ToWhisper Neuromarketing- Presentación Daniel Razniewski

What our brains buy? Advanced Technology in Advertising To Whisper 11.02.2010 Barcelona, Spain Ć MARZENIA R.K. OHME WARTO MIE 1

Information about LAB LAB methodology is based on the latest findings from the areas of psychology, neuroscience and economy. LAB has pioneered a brain-waves based (EEG) copy-testing research in Europe Recently we won funding from the European Union (the Innovative Economy Program) to lead the most advanced biometric project in the world. Key areas of research for LAB are: TV copy-testing (biometric and traditional) Brand Image (conscious and unconscious) Purchase motives (conscious and unconscious) We cooperate with prestigious advertising and research associations in EU and US 2

Information about LAB LAB has worked with over 100 companies, including major international brands from across every market sector such as: cosmetics, finance, telecoms, media, electronics, pharmaceutical, energy, automotive, etc. LAB has conducted research in the USA, Australia, Poland, Germany, Russia, Spain, Romania and Guatemala. In Q12010 LAB starts biometric in Argentina, South Africa and Japan. LAB biometrically tested over 4000 respondents and 1500 ads

Who is Rafal Ohme? Rafal Ohme (PhD) is a professor of psychology, expert in persuasion and unconscious processing. In 1995-1996 he held the Fulbright Scholarship at Kellogg School of Management where he learned advertising. From1996 on he visited Department of Psychology at Stanford University, and researched unconscious processing and emotions. He is a member of Advertising Research Foundation, American Advertising Association, European Academy of Advertising, Association of Consumer Research, NeuroPsychoEconomics as well as Association of Scientific Study on Consciousness, Society of Personality and Social Psychology, American Psychological Society, European Association of Experimental Social Psychology. He wrote New Mind of Consumer (in press), Unconscious Affect (2007), Subliminal Facial Information (2003), and trilogy Automaticity (2001, 2003, 2003).

R&D explorations EU co-funded European American Advertising Academy Advertising Association Advertising ESOMAR Research Foundation 3600 respondents (720/country) INSAED Paris 2400 ads/16 prod. categ. Kellogg School of Management Copenhagen Business School Villanova Business School University of Amsterdam each product category: University of Pittsburg 150 ads (30/country) 5

2,465 respondents and 823 ads in BIO studies from January 2004 until April 2009 LAB tested 30,165 respondents and 1,307 ads in TRA studies 6

US activity (since April 2009) „You exceeded our expectations!” April, 29, 2009 - Nick Harrington Head of P&G’s Cognitive Council

LAB is the only biometric company in the world… that has managed to publish its EEG method (NeuroTrace™) in peer-reviewed scientific journals 8

2. Theoretical framework 9

Principles of the Scientific Revolution in Business • Homo aeconomicus is IRRATIONAL • go BEYOND verbal declarations • explore the UNCONSCIOUS 10

Homo sapiens is irrational We have received our name Homo sapiens (thinking man) a little bit in advance Johann Huizinga (Dutch historian) Aristoteles A. Smith J.S. Mill The assumption of rationality as the 2002 Noble Prize exclusive and sufficient basis for winner in Economy, making consumer choices is wrong. Daniel Kahneman (Princeton University) Homo aeconomicus is a whishfull thinking Irrationality protects us, drives discoveries and innovations Kahnemann Langer Loftus 11

Move beyond declarations „Our consumers have been sending us messages for years that they are not interested in the traditional survey process” Kim Dedeker, V-P external capability leadership, global consumer and market knowledge, P&G „We continue to torture consumers with boring and antiquated search methods” Donna Goldfarb, V-P consumer and market insights, Unilever Americas The end of consumers Surveys? „Advertising Age” - September, 15th, 2008 12

Unconscious can be scientifically explored UNCONSCIOUS is not about repressed sexual desires UNCONSCIOUS is about neurophysiology, automaticity and implicit social cognition neurophysiological analyses automatic associations affective iconic priming perceptual / semantic fluency indirect methods, e.g. experimental design 13

Academic Publications on NeuroTrace applications Ohme, R., Reykowska, D., Wiener, Choromanska, A. (2009). Analysis of neurophysiological reactions to advertising stimuli via EEG and GSR measures. Journal of Neuroscience, Psychology and Economics. Ohme, R., Reykowska, D., Wiener, Choromanska, A. (under revision). Application of frontal EEG assymetry to advertising research: Sony Bravia case. Journal of Economical Psychology. Special Edition: Decision in Neuroscience.

