The Science Behind Neuromarketing

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The Science Behind Neuromarketing

  1. 1. The Science Behind Neuromarketing and Sands Research’s Neuro-Engagement Factor™ October 2009
  2. 2. The Science Behind Sands Research <ul><li>Founders of Sands Research Inc. previously built the largest research EEG software and equipment manufacturer in the world with over 2,500 medical and research facilities using their products. </li></ul><ul><li>Sands Research has designed and developed proprietary EEG recording equipment and Neuromedia software for use in neuromarketing research studies. </li></ul><ul><li>Our methodologies, processes and analyses are completely transparent and validated by the scientific community worldwide. No Black Box Methods. </li></ul>
  3. 3. Capturing and Measuring Neurological Activity <ul><li>We record full spectrum EEG utilizing 68 channel electrode array caps </li></ul><ul><li>Brain activity is time-locked with marketing stimulus </li></ul><ul><li>Eye-tracking is synchronized with EEG to identify targets creating engagement </li></ul><ul><li>Neurophysiological data is integrated with standardized behavioral testing </li></ul>
  4. 4. In the Lab or Mobile <ul><li>Sands Research designs, manufactures and utilizes it’s own proprietary neuroscience equipment and software for the collection of the brain electrical activity </li></ul><ul><li>Participants sit in a comfortable chair and living room type atmosphere during testing or can be outfitted with a portable EEG recorder and Eye-tracking equipment </li></ul><ul><li>The Cap can be concealed for use in mobile, real-world recording situations </li></ul>
  5. 5. Science Behind Neuromarketing…. Brainwave signal response to a 30 second television commercial
  6. 6. EEG Data is Collected and Displayed Brainwave activity is collected in real-time from each of the electrode sites and then localization of the response to the media being presented is performed. In order to determine the location of the activity within the brain, advanced signal processing techniques are used to determine the location of that activity's source.
  7. 7. What is Neurological Engagement? <ul><li>Neurons firing (electrophysiological measurements through EEG) in response to a specific stimuli (media) . Bottom line is if neurons are not firing, the brain is not engaged and neurological functions, such as memory, attention, language processing and emotion are not taking place. </li></ul>VERY ENGAGED SLIGHTLY ENGAGED
  8. 8. Just A Few Seconds To Engage <ul><li>The first seconds are critical to engagement. The Viewer’s frontal lobe (red) which performs executive functions related to memory and planning communicates to the parietal lobe (yellow) that integrates sensory information which in response determines the level of brain activity to be deployed. </li></ul>
  9. 9. How Engaged Was the Viewer? <ul><li>Within 800 milliseconds this inter lobe communication takes place. </li></ul><ul><li>Within 4 seconds the viewer’s decision is made on how much engagement to devote to the material presented. </li></ul><ul><li>After the 800 millisecond spike and follow up 4 second decision window, the brainwave signal activity will stay on a high plateau (sustained power function) if the viewer is engaged or decline or fluctuate, sometimes rapidly, if viewer is inattentive. </li></ul><ul><li>Increased activity directly correlates to increased unaided recall. </li></ul>
  10. 10. Neuro-Engagement Factor TM (NEF) <ul><li>Sands Research has developed a Neuro- Engagement Factor scoring system based on this level of engaged response to the presentation material. </li></ul><ul><li>The NEF score is then compared against our growing proprietary database of hundreds of commercials with thousands of participants. </li></ul>Party Starter: 3.73 Lime: 3.78 Flying: 2.46 Opera: 3.11 Fire: 2.97
  11. 11. What is NEF? Elegant in its Simplicity <ul><li>As discussed previously, engagement is the level of increased brain activity, regardless of its location, activated by the stimulus versus the at rest “noise” level. As you can see below, there is a very high correlation between EEG measured brain activity and advertising recall. </li></ul>
  12. 12. And the NEF score is…… <ul><li>The Sands’ Neuro-Engagement Factor (NEF)™ is simply a television commercial’s average number of standard deviations from that “noise” level . </li></ul><ul><li>In our experience after collecting data for 600+ commercials those that: </li></ul><ul><li>Scored at a 2 or below are nearly invisible; </li></ul><ul><li>A majority of the commercials achieve a score of about 3; </li></ul><ul><li>And those achieving levels of 4 or above are extremely engaging and thus powerful in unaided recall and very memorable. </li></ul>
