2018 Adobe Consumer Content Survey

Research Partner: 2018 Adobe Consumer Content Survey United States Results

Methodology Adobe conducted an online survey about people’s content habits in the U.S. Details Who 3% margin of When error; 1,011 U.S. adult Dec. 11 – 17, all respondents consumers 2017 owned one digital device © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Top Survey Highlights Consumers spend on average 1/3 of their day engaging with digital content Consumers have become more cautious sharing and viewing content in the last 5 years Consumers reject poor experiences Consumers aren’t only multi-tasking, they’re multi-screening Consumers engage on multiple channels throughout the purchase process © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Who Participated in the Survey The survey was conducted with participants aged 18+ who own a digital device (be it a smartphone or a tablet or a computer). GENDER GENERATION TEENS (18-19) 2% 50% 50% MILLENNIALS (20-36) 35% GENERATION X (37-52) 27% BABY BOOMERS (53-71) 32% MALE FEMALE © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Device Engagement With Content

Content Engagement on Digital Devices • Consumers spend on average nearly 1/3 of their day engaging with digital content. • Smartphones are most commonly used to engage with content, followed by laptop/desktop computers. ‒ Males prefer to use a laptop/desktop computer (67%) to look at/engage with content, while females prefer smartphones (86%). ‒ Millennials and Generation X are also more likely to prefer to use a smartphone to engage with content (92% for both). SMARTPHONE 82% LAPTOP/DESKTOP 63% COMPUTER TABLET 38% WEARABLE DEVICE 9% DIGITAL DISPLAY 4% IOT DEVICE 3% DEVICES USED TO ENGAGE WITH CONTENT © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Multi-screening • More than half of consumers constantly or frequently interact with multiple devices at one time. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Emotions When Multi-screening • Most consumers typically use around 2 devices at a time, although newer generations tend to be slightly more comfortable using more than 2 at a time. • Positive feelings were widespread when consumers are using multiple devices at the same time. ‒ ‘Productive’, ‘entertained’, ‘connected’, and even ‘relaxed’ are the most common positive emotions felt when using more than one device at once. The most dominant negative emotion is ‘distracted’. PRODUCTIVE 18% 1 32% DISTRACTED 17% 2 60% ENTERTAINED 14% CONNECTED 13% 3 6% RELAXED 13% FOCUSED 7% 4 2% HAPPY 6% BORED 6% 5 0% UNPRODUCTVE 4% FRANTIC 3% 6 or more 1% ASHAMED 1% NUMBER OF DEVICES USED AT ONE TIME FEELINGS WHEN USING MORE THAN ONE DEVICE AT A TIME © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Devices to be Used Most in the Next Five Years • The devices that are most expected to be used in the next 5 years are connected home entertainment streaming devices, smart speakers/home assistants, and connected home devices/appliances. ‒ Females are more likely to expect to use wearable devices (46%) while males are more likely to expect to use connected car dashboards (32%). ‒ Millennials are more likely to expect to use smart speakers/home assistants (70%) and wearable devices (47%). Baby boomers are more likely to expect to use digital displays (45%). TOP DEVICES CONSUMERS EXPECT TO USE MOST IN THE NEXT 5 YEARS © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Content and Purchase Decisions

Consumers Engage on Multiple Channels Throughout the Purchase Process © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Content Engagement In-store • Nearly six-in-ten have used a smartphone or other connected device while in-store. Common information needs in-store are reviewsand price comparisons. ‒ Millennials are much more likely to use their smartphone or other device while in-store, with 71% saying they’ve done this (66% among Generation X; 42% among Baby Boomers). ‒ Baby Boomers are most likely to use a device in-store for price comparisons (59%) or online coupons or offers (59%), while Millennials and Generation X are most likely to use a device in-store to read reviews (67% and 61%, respectively). REVIEWS 62% PRICE COMPARISONS OR SHOPPER 55% HELPER SITES ONLINE COUPONS OR OFFERS 54% VIDEOS SHOWCASING THE PRODUCT 16% OTHER 1% INFORMATION USED ON SMARTPHONES TO INFORM PURCHASE DECISIONS © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Content Characteristics

