Cracking the Code of HumanBehaviorDan Hill, Ph.D. – President, Sensory LogicAustin, TX; May 7, 2013iMedia Agency Summit© 2...
© 2013. All Rights Reserved.WHAT’S BIG DATA’S TRUE SCOPE?Part 1
© 2013. All Rights Reserved.3How Big Is“Big Data”?
© 2013. All Rights Reserved.Big Volume - Sources– Information captured bysensors4• Extremely large datasets generatedfrom ...
© 2013. All Rights Reserved.5How Small Is“Big Data”?How Small Is “BigData”?
© 2013. All Rights Reserved.Irrational Rationality . . .6
© 2013. All Rights Reserved.7How Is “BigData” Big & SmallAt The SameTime?
© 2013. All Rights Reserved.Moving Beyond Won’t or Can’t Say895% of mental activity issubconscious.What % of mental activi...
© 2013. All Rights Reserved.SENSE – FEEL – think- DO9©Sensory Logic 2012
© 2013. All Rights Reserved.Irrational Rationality . . . Limited DataNeed more data points to make the right decision10
© 2013. All Rights Reserved.Testing Issues71% 44%01020304050607080Not Pre-tested Pre-testedEffectiveness Success Rate %“Ca...
© 2013. All Rights Reserved.Step Closer… Step Ahead.sensory emotivenon-verbalconsciousverbalrationalsubconsciousrationalve...
© 2013. All Rights Reserved.QUANTIFYING EMOTIONS:FACIAL CODINGPart 2
© 2013. All Rights Reserved.14How Can “BigData” BeBigger, As InMore On Target?
© 2013. All Rights Reserved.The Future of Marketing15InformationTalking PointsOn-Message On-EmotionFeeling PointsSatisfact...
© 2013. All Rights Reserved.Mona Lisa16
© 2013. All Rights Reserved.Mona Lisa17
© 2013. All Rights Reserved.History of Facial Coding1872• Scientific Theory:Charles Darwin– Universal– Spontaneous– Abunda...
© 2013. All Rights Reserved.History of Facial Coding20052009-2011Which tool will have the most transformativeimpact on MR?...
© 2013. All Rights Reserved.Sales Correlation to Super Bowl TV SpotsElectroencephalography (EEG)Facial CodingUSA Today .00...
© 2013. All Rights Reserved.FROM IDENTITY TO EMOTIONRECOGNITIONPart 3
© 2013. All Rights Reserved.22Facial CodingHumanizes“Big Data”
© 2013. All Rights Reserved.CustomizationSmart Digital KioskSmart BillboardTargets Women
© 2013. All Rights Reserved.Converging Forces24
© 2013. All Rights Reserved.FROM FLEETING TO ENDURING:PERSONALITYPart 4
© 2013. All Rights Reserved.26Big, Deep Data:Facial Coding &Big 5 Factor
© 2013. All Rights Reserved.The ProblemIn general, “evidence indicatesthat demographicmeasures, outside ofeducation, are n...
© 2013. All Rights Reserved.Solution: Big 5 Traits Model“Surprisingly, most marketers haveno idea how well the Big 5 canpr...
© 2013. All Rights Reserved.Myers-Briggs Inadequate29
© 2013. All Rights Reserved.The Elements30“The fifth element is mud.”-Napoleon Bonaparte
© 2013. All Rights Reserved.Male Version: Big 5 ExamplesOpenness Conscientiousness ExtraversionAgreeableness Neuroticism
© 2013. All Rights Reserved.Traits by State• States that voteDemocratic tend to behigher on openness andextraversion, vs.c...
© 2013. All Rights Reserved.White vs. Wheat Bread
© 2013. All Rights Reserved.Whole Wheat Supporters0%6%0%0%6%12%10%0%55%12%0% 50% 100%True SmileRobust SmileWeak SmileMicro...
© 2013. All Rights Reserved.White Bread Supporters0%0%13%0%0%7%23%21%29%7%0% 50% 100%True SmileRobust SmileWeak SmileMicro...
© 2013. All Rights Reserved.SUMMARYPart 5
© 2013. All Rights Reserved.Big Data: To Be Successful . . .• Walmart’s transactiondatabases – 2.5petrabytes• 40 billion F...
