Featuring: Michael Smith, Director of Industry Relations, Nielsen Watch the recording of this presentation in the SB Library: http://www.sustainablebrands.com/digital_learning/event_video/stakeholder_trends_insights/regenerating_two-way_understanding_applied_

2. Michael Smith | @planetmes
Director of Industry Relations
Nielsen
Regenerating Two-way
Understanding: Applied
Neuroscience to the Rescue
#SB14sd

3. Michael E. Smith, PhD MBA
June 5th, Sustainable Brands 2014
REGENERATING TWO-WAY
UNDERSTANDING:
APPLIED NEUROSCIENCE FOR NEXT-
GENERATION CONSUMER INSIGHTS

4. Copyright©2012TheNielsenCompany.Confidentialandproprietary.
4
A MIXED MESSAGE FROM THE CONSUMER’S VOICE
(1) Source: http://www.harrisinteractive.com/vault/Harris%20Poll%2041%20-Green_4.18.12.pdf
(2) Source: Nielsen Global Survey of Corporate Citizenship, 2011
(3) Nielsen Global Survey on Corporate Social Responsibility, 2013
“New poll reveals
continued decrease in
“Green” attitudes and
behaviors” (1)
“66% of global
consumers say they
prefer to buy from
companies that give
back to society “ (2)
“More consumers are
willing to spend extra on
products from socially
responsible companies “ (3)

5. Copyright©2012TheNielsenCompany.Confidentialandproprietary.
5
TRADITIONAL CONSUMER INSIGHTS MODEL
Market Data
POS
Panel
Consumer Data
Focus Groups
Questionnaires
A Complete
View of the
Consumer+ =
ASSUMPTION:
Consumers are able to fully comprehend, access,
and report on their internal attitudes and the
factors driving their behavior
What if they can’t?

6. Copyright©2012TheNielsenCompany.Confidentialandproprietary.
6
WE KNOW MUCH THOUGHT IS AUTOMATIC,
INTUITIVE, AND EMOTIONAL
(1) As described by Daniel Kahneman, in the book “Thinking Fast and Slow”.
RATIONAL THINKING
(System 2)
• Slow
• Effortful
• Rule-governed
• Non-emotional
INTUITIVE THINKING
(System 1)
• Fast
• Effortless
• Associative
• Emotionally-charged
Used for watching
ads and making
most day to day
purchase decisions
Used for tasks
like filling out
questionnaires

7. Copyright©2012TheNielsenCompany.Confidentialandproprietary.
7
reason emotionreason & emotion
work together
AN EMERGING CONSENSUS
Both Systems Interact to Drive Perception, Decision-Making, and Behavior

8. RE-IMAGINING CONSUMER
INSIGHTS

9. Copyright©2012TheNielsenCompany.Confidentialandproprietary.
9
NEXTGEN APPROACH TO CONSUMER INSIGHTS
feel
say
do
Consumer
Neuroscience
Research
Traditional
Consumer
Research
The mind of the
consumer
The voice of the
consumer

10. Copyright©2012TheNielsenCompany.Confidentialandproprietary.
10
ELECTROENCEPHALOGRAPHY (EEG)
Sub-second brainwave sampling can measure
consumer response “in-the-moment”
EYE-TRACKING
Pinpoints hot zones
CONSUMER NEUROSCIENCE AT NIELSEN

11. Copyright©2012TheNielsenCompany.Confidentialandproprietary.
11
BRAIN REGISTERS
MARKETING
STIMULI
BRAIN REACTS
CONSCIOUS PROCESSINGPRECONSCIOUS PROCESSING
1 3
Marketing stimuli presented at “0” seconds
2 EEG CAPTURES
BRAIN CHANGES
IN THE MSEC
REALM
MILLISECONDS MATTER
EEG Measures Consumer Responses “In-The-Moment”
SLOW, DOWNSTREAM PHYSIOLOGICAL
RESPONSES , AND FILTERED VERBAL RESPONSES

12. RE-IMAGINING BRANDS AS NEURAL
NETWORKS

13. Copyright©2012TheNielsenCompany.Confidentialandproprietary.
13
TOP RANKED “GREEN” AUTO BRANDS
From Interbrand’s 2013 TOP 50 “Best Global Green Brands”
RANK
TOYOTA #1
FORD #2
HONDA #3
NISSAN #5
VOLKSWAGEN #7
BMW #13
MERCEDES #17
HYUNDAI #34
KIA #37
Source:http://www.interbrand.com/en/best-global-brands/Best-Global-Green-Brands/2013/Best-Global-Green-Brands-2013.aspx
Does the brain associate these brands with sustainability?

