Engaging Shoppers on the Path to Purchase MAY 11 2016 1

Shoppers’ Critical Needs Overview BrandSpark Canadian Shopper Study Online survey November 2015 to January 2016. Over 40,000 Canadian consumers (age 18+) who are involved in household shopping. Weighted by gender, age and region to conform to the profile of the Canadian Household Shopper. Margin of sampling error at typical base size of ~4000 is +/-1.6% Shoppers’ Critical Needs Shoppers’ Evolving Habits 2

Shoppers’ Frame of Mind & Taking Action Overview BrandSpark Canadian Shopper Study OMAC Proprietary Shopper Questions Online survey April 2016. Over 1,300 Canadian consumers (age 18-64) who are involved in household shopping. Weighted by gender, age and region to conform to the profile of the Canadian Household Shopper. Margin of sampling error at typical base size of ~1,350 is +/-2.7% Shoppers’ Frame of Mind & Taking Action Shoppers’ Attitudes Towards DOOH 3

I like trying new products Innovation and new products hold appeal. 79% I like trying new products % Completely Agree/Agree 68% recall OOH ads (past week) q: Please indicate how much you agree or disagree with each of the following statements?

Consumers believe in ongoing incremental improvement through innovation. Research & Development is constantly leading to better products in… % Completely Agree/Agree SHOW SOME OF THE TOP NEW INNOVATIONS 65% say they will pay more for a new product that is an improvement q: Please indicate how much you agree or disagree with each of the following statements?

I try new products from the brands I trust most Brand trust is extremely important to trial of new products. 69% recall OOH ads (past week) 66% I try new products from the brands I trust most % Completely Agree/Agree q: Please indicate how much you agree or disagree with each of the following statements?

SCALE: Increase greatly, Increase somewhat, Would not increase Millennials seek multiple-points of validation Factors Increasing Brand Trust Family / Friend recommends it Unfiltered consumer reviews / ratings online Product expert recommends it Please indicate how much each of the factors below would increase your trust in a consumer brand. SCALE: Increase greatly, Increase somewhat, Would not increase

OOH Can Stimulate Brand Conversation Leading to Trial, Consumer Trust & Brand Loyalty Consumers tweeted their first name to see personalized stories about their names broadcast on a digital screen. Photos of each story shown were tweeted back to consumers to share.

HOW ARE SHOPPERS PREPARING FOR THEIR SHOPPING TRIPS? Let’s start by understanding how shoppers prepare for their shop

Shopping starts before the store with price driven pre-store activities. Pre-Store Shopping Activities – % Household Shopping Trips (Base: n= 3,963) Making a list Flyers are still important, though Y/Y decrease Print and digital are both playing a role q: Which of the following did you do in advance of this shopping trip?

Why do you consult flyers from supermarkets, grocery or drug stores? Flyer readership is also driven by discovery. Shoppers want to discover new products and be inspired – OOH can play a key role. Why do you consult flyers from supermarkets, grocery or drug stores? Discovery, Inspiration

Digital flyers use is growing quickly, but lags print. Flyers start the path to purchase at home, are read less often in-store Growth flattened 2016 vs. 2015 How often do you consult each format of supermarket/grocery store flyers before or during your shopping trips?

The digital flyer is also coming into store via smartphones. Do you use your smartphone or tablet while shopping in-store? Referenced Digital Flyer on Phone During Grocery Shop 61% Smartphone Ownership 69% +6% Y/Y Which of the following devices do you own? Which of the following activities have you done with your mobile device while shopping in-store? (Food & Beverage)

Shoppers will use their phones to access info while shopping if it provides value. Which of the following activities have you done with your mobile device while shopping in-store? (Food & Beverage)

Use differs by category; clothing shoppers take pictures, search for coupon codes, and compare prices. Which of the following activities have you done with your mobile device while shopping in-store? (Clothing)

WHAT HAPPENS ON THE WAY TO THE STORE? Let’s start by understanding how shoppers prepare for their shop

Good prices drive more specific retailer trips than even proximity – most shoppers will drive further to get to their preferred store. Reasons for Choosing a Specific Store for a Shopping Trip – Top 5 (Base: n= 5,508) STREAMLINE PRESENTATION qTrip5: Why did you choose a specific store to visit on this occasion?