© 2013. All Rights Reserved.Go Deeper Than Online Behavior or Social Media Chatter38EmotionsPersonalityTraitsValuesImmedia...
© 2013. All Rights Reserved.And Then You and the Client Can Be (Really) SmilingTrue Fake Fake Fake TrueFake True Fake True...
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  • Add four elements and fly in Napoleon’s face and the quote
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  • Cracking the Code of Human Behavior

    1. 1. Cracking the Code of HumanBehaviorDan Hill, Ph.D. – President, Sensory LogicAustin, TX; May 7, 2013iMedia Agency Summit© 2013. All Rights Reserved.
    2. 2. © 2013. All Rights Reserved.WHAT’S BIG DATA’S TRUE SCOPE?Part 1
    3. 3. © 2013. All Rights Reserved.3How Big Is“Big Data”?
    4. 4. © 2013. All Rights Reserved.Big Volume - Sources– Information captured bysensors4• Extremely large datasets generatedfrom technology practices, such as:– Social media activityreports– Mobile phone calldetail records– Operational technology– Web server logs– Internet clickstream data– Streaming sourcesBIG DATA
    5. 5. © 2013. All Rights Reserved.5How Small Is“Big Data”?How Small Is “BigData”?
    6. 6. © 2013. All Rights Reserved.Irrational Rationality . . .6
    7. 7. © 2013. All Rights Reserved.7How Is “BigData” Big & SmallAt The SameTime?
    8. 8. © 2013. All Rights Reserved.Moving Beyond Won’t or Can’t Say895% of mental activity issubconscious.What % of mental activity issubconscious?Thoughts &Self-reportedFeelingsClaims/TextIntuitiveEmotionsImagery/SoundsRetail CuesProduct UsagePersuasion &Loyalty
    9. 9. © 2013. All Rights Reserved.SENSE – FEEL – think- DO9©Sensory Logic 2012
    10. 10. © 2013. All Rights Reserved.Irrational Rationality . . . Limited DataNeed more data points to make the right decision10
    11. 11. © 2013. All Rights Reserved.Testing Issues71% 44%01020304050607080Not Pre-tested Pre-testedEffectiveness Success Rate %“Cases with favorable pre-testing resultsdid significantly worse in marketthan those that were not tested.”Binet and Field,Marketing in the Era of Accountability, 2007
    12. 12. © 2013. All Rights Reserved.Step Closer… Step Ahead.sensory emotivenon-verbalconsciousverbalrationalsubconsciousrationalverbalconsciousTraditional Economics Behavioral Economicsvs.
    13. 13. © 2013. All Rights Reserved.QUANTIFYING EMOTIONS:FACIAL CODINGPart 2
    14. 14. © 2013. All Rights Reserved.14How Can “BigData” BeBigger, As InMore On Target?
    15. 15. © 2013. All Rights Reserved.The Future of Marketing15InformationTalking PointsOn-Message On-EmotionFeeling PointsSatisfaction20th Century 21st Century
    16. 16. © 2013. All Rights Reserved.Mona Lisa16
    17. 17. © 2013. All Rights Reserved.Mona Lisa17
    18. 18. © 2013. All Rights Reserved.History of Facial Coding1872• Scientific Theory:Charles Darwin– Universal– Spontaneous– Abundant• Theory Refined:Paul Ekman, Ph.D.– 43 facial muscles,express universal coreemotions• Business Inventor:Dan Hill, Ph.D.– Pioneer in using facialcoding to createemotional metrics– U.S. Patent PortfolioScience Psychology Business1965 1998
    19. 19. © 2013. All Rights Reserved.History of Facial Coding20052009-2011Which tool will have the most transformativeimpact on MR?“The reviewers felt that neurosciencesuggests that neurological methods(fMRI)and facial coding are best suitedto assess the emotional valence ofviewer reactions”- The ARF NeuroStandardsCollaboration Project20112010
    20. 20. © 2013. All Rights Reserved.Sales Correlation to Super Bowl TV SpotsElectroencephalography (EEG)Facial CodingUSA Today .0003EEG .232Facial Coding .6112Seventeen automotive TV spots wereanalyzed over the past 3 years.Rating
    21. 21. © 2013. All Rights Reserved.FROM IDENTITY TO EMOTIONRECOGNITIONPart 3
    22. 22. © 2013. All Rights Reserved.22Facial CodingHumanizes“Big Data”
    23. 23. © 2013. All Rights Reserved.CustomizationSmart Digital KioskSmart BillboardTargets Women
    24. 24. © 2013. All Rights Reserved.Converging Forces24
    25. 25. © 2013. All Rights Reserved.FROM FLEETING TO ENDURING:PERSONALITYPart 4
    26. 26. © 2013. All Rights Reserved.26Big, Deep Data:Facial Coding &Big 5 Factor
    27. 27. © 2013. All Rights Reserved.The ProblemIn general, “evidence indicatesthat demographicmeasures, outside ofeducation, are not an accuratepredictor of consumer behavior.”Sales/Marketing Management (11/09)Only 15% of major companiessurveyed derive real value fromcreating segmentation typology.(Marakon 2006)Only 6% of marketers haveexcellent knowledge ofcustomers, 51% have fair to littleknowledge.(CMO Council 2008)
    28. 28. © 2013. All Rights Reserved.Solution: Big 5 Traits Model“Surprisingly, most marketers haveno idea how well the Big 5 canpredict consumer behavior. The Big5 predict attitudes, values, self-concepts, and motivations.”