Content Issues Forcing Consumers to Stop/Switch • Taking too long to load, excessively long content, difficulty interacting with content, and not loading are all top content issues that cause nearly half of consumers to stop what they are doing. ‒ Baby Boomers are more likely than newer generations to stop what they’re doing when they experience any of the following content issues. CONTENT TAKES TOO LONG TO LOAD 47% 31% 22% CONTENT IS TOO LONG 47% 23% 30% HAVE TROUBLE INTERACTING WITH THE CONTENT ON THE DEVICE 45% 38% 17% CONTENT/IMAGES WON'T LOAD 44% 35% 21% CONTENT NOT DISPLAYING WELL ON CURRENT DEVICE 34% 48% 18% STOP ALL TOGETHER SWITCH TO A DIFFERENT DEVICE UNCHANGED PROBLEMS ENCOUNTERED AND REACTIONS TO VIEWING CONTENT ON DEVICES © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Most Important Content Characteristics • Consumers are looking for informative, accurate and simple content. Beautiful, interactive, and entertaining content are least important. ‒ Baby Boomers consider informative, accurate and simple content to be more important than newer generations (89%, 89%, 66%; Top 3 respectively). ‒ Millennials more likely to rank entertaining and beautiful content as more important than older generations (41%, 25%; Top 3 respectively). CONTENT THAT IS INFORMATIVE 26% 34% 21% 10% 5% 4% CONTENT THAT IS ACCURATE 38% 27% 15% 12% 5% 4% CONTENT THAT IS SIMPLE 17% 14% 29% 19% 13% 8% CONTENT THAT IS ENTERTAINING 10% 10% 13% 17% 27% 23% CONTENT I CAN INTERACT WITH 4% 9% 15% 28% 22% 21% CONTENT THAT IS BEAUTIFULLY 5% 6% 7% 15% 28% 39% DESIGNED RANK 1 RANK 2 RANK 3 RANK 4 RANK 5 RANK 6 CONTENT CHARACTERISTICS –RANKED IN TERMS OF IMPORTANCE © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Content Shared Online: Trust, Frequency & Type

Content Caution and Trust • The vast majority of consumers say they are more careful now when sharing content compared to 5 years ago. • Content from family and friends is most commonly shared, followed by content from a YouTube or social media celebrity, and content from companies that consumers buy from. Less common is sharing from a company consumers don’t buy from, an academic, or an elected official. • Online news is the 2nd most trustworthy content, followed by traditional broadcast networks. Interestingly, traditional entertainment celebrities are near the bottom of the list in terms of trust. FROM FAMILY, FRIEND OR PEER 57% 47% FROM A YOUTUBE OR SOCIAL MEDIA CELEBRITY 32% 15% FROM A COMPANY WHOSE PRODUCTS YOU BUY 26% 23% FROM AN ONLINE NEWS SOURCE 24% 29% FROM A TRADITIONAL BROADCAST MEDIA 22% NETWORK 27% FROM AN ONLINE BLOG 17% 9% FROM A TRADITIONAL ENTERTAINMENT 14% CELEBRITY 5% FROM AN ELECTED GOVERNMENT OFFICIAL 10% 6% FROM AN ACADEMIC 10% 17% FROM A COMPANY WHOSE PRODUCTS YOU 8% SHARED DON'T BUY 4% TRUSTED © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. CONTENT TYPES –TRUSTED AND SHARED

Frequency of Content Shared Online • Over one-quarter share content online on a daily basis, while just under one-fifth never share content online. Over half share content on at least a weekly basis. 30% of Baby boomers never share content online, followed by 14% of Gen X and only 6% of Millennials. EVERY HOUR 4% DAILY 22% SEVERAL TIMES A WEEK 20% ONCE A WEEK 8% SEVERAL TIMES A MONTH 11% ONCE A MONTH 4% OCCASIONALLY THROUGHOUT THE 13% YEAR I NEVER SHARE CONTENT ONLINE 18% HOW OFTEN CONSUMERS SHARE CONTENT ONLINE © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Content by Brands

