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Intelligent Offers Intelligent Offers are specific offers based on the shopper’s previous brand or category engagement. Digital delivery helps brands take a more strategic approach by aligning offers with shopper behaviors. This granular approach empowers brands to: • Split national or retailer-specific promotions into multiple offers of varying face values, purchase requirements, and/or promoted UPCs based on actual shopper data • Simultaneously deliver these offers to carefully selected segments of the population • Maximize efficiency and optimize ROI by achieving multiple objectives with the same campaign

Studies have shown that 83 percent of consumers say they “completely or somewhat” trust the recommendations of friends or family. 2 Affinity, relevance and trust drives engagement among today’s advertising-averse shoppers. Social influencers cultivate, and activate, large, loyal audiences through creative and compelling storytelling that resonates with these readers. These influencers become digitally connected with their followers through the sharing of interest and lifestyles. And, the numbers are showing that influencers – serving as trusted brand advocates – are moving the sales needle. For example: • 74% of shoppers use social media to make purchase decisions • 71% are more likely to make a purchase after a social recommendation We all know that the real change agents are the shoppers. They are embracing all aspects of digital engagement and are willing to share their information to be better served. Other trends are validating the growth of digital engagement. For example, digital coupons (Load-to-Card) have experienced five consecutive years of double-digit growth in share of redemption. And, for the first time, shoppers in 2016 reported using Load-to- Card offers more than Free-Standing Inserts (FSIs). For that same year share of redemption for FSIs was down 10 percent while share of redemption for Load-to-Card offers grew 20 percent with these offers setting a new record for rate of redemption. Perhaps the most important trend among digitally-engaged shoppers is their spend rate, which is 33 percent more per trip than non- digitally engaged shoppers. In addition to building bigger baskets, the digitally-engaged are becoming more loyal and loyalty translates into more visits and less channel hopping. Many manufacturers are willing to invest in retailer digital programs in order to test and learn. And rightly so given that some retailers report 19 percent larger baskets after targeting shoppers with highly- relevant, Load-to-Card offers based on actual purchase history. This approach has also resulted in retailers seeing the number of shopper trips to their stores increase by as much as 38 percent – further validating the need to redefine the rules and the tools of digital engagement. ■ • 61% have made a purchase based on a blog post • 90% trust recommendations from their peers 3 Digital Engagement Drives Loyalty and Loyalty Drives Sales

BRAND COMMITTED

BRAND MODERATORS OFFER: $1.00 OFF ANY 1

BRAND LAPSED

BRAND NON-BUYERS

CATEGORY AFFINITY NON-BUYERS

UNTARGETED

OFFER: $0.75 OFF ANY 2

OFFER: $1.50 OFF 160Z +

OFFER: $2.00 OFF ANY 1

OFFER: $3.00 OFF ANY 1

DEFAULT VALUE

Figure 5

Exclusive Offers Exclusive Offers are even more granular and are typically developed to address specific objectives such as: • Find high affinity shoppers for new item trial • Re-engage lapsed buyers or retain/reward existing buyers after a product recall • Defend against a competitive launch • Move inventory during a key drive period, clear inventory, or retain shelf space • Grow cross-category engagement across a portfolio of brands

BRAND COMMITTED

BRAND MODERATORS

BRAND LAPSED NOT TARGETED

BRAND NON-BUYERS

CATEGORY AFFINITY NON-BUYERS

CUSTOM

OFFER: $0.75 OFF ANY 2

OFFER: $1.00 OFF ANY 1

OFFER: $2.00 OFF ANY 1

NOT TARGETED

NOT TARGETED

Figure 6 Note: A similar approach can be deployed for retailers’ digital circulars.

Executing Influencer Marketing Influencer Marketing continues to drive value among digitally- connected consumers. And with an average return of 2x on advertising spending across all categories, influencers are helping reshape shopper marketing. Those at the center of this strategy – social influencers – are driving true engagement for retailers and brands by delivering relationship- building content to millions of shoppers. This approach is continually validated through sales gains and improved loyalty.

2 Nielsen, Winning Strategies for an Evolving Media Landscaping, 2015 3 VisionCritical, Nielsen, HubSpot, SproutSocial

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