Taking the Pulse | COVID- 19 Recovery Navigator - Wave 17 March 2021

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Taking the Pulse | COVID- 19 Recovery Navigator - Wave 17 March 2021
Taking the Pulse | COVID-
19 Recovery Navigator
Wave 17

March 2021
Taking the Pulse | COVID- 19 Recovery Navigator - Wave 17 March 2021
dentsu Recovery Navigator

Since the start of the COVID-19 outbreak, marketers, advertisers and consumers have sought to figure out
how their lives would be changed. Now, almost a year later, our lives haven’t changed – they are changing,
and will continue to do so.

It is in this spirit that dentsu has created a monthly US consumer survey tracking consumer sentiment
towards the changing situation, the results of which are packaged into our ‘Recovery Navigator’ reports.

This report is the seventeenth iteration. You can read previous waves on dentsu.com

Survey Methodology

•   Administered through an online research panel, Toluna, on March 12, 2021

•   Random sample of 1,000 US respondents

•   Age 18-70 years old

•   Nationally representative weighting across gender and ethnicity (using latest publicly available US Census
    numbers)
Taking the Pulse | COVID- 19 Recovery Navigator - Wave 17 March 2021
Contents
1. Executive Summary

2. COVID-19: Consumer Sentiment

3. Spending Patterns: Consumer Segments

4. Protecting Privacy: Consumer Perspective on Google’s Ad
   Announcement
Taking the Pulse | COVID- 19 Recovery Navigator - Wave 17 March 2021
Contents
1. Executive Summary

2. COVID-19: Consumer Sentiment

3. Spending Patterns: Consumer Segments

4. Protecting Privacy: Consumer Perspective on Google’s Ad
   Announcement
Taking the Pulse | COVID- 19 Recovery Navigator - Wave 17 March 2021
Recapping Recent Events

 Biden Announces Accelerated Vaccination   Normalcy On the Horizon for Vaccinated   Third, Sweeping Stimulus Passed
               Timeline
Taking the Pulse | COVID- 19 Recovery Navigator - Wave 17 March 2021
Executive Summary

                  Nov. 11                                     Jan. 14                                      Feb. 10                               Mar. 12

                       14                                          15                                        16                                     17

Ending the Year as We Started,                  New Year, Little Change                   Recovery Still Eludes Americans            Hope on the Horizon
With Uncertainty
                                                As the U.S. reaches another grim          Consumers react to the lessening US        It appears that consumers finally feel
As we near the end of the year, we ask          milestone in the coronavirus              case count optimistically, however, they   that the pandemic is decisively headed
consumers to reflect on their outlook           pandemic, Americans continue to feel      remain highly concerned about the risks    in the right direction. While there is
compared to the beginning of the pandemic,      the worst is ahead of them. Health        of the pandemic to their health and the    still high concern over health risks,
as well as speculate how their behaviors may    risks are still of concern for home-      economy. Most anticipate that a return     vaccination rates are picking up and
change in the future.                                                                     to normal will be a gradual and cautious
                                                bound consumers, however, concern                                                    consumers are beginning to plan when
                                                for economic health is greater.           process even after the virus has been      they will feel ready to jump into
All signs point to the US approaching a                                                   subdued.
significant tipping point in the pandemic.                                                                                           normal life again.
American consumers feel the worst is yet to     Amid disrupted routines, many
come, while feeling a significant send of       consumers are taking solace in more       This month we debut a new framework        The light at the end of the tunnel
                                                                                          to consider how ready different
fatigue and mental stress. Continued distrust   time spent with loved ones, on hobbies    consumer segments are to return to
                                                                                                                                     couldn’t come at a better time as we
in a vaccine despite recent announcements       and in the outdoors. It is clear that                                                continue to see the effects of the
of successful trials illustrate failing                                                   normal. The four Segments analyze
confidence in the US. And may result in
                                                while we crave a return to familiarity,   differences in demographics, attitudes
                                                                                                                                     pandemic on consumers’ mental
subdued activity even after a vaccine is        people have found silver linings.         and shopping habits.                       health.
available.
                                                Technology has been a driving force of    And during Black History Month,            Following Google’s Ad announcement,
A tumultuous election cycle, that has yet to    our ‘new normal’ during the pandemic      consumers tell us they continue to         we dive into consumer attitudes
come to a full resolution, has not resolved     and is playing new, more positive roles   expect brands to provide ongoing           towards privacy.
consumer uncertainty. One thing is clear –      in consumers’ lives.
consumers will continue to expect brands to                                               support for racial equality in the US.
step up to issues in society.
Taking the Pulse | COVID- 19 Recovery Navigator - Wave 17 March 2021
Charting consumer sentiment over the course of the pandemic
 Over the last two waves, we have begun to see a steady stream of consumers identifying as “Moving Into Recovery” – increasing 10 percentage
 points since mid-January of this year to 21%. This shift comes primarily from a softening of those in “Initial Shock” and “Coming to Grips”.

                                                                                    Asking Consumers to Self-Identify with The Stages of Crisis Response

                      INITIAL SHOCK                               COMING TO GRIPS                           LIVING THE NEW NORMAL                           MOVING INTO RECOVERY                              POST-COVID LIFE
                                                         Modifying daily routine. Many moments of
            Outbreak is spreading. Feeling confusion,                                                  Starting to settle into a new routine, adapting    There has been progress to mitigate the    Fully reconnected to work and life without
                                                         frustration and anxiety, focusing on what I
           fear or anger about how will impact my life                                                               to the evolving crisis              outbreak in my community and the nation    the threat of the outbreak hanging over me
                                                                         can control
WAVE 14
NOV ‘20

                           24%                                           26%                                            29%                                            10%                                          11%
WAVE 15
JAN ‘21

                           23%                                           26%                                            30%                                            11%                                          10%
WAVE 16
 FEB ’21

                           23%                                           26%                                            25%                                            14%                                          11%
WAVE 17
MAR ‘21

                           21%                                           23%                                            24%                                            21%                                          10%
Taking the Pulse | COVID- 19 Recovery Navigator - Wave 17 March 2021
Contents
1. Executive Summary

2. COVID-19: Consumer Sentiment

3. Spending Patterns: Consumer Segments

4. Protecting Privacy: Consumer Perspective on Google’s Ad
   Announcement
Taking the Pulse | COVID- 19 Recovery Navigator - Wave 17 March 2021
Consumers react to lessening case counts and increasing vaccinations
  Optimism is soaring as consumers feel the pandemic is shifting in the right direction. Since mid-January, there has been a 42-point decrease in the
  share of respondents who say the pandemic is out of control or getting worse.