What’s Annoying With Content from Brands • The most annoying aspect of content from brands is content that is too wordy, or poorly written. This is followed by content that is not relevant and content that is poorly designed. • Across all ages, two-thirds or more say that these annoyances would lead to an abandoned shopping cart. ‒ Content that is too wordy/poorly written is the most common complaint among Millennials, Generation X and Baby Boomers. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Importance of Contextual Content • Consumers are split on the degree of importance of content automatically adjusting based on their current location. Millennials are most likely to consider this of high importance (42%). • Among those who place mid-to-high importance on context relevance, about one-quarter would be less likely to make a purchase as a result of content not being relevant. I'M LESS LIKELY TO MAKE A 29% PURCHASE I'M LESS LIKELY TO RECOMMEND THE BRAND TO 25% OTHERS MY LOYALTY IN THE BRAND 23% WOULD DECREASE I'D STOP PAYING ATTENTION TO THE CONTENT I SEE FROM 17% THE BRAND I'D STOP USING THE BRAND 6% ALL TOGETHER POTENTIAL ACTIONS IF THE CONTENT IS NOT CONTEXTUALLY RELEVANT © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Most Important Brand Content Characteristics • The most important characteristic for generating a positive experience is for content to display well on the device being used. • One-third of all consumers are not comfortable sharing any information about themselves with brands to improve recommendations. ‒ Millennials and Generation X consumers are more comfortable sharing all forms of information (compared to Baby Boomers). DISPLAYS WELL ON THE DEVICE 75% I’M USING TIMELY AND RELEVANT 60% VIEW IT ACROSS MULTIPLE 53% DEVICES DEMOGRAPHIC INFORMATION 45% INTERACT WITH IT 46% GEOGRAPHIC LOCATION 36% PERSONALIZED TO ME AS AN 44% INDIVIDUAL BEHAVIORAL INFORMATION 32% LAYOUT AND IMAGERY IS 41% PERSONAL INFORMATION 24% BEAUTIFUL SHARE IT WITH OTHERS 38% I'M NOT COMFORTABLE SHARING 28% ANY INFORMATION USES NEW AND INTERESTING 28% TECHNIQUES COMFORTABLE SHARING INFORMATION WITH BRANDS TO IMPROVE THE RECOMMENDATIONS IMPORTANCE OF CHARACTERISTICS FOR GENERATING A POSITIVE EXPERIENCE © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Brand Content Shared Online • Only 13% share content online from brands constantly or frequently (23% among Millennials). The main reasons why content online from brands is shared include raising awareness for a good cause, being informative and not promotional, and incentives. CONTENT WAS RAISING AWARENESS FOR 35% A GOOD CAUSE CONTENT WAS INFORMATIVE, NOT 34% PROMOTIONAL CONTENT GAVE ME AN INCENTIVE 33% CONTENT SEEMED AUTHENTIC/GENUINE 30% CONTENT WAS FUNNY AND IT MADE THE 26% BRAND MORE RELATABLE CONTENT WAS PERSONALIZED TO MY 20% INTERESTS, LOCATION CONTENT WAS POLISHED, WELL 17% DESIGNED MAIN REASONS TO SHARE CONTENT FROM BRANDS © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Shared Content Impacts • Content is most often considered valuable because it helps select between different products/services under consideration, provides information/tips on how to use a product or service, or makes people aware of a service/product they aren’t familiar with. • Nearly half have made a purchase based on the online content of a brand. Millennials (53%) are less likely than other generations (60%) to make a purchase based on online brand content. HELPS SELECT BETWEEN 38% PRODUCTS/SERVICES I'M CONSIDERING I MADE A PURCHASE 57% PROVIDES INFORMATION/TIPS ON USING 37% THE PRODUCT OR SERVICE I SHARED THE CONTENT WITH MY 29% MAKES ME AWARE OF A FRIENDS AND FAMILY 33% SERVICE/PRODUCT I WASN'T FAMILIAR… I SUBSCRIBED TO AN EMAIL LIST 23% GIVES ME ADDITIONAL INCENTIVE TO 33% PURCHASE I HAVEN'T TAKEN ANY ACTIONS IN THE 19% SHOWS ME HOW ACTUAL USERS ARE 24% PAST YEAR AS A RESULT OF BRAND… USING THE PRODUCT/SERVICE I SHARED THE CONTENT WITH MY WORK REMINDS ME OF A PURCHASE I NEED TO COLLEAGUES/PEERS 11% MAKE 16% I BECAME A BRAND ADVOCATE 11% OTHER 3% WHY CONTENT FROM BRANDS IS VALUABLE ACTIONS TAKEN IN THE LAST YEAR AS A RESULT OF VALUABLE CONTENT FROM BRANDS © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.