More Effective Marketing Through Research Innovation:

Transcription

1 More Effective Marketing Through Research Innovation: The Case for Neuroscience Methods Horst Stipp, ARF EVP, Research and Innovation, Global & Ad Effectiveness NIMF November

2 Agenda Why Neuro? Neuro-Science, Marketing, and the ARF The ARF s Neuro Projects New Findings from Neuro 2 project Translating Neuro-Science into Business Insights Best Practices, New Insights on How Advertising Works 2

3 About the ARF Founded in 1936 by the Association of National Advertisers (ANA) and the American Association of Advertising Agencies (4As) To improve the practice of advertising, marketing and media research in pursuit of more effective marketing and advertising communications The ARF produces original and curated research at the leading and bleeding edge and evangelizes solutions that help industry leaders business growth 3

4 ARF Membership MEDIA COMPANIES ADVERTISERS AGENCIES RESEARCH SUPPLIERS 4

5 Why Neuro? 2010: ARF Members want to know if the new applications of neuroscience to marketing research are valuable Neuromarketing researchers claimed their methods are better than traditional measures to improve creative and make advertising more effective 5

6 Why Neuro? Good creative essential for effectiveness of marketing communications 25% Media Creative 75% Making advertising more effective, promoting research innovation = Core mission of ARF ARF breakthrough work on ad creative and pretesting 1991: Copy research Validity Project 2007: Emotional Responses to Television Chart: est. of contribution of creative vs. media based on various industry sources 6

7 ARF Study to Evaluate Biometric & Neuromarketing Methods ARF Members wanted independent review: What is the value of new methods to measure emotional response to advertising and the impact of advertising? Is it really like magic? Does this stuff even work? Which method is best for me? 7

8 Biometric Methods: Eye-Tracking Measures eye movement, eye fixations, pupil size Sec-by-sec measure of visual focus, attention and visual search Source: Innerscope Research, 8

9 Biometric Methods: SCR and EKG Skin Conductance Response Measures changes in electric properties of skin Electrocardiography Measures electrical activity of heart with external skin electrodes (like your doctor) Non-conscious measures of attention and arousal 9

10 Portable Biometrics are going Mainstream LG Lifeband Touch Samsung Gear Fit, Gear 2 Smartwatch Heart Rate Sensors (Galaxy, iphone) 10

11 Neuro Methods: EEG Electroencephalography EEG measures electrical brain activity on scalp caused by neuronal activity SST (Steady-State Topography) is related measure Used to measure attention, engagement, memory, approach vs. avoidance behavior 11

12 Neuro Methods: fmri Functional Magnetic Resonance Imaging fmri captures brain activity by measuring changes in blood flow Can pinpoint specific emotional and cognitive processes 12

13 Facial Coding Traditional : Human coders femg (Facial Electromyography) Electrodes on face measure changes in facial expressions Webcam measure Software analyzes facial reactions Used to measure emotional valence, smiles, range of emotions 13

14 Neuro 1 (2011) First Study of its kind 14

15 Neuro 1 (2011) Original research Designed with support of 16 sponsors 8 commercials analyzed and data reported 8 vendors from three continents 8 Major methods tested Methods and reports reviewed by 17 academic experts ARF White Paper published 15

16 Biometric/Neuro Methods in Neuro 1 Eye-Tracking SCR (Skin Conductance Response) EKG (Electrocardiography) EEG (Electroencephalography) SST (Steady-State Topography) fmri (Functional Magnetic Resonance Imaging) Facial Coding and fmeg Eye tracking Source: Innerscope Research, NBCU Research 16

17 Neuro 1 Conclusions All methods have pros and cons Need for more validation, more experimentation Data require interpretation Good for detailed diagnostics Use Neuro methods in conjunction with traditional methods 17

18 Neuro 1 Conclusions Strength of neuromarketing methods lies in their ability to uncover emotional reactions better than other methods New tools to make advertising more effective 18

19 Neuro 1 Leads to the Big Question Ø Are Neuro methods better than consumers subjective, self-reported evaluations to identify creative that sells more? 19

20 Neuro 2 (2013/14) Impact of biometrics/neuro compared to traditional copy testing assessed through marketing mix models 14 Sponsors 37 commercials - 26 analyzed in mix models 6 Biometric/neuro and 3 traditional methods (liking, familiarity, purchase intent) Independent study design (as Neuro 1) 9 Academics from Temple University and NYU 48 Different measures explored, 13 in mix models Financial Services Firm 20