                                                                                                    Consumer Outlook on the Trajectory of the Pandemic
                                                               Out of control                  Getting worse, but controllable    Getting better         Under-control      It's over

                                                    January '21                                 34%                                 38%                               16%     7%        5%

                                                   February '21                           26%                               31%                             30%                8%       4%

                                                     March ' 21                   16%                              24%                             45%                       10%        4%

                                                                                              - 42 points                                            + 29 points
                                                                                              OOC/Getting Worse                                      Getting Better
                                                                                              Since January

Q: Which of the following statements best describes how you feel about the trajectory of the pandemic in the US?
Taking the Pulse | COVID- 19 Recovery Navigator - Wave 17 March 2021
Comfort level in public is increasing, yet health concerns remain
  While consumer’s general comfort level in public is beginning to rise in tandem with a more optimistic outlook on the pandemic, they remain
  concerned about health risks. However, there is also a slight softening there.

                            Consumer Comfort or Discomfort Going Out In Public                                                           Concern Abouts Risks the Pandemic Poses to Their Health

                                               Comfortable                     Uncomfortable
                                                                                                                       Extremely Concerned               Very Concerned            Somewhat Concerned   Not at all Concerned

                                                                                                                                   10%                                           10%                          14%              +4
                                57%
         56%                                           56%
                                                                                                     54%                           23%                                           24%
                                                                                           52%                                                                                                                28%              +4
                                                                              50%
                                                                                                                                   28%                                           30%
                                                                                                      46%                                                                                                     26%
         44%                                           44%                                     48%
                                43%

                                                                                                                                   39%                                           36%                          32%

         June                   Aug.                    Oct.                Jan. '21       Feb.      Mar.                        Jan '21                                      Feb '21                       Mar ' 21

Q. In the context of COVID-19, how comfortable are you currently going out in public?                       Q: How concerned are you about the risks of the pandemic to your health?
Concerns around health threat are highest among groups who are most impacted
  Although consumers share general concern about the risks the pandemic poses, the groups who express the highest level of concern (extremely or
  very concerned) are also those who have been most impacted – Black and Hispanic adults and generational cohorts who continue to straddle work
  and family obligations.

                                                                                                                                            Concern Abouts Risks the Pandemic Poses to Their Health
                        Concern Abouts Risks the Pandemic Poses to Their Health
                        Extremely Concerned                                             Very Concerned                                       Extremely Concerned                                  Very Concerned

                        Somewhat Concerned                                              Not at all Concerned                                 Somewhat Concerned                                   Not at all Concerned

                     7%                                                                                                                                           11%                              12%
                                                                12%                                    16%                      18%                                                                                      18%

                    25%                                                                                                                                           23%                              24%
                                                                25%
                                                                                                       29%                                                                                                               31%
                                                                                                                                35%
                                                                                                                                                                  20%
                    30%                                                                                                                                                                            30%
                                                                37%                                    21%
                                         67%                                            62%                                     22%              47%                                                           65%       33%     52%
                                                                                                               55%                                                                  66%
                                                                                                                                                                  46%
                    37%                                                                                                                                                                            35%
                                                                                                       34%                      25%
                                                                25%                                                                                                                                                      19%

                                                                                                                            Boomers                              Gen X                          Millennials              Gen Z
                   Black                                     Hispanic                                 White

Q. In the context of COVID-19, how comfortable are you currently going out in public?                                Q: How concerned are you about the risks of the pandemic to your health?
Activity levels rising slowly, most consumers remain hesitant
  Consumers continue to abstain from many activities including international & domestic travel, attending live events and going to beauty services. For
  necessities such as grocery shopping or going to medical appts., 1 in 5 continue to feel very uncomfortable.

                                                                                                            Consumer Comfort Level Doing Select Activities
                                                               I don’t do this             I do this but feel v ery uncomfortable          I do this and feel somewhat uncomfortable         I do this and feel fine

                                                Exercisin g                           24%                                    12%                    18%                                                       46%        +4                               *Change since
                                                                                                                                                                                                                                                          January 2021
                                       Grocery shopp in g            8%                          18%                                         31%                                                                  43%     +3
                Health /Med ical-related appoin tments                       16%                                       19%                                 29%                                                          36%     +3
                                  Non -grocery s hopping                            22%                                        17%                               28%                                                      32%        +4
                                                Socializing                              27%                                         18%                                 27%           +3                                      28%        +3
                                                Dining out                                        35%                                         14%                            24%             +3                                27%             +5

                   Working at my office/place of work                                                   40%                                          12%                         22%         +2                                 26%        +2

             Attending beauty service estab lish men...                                                 40%                                            14%                             21%                                       24%           +5
                            Attending religious s ervices                                                         49%                                              11%                       18%        +3                           22%        +4
                                         Domestic Travel                                                       47%                                                14%                             19%        +2                       20%           +2
                                   Attending live events                                                                 56%                                                   12%                       15%                              17%

                           Sending kids to camp/sch ool                                                                52%                                               13%                            18%        +4                     17%        +3

                                     Internation al Travel                                                                     63%                                                           11%                    13%                        13% +2

Q: Which of the following things, if any, do you currently do outside of the home and what is your level of comfort?
When consumers will feel comfortable returning is often dictated by each activities’
  level of interaction
   When Consumers Say They Will Feel Comfortable Doing Select
   Activities:                                                                                    Attending Live Events

                                                                                                  International Travel
       Once experts say it                  Once they have                  Once the pandemic
         is safe to lift                    been vaccinated                  is officially over
          restrictions

                                                                                                  Domestic Travel
   For activities where the level of interaction is intense, like going to live
   events and international travel, a majority of consumers say they will only
   feel comfortable once the pandemic is over.                                                    Going to Beauty Service Establishments

   On other activities consumers were split between trusting expert
   guidance and wanting to be vaccinated themselves. For more interaction-
   driven activities like going to beauty services or socializing, consumers                      Socializing
   wanted expert advice, but many also wanted to be vaccinated.

