Neuroscience Meets Marketing Science

RANDALL BEARD
PRESIDENT / CEO
TECH ENABLED MARKETING SERVICES
NEURO SCIENCE
MEETS
MARKETING SCIENCE

Copyright©2012TheNielsenCompany.Confidentialandproprietary.
2
HOW DOES ADVERTISING WORK ?

3
AGENDA
Topic
1. 3R’s of Advertising Effectiveness
2. Nielsen’s Philosophy of Advertising
3. Neuroscience and Advertising Measurement
4. Case Study
5. Q & A

4
HOW DOES THIS AD WORK ?

ADVERTISING EFFECTIVENESS
NIELSEN’S 3R FRAMEWORK

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THE 3R FRAMEWORK
Reach the right people
REACH RESONANCE
Drive purchase
REACTION
Pre-market optimization
In-market measurement
Impact their opinions &
feelings

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NIELSEN’S PHILOSOPHY OF
ADVERTISING EFFECTIVENESS

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HOW ADVERTISING WORKS, CIRCA 1980
“Advertising works like the grass grows; you never see it
happen but you have to mow the grass every week.”
--Nielsen, 1980

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HOW ADVERTISING WORKS – MAX SUTHERLAND

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INFLUENCERS OF OUR PHILOSOPHY
Antonio Damasio
Influence of emotion on behavior
Somatic marker theory
Daniel Kahneman
System 1 / System 2 Thinking
Robert Heath
Application of emotion theories
to consumer advertising

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ADVERTISING INFLUENCES DECISIONS TWO WAYS
NON-CONSCIOUS
VALUES
Often, emotions
(instinct) lead directly
to purchase
Emotions bias
what we believe
CONSCIOUS FACTS
(taste, refreshment, price)
3. This model is based on the Somatic Marker Theory as outlined by Antonio Damasio in his book Looking for Spinoza: Joy, Sorrow and the Feeling Brain ( Harcourt, Orlando 2003). For more detail see
Bechara, Antoine and Damasio, Antonio “The Somatic Marker Theory: A neural theory of economic decision” Games and Economic Behavior, Volume 52, 2005.

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Our brains process 11,000,000 bits of sensory information every second.
But our conscious minds can only handle about 40 bits per second.
That’s a selection ratio of 0.000004%.
What happens to the other 10,999,960 bits of information?
Consumer brains process them subconsciously.
THE ROLE OF THE SUBCONSCIOUS

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DID YOU NOTICE ?

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WINE SHOPPING – ITALIAN OR GERMAN ?
Music made a difference in what people bought
Vs.
Italian Music German Music

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NEURO MEASUREMENT TOOLS
EEG
32 sensors, medical grade, whole scalp
Millisecond data capture
EYE-TRACKING
Precision eye-gaze calibration,
hot zones

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KEY NEURO EEG METRICS
EMOTIONAL
ENGAGEMENT
MEMORY
ACTIVATION
ATTENTION
NEUROLOGICAL
EFFECTIVENESS
Relevant Neurological Research:
ADD (Attention) | Alzheimers (Memory) | Autism (Emotion)

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AD PERFORMANCE – SECOND BY SECOND
0
5
10
0 5 10 15 20 25
0
5
10
0 5 10 15 20 25
ATTENTION:
7.6
EMOTIONAL
ENGAGEMENT:
5.2
MEMORY
ACTIVATION:
6.4
High in first third
due to challenging
visuals and frequent
scene shifts.
Downward
engagement trend
early, improving
toward the end.
Memory activation
drops initially, but
then remains above
average for most
of the ad
0
5
10
0 5 10 15 20 25
Example Ad

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NEURO VALIDATION:
DOES IT WORK ?

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NEURO VALIDATION
strong
correlation
R2 = 75%
validation study across multiple brands,
companies and categories
Vs.
neuro metrics in-market outcomes

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ACTUAL AND NEURO PREDICTED RESULTS
Strong relationship between in-market results for ad campaign sales lift compared to prediction from neuro.

SHELTER PET PROJECT:
TV AD OPTIMIZATION

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SHELTER PET PROJECT CAMPAIGN BACKGROUND
• Sponsored by Maddie’s Fund and Humane Society of the United States
• DraftFCB Chicago is the pro-bono ad agency
• 8 million pets in shelters
• Only 30% of pets come from shelters or rescues
• Campaign Goal: Reduce fear, uncertainty to increase adoption rates

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OBJECTIVES
• How is the ad processed neurologically ?
• What are the strengths ?
• Which elements can be improved ?

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JULES - ORIGINAL
Jules

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NEURO IDENTIFIES DRIVERS & DETRACTORS
Very strong creative approach with a few potential optimization areas
Effectiveness:
6.8
Attention:
6.2
Emotion:
7.1
Memory:
5.6
0
5
10
0 5 10 15 20 25 30
Jules - Original
EFFECTIVENESS
Jules 1st Appearance 2nd Appearance 3rd Appearance Message Call to Action

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JULES STRONGLY ENGAGES WHEN ON SCREEN
Viewers disengage when Jules exits, re-engage when he interacts with the camera
0
5
10
5 6 7 8 9 10
EMOTIONAL ENGAGEMENT
0
5
10
14 15 16 17

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JULES - REVISED
Jules II

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GOOD TO GREAT
Jules is dialed down a bit at key points to focus on message and call to action
(significant increase in memory, without losing overall effectiveness).
Memory: 7.4 Memory: 9.9
Memory: 6.6 Memory: 7.3
Jules Original Jules Revised

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BONUS: CREATE SHORTER, MORE EFFECTIVE ADS
Ad compression
Identify most effective scenes
and edit a shorter, more effective version
0.0
5.0
10.0
0 5 10 15 20 25 30
NEUROLOGICALEFFECTIVENESS
SECONDS

NEUROSCIENCE MEETS
MARKETING SCIENCE
---------------------------
SUMMARY

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SUMMARY – KEY POINTS
1. Advertising works both consciously & subconsciously
2. Neuroscience can measure both
3. Key Neurological measures are attention, memory, emotion
4. Neuro metrics are predictive of sales
5. Benefits of Neuro based copy testing:
• Second-by-second diagnostics => optimized ads
• Ad compression for increased efficiency

Neuroscience Meets Marketing Science

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