Opportunity for Out-of-Home Media to Engage & Interact with Shoppers

When out-of-home, consumers are alert, active, and interested. When you are outside your home, which of the following describes your frame of mind?

Opportunity for OOH to influence unplanned or impulse purchases. Activities During Shopping Trip - % Household Shopping Trips (Base: n= 5,490) qTrip7: Which of the following did you do in-store on this shopping trip?

DRIVERS AVERAGE WEEKLY MILEAGE = 150 KM. Higher mileage outside urban areas, though urban traffic can increase OOH exposure. DRIVERS AVERAGE WEEKLY MILEAGE = 150 KM. Urban Suburban Rural 94 km 127 km 170 km In the past 7 days, how many kilometres did you travel as a driver or passenger in a personal vehicle such as a car, van or truck?

1 in 4 Canadians use transit weekly with much higher rates in urban areas Overall 25% Use Transit (38% in “urban” areas) Weekly Transit Users in Metro City At least one trip weekly 13% 22% BUS, STREET CAR, LRT COMMUTER TRAIN, SUBWAY In the past 7 days, how many single trips (going and returning = 2 trips) in total did you take using the following types of transportation?

A large portion of Canadian shoppers visit indoor venues Indoor Venues Visited Frequently (% once per month or more) (Base: Shoppers 18-64, n= 3,850) 59% 60-64 69% 25-29 54% 25-29 Hide rows as appropriate using “Edit Data” option q52: How often do you participate in the following activities/frequent the following locations?

OOH Garners High Attention Levels How often do you pay attention to advertising in each medium? % Pay Attention Ads Always / Sometimes (Shoppers 18-64) Net OOH 78% TV 80% OUTDOOR BILLBOARDS TRANSIT ADS INDOOR MALLS AIRPORTS STREEL LEVEL INDOOR – REST, BARS, COLLEGES, UNIVERSITIES ONLINE VIDEO 52% RADIO 73% MAGAZINES PRINT 67% MAGAZINE TABLET 41% NEWSPAPER 65% WEB BANNER 63% SOCIAL 61% SEARCH 61% TV RADIO OUT-OF-HOME MAGAZINE ONLINE NEWSPAPER * In Toronto, Montreal or Vancouver only How often do you pay attention to advertising in the following media? SCALE: Always, Sometimes, Never, I don’t use that channel

Shoppers pay attention to multiple OOH formats % Pay attention to Ads “Always”/ “Sometimes” Among Potential Exposed 78% 69% 60% 59% 55% 50% Total – Any Out-of-Home 84% 18-24 Billboards 73% 18-49 Transit 73% 18-24 Shopping Malls 74% 18-24 Street level ads 67% 18-34 Airports 55% 25-49 How often do you pay attention to advertising in the following media? SCALE: Always, Sometimes, Never, I don’t use that channel

Shoppers Pay Attention to Out-of-Home Ads % Pay Attention Always or Sometimes (Shoppers 18-64) 84% across three cities 85% TORONTO (index 1.12) 79% VANCOUVER (index 1.03) 85% MONTREAL (index 1.12) 2015 BrandSpark Canadian Shopper Study How often do you pay attention to advertising in the following media? SCALE: Always, Sometimes, Never, I don’t use that channel

Higher Attention Levels Among Smartphone Owners % Pay Attention Always or Sometimes (Shoppers 18-64, Smartphone Owners) 80% among Smartphone Owners 86% across three cities 85% TORONTO 84% VANCOUVER 90% MONTREAL How often do you pay attention to advertising in the following media? SCALE: Always, Sometimes, Never, I don’t use that channel

Past week recall of static OOH ads is high in Canada’s major cities, particularly Metro Toronto. % That Recall Static OOH Ads in the Past Week (Shoppers 18-64) 59% Canada Overall 74% TORONTO (index 1.26) 65% VANCOUVER (index 1.11) 60% MONTREAL (index 1.03) Which different types of out-of-home advertising do you recall having seen in past 7 days? Select all that apply.