   For activities done solo or with a trusted group and very closely tied to                      Retail Shopping
   local community, like shopping or dining out, consumers were more likely
   to listen to expert guidance.

                                                                                                  Dining Out

Q: When do you expect to feel comfortable doing the following activities?
Conditions required for comfort differ by generational cohort
    Gen Z is most likely to be reliant on a vaccine to resume activities, while Millennials and Gen X are waiting for the pandemic to be over, or for experts to tell them it is safe.
    Boomers are the most cautious, preferring to wait until the pandemic is over to resume most activities.

       When Consumers Say They Will Feel
       Comfortable Doing Select Activities:

                                     Gen Z                                                Millennials                     Gen X                           Boomers

           Attending Live Events                                            Attending Live Events       Attending Live Events               Attending Live Events

           International Travel                                             International Travel        International Travel                International Travel

           Domestic Travel                                                  Domestic Travel             Domestic Travel                     Domestic Travel

                                                                                                                                            Going to Beauty
           Going to Beauty Service                                          Going to Beauty Service     Going to Beauty Service
                                                                            Establishments              Establishments
                                                                                                                                            Service
           Establishments
                                                                                                                                            Establishments

           Socializing                                                      Socializing                 Socializing                         Socializing

           Retail Shopping                                                  Retail Shopping             Retail Shopping                     Retail Shopping

           Dining Out                                                       Dining Out                  Dining Out                          Dining Out

Q: When do you expect to feel comfortable doing the following activities?
Many feel a return to normal is close, yet individual recoveries may be staggered
        Half of consumers expect that life will return to normal either within the next 3 months or 6 months. While one-third say they will resume their pre-
        pandemic routines immediately, two-thirds express a more cautious and gradual return.

                     Expected Timeframe to Return to Normal Life
                                                                                                                                         How Quickly Consumers Plan to Resume Pre-Pandemic Routines

                                       I already                                                                                     I will retu rn to my normal life immediately                                     32%         1/3 ready
                                          have                                                                                                                                                                                    to jump in
                                                                 Within 3
                                           9%                    months
                                                                  19%
                                                                                                           I will retu rn to SOME as pects of normal life right away but wait to
                 12 months                                                                                                            retu rn to others                                                                     37%
                  or longer                                                                                                                                                                                                       2/3 more
                                                                                                                                                                                                                                  cautious &
                    21%
                                                                                                                                                                                                                                  gradual

                                                                          Within 6                                I will wait to s ee whether it is truly safe before resuming my
                                                                                                                                                                                                                23%
                                                                                                                                            normal life
                                                                          months
                                Within 9
                                                                           32%
                                months
                                 19%
                                                                                                            I am fairly conten t with life right n ow and plan to continue many
                                                                                                                          habits even after th e pandemic is over                                          8%

Q: Based on the news and your personal experiences, when do you think you will be able to return to   Q: Once it is deemed safe by experts to return to your pre-pandemic life and routines, how quickly
your pre-pandemic life and routines?                                                                  to you expect to pick things back up?
Millennials & Gen X are planning the quickest returns to normal life
        Straddling work and family needs, Millennials and Gen X appear most eager for normalcy. They anticipate being able to return to normal life within 3
        to 6 months and plan to jump right back into their regular routines.

                         Expected Timeframe to Return to Normal Life                                                                                  How Quickly Consumers Plan to Resume Pre-Pandemic Routines

                                                                                                                                                                             Boomers            Gen X      Millennials    Gen Z
                                      Millennials & Gen X

                                   3-6 months                                                                                               I will return to my normal life immediately
                                                                                                                                                                                                                                     21%

                                                                                                                                                                                                                                                 38%
                                                                                                                                                                                                                                                       42%

                                                                                                                                                                                                                                    20%

                                                    Gen Z                                                                                                                                                                                          39%
                                                                                                               I will return to SOME aspects of normal life right away but wait                                                              33%
                                   6-9 months                                                                                        to return to others                                                                                        36%
                                                                                                                                                                                                                                                     41%

                                                                                                                                                                                                                                           30%
                                                                                                                   I will wait to see whether it is truly safe before resuming my                                                   19%
                                                  Boomers                                                                                   normal life                                                                           17%

                               9-12+ months                                                                                                                                                                                                30%

                                                                                                                                                                                                                     9%
                                                                                                                     I am fairly content with life right now and plan to continue                                 6%
                                                                                                                            many habits even after the pandemic is over                                             8%
                                                                                                                                                                                                                     9%

Q: Based on the news and your personal experiences, when do you think you will be able to return to   Q: Once it is deemed safe by experts to return to your pre-pandemic life and routines, how quickly
your pre-pandemic life and routines?                                                                  to you expect to pick things back up?
Trust in vaccines is steady, with vaccination rates climbing
  Consumer trust in the COVID-19 vaccine is holding at 39%, relatively high compared to earlier this year. At the same time, the share of consumers who
  have been vaccinated continues to increase while those who plan to wait, or pass is declining.