    29. 29. © 2013. All Rights Reserved.Myers-Briggs Inadequate29
    30. 30. © 2013. All Rights Reserved.The Elements30“The fifth element is mud.”-Napoleon Bonaparte
    31. 31. © 2013. All Rights Reserved.Male Version: Big 5 ExamplesOpenness Conscientiousness ExtraversionAgreeableness Neuroticism
    32. 32. © 2013. All Rights Reserved.Traits by State• States that voteDemocratic tend to behigher on openness andextraversion, vs.conscientiousness forRepublicansNeuroticism OpennessExtraversionSource: Gosling, Snoop: What Your Stuff Says About You
    33. 33. © 2013. All Rights Reserved.White vs. Wheat Bread
    34. 34. © 2013. All Rights Reserved.Whole Wheat Supporters0%6%0%0%6%12%10%0%55%12%0% 50% 100%True SmileRobust SmileWeak SmileMicro SmileSurpriseSkepticalDislikeSadnessFrustrationAnxietyEmotional Profile3 – Healthy Whole Wheaters 4 – Sophisticated Whole Wheaters12%88%0%36%9%0%0%0%21%9%18%6%0% 50% 100%True SmileRobust SmileWeak SmileMicro SmileSurpriseSkepticalDislikeSadnessFrustrationAnxietyEmotional Profile45%55%The Healthy Whole Wheaters are most notable for having 2x more frustration than any other segment.Sophisticated Whole Wheaters, in contrast, are all about enjoyment.
    35. 35. © 2013. All Rights Reserved.White Bread Supporters0%0%13%0%0%7%23%21%29%7%0% 50% 100%True SmileRobust SmileWeak SmileMicro SmileSurpriseSkepticalDislikeSadnessFrustrationAnxietyEmotional Profile13%87%1 – White Bread Traditionalists 2 – White Bread Neutralists0%4%15%0%1%4%39%5%27%6%0% 50% 100%True SmileRobust SmileWeak SmileMicro SmileSurpriseSkepticalDislikeSadnessFrustrationAnxietyEmotional Profile20%80%Traditionalists exhibit 2x more sadness than any of the other three segments. Meanwhile, the Neutralistsare notable for showing 1/3rd more dislike than any other segment.
    36. 36. © 2013. All Rights Reserved.SUMMARYPart 5
    37. 37. © 2013. All Rights Reserved.Big Data: To Be Successful . . .• Walmart’s transactiondatabases – 2.5petrabytes• 40 billion Facebookphotos• Amount of digitalinformation increases 10xevery 5 years37• Walmart’s transactiondatabases – 2.5petrabytes• 40 billion Facebookphotos• Amount of digitalinformation increases 10xevery 5 years
    38. 38. © 2013. All Rights Reserved.Go Deeper Than Online Behavior or Social Media Chatter38EmotionsPersonalityTraitsValuesImmediateLifetime
    39. 39. © 2013. All Rights Reserved.And Then You and the Client Can Be (Really) SmilingTrue Fake Fake Fake TrueFake True Fake True FakeFake Fake True True True

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