Past week recall of digital OOH ads is high in Canada’s major cities % That Recall Digital Outdoor Ads in the Past Week (Shoppers 18-64) 45% Canada Overall 56% TORONTO (index 1.23) 50% VANCOUVER (index 1.10) 47% MONTREAL (index 1.13) Which different types of out-of-home advertising do you recall having seen in past 7 days? Select all that apply.

Those active on social media are more likely to pay attention to OOH ads and to recall them. Shoppers 18-64 Total Facebook YouTube Twitter Pinterest LinkedIn Pay Attention to OOH Ads – Any Format (Always/Sometimes) 78% 81% 88% 87% 83% 82% 1.04 1.13 1.12 1.06 1.05 Recall Any Specific OOH Ads (Past Week) 67% 68% 79% 75% 69% 1.01 1.18 1.03 1.21 How often do you pay attention to advertising in each medium? Which types of OOH ads do you recall seeing in past week? How often do you pay attention to advertising in the following media? SCALE: Always, Sometimes, Never, I don’t use that channel Which different types of out-of-home advertising do you recall having seen in past 7 days? Select all that apply.

Drake's single billboard sparked a viral phenomenon One Billboard - One Week 86 Million + Earned Media Impressions! Excludes broadcast television and much of the individual conversation within Facebook, whose recent API changes limit third-party access to data on content consumption within its platform.

Almost one-half (48%) of shoppers are likely to take action after seeing an OOH ad.

<1 hr/wk with magazines/ The media landscape has become more fragmented, which impacts the use of specific ad channels Base: Shoppers 18-64 Overall 39% 18-34: 48% Men: 44% Tor/Van/Mon: 43% (online active population) Digital adblock users Overall 24% 50-64: 32% Men: 30% Non-members Overall 42% 18-34: 61% 35-49: 45% Tor/Van/Mon: 49% 14% subscribers say they are considering disconnecting Print: Overall 55% 18-34: 65% Digital: Overall 53% <1 hr/wk with magazines/ newspapers Cable/Broadcast TV Do you use adblocking software to avoid online advertisements? Are you a member of any of the following online social networks? In an average week, please indicate how many hours you spend watching, listening, OR interacting with each of the following.

Overall % of Household Shoppers The likelihood to be within the subset of shoppers ‘blind’ to ads in specific media channels varies greatly across demographic groups. Base: Shoppers 18-64 INDEX VS. HOUSHOLD SHOPPER (RELATIVE LIKELIHOOD TO BE WITHIN MEDIA SEGMENT) MEDIA SEGMENTS Overall % of Household Shoppers GENDER AGE REGION HOUSEHOLD INCOME Male Female 18-24 25-34 35-49 50-64 West ON QC Atl. Under $60K $60K-$100K $100K-$150K $150K+ TV Viewing Weekly 5 Hours or less 42% 0.99 1.01 1.98 1.25 1.07 0.64 1.03 0.97 1.05 1.13 0.82 0.62 6 Hours or more 58% 0.95 0.54 0.68 0.96 1.30 0.85 1.45 0.94 0.93 1.09 Cable Subscribers All Cable Subscribers 63% 0.91 1.06 0.79 0.75 1.02 1.15 0.89 1.46 0.98 0.92 Disconnecting Cable 14% 1.10 1.08 1.26 0.67 1.33 0.86 Not Disconnecting 86% 0.88 0.70 1.23 1.53 1.04 Report Using AdBlock Software (1+ devices) Using 39% 1.56 1.14 0.90 0.87 Not Using 61% 0.63 1.21 Active Facebook Member Active Member 76% 1.31 Non-Member / Not Active 24% 1.16 0.37 0.69 1.37 1.11 1.00