                                           Levels Of Trust In COVID Vaccines                                                                                                                      When Consumers Plan to Get Vaccinated
                                                                                                                                                                                                                 Jan. '21        Feb.   Mar.
            Completely trust it                Somewhat trust it                 Hesitate to trust it               Do not trust it

                                                                                                                                                                                                                                                14%
                                                                                                                                                                                                     Already vaccinated                                      22%
                                                                                                                                                                                                                                                                   27%
  Jan. '21                       30%                                      37%                                20%                  13%
                                                                                                                                                                                                                                                                     29%
                                                                                                                                                                                                       Will be first in line                                           31%
                                                                                                                                                                                                                                                                   27%

                                                                                                                                                                                                                                                                     30%
      Feb.                                44%                                             34%                        11%           11%                                     Plan to wait and see whether it is safe                                             25%
                                                                                                                                                                                                                                                              24%

                                                                                                                                                                                                                                           9%
                                                                                                                                                                                  Plan to be one of the last people                       8%
                                                                                                                                                                                                                                           9%
     Mar.                              39%                                          35%                           16%              11%
                                                                                                                                                                                                                                                       18%
                                                                                                                                                                                                        Do not plan on it                        14%
                                                                                                                                                                                                                                                13%

Q1: Considering everything you know about the roll out of the Pfizer and Moderna COVID-19 vaccines in the US, how much do you ‘trust’ the safety and efficacy of those vaccines? Q2: Once the COVID-19 vaccine is available to
people like you (if it isn’t already), when will you be willing to get vaccinated?
Vaccination efforts need to increase trust among younger and multicultural consumers
  Vaccine adoption continues to be driven primarily by Boomers as most states are focusing on older and more vulnerable populations. Gen Z , Black and
  Hispanic audiences exhibit the lowest levels of “complete trust” in the COVID-19 vaccine.

                                 BOOMERS                                                GEN X                                                                                                   BLACK                            HISPANIC

                             42% VACCINATED
                                                                                28%  VACCINATED
                                                                                                                                                                                        20%                                      15%
                                                                                                                                                                                             VACCINATED                          VACCINATED

                              MILLENNIALS                                               GEN Z                                                                                                                          WHITE

                             22% VACCINATED
                                                                                12%  VACCINATED
                                                                                                                                                                                                              33%  VACCINATED

                                                  Only 1 in 5                                                                                                                                                  Only 1 in 3
               Of Gen Z respondents ‘completely’ trust the COVID-19 vaccines                                                                                    Of Black and Hispanic respondents ‘completely’ trust the COVID-19 vaccines

Q1: Considering everything you know about the roll out of the Pfizer and Moderna COVID-19 vaccines in the US, how much do you ‘trust’ the safety and efficacy of those vaccines? Q2: Once the COVID-19 vaccine is available to
people like you (if it isn’t already), when will you be willing to get vaccinated?
Consumer’s emotional wellbeing mirrors the duality of the pandemic
  With a light at the end of the tunnel in the US, a majority of consumers express feeling hopeful, grateful and calm. However, the pandemic has
  stretched on for over one-year, and consumers are struggling with exhaustion, isolation and uncertainty.

              Emotional Sentiment - Mar. ‘ 21

                Strong: Hope, Gratitude, Calmness                                                                             Struggling: Exhaustion, Uncertainty, Isolation

                     Hopeful          Fearful                                        Grateful         Agry                         Motivated    Exhausted                 Connected    Isolated

                                   22%                                                          24%
                                                                                                                                                45%                            59%    41%
                                                                                                                                      55%
                       78%                                                           76%

                                                                                                                                    Confident   Uncertain
                   Calm          Frustrated

                                   35%                                                                                                          40%
                                                                                                                                      60%
                     65%

Q: For each of the following pairs of emotions, please select the one that best describes how you currently feel right now.
Implications for Marketers

•   Increase hope and optimism. Optimism is soaring as consumers feel the pandemic shifting in the right direction. For the first time since we
    started tracking a year ago, the percentage of consumers who believe the pandemic is getting better outweighs those who believe it is getting
    worse. However, with nearly half of consumers still suffering from exhaustion and isolation, marketers should consider how they can increase
    hope and improve mental well-being as we head into what we hope is the final stretch.

•   Continue to take a cautious approach to recovery. As of this month, only Gen Z considers the vaccine their passport back into out-of-home
    activities. Most consumers are waiting for experts to deem it safe, or for the end of the pandemic altogether. With 2/3 of consumers
    anticipating a cautious and gradual re-entry, brands should plan for a slow and staggered re-opening and consider how they can increase
    consumer comfort levels short-term.

•   Reinforce safety, particularly among younger and multi-cultural audiences. Both younger and multi-cultural audiences continue to express
    lower levels of trust in the safety of a vaccine. These same groups cite the strongest level of concern about the pandemic’s risk to their health.
    To appeal to these cohorts, brands should prioritize and reinforce safety measures.
Contents
1. Executive Summary

2. COVID-19: Consumer Sentiment

3. Spending Patterns: Consumer Segments

4. Protecting Privacy: Consumer Perspective on Google’s Ad
   Announcement
Most Americans concerned for the US economy, many struggling financially themselves
  71% of respondents are highly (‘very’ or ‘extremely’) concerned about the risks the pandemic poses to the US economy, while 52% are highly concerned
  about their own financial situation right now.

                                     Concern About Risks to the US Economy                                                                                  Concern About Personal Finances
                                 Extremely Concerned                               Very Concerned                                                      Extremely Concerned         Very Concerned
                                 Somewhat Concerned                                Not Concerned                                                       Somewhat Concerned          Not Concerned

                                          6%                                                6%
                                                                                                                                                           17%                         18%
                                         18%                                               22%

                                                                                                                                                           27%                         30%
                                         32%
                                                                                           33%

                                                                                                                                                           25%
                                                                                                                                                                                       23%

                                         44%
                                                                                           38%
                                                                                                                                                           31%                         29%

                                      Feb. '21                                            Mar.                                                            Feb. '21                     Mar.

Q1: How concerned are you about the risks of the pandemic to the American economy? Q2: How concerned are you about your personal finances right now?
Mapping Consumer Financial Security to Health Concerns
                                                LOW CONCERN FOR HEALTH RISKS

                                              Squeezed                    Set-to-Go

                                                                                           LOW CONCERN FOR FINANCES
                                                  10%                           32%
                                              of respondents              of respondents

                  HIGH CONCERN FOR FINANCES

                                              Strained                    Sheltering

                                                  42%                           16%
                                              of respondents              of respondents

                                                HIGH CONCERN FOR HEALTH RISKS
Overview: Consumer Recovery Segments
Full profiles in the appendix.