14. Copyright©2012TheNielsenCompany.Confidentialandproprietary.
14
AUTO BRAND ASSOCIATIVE BRAIN RESPONSE
BASELINE PRE-EXPOSURE
BRAIN MEASUREMENT TO BRAND
POST EXPOSURE RESPONSE CHANGE
IDENTIFIES DEGREE OF ASSOCIATION
EXPOSURE TO THE ASSOCIATIVE
“PRIME”
Toyota
2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary.
Toyota

15. Copyright©2012TheNielsenCompany.Confidentialandproprietary.
15
AN UNFILTERED ASSOCIATION WITH SUSTAINABILITY?
ASSOCIATIVE STRENGTH
OF “GREEN”
AUTOMOTIVE BRANDS
WITH SUSTAINABILITY
Strong
Moderate
Weak

16. REGENERATING CONSUMER
CONNECTIONS:
NEURO-OPTIMIZING COMMUNICATIONS

17. Copyright©2012TheNielsenCompany.Confidentialandproprietary.
17
OPTIMIZING SOCIAL IMPACT MESSAGING
Collaborating to better understand the creative “DNA” of effective PSAs
Fact: As much as 40%
of food in the US is
wasted. Enough, if
redirected, to feed
millions of hungry
families (1).
(1) Source: http://www.nrdc.org/food/files/wasted-food-IP.pdf
Problem: How best
communicate the
emotional benefits
of contributing to
and volunteering at
Food Banks?

18. Copyright©2012TheNielsenCompany.Confidentialandproprietary.
18
DATA DASHBOARD FOR AD DIAGNOSTICS

19. Copyright©2013TheNielsenCompany.Confidentialandproprietary.
19
RESULT: “SMALL” THINGS MATTER. A LOT.
Alternate phrasings in voiceover had a significant impact:
0
2
4
6
8
10
15 16 17 18 19 20
EMOTION
Option 1:“They’ve earned
their wings, and you can too”
Option 2: “They’re like food angels,
and you can be one too”
Scene level emotional triggers:
Emotional
Engagement
Final
execution
engages more
than national
consumer
brands ads.
Normative
Distribution

20. NEURO-HACKING SUSTAINABILITY
COMMUNICATIONS:
SIMPLE BEST PRACTICES FOR RE-
DESIGNING ADS WITH BRAINS IN MIND

21. Copyright©2012TheNielsenCompany.Confidentialandproprietary.
21
FACT: THERE IS A PROBLEM WITH THIS APPROACH
21

22. Copyright©2013TheNielsenCompany.Confidentialandproprietary.
22
PEOPLE TEND TO AVOID PERSONAL RESPONSIBILITY
ASSUMPTION OF PERSONAL RESPONSIBILITY DECLINES WITH GROUP SIZE
Darley & Latané (1968). Bystander intervention in emergencies: diffusion of responsibility. Journal of Personality and Social Psychology, 8, 377-383
Bickman, L. (1975). Social influence and diffusion of responsibility in an emergency. Journal of Experimental Social Psychology, 8, 438-445.

23. Copyright©2012TheNielsenCompany.Confidentialandproprietary.
23
NEURO BEST PRACTICE FOR MARKETERS:
ASSIGN PERSONAL RESPONSIBILITY FOR TAKING ACTION!
23
INCREASE IN ENGAGEMENT
WHEN ASSIGNING
PERSONAL RESPONSIBILITY
RELATIVE TO REST OF AD
COPY:
>30%

REST OF AD COPY
PERSONALIZATION
When voiceover
intones: “…your
family, friends and
neighbors are
counting on you”
Impact of assigning
personal responsibility in a
:30 sec social messaging
television PSA with a call to
action .

24. Copyright©2012TheNielsenCompany.Confidentialandproprietary.
24
ICONIC (YET TIMELY) USAGE CASE
24
Source: http://www.adcouncil.org/
But is the ad layout optimal?
Recent San Diego “Firenado”

25. Copyright©2013TheNielsenCompany.Confidentialandproprietary.
25
FACT: BRAINS PREFER IMAGES LEFT OF CENTER
Ads are rated more appealing
when images are left of
center, and text right (1).
Packages are more memorable
when images are left of
center, and text right (2).
1) Ellis & Miller. (1981) . Left and wrong in adverts: Neuropsychological correlates of aesthetic preference. British Journal of Psychology. 72(2): 225-229.
2) Rettie & Brewer, (2000). The verbal and visual components of package design, Journal of Product & Brand Management. 9(1): 56-70.
LH better at
text analysis
RH better at
image analysis
>15% increase in neural
engagement with image
left/text right layout.

26. Copyright©2012TheNielsenCompany.Confidentialandproprietary.
26
NEURO BEST PRACTICE FOR MARKETERS:
26
Image Left Text Right
Source: Bird Rock Elementary School, La Jolla CA, “Green Team 2014” Reused Bottle Cap Art Project

What if conventional research distracts us from what naturally engages the brain?

27. Michael Smith, PhD, MBA
Director, Industry Relations
Nielsen Neuro
michael.e.smith@nielsen.com
(858) 336-9854

28. REIMAGINE
REDESIGN
REGENERATE
#SB14sd