenges


Shoppers


Convenience & Value:Transforming Shopping

to Make Life Better.


More Savings, More Money


4B+ Clips1

$7B+ In Savings1

70% Of Digital Coupons Redeemed2

Sources: 1 Quotient Internal Reporting; 2 2018 NCH: Quotient Digital Print & Paperless divided by Total Digital Print & Paperless


Making It Easy With Technology

Digital Paperless (Load to Account) Frictionless Media Load to Account

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Consumer PackagedGoods (CPGs)


Access to Data: Reach & Scale


Purchase Intent Influencer Trends

Media Behavior &Location Data eComm Behavior

Purchase Data

We Drive Performance

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$4.25Return on

Promotion Spending1

DIGITALPROMOTIONS

DIGITALADVERTISING

$3.75Return on

Ad Spending1

1.5Xvs. industry norms2

~50%Incremental1

Copyright © 2019 Quotient Technology Inc. All Rights Reserved.Sources: 1 Quotient Internal Reporting (Q3 2019); 2 IRi (2018)

Retailers


DATA

AUDIENCE

CONTENT

TECHNOLOGY

MEASUREMENT

Social Influencer - RPM - eComm

Targeted Offers - Rebates

Digital Circular - RIQ - Search - PEM

Digital Receipts - In-lane - Kiosk

Enable With Digital Capabilities & Technology


24 Source: Quotient Internal Reporting (Oct 2019); 52 Weeks ending Q3, Grocery only

Driving Incremental Revenue With Increased Trips & Baskets

Shoppers on Quotient’s Digital RiQ Platform

$93046% More Spending per Year vs. Active non-RiQ shoppers

26.747% More Trips per

Year vs. Activenon-RiQ shoppers


2020 and BeyondLeading Digital Commerce Marketing

Copyright © 2019 Quotient Technology Inc. All Rights Reserved.25

Simplifying Our Go-To-Market Approach


StrategicPromotions

Targeted

In-Lane

National

Shopper

PerformanceMedia

Social-Influencer

Audiences

eCommerce

Retail Media

Combine the Two

Integrated Solution

Multiple KPIs

Driving Scaled Volume

Asking For More

Copyright © 2019 Quotient Technology Inc. All Rights Reserved.Sources: 1 Supermarket News 2018 and Public Financial Documents; 2 Quotient Internal reporting Q3 2018 (loyalty IDs that in past 2 years made purchase); 3 Quotient internal reporting (7/1/18-6/30/19); 4 Chain Store Guide (Q3 2017); 5 Quotient Internal reporting (July 2019)

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$230BIn total

retail sales flow through our

retail partners1

100MExclusive

buyers targetable

with media2

76BAnnual

purchase events3

75KRetail

Stores use Quotient

Promorions4

65MTotal

Targetable Shoppers with Promotions5

We are at scale

Copyright © 2019 Quotient Technology Inc. All Rights Reserved.Source: 1 IRi (Q4 2018)28

3%

12%

21%

.2%

16% RPM

(Target)

Asking For MoreWe are at scale

Copyright © 2019 Quotient Technology Inc. All Rights Reserved.Source: 1 IRi (Q4 2018)29

Asking For MoreCoordinating with our Retailers and CPGs

1.5% of Retail Sales

Large, disruptivemarket opportunity

,Quotient Solves the Challenges of Shoppers, CPGs & Retailers

We are simplifying our solution set and asking for more

Today’s Key Takeaways