                                 SQUEEZED                                             SET-TO-GO

                                                    Comfortable in public                              Comfortable in public

                                                          Normal ads                                    Business as normal

                                    GEN Z/                                        MILLENNIALS &
                                  MILLENNIALS                                       BOOMERS
                                                  Increase spend on dining &                         Increase spend on health &
                                                        entertainment                                          fitness

                                 STRAINED                                               SHELTERING

                                                                                                       Anticipating long-haul
                                                  Likely frontline or essential
                                                            workers

                                                                                                     Portray pandemic life in ads
                                                Products/services that improve
                                    GEN X/                wellbeing
                                   PARENTS                                            BOOMERS+
                                                                                                     Connected, at-home habits
                                                Increase spend on necessities
Media Consumption Habits
In-depth data in the appendix.

                                     SQUEEZED                                                                                       SET-TO-GO
        Younger and more budget conscious, they rely heavily on a variety of media channels for    More comfortable out in public, they have reduced their reliance on media and are
                                          entertainment.                                                                 heavily engaging in fewer channels.

                                     STRAINED                                                                                         SHELTERING
        They are hard workers who likely have less time for media (having resumed their regular   They are older consumers who lean across less channels in general but are now relying on
                  routines despite discomfort), so they engage across fewer channels.                          media to stay connected and informed, as they shelter in place.
When Consumers Will Feel Comfortable
Resuming Activities:
                                       SQUEEZED                                                                                                SET-TO-GO
            Highly comfortable dining out and shopping. Curing stir-craziness with affordable                   The most comfortable dining out and shopping. Will attend live events once the pandemic
                                            domestic travel.                                                                                       is declared over.

        Retail shopping                  47%                       17%         13%         16%         6%     Retail shopping                  49%                        19%         13% 10% 9%

        Domestic travel                 43%                   13%       12%        16%          15%                Dining out                43%                     19%          15%         15%          8%

             Dining out               40%                    18%           17%            20%          5%     Domestic travel           30%                19%           17%          17%          17%

     Attend live events         25%             15%          16%         15%              29%               Attend live events      21%             18%         14%            24%               23%

             Int'l travel     18%          15%       11%        16%                   40%                          Int'l travel    18%        10%       16%          19%                   38%

                                       STRAINED                                                                                                  SHELTERING
         More trusting in expert opinions on when it is safe to lift safety precautions. Others will                The least comfortable doing activities. Many will wait until the pandemic is over to
                                wait until the pandemic is officially over.                                                resume activities. Others will pick back up once they are vaccinated.

                                                                                                              Retail shopping          22%            22%               26%                23%             7%
     Retail shopping           29%                   25%               20%            19%        6%
                                                                                                                   Dining out      18%             23%               23%                 30%               7%
          Dining out        22%                26%                21%              22%          9%
                                                                                                            Attend live events    8%     17%            21%                 31%                  22%
   Attend live events       20%             21%             19%               25%            14%
                                                                                                              Domestic travel     7%     19%              25%                   31%                18%
     Domestic travel        20%              25%               21%              21%          14%
                                                                                                                   Int'l travel   5% 16%           18%               27%                    35%
          Int'l travel      19%           19%           14%            24%                23%
Implications for Marketers
•   Personal health and financial security will dictate shifts in behavior and mindset. While there will be macro changes to consumers’
    behaviors and spending as the pandemic evolves in 2021, many will be making decisions based on their personal circumstances.
    Behaviors will diverge along the lines of fear and desire.

      •   Sheltering: This group is looking to be uplifted and is relying more heavily on media to stay connected as they shelter in place.
          Focus on bringing your brand to consumers by integrating into at-home entertainment, fitness, education and work habits.
          Relate to their situation by reflecting pandemic life in ads.

      •   Strained: They are waiting on experts to signal that it’s safe to resume the activities they love. Many have reduced their media
          footprint as they’ve been forced back to work. They are looking for support from brands and likely need some uplifting.

      •   Squeezed: They are feeling comfortable out in public and are resuming activities like dining and travel. When their budget
          constricts them, they turn to a variety of media channels to fill their entertainment needs. Brands should offer discounts and
          new experiences to engage them.

      •   Set-to-Go: Open to resuming activities (though still mindful of safety), this group is ready to be welcomed back by brands.
          Marketers can appeal to them through normal communications or offer safely modified versions of everyday experiences.
Contents
1. Executive Summary

2. COVID-19: Consumer Sentiment

3. Spending Patterns: Consumer Segments

4. Protecting Privacy: Consumer Perspective on Google’s Ad
   Announcement
Consumer data privacy and technology timeline

                       2018             2020                          January 2021
                       GDPR goes into   CCPA goes into                Apple to give users
                       effect           effect                        ability to block IDFA

                         GDPR

2017                                       2020                                               March 3rd
Apple introduces ITP                       Chrome announces 3rd
in Safari                                  party cookie deprecation
March 3, 2021
•   No more third-party cookie targeting or tracking

•   No use of identity graphs

•   First party data focused

•   Use of Google FLoCs for interest-based ads
Consumers are aware of Google’s changes, feel favorably about it
  As of March 11th, two-thirds of consumers were aware of Google’s announcement. While 70% of respondents feel the announcement is a good thing,
  this is down slightly from one year ago when we first fielded the question after gaining insight into Google’s plans.

                                                                                                                                                                                              Sentiment About Google Ad Tech Changes

                                                                                                                                                                                        It's a good thing               It's a bad thing             I don't care/not sure

                                            68%
                                                                                                                                                                                                  11%                                                         12%

                                                                                                                                                                                                  12%
                                                                                                                                                                                                                                                              18%

                                     of respondents are aware of the                                                                                                                                                                                                                      - 7 points
                                          Google announcement                                                                                                                                                                                                                             Good Thing
                                                                                                                                                                                                  77%
                                                                                                                                                                                                                                                              70%

                                                                                                                                                                                                Jan. '20                                                   Mar. '21

Q1: Google recently announced that they will stop using technology that tracks an individual’s online activity as they move from site to site across the internet. The personal information this type of technology collects is sold by Google to advertisers in order to help them serve more relevant and personalized
ads to individuals online. How much did you know about this announcement prior to taking this survey? Q2: How do you feel about Google’s decision to stop using individual tracking technology?
Younger generations feel less favorably about Google changes
  While Boomers and Gen X decisively feel that Google’s decision to stop using individual tracking technology is a good thing, Gen Z is split with an equal
  number of respondents saying it is a good and bad thing. As savvy and avid internet users, they may fear that their online experiences will become less
  personalized, or they may simply not care for the regulation.

