Digital Commerce Marketing DeliveredJason Young
Chief Media Officer
November 2019
Understanding the Shopper via Data Signals
WebBehavior
Digital Promotion
Clips
SocialMediaTrends
Search Activity
StorePreference
TransactionData
2 Copyright © 2019 Quotient Technology Inc. All Rights Reserved.
Using DataSignals to Drive Digital Marketing at Scale► Audience creation
► Content that converts
► Personalization
► Media activation
► Measurement
DataTargeting &Analytics
eCommerce
HolisticDigital
Promotions
CRM
RetailPerformance
Media
Social Influencer
Media
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Quotient’s Performance Differentiation
RPM NETWORKQUOTIENT ASSETS
1st PartyPurchase Intent Data
$150 BILLIONIn Retail Sales
+1 BILLIONPromo Activations
per Quarter
Quotient Has This Data From…
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+76 BILLIONPurchase Events
Source: Quotient Internal Data
The Quotient Network Delivers Scale
Copyright © 2019 Quotient Technology Inc. All Rights Reserved.Source: 1 IRi (Q4 2018)5
3%
12%
21%
.2%
16% RPM
(Target)
Dole Brand Dollar Volume by Retailers
Opportunity for Data-Driven Grocers
of customers are comfortable exchanging their private information with grocery stores for relevant offers
of in-store sales will be influenced by
digital in 2021
81% 90%
Source: Credit Suisse – Advertising Week Takeaways October 20196 Copyright © 2019 Quotient Technology Inc. All Rights Reserved.
S o u r c e : e M a r k e t e r M a r c h 2 0 1 9
$108.64
$129.34
$151.29 $172.29
$187.77 $201.83
2018E 2019E 2020E 2021E 2022E 2023E
22.9%
19.1%17.0%
13.9%
9.0%7.5%
Digital Ad Spending % Change % of Total Media Ad Spending
48.6%54.2%
58.5%62.3%
64.8%66.8%
Digital Ad Spending in the US2018-2023E $USD B i l l ion
Source: eMarketer March 20197 Copyright © 2019 Quotient Technology Inc. All Rights Reserved.
First Ever Digital Banner from AT&T
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Focus Shifts to Mid/Low Funnel Performance Marketing
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Focus Shifts to Mid/Low Funnel Performance MarketingMedia Products
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US DigitalAd RevenueDuopoly vs. Other*, 2019
Total US Digital Ad Spending$129.1 Billion
Other
$52.4941%
Duopoly
$76.5759%
Source: eMarketer February 201911 Copyright © 2019 Quotient Technology Inc. All Rights Reserved.
Retailer’s Have the Data to Target and Measure
Quality of Contextual Inventory (Search/E-commerce)
Integration Throughout Omnichannel Shopper Journey
(Target)
Nearly 90% of Sales Still Occur in Brick and Mortar Stores
US Net Ad RevenueEstimated $3-4B revenue is from CPG.
Sources: 1. eMarketer, February 2019; 2. www.cnbc.com/2019/04/12/amazons-jeff-bezos-most-us-sales-still-in-brick-and-mortar-stores.html . eMarketer, February 2019.
Emergence of Retail Media
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What is Retail Performance Media?
Secure Shopper DataRetailer Purchases & Coupon Intent
Ad ProductsDeliver Targeted Shoppable Advertising
ShoppersProvide Awareness, Trial Ideas,
Savings, & more.
MeasurementProvide Results
CPG Paid Media150+ Sellers Accelerate Demand
Differentiated Offerings & Proprietary Technology
RPM
13 Copyright © 2019 Quotient Technology Inc. All Rights Reserved.
Copyright © 2019 Quotient Technology Inc. All Rights Reserved. Quotient, the Quotient logo, the Coupons.com logo, the SavingStar logo, Elevaate, QMX, Quotient Retailer iQ, and Ahalogy are trademarks or registered trademarks of Quotient Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners. Confidential and Proprietary Information of Quotient Technology Inc. Please Do Not Copy or Circulate. We do not make any guarantees regarding outcomes that this product will meet your company’s unique needs.
According to Media Agencies Worldwide (Who are Programmatic Buying Tech Owners)
Major Challenges of Programmatic Buying
Source: eMarketer February 201814 Copyright © 2019 Quotient Technology Inc. All Rights Reserved.
Challenges that May Impede Their Abilityto Derive Value from Their Data-Driven Marketing/ Media Initiative in 2019 According to US Digital Marketers(% of respondents).
Government Regulation/ Threat of Regulation
Siloed Organizational Structure/ Poor Data-Sharing Protocols
Difficulty in Proving ROI of Our Data-Driven Programs
Lack of Internal Experience (at the Functional/Operational Level)
Lack of Direction/Resources From My Organization’s Leadership
Insufficient Availability/Functionality of Supporting Technology
This Stuff is Hard
Source: eMarketer/Winterberry Group, “The Outlook for Data 2019” partnership with IAB Data Center of Excellence, March 201915 Copyright © 2019 Quotient Technology Inc. All Rights Reserved.
