Digital DisruptionServing Shoppers, CPGs and Retailers
Chad Summe
November 2019
Shoppers, CPGs and Retailers
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3
Our Discussion
01
02
03
Digital Disruption is Accelerating
Quotient Solving their Challenges
Quotient is well positioned in 2020 and beyond
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4
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
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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.
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PLATFORMTECHNOLOGY
OMNI-CHANNEL DIGITAL CONTENT
SCALEDAUDIENCES
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Quotient is Digital Commerce Marketing
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Digital DisruptionMarket Catalysts
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Digital Penetration & Time Spent Has Grown
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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
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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%.
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Stack ‘em highlet ‘em fly!
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Retail is Transforming
Retailers Look Beyond Their Core Business for Profits
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$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
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Shoppers
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Convenience & Value:Transforming Shopping
to Make Life Better.
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More Savings, More Money
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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
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Making It Easy With Technology
Digital Paperless (Load to Account) Frictionless Media Load to Account
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Consumer PackagedGoods (CPGs)
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Access to Data: Reach & Scale
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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
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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
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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
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2020 and BeyondLeading Digital Commerce Marketing
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Simplifying Our Go-To-Market Approach
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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
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