                                                                                                Sentiment About Google Ad Tech Changes
                                                                                           It's a good thing   It's a bad thing   I don't care/not sure

                                                       9%                                          10%                                 12%
                                                       7%                                                                                                 21%
                                                                                                   11%
                                                                                                                                       22%

                                                                                                                                                          39%

                                                      84%                                          79%
                                                                                                                                       66%

                                                                                                                                                          40%

                                                  Boomers                                         Gen X                            Millennials            Gen Z

Q: How do you feel about Google’s decision to stop using individual tracking technology?
The past year appears to have heightened awareness of data collection
  Compared to one-year ago, when the CCPA went into effect, consumers report being more aware of what data is being collected on them and how it is
  being used. Those with a clear understanding rose 10 points, while those with a vague or no understanding declined 11 points from a year ago.

                                         Consumer’s Level of Understanding About Data Collection                                                                                                         The Past Year Has Sparked Much Public Discussion

    A clear understanding                 A good understanding                  A vague understanding                  Little to no understanding

                                            10%                                                            8%
                                                                                                                                            - 11 points
                                                                                                                                            Vague/No
                                                                                                          19%                               Understanding
                                            28%

                                                                                                          39%
                                            39%

                                                                                                                                              + 10 points
                                                                                                          34%                                 Clear
                                            24%                                                                                               Understanding

                                         Jan. '20                                                      Mar. '21

Q: Recently, it has become apparent that companies/brands are collecting personal information on people. What is your level of understanding about what data is being collected on you and how it is being used?
Consumers believe that the risks of data collection far exceed the benefits
      And agree that not enough is being done to ensure their privacy is protected online. This sentiment is true across all age brackets.

                                                  “The potential risks of data collection   “Not enough is being done to ensure my
                                                        outweigh the benefits”                       privacy is protected”

                                                          77%         AGREE
                                                                                                 83%    AGREE

                                                        37% agree STRONGLY                    38% agree STRONGLY

Q: How much do you agree or disagree with the following statements?
Reclaiming privacy is top-of-mind for concerned consumers
  The urgency of concern over data privacy has risen slightly in the past year – with 46% of consumers now saying they are ‘very’ concerned. Consumers
  continue to actively protect themselves with 80% reducing the amount of data they share.

                                     Concern Over Privacy & Data Protection                                                                                                 “I have reduced the amount of data I share with companies…”

                                      Very concerned                   Somewhat concerned
                                                                                                                                                                                              Significantly   Somewhat   Not really
                                      Not very concerned               Not at all concerned

                                  1%                                                            3%
                                                                                                                                                                                             22%                            20%
                                  18%                                                          12%

                                                                                               39%
                                  41%                                                                                                                                                        38%                            41%

                                                                                               46%                                                                                           40%                            39%
                                  40%

                               Jan. '20                                                     Mar. '21                                                                                        Jan. '20                      Mar. '21

Q 1: How concerned are you about the privacy and protection of your personal information online? Q2: Have you reduced the amount of information you share with companies in recent years?
Heavy internet users express less urgency than light internet users
  Interestingly, light internet users are more highly concerned about privacy than heavy internet users and are more likely to have significantly reduced the
  amount of data they share. Heavy internet users may see more benefits than risks in data collection.

                                     Concern Over Privacy & Data Protection                                                                                                “I have reduced the amount of data I share with companies…”

                                Very concerned                    Somewhat concerned
                                                                                                                                                                                           Significantly   Somewhat       Not really
                                Not very concerned                Not at all concerned

                                2%                                                      1%
                                                                                                                                                                                           21%                               18%
                               12%                                                     14%

                                                                                       32%
                               42%                                                                                                                                                                                           37%
                                                                                                                                                                                           45%

                                                                                                                  +9 point gap
                                                                                                                  Very concerned                                                                                                            +10 point gap
                                                                                                                  over data privacy                                                                                                         Significantly
                                                                                                                                                                                                                                            reduced data
                                                                                       53%
                               44%                                                                                                                                                                                           44%
                                                                                                                                                                                           34%

                   Heavy internet user                                       Light internet user                                                                                 Heavy internet user                  Light internet user

Q1: How concerned are you about the privacy and protection of your personal information online? Q2: Have you reduced the amount of information you share with companies in recent years?
Privacy concerns are strongest among older generations, but they are less likely to take action
  Boomers and Gen X express the strongest concerns over privacy and data protection. Interestingly, Boomers are the least likely to reduce the amount of data they share, potentially
  due to a lower degree of digital literacy than that of Gen X and Millennials (who are actively reducing data sharing).

                                     Concern Over Privacy & Data Protection                                                                                                “I have reduced the amount of data I share with companies…”

                                Very concerned                    Somewhat concerned
                                                                                                                                                                                           Significantly   Somewhat     Not really
                                Not very concerned                Not at all concerned

                  2%                          3%                          3%                          7%                                                                                            17%           17%
                  9%                          9%                                                                                                                                                                                     20%
                                                                         16%                                                                                                    27%
                                                                                                     17%

                                             32%
                 42%                                                                                                                                                                                40%           39%
                                                                         41%
                                                                                                                                                                                39%                                                  50%
                                                                                                     44%

                                             57%
                 48%                                                                                                                                                                                44%           43%
                                                                         41%                                                                                                    34%
                                                                                                     32%                                                                                                                             30%

             Boomers                        Gen X                   Millennials                     Gen Z                                                                   Boomers                Gen X       Millennials           Gen Z

Q1: How concerned are you about the privacy and protection of your personal information online? Q2: Have you reduced the amount of information you share with companies in recent years?
Brands should put data ethics at the center of their ethos
  A commitment to not sell or share personal information ranks among the highest factors in earning consumer trust. Of equal value is security,
  transparency and reputation/previous experience with the brand. Less impactful, but still a draw, is personal gain, such as custom experiences or
  discounts in exchange for personal data.