The instruments EEG electroencephalography GSR galvanic skin response EMG electromyography GSR registers variations in galvanic Facial expression indicates whether skin response. They are considered ad is entertaining. EMG has been to reflect whether consumer got considered a powerful instrument to energized by the ad. test voluntary (zygomaticus) and involuntary (orbicularis) facial muscle movements which respectively reflect social and genuine smile. EEG registers variations in brain waves produced by cortex. It reflects consumers’ emotional engagement. EEG has excellent temporal resolution (1/1000 of a second). This enables to track down each single frame of an ad. 15

NeuroTrace™ consists of 3 sets of indices: EMOTIONAL LIKING index [computed from EMG measures] ENGAGEMENT index [computed from EEG measures] when high – an ad is considered attractive when high - a brand image is likely to be enhanced based on genuine and social smile ACTION DRIVE index [computed from EEG/GSR measures] when high - a purchase oriented behavior is likely to be enhanced 16

Emotions in the brain Almost 30 years ago, Davidson and his coleagues (Davidson, Schwarz, Saron, Bennet, Goleman, 1979) suggested a model of emotions in which they argued that emotions are: A- organized around approach – avoidance tendency & B- differentially lateralized in frontal area of the brain. The left frontal area is involved in the experience of positive emotions such joy, interest and happiness – the experience of positive affect facilitates and maintains approach behaviors. The right frontal region is involved in the experience (…) Research and marketplace findings over of negative emotions such as fear, disgust, and last 10-15 years have identified that the sadness; - the experience of negative emotions consumer’s emotional response toward the facilitates and maintains withdrawal behaviors. brand and / or the ad can be powerful motivator of consumption behavior (…) (Allen, Machleit, Kleine, 1992; Erevelles, 1998; Haley and Baldinger 1992; Journal of Advertising Research, 1999) 17

The major problem neuro research companies face The problem How to deal with the problem? • Criticise the conventional research – NO How to relate NEURO results to • Pretend that conventional research do CONVENTIONAL marketing not exist measures? – NO • Integrate conventional research with neuro – YES

4. Selected cases 19

SONY BRAVIA „The balls” 2005 campaign What is so special about this ad? Its two secret moments that made Sony big. Jose Gonzales – author of the music

Is the ad engaging? Does the ad drive into action? EMOTIONAL ENGAGEMENT index (EEG) & ACTION DRIVE index (GSR) Is the ad entertaining? LIKING index (EMG) A very famous ad. It has won many awards. Was created by the same ad agancy as the Cadbury Gorilla ad. It produces high EMOTIONAL ENGAGEMENT in all key strategic scenes (i.e. opening, benefit, product and brand exposures) and ACTION DRIVE in packshot scene. See next slides for more. 21

Two peripheral cues in the Sony BRAVIA ad For comments read attached Sony Bravia case pdf file

The FROG – a „magical” counterpoint! It has turned out the Frog is not only charming (artistically) but also very instrumental (i.e. enhances positivity toward product-benefit) 1 2 3 4 1 1 2 1 2 3 4 3 1 4 more at: www.testdifferent.com

Retail application the trigger

An ad can be effective even if it doesn’t entertain people Consumers claim the ad is not interesting and is boring. NeuroTrace™ predicts the ad will build brand image and drive consumers to purchase. The shelf test and actual sales confirm these predictions. 25

Is the ad entertaining? LIKING index (EMG) N=45 This ad is not very entertaining. Actually respondents react negatively (blue colors) or neutrally (yellow colors) throughout most of the time. But, contrary to common belief, the LIKING index is not crucial in effective advertising for most product categories (see next slide) 26

Is the ad engaging? Does the ad drive into action? EMOTIONAL ENGAGEMENT index (EEG) & ACTION DRIVE index (GSR) Crucial aspects of successful ad are: high EMOTIONALLY ENGAGEMENT (red colors) and high ACTION N=45 DRIVE in packshot scenes (purple blocks). This is a great ad – it enhances the brand and drive sales! Actually it is one of the most successful ads – sales-wise – in the history of Procter & Gamble! 27

Sometimes buying less media is more Why pay for a 60 sec commercial during prime Super Bowl time when 30 sec’s is much better? This finding was not detected by any of the standard research methods. Only NeuroTrace™ did it. 28

