OPTIMIZING YOUR DIGITAL MARKETING STRATEGY WITH DATA

A GROWTH FOCUSED PERSPECTIVE

Prepared for Expo West

March 10th, 2018Privileged and Confidential

INTRODUCTION

22 Privileged and Confidential

• Marshall Hayes Founder & CEO, Amplio Digital

• Background: Amazon, Digital Marketing, Startups

• Area of Focus:Amazon & Ecommerce

Es#mated % Market Share of U.S. Grocery Retail 2016 (Top Retailers in U.S.)

5332 2796 2327 511 9672 1136 1990 1802 8175 441 343

2%2%2%3%3%3%4%4%5%

10%

21%

Estimated # of U.S. Stores

42%All others

CURRENT STATE OF GROCERY RETAIL

33 Privileged and Confidential Source: Business Insider, “Here’s Where Americans Are Buying Their Groceries,” 2017 BofA Merrill Lynch, “2017 Food and Discount Retail Primer,” 2017

CURRENT STATE OF ONLINE GROCERY

44 Privileged and Confidential

Es#mated U.S. Online Grocery Sales 2016 (In Billions)

0.30.30.30.60.70.80.80.8

2

6.2

Source: Supermarket News, “2017 Digital Top 10: Picks to Click,” 2017

CATEGORY MATTERS

55 Privileged and Confidential Source: Clickz, ”The Age of Amazon”

Consumer Survey: How do you typically buy products in each category?

Baby Care Apparel Grocery Home HPC Pet

26%13%14%

6%17%17%

34%

37%

54%72%

28%34%

40%50%

32%22%

55%49%

Mixture of BothPhysical StoreOnline

Health & Personal

WHY DIGITAL MATTERS

66 Privileged and Confidential

Spending Power by Age Cohort (in trillions)

2015 2020 2015 2020

3.9

2.4

4.44.8

Baby Boomers Millennials

Source: Bureau of Labor Statistics, US Census Bureau

CURRENT STATE OF ECOMMERCE

77 Privileged and Confidential Source: Bureau of Labor Statistics, US Census Bureau

Market Share of U.S. e-Commerce 2017 (Top 10 Publicly Traded U.S. Companies)

$196.8B $30.7B $16.2B $16.2B $6.7B $6.3B $5.4B $4.1B $4.0B $3.1B

1%1%1%1%1%2%4%4%7%

44%

FOCUS ON THE CONSUMER

88 Privileged and Confidential

9

THE OMNICHANNEL BUYER’S JOURNEY

Source: GetCRM9 Privileged and Confidential

MARKETING INVESTMENT TRENDS

1010 Privileged and Confidential Source: Clickz, ”The Age of Amazon”

Marketer Survey: Are you planning to increase, decrease or maintain marke#ng investment by channel?

Amazon Google Facebook Instagram Pinterest Bing Snapchat Twitter

10%10%15%11%6%4%5%1%

67%63%58%59%

47%43%41%

36%

23%27%27%30%47%53%54%

63%IncreaseKeep the SameDecrease

ECOMMERCE HAS MANY COMPETITORS

1111 Privileged and Confidential Source: Amplio study compiling Adwords searches for 165 brands, 2018

All Others0.6205

Jet0.0377

Thrive0.065

Walmart0.0671

Target0.0671

Amazon0.1426

E-retailers and Third-Party Marketplaces are aggressively capturing traffic. If you want to capture search engine traffic as part of your E-commerce strategy, leverage these websites:

Grocery 90% 22% 55% 57% 43% 10%

HPC 98% 15% 58% 63% 55% 28%

Beauty 93% 0% 30% 60% 30% 3%

Pet 93% 0% 70% 57% 40% 3%

Apparel 93% 0% 33% 43% 13% 7%

Of the various options other than Amazon, Walmart, Jet and Target are the most popular online retailers and marketplaces. Brands have differing levels of adoption ranging from zero (no products listed) to high (multiple products listed with 50+ reviews).

ECOMM / 3RD PARTY ADOPTION LEVELS

12 Source: Amplio study compiling adoption levels for 165 brands, 2018

FOCUS ON WHAT CONSUMERS WANT

1313 Privileged and Confidential Source: Retail Systems Research (RSR) 2017

Factors With The Biggest Impact on Consumer Purchase Decision

PricingProduct Availability

Product AssortmentProduct Info (e.g., Images)

Free ShippingUser Ratings/Reviews

Better Internet DiscoveryFaster Shipping

Trending in SocialFree Returns 6%

17%18%

22%25%

27%28%

36%54%

68%

1414 Privileged and Confidential

FOCUS ON THE PRIME CONSUMER

15

DOES AMAZON PLAY NICE WITH OTHERS?

15 Privileged and Confidential

• High ratings on your product reviews

• Pricing parity (this takes work)

• Represent your brand well

• Be there or be square (you’re already there)

Product Type Average Listing Price

Est. Monthly Unit Sales* per

ASIN

Est. Monthly Product Sales*

per ASIN

Average # of Reviews per

ASIN

Average Review Rating

Energy Drink $28.53 700+ $20,000+ 699 4.3

Granola Bar $11.00 1,250+ $15,000+ 908 4.4

Shampoo $12.84 3,000+ $40,000+ 851 4.1

Dog Food $27.87 3,000+ $90,000+ 1,844 4.2

AMAZON DATA ANALYSIS

16 Source: Amplio study compiling adoption levels for 165 brands, 2018

CONNECT

INFORM

EDUCATE

DIFFERENTIATE

CONVERT

FOLLOW-UP

FEEDBACK

RELATIONSHIP

AWAR

ENESS

CO

NSID

ERATIO

NPU

RC

HASE

RETEN

TION

ADVO

CAC

Y

Translating the marketing funnel to fit the marketplace.

18

DATA AS THE STEEL THREAD

Source: GetCRM18 Privileged and Confidential

19

Key Points

19 Privileged and Confidential

• Assess your distribution with Ecommerce in mind

• Measure against benchmarks

• Understand what your consumer wants and give it to them

• Leverage the audience of marketplaces (i.e. Amazon)

Q&A