                                                                                            Factors That make Consumers Most Comfortable Sharing Data
                                                                                                             Respondents asked to select TOP THREE choices

                                                   They promise not to share or sell my personal information with
                                                                                                                                                                                 36%
                                                                              others

                                                             They securely collect and store my personal information                                                            35%

                                                 They are transparent about how my personal information will be
                                                                                                                                                                               34%
                                                                        stored and used

                                                                      I trust them or have a lot of experience with them                                                       34%

                                                   They have never been the subject of any data breach or misuse
                                                                                                                                                                         29%
                                                                             scandal

                                                                  I have something to gain personally (i.e. discounts, a
                                                                                                                                                                   25%
                                                                               personalized experience)

                                                                                                                None of the above                            10%

Q: Which of the following factors would make you MOST comfortable to share your personal information with a company? Please select your top three choices.
Consumers’ trust in the ad industry lags business & tech
  Businesses and tech companies are most trusted to keep consumer data secure. However, trust in the advertising industry falls a steep 14 percentage
  points.

                                  68%trust BUSINESSES
                                                                                                                                   65%      TECH COMPANIES
                                                                                                                                                                        trust   54%
                                                                                                                                                                                trust AD INDUSTRY
                                    to keep their data secure                                                                               to keep their data secure           to keep their data secure

Q: What is your level of trust or distrust that the following organizations are taking the necessary steps to keep your data and personal information secure?
Boomers are significantly more distrustful of their data being kept secure, especially by
  the ad industry

                                  BOOMERS                                                                 GEN X                                                   MILLENNIALS                  GEN Z

                             49%
                             TRUST BUSINESSES
                                                                                                 79%
                                                                                                 TRUST IN BUSINESS
                                                                                                                                                                 74%                      66%
                                                                                                                                                                 TRUST IN BUSINESS        TRUST IN BUSINESS

                             48%
                         TRUST TECH COMPANIES
                                                                                                 75%
                                                                                          TRUST IN TECH COMPANIES
                                                                                                                                                                 74%                      64%
                                                                                                                                                           TRUST IN TECH COMPANIES     TRUST IN TECH COMPANIES

                             25%
                          TRUST IN AD INDUSTRY
                                                                                                 67%
                                                                                              TRUST IN AD INDUSTRY
                                                                                                                                                                 66%                      55%
                                                                                                                                                                TRUST IN AD INDUSTRY    TRUST IN AD INDUSTRY

Q: What is your level of trust or distrust that the following organizations are taking the necessary steps to keep your data and personal information secure?
There continue to be strong business repercussions for data misuse
  A year ago and now, a strong majority of consumers say they will stop doing business with a company that misuses their data.

                                                              JANUARY 2020                                          MARCH 2021

                                                       82%         Say they will
                                                                                                               76%   Say they will
                                                        stop doing business                                    stop doing business
                                                         with a company that loses                             with a company that loses
                                                           or misuses their data                                 or misuses their data

Q: How likely are you to stop doing business with a company that loses or misuses your personal information?
Gen Z is significantly less likely to punish brands for misusing their data
   Whereas Boomers, Gen X and Millennials are more likely to walk away.

                       BOOMERS                                                                          GEN X              MILLENNIALS                        GEN Z

                 87%
               stop doing business
                                                                                                79%
                                                                                              stop doing business
                                                                                                                            74%                         57%
                                                                                                                                                       stop doing business
                                                                                                                           stop doing business
                with a company that loses                                                      with a company that loses   with a company that loses   with a company that loses
                  or misuses their data                                                          or misuses their data       or misuses their data       or misuses their data

                         114i                                                                         104i                        97i                          75i

Q: How likely are you to stop doing business with a company that loses or misuses your personal information?
Implications for Marketers

•   Champion data ethics beyond compliance. With industry regulations around privacy in flux, companies who champion data ethics will
    gain consumer trust. Data misuse is a leading cause of consumers severing their relationships with brands and companies. Brands
    who lead or participate in the next wave of privacy regulations have a better chance at retaining their customers and deepening trust.

•   Prioritize trust and transparency. Our research found that consumers feel most comfortable sharing their personal information with
    companies when there is a commitment that data will not be sold or shared, it is securely collected and stored, and there is
    transparency about how it will be used. Consumers are also more likely to share information with a brand they trust, pointing to the
    importance of building relationships.

•   Rethink the consumer value-exchange. As consumers’ have become more awakened to privacy, they have shifted from thinking of
    data as inconsequential to valuable. As the idea of data as a commodity becomes more mainstream marketers will need to ensure that
    every touchpoint works to earn consumer’s trust. Our research found that heavy internet users and younger generations tend to see
    more benefit than risk in data collection – they may be more open to to the idea of a value-exchange.
APPENDIX
Sheltering
 Financially secure, yet highly concerned about the pandemic’s health risks, this group is staying home.

                                                                 ROUTINES                                    SPENDING                                  BRAND EXPECTATIONS

                                                 They exhibit a high level of concern about     Less likely than other groups to increase   They want brands to put people first and offer
                                                 the pandemic:                                  spending. Those that do plan to spend       pandemic-friendly shopping:
                                                                                                more will continue to spend on in-home
                                                 • 65% believe the pandemic is getting                                                      Brands Should Respond to the Crisis By:
                                                                                                necessities and activities:
                                                   worse or out of control (114i)                                                           • Keeping employees safe/paid (70%, 113i)
  More likely to be:                                                                            Spending MORE on over next 3 months:
                                                                                                                                            • Keeping customers safe (66%, 114i)
                                                                                                1.    Groceries (37%)
• Boomers+ (43%, 159i)                                                                                                                      • Offering new ways to shop (45%, 125i)
                                                 They are anticipating a long-haul ahead        2.    Household goods (37%)
                                                 and a cautious return:                         3.    Personal care (36%)                   • Offering discounts (45%, 129i)
• Or Millennials (27%), Gen X (24%)
                                                                                                4.    Entertainment (32%)
                                                 • 63% are uneasy in public (121i)              5.    Health & Fitness (30%)
• Mix of Urban (43%), Suburban (37%), Rural
                                                 • 43% (134i) plan to be first in line to get                                               They want to see pandemic life reflected
  (20%)
                                                   vaccinated (15% have been vaccinated                                                     • Show how products/services help improve
• White (72%), Asian (10%), Black (15%),           already)
                                                                                                                                              consumer’s comfort, happiness or wellbeing
  Hispanic (16%)                                 • 38% say normal is at least 12 months                                                       (37%, 116i)
                                                   out, or longer (152i)                                                                    • Portray pandemic life in ads (36%, 138i)
• Small HH, not parents: 61% have
Strained
 Both concerned about their personal finances and the pandemic, this cohort is stressed on two angles