52.8%
34.7%
33.3%
29.2%
25.0%
22.2%
PLATFORMS PRODUCTS SERVICES
Audience
Retail Performance Media
Media Execution
Analytics
Promotions
Retailer.com
Programmatic Display
Social
Campaign Planning
Audience Building
Creative/Content
Trading Desk/Buying
Measurement/Insights
Digital Commerce Marketing
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Data Management PlatformAudience
The Quotient FormulaUsing DSP-based split management features
P1 Brand Buyers(retailer specific only)
P2 Category Buyers(retailer specific only)
P3 Store Shoppers(retailer specific only)
P4 Q Audience Category Buyers (limited to retailer geographies)
P5 Any Client Mandated Segments(Client 1P segments)
P6 Geo-Behavioral(through Polaris)
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Platform
Media Execution
Creative Toolset• Proprietary Rich Media Ad Server• Dynamic Creative Optimization
Meta DSP (Demand Side Platform)• Buy Inventory Mapped to Audience
Segments• Bid Optimization• Inventory Access Across All Channels
Integration Into Analytics Platform
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Analytics Platform
On-Demand Insights & Measurement
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TRADING DESK / BUYING
PLANNING & AUDIENCE BUILDING
CREATIVE
MEASUREMENT / INSIGHTS
Platform
Media Services
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Digital Commerce Marketing DeliveredMedia Products
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Digital Commerce Marketing DeliveredMedia Products
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>
Digital Commerce Marketing DeliveredMedia ProductsAhalogy Social Influencer
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Quotient’s DIGITALperformance differentiation
1.5Xvs. Industry Norms
0.8X-5Xvs. Industry Norms
2.3Xvs. Industry Norms
► Stricter conversion-based metrics
► Measurement aligned to strategy
& campaign
► Performance-driven &
optimization focused
KPI-Driven Programs
$3.75Return on Ad
Spending
RETURN ON AD SPEND STORE VISITS EXPANSION RATE
15.5%Store
Visitation Lift
0.65%Expansion
Rate
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showWe Have Captured
CPG Demand
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What’s Next?
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Copyright © 2019 Quotient Technology Inc. All Rights Reserved.Sources: 1. Quotient Internal Reporting (Q1 2019); 2. Chain Store Guide (52 weeks ending Fall 2018; 3. Supermarket News 2018 and Public Financial Statements
Quotient Audiences100M+ 250M 2,500+ $150B
Buyer Audiences1 Modeled Audience1 Audience Segments1 In Annual Retail Sales2
• Proprietary purchase signals –Interest, intent and redemptions for brands and categories.
• Exclusive retailer partnerships – POS and loyalty card purchase data. Deep longitudinal view of customers.
• Demo data enhancement – With relevant 3rd party partnerships
• National footprint• Custom segments powered by
machine learning• 20K+ stores covered3
• Weighted category + brand segments
27
Addressable Market Opportunity$400M
Beverage Category – 58MM targetable IDs available to reach 1:1 or use for seed audience to model-up sub-segments
Targeted Audience SegmentsC
SD C
ateg
ory
Buye
rs
Price Sensitivity
Rarely Buy on Deal Sometimes Buy on Deal Usually Buy On Deal
LIG
HT 5.4 MM 5.6 MM 4.1 MM
MED
IUM
2.3 MM 4.4 MM 3.3 MM
HEA
VY 1.0 MM 4.8 MM 5.4 MM
12.5MM Deterministic IDsWithin Media Prime Prospect to Reach Directly or Model Up
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► CPC Bidding Model
► Customer segmentation & targeting
► Promotion automation
► Managed service/self serve
Sponsored Products
Sponsored Search
Quotient E-Commerce Offerings
of Amazon Advertising Revenue65%
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Shoppable Brand Experiences
Quotient E-Commerce Offerings
On-Site + Offsite Shoppable MediaShoppable Brand Pages
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Quotient Has Signed Agreement to Acquire Ubimo
An Incremental Base of Customers and Partners
Including leaders in adjacent markets like Digital Out-of-Home
Customer Interfaceand Infrastructure
To support Quotient’s ability to support self-service commercial
relationships for media programming
Data Management andMedia Activation Platforms
That can be fully integrated into our existing Quotient platforms to drive better results & efficiency in
campaign deployment
Valuable Data AssetsThat will enhance our offerings
on both the targeting and measurement fronts
A Leading Data and Media Activation (DSP) Platform
And a World Class Team of 40+ Data Product, Data Science, and Ad Technology Experts with a Product and Engineering Office in Tel Aviv
Copyright © 2019 Quotient Technology Inc. All Rights Reserved.31
► Strengthens Quotient’s targeted media solutions
► Drive expected cost efficiencies and have a positive effect on gross margin
► Accelerates the development of Quotient’s self-service platform
Signed Definitive Agreement to Acquire Ubimo
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Quotient has made Digital Commerce Marketing a reality for
Brands, Retailers & Consumers
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