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Q12023 Q22023Q32023Q42023Q12023Q22023Q32023Customer Acquisition Cost ($) 2023 Average ($29) Source: The State of Online Retailing Third Quarter 1999 Update, , First Quarter 2023 Update, Second Quarter 2023 Update, Third Quarter 2023 Update, , First Quarter 2023 Update, Second Quarter 2023 Update, and Third Quarter 2023 Update, surveys conducted by The Boston Consulting Group Marketing 33% 3 2160610Workshop USE OF OFFLINE MEDIA DOWN MORE THAN HALF VERSUS 2023 AVERAGE 0102030405060708090100Q 1 2 0 0 0 Q 2 2 0 0 0 Q 3 2 0 0 0 Q 4 2 0 0 0 Q 1 2 0 0 1 Q 2 2 0 0 1 Q 3 2 0 0 1Share of Marketing Spend (%) 51 41 36 45 39 49 59 64 55 61 Offline media 2023 Offline Average (46%) 1999 Offline Average (62%) Online Media Source: The State of Online Retailing First Quarter 2023 Update, Second Quarter 2023 Update, Third Quarter 2023 Update, , First Quarter 2023 Update, Second Quarter 2023 Update, and Third Quarter 2023 Update, surveys conducted by The Boston Consulting Group Marketing 29 71 22 78 4 2160610Workshop CATALOGS REMAIN THE ONLY SIGNIFICANT OFFLINE MEDIUM Marketing (1) Includes newspaper inserts (2) Includes direct mail Source: The State of Online Retailing , First Quarter 2023 Update, Second Quarter 2023 Update, and Third Quarter 2023 Update, surveys conducted by The Boston Consulting Group Online Portal Email Banner Affiliate program Total Offline Print Catalog Direct mail Newspaper inserts TV Other offline Total 2023 Full Year 27% 13% 9% 6% 54% 22% 8% 7% 9% 46% Q1 23% 19% 13% 6% 61% 10% 8% 7% 3% 2% 9% 39% Performance Benchmarks (1) (2) Q2 23% 21% 13% 14% 71% 5% 13% 1% 2% 1% 8% 29% 2023 Q3