Those disconnecting from other specific channels are still paying attention to OOH ads % Pay Attention Always or Sometimes Digital adblock users 79% of those using ad blocking software (pay attention always/sometimes) 67% of non-members (pay attention always/sometimes) 89% of those 18-34 who are not Facebook users pay attention to OOH 90% of those 18-34 who use adblock software pay attention to OOH Non-members Cable/Broadcast TV Print: 73% of non-/infrequent readers Digital: 71% (pay attention always/sometimes) 78% of those who watch < 5 hours cable TV a week (pay attention always/sometimes) 76% of non-readers 18-34 <1 hr/wk with magazines/ newspapers 81% of those 18-34 who watch <5 hours/wk pay attention to OOH 70% of non-readers 18-34 Base: Shoppers 18-64 How often do you pay attention to advertising in the following media? SCALE: Always, Sometimes, Never, I don’t use that channel

Among those avoiding or spending less time with specific media, attention to OOH ads is increased for smartphone owners % Pay Attention Always or Sometimes Digital adblock users 83% of those using ad blocking software (pay attention always/sometimes) 70% of non-members (pay attention always/sometimes) Non-members Cable/Broadcast TV Print: 78% of non-/infrequent readers Digital: 75% (pay attention always/sometimes) 80% of those who watch < 5 hours cable TV a week (pay attention always/sometimes) <1 hr/wk with magazines/ newspapers Base: Shoppers 18-64, Own Smartphone How often do you pay attention to advertising in the following media? SCALE: Always, Sometimes, Never, I don’t use that channel

Canadian Shoppers Attitudes and Perceptions of DOOH Rosanne to cover this section

Canadians Agree That DOOH is Effective in Communicating Public Safety Messages 85% Total 18-64 81% across three cities MONTREAL 82% TORONTO 79% VANCOUVER 79% Please indicate your level of agreement with the following statements about electronic (digital) signs.

7 in 10 Canadians Accept Digital Signs as Normal Part of Public Space in Large Cities 70% Total 18-64 70% across three cities MONTREAL 79% TORONTO 69% VANCOUVER 66% Please indicate your level of agreement with the following statements about electronic (digital) signs.

DOOH is Seen as an Effective Way to Communicate Timely and Relevant Information. % strongly or somewhat agree Total 18-64 Toronto Montreal Vancouver Net 3 cities Digital signs are an effective way 73% 81% 71% 63% 74% to communicate important and timely information. Digital signs provide current and 63% 71% 61% 57% 65% relevant information. Please indicate your level of agreement with the following statements about electronic (digital) signs.

Many Canadians Agree that DOOH Stands Out More than Static OOH, Online and TV % strongly or somewhat agree Total 18-64 Toronto Montreal Vancouver Net 3 cities I am more likely to notice 53% 58% 48% 50% 52% advertising on a digital sign than a static billboard. Advertising on digital signs 49% 56% 46% 49% 51% stands out more than advertising online. Advertising on digital signs 39% 52% 36% 41% 44% on TV. Please indicate your level of agreement with the following statements about electronic (digital) signs.

Approximately 1 in 2 agree digital ads may provide useful information on products or services, and are interested in interacting to access promotions. % strongly or somewhat agree Total 18-64 Toronto Montreal Vancouver Net 3 cities Digital signs provide useful 55% 61% 55% 53% 57% information on products and services. I am interested in interacting with 44% 50% 47% 36% 45% digital ads to obtain information or promotional offers on products/ services that are of interest to me. Please indicate your level of agreement with the following statements about electronic (digital) signs.

Summary Almost 8 in 10 shoppers like trying new products; brand trust is key to trial and recommendations from friends or family are important. OOH can spark online and offline conversation helping to build brand trust and loyalty. Many Canadian shoppers are disconnecting from online, TV and print, while the attention and recall levels for OOH media remain high. OOH can deliver strong reach, motivate consumers to take action, influencing trial of new products and purchase of unplanned products.

Summary OOH can deliver coupons and product information that Canadians can access while shopping. Canadian shoppers agree that digital signs are an effective way to communicate with Canadians. Almost 5 in 10 shoppers in major cities are interested in interacting with digital ads to obtain information or promo offers on products/services.