                                                            ROUTINES                                 SPENDING                             BRAND EXPECTATIONS

                                              Data suggests they are likely frontline
                                                                                        They are reducing trips to the store      They want brands to show their
                                              or essential workers who must
                                                                                        and stocking up to providing for larger   support for people and communities
                                              continue normal routines despite
                                                                                        families:
                                              discomfort:                                                                         Brands Should Respond to the Crisis
                                                                                        • 88% tend to stock their homes with      By:
  More likely to be:                          • 75% are actively employed (117i)
                                                                                          more necessities than they              •    Keeping employees safe/paid
• Gen X (37%, 137i)                           • 30% have already been vaccinated          immediately need (114i)                      (63%, 102i)
                                                (136i)
                                                                                                                                  •    Supporting local community
• Or Millennials (40%), Boomers (17%)         • 59% are uneasy in public (113i), with   Most plan to increase spend on                 (50%, 100i)
                                                22% of those citing “total              necessities, perhaps ramping up after
• Urban (61%, 117i)                                                                                                               •    Committing to social justice
                                                discomfort” (138i)                      period of budgeting
                                                                                                                                       initiatives (27%, 100i)
• White (73%), Black (16%), Hispanic (18%)    • 29% (126i) say they have already        Spending MORE on over next 3
                                                                                                                                  •    Helping me and others
                                                returned to their normal routines,      months:
• Larger HH, parents: 49% have
Squeezed
 This group is more concerned about their financial situation than they are about the pandemic

                                                           ROUTINES                                SPENDING                              BRAND EXPECTATIONS

                                             This cohort is more comfortable in         Despite a limited budget, they are     They want brands to offer safe. easy and
                                             public than the average American and       excited to spend more on out-of-home   convenient ways to shop
                                             eager to resume life fully:                experiences like restaurants and       Brands Should Respond to the Crisis By:
                                                                                        entertainment:
  More likely to be:                         • 58% believe the pandemic is getting                                             • Keeping employees safe/paid (65%,
                                               better or is already under control       Spending MORE on over next 3             105i)
• Gen Z/Millennial (53%, 118i)                 (135i)                                   months:                                • Offering new ways to shop (44%, 125i)
                                             • 54% are currently comfortable in         1.   Groceries (46%)
• Or Boomers+ (31%)                            public (110i)
                                                                                                                               • Offering discounts (43%, 119i)
                                                                                        2.   Household goods (46%)
• Rural (23%, 144i) or Urban (51%)           • 29% (126i) say they have already         3.   Restaurants/Take-out (42%)
                                               returned to their normal routines,       4.   Personal Care (41%)
• Hispanic (26%), Black (20%), White (68%)     27% (117i) say they expect to within 3   5.   Entertainment (40%)               …and they want to see how brands are
                                               months                                                                          supporting communities
• Smaller HH, not parents: 55% have
Set-to-Go
 Neither concerned about finances or the pandemic, this group has been minimally challenged

                                                                ROUTINES                                   SPENDING                         BRAND EXPECTATIONS

                                                Despite comfort in public, this group feels    Less likely than other groups to
                                                less urgency around returning to normal life                                           Return to BAU, while offering new
                                                                                               increase spending. Those that do plan
                                                perhaps because they aren’t as stressed:       to spend more will spend on health,     way to shop and save
  More likely to be:                                                                           restaurants and entertainment.          Brands Should Respond to the Crisis
                                                • 71% believe the pandemic is getting
                                                  better or is already under control (165i)                                            By:
• Millennial (37%, 100) or Boomers (32%,                                                       Spending MORE on over next 3 months:
  128i)                                         • 69% are currently comfortable in public                                              • Offering new ways to shop (39%,
                                                                                               1.   Groceries (35%)
                                                  (141i)                                                                                 109i)
• With some Gen X (16%) and Gen Z (11%)
                                                                                               2.   Health & Fitness (34%)
                                                • But only 20% (87i) say they have already     3.   Restaurants/Take-out(32%)          • Offering discounts (40%, 111i)
• Suburban (40%, 125i) or Urban (43%)             returned to their normal routines, with      4.   Household goods (31%)              • Show how products/services help
                                                  another 20% (87i) expecting to within 3      5.   Entertainment (31%)                  improve consumer’s comfort,
• White (72%), Asian (11%), Hispanic (18%) or     months
  Black. (12%)
                                                                                                                                         happiness or wellbeing (35%, 109i)
                                                • Only 34% say they will return to their
                                                  normal pre-pandemic activities                                                       • Advertise as normal (23%, 127i)
• Smaller HH, not parents: 60% have
Media Consumption Habits

                                                                           MOBILE
                           TRAD. TV   OTT   ONLINE VIDEO   SOCIAL MEDIA              PC INTERNET   GAMING   AUDIO   OOH
                                                                          INTERNET

          SHELTERING
 Heavy internet & social     M        M/H       M               H            H           H           L      L/M      L
            media users

            STRAINED
On-the-go: Heavy mobile      M        M/H       M             M/H            H           M           M        L     M
               internet

            SQUEEZED
  Younger: Heavy digital     M         H       M/H              H            H           H          M/H      M      L/M
                 usage

           SET-TO-GO
         Active: Heavy       M        M/H      L/M            M/H            H           M           L      L/M      L
        mobile internet
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