POSITIVE/NEGATIVE neuro-reactions to the PEPSI 60 ad WOMEN vs MEN EMOTIONS emotional response average in the ad’s sequences dynamics of emotional index recorded during the ad exposition positive reaction negative reaction 11 neg EMOTION index 4 pos time (s) 29

POSITIVE/NEGATIVE neuro-reactions to the PEPSI 30 ad WOMEN vs MEN EMOTIONS emotional response average in the ad’s sequences dynamics of emotional index recorded during the ad exposition positive reaction negative reaction 2 neg (was 11) EMOTION index 9 pos (was 4) time (s) 30

How georgeous George affects women and how men feel about it? February 2008 31

Is the ad engaging? Does the ad drive into action? EMOTIONAL ENGAGEMENT index (EEG) & ACTION index (GSR) N=40 LAB OBSERVATIONS: The ad induces much positive emotional engagement, mainly in response to the George Clooney scenes. We do not observe positivity when the brand is presented, however, these scenes generate strong action drive. See enclosed motion spectrum: NESPRESSO_CLOONEY_engage_action.exe 32

Does gender matter? EMOTIONAL ENGAGEMENT index & ACTION DRIVE index [gender split] N=40 A great ad but… for women only. Men seem to envy handsome George. Poor chances they will buy the Nespresso machine. 33

Ad Mastering 34

Conclusion: BIOMETRICS will make marketing communication: 1. MORE PRECISE 2. LESS EXPENSIVE New Era in Advertising is about to begin 35

Other biometric applications 36

Bio-media planning How would the same TV ad influence viewers when aired during various TV programs? October 2008

You know it already, but now we can see how strong a context effect is! The same ad (from a product category X) is good for nothing during TV shows but works perfectly when placed during police documentaries! Moreover, this effect is also resembled by repondents purchase behavior (see: Shelf-test results). The number of participants who decided to buy the category X product was almost doubled by the docu-dramas to compare with the „funnies”! 38

How TV programs alter reactions toward the same ad SHELF-Test TV SHOW SERIES INTERVENTIO N PROGRAM 39

BIO-POLITICS R.K. OHME DAWID POKONAŁ GOLIATA 40

Official poll results regarding voting preference in the 2009 Nov 22nd elections, according to CCSB (Center of Sociological Research and Branding) Voting preference trendline July 2009 35,4 August 2009 30,5 CANDIDATE 1 November 01st 2009 36 November 17th 2009 35 July 2009 19,1 August 2009 19,2 CANDIDATE 2 November 01st 2009 growth by 9 pp 22 November 17th 2009 31 July 2009 21,5 CANDIDATE 3 August 2009 November 01st 2009 16 20,1 LAB work result November 17th 2009 18 July 2009 24 August 2009 30,2 Others or udecided November 01st 2009 26 November 17th 2009 16 0 5 10 15 20 25 30 35 40 41

Benefits of using NeuroTrace NEURO TRACE™ can identify which A/V elements are likely to: effectively improve product benefits and brand image perception activate purchase-related behavior irritate or disengage consumers NEURO TRACE™ objectively: evaluates key-strategic A/V moments (e.g. What reactions are generated by the packshot and logo? Which elements of the presented offer are the most attractive?) reveals „creative magnifiers” imbedded in the ad NEURO TRACE™ indicates ad effectiveness in terms of influencing different target groups. Moreover, NEURO TRACE™ is perfect for: soundtrack and voice-over pre-testing ad mastering (e.g. how to shoe the product) it gives inspirations for visuals in print, outdoor, internet and POS communication Finally, NEURO TRACE™ gives reliable arguments for media planning: how to shorten the ad successfully? how to position the ad in the programming context? 42

When we manage to fully INTEGRATE neuro pre-tests with conventional research our ability to develop relationships with consumers will be limited only by our imagination

Thank you Contact details: LABoratory & Co Headquarters: 1825 NE 45th Street, Suite A Fort Lauderdale 33308, FL, USA Spain & Portugal: Daniel Razniewski Country Development Director +34.646.018.500 d.razniewski@labtd.com 44

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ToWhisper Neuromarketing- Presentación Daniel Razniewski

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ToWhisper Neuromarketing- Presentación Daniel Razniewski — Presentation Transcript