  13. 13. Concept Copy testing – Animatics and Storyboards to Final Product (Scene by Scene – Second by Second) <ul><li>During animatic testing we learn: </li></ul><ul><ul><li>Does the storyline engage? </li></ul></ul><ul><ul><li>Is the ad confusing or busy? </li></ul></ul><ul><ul><li>Does the music engage? </li></ul></ul><ul><ul><li>Does the product integration work? </li></ul></ul><ul><ul><li>Do the branding moments engage? </li></ul></ul><ul><ul><li>Will they remember the ad or brand? </li></ul></ul><ul><li>During storyboard testing we learn: </li></ul><ul><ul><li>Does the concept engage? </li></ul></ul><ul><ul><li>Is the concept confusing or busy? </li></ul></ul><ul><ul><li>Do the branding moments engage? </li></ul></ul><ul><ul><li>Will they remember the ad or brand ? </li></ul></ul><ul><ul><li>Is the concept worth developing further </li></ul></ul>
  14. 14. <ul><li>Memory Related Metrics </li></ul><ul><li>Through a combination of EEG events and unaided recall we can determine what brands and marketing elements encode into the long term memory of participants. </li></ul><ul><li>Optimization of brand position and connection between the brand and it’s strategy: </li></ul><ul><li>Did they remember the brand? Did they remember the package or marketing of the product? </li></ul><ul><li>Emotion Related Metrics </li></ul><ul><li>With the Eye-tracking and EEG events that correspond to the emotional regions, we can determine exactly when an emotional event occurred and what they were looking at. </li></ul><ul><li>By using those neurophysiological events we can question participants (on-screen) further about which emotions were created and how they made them feel about the brand/product. </li></ul><ul><li>Purchase Intent Related Metrics </li></ul><ul><li>By questioning participants (on-screen) about the brand and products post EEG, we can balance and unify a cohesive data set that allows us to determine purchase intent and the actual likelihood of long term brand loyalty: </li></ul><ul><li>Target Product vs. Competitors? Short Term vs. Long Term Intention? </li></ul>Integration of Neurophysiology and Behavioral Data
  15. 15. What can ruin a good ad from the neurological perspective? <ul><li>Ad Burnout </li></ul><ul><li>General declines in both Engagement </li></ul><ul><li>and Sustained Responses </li></ul><ul><li>More work is being done in this arena to determine long-term burnout rates </li></ul><ul><li>Confusing Graphics & Scene Changes </li></ul><ul><li>Engagement declines when too much is happening </li></ul><ul><li>Detouring from the storyline </li></ul><ul><li>Keeping it simple visually </li></ul><ul><li>Separating product from the person </li></ul><ul><li>(Example on right of eye-tracking with EEG) </li></ul>
  16. 16. A Comprehensive Report <ul><li>Working closely with your team, Sands’ analysts provide an in-depth review of the results and will work with you from start to finish in achieving the best possible outcome. </li></ul>
  17. 17. Other Capabilities <ul><li>Print ads, Packaging & Logos </li></ul><ul><ul><li>Randomized presentation of logo candidates to participants, via computer </li></ul></ul><ul><ul><li>Multidimensional scaling to determine how participants categorize logos </li></ul></ul><ul><ul><li>Analysis of brain response for each logo, relative to multidimensional scaling and paired trials </li></ul></ul><ul><ul><li>Final candidates selected based on a combination of behavioral and physiological data </li></ul></ul><ul><li>Mobile EEG and Eye-Tracking </li></ul><ul><ul><li>Simultaneous EEG and Eye Tracking (Wireless Technology) </li></ul></ul><ul><ul><li>Most equipment is concealed and very lightweight </li></ul></ul><ul><ul><li>Used in Theme Parks, Retail stores, Restaurants, Car clinics, Hospitality & Resort </li></ul></ul>
  18. 18. Our Philosophy in Practice <ul><li>Sands Research believes in a conservative, results-driven interpretation of neurological data when performing analysis in a marketing environment </li></ul><ul><li>Our analysis provides neurological objective results that add a rich and informative measure of neurological engagement to create a complete picture of your target market </li></ul><ul><li>We save our customers (be they corporate advertisers, advertising agencies or market research firms) both time and money </li></ul><ul><li>We build a case with empirical results that can be both replicated and validated </li></ul><ul><li>Our Philosophy: Get it Right, Before it Goes to Market </li></ul>
  19. 19. <ul><li>For further information on our Neuromarketing services </li></ul><ul><li>of Sands Research, Inc. </li></ul><ul><li>888-267-6087 ext. 812 </li></ul><ul><li>info@sandsresearch.com </li></ul><ul><li>www.sandsresearch.com </li></ul>Contact Us

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