21 Biometric/Neuro Methods in Neuro 2 Eye-Tracking SCR (Skin Conductance Response) EKG (Electrocardiography) EEG (Electroencephalography) fmri (Functional Magnetic Resonance Imaging) IAT (Implicit Association Task) 21

22 Neuro 2 Conclusions Neuro + traditional methods can improve the predictive power of the test significantly fmri strongest in this analysis Neuro 2 provides independent confirmation of the value of neuroscience-based methods beyond diagnostics 22

23 Using Neuroscience Methods ARF Translating Science into Business Insights from Does this stuff even work? to How Should I Use Neuro-Science to Make My Ad Creative and Marketing Communications More Effective? 23

24 Best Practices Getting the Neuro Advantage 1. Optimal uses of different methods to address research questions and meet business objectives 2. Successfully integrating Neuro into your research organization and processes 3. Better understanding of How Advertising Works 24

25 Best Practices 1: Choosing Biometric/Neuro Methods Compare various methods Important to understand pros and cons of each method Methods may be related, but don t measure exactly the same things Different measures of concepts like attention, memory, emotions 25

26 Best Practices 1: Use of Biometrics Eye Tracking Sec-by-sec measure of visual focus, attention, visual search Scalable: relatively inexpensive and easy to administer in lab or online Best used with other biometrics to get attention/arousal data Does not measure emotions Source: Innerscope Research, NBCU Research 26

27 Best Practices 1: Use of Biometrics Skin Conductance Response (SCR) Electrocardiography (EKG) Sec-by-sec data for diagnostics Scalable If used in connection with Eye Tracking: detailed data on visual attention plus non-conscious engagement and arousal data 27

28 Case Study: Use of Biometrics to Improve Website Design Eye-Tracking helps improve website design Heatmap shows where users look and how they navigate Comparison of different website designs helps identify optimal design Source: Normalmodes (Google) 28

29 Case Study: Use of Biometrics to gain New Insights on How Ads are Watched NBC/InnerScope Study (2008): Do viewers pay attention to ad content when they fast-forward? Eye-Tracking showed viewers followed action while seeing ads in fastforward mode EKG,SCR confirmed attention, engagement Methods explained surprisingly high ad recall among viewers who claimed they paid no attention to ads in fast-forward NBC presented results to advertisers and agencies 29

30 Best Practices 2: Use of Neuro Methods EEG, SST Used to measure attention, engagement, memory, and approach vs. avoidance behavior = indicator of direction of emotion Continuous, very detailed data allow sec-by-sec diagnosis More direct measure of emotion than most other methods More invasive, more expensive 30

31 Case Study: Use of EEG and Eye Tracking to Balance Entertainment and Message Too Cute? 31

32 Case Study: Use of EEG and Eye Tracking to Balance Entertainment and Message Nielsen Neuro helps Creative Team to make engaging ad more effective Source: Ad Council, Nielsen Neuro

33 Case Study: Use of SST to Connect Entertainment and Branding Message Neuro-Insight study shows great creative with involving narrative is not enough: connection to brand is essential Evian Baby & Me, Neuro Insight

34 Best Practices 1: Use of Neuro Methods Facial Coding measures Used to measure emotional valence, smiles, range of emotions Best to assess if funny is perceived as intended Scalable, relatively inexpensive, detailed data 34

35 Case Study: Use of Facial Coding to Increase Predictive Power of Tests Millward Brown and Affectiva report successful use of Facial Coding when added to traditional measures Source: Advertising Research Faces the Future, Rana El Kaliouby, Chief Science Officer & Co-Founder, Affectiva, and Graham Page, EVP, Consumer Neuroscience, Millward Brown; paper presented at ARF Re:Think conference March

36 Best Practices 1: Use of Neuro Methods fmri Pinpoints specific emotional and cognitive processes including wanting, desire Less detailed info than EEG, but seen as Gold Standard for measurement of specific emotions by most academics Most expensive method, lab only, most invasive, difficult to recruit representative consumer sample Valuable for validation, special projects 36

37 Best Practices 1: Business Applications Consider Biometric/Neuro Methods for variety of research needs and business objectives Ad Creative Images Language Humor Music Branding Moments 37

38 Best Practices 1: Business Applications Consider Biometric/Neuro Methods for variety of research needs and business objectives Ad Creative Price Points Websites Packaging Product Design In-Store Placement Brand Tracking 38

39 Best Practices 2: Integrate Neuro into Org and Processes Use in addition to traditional measures If possible, more than one biometric/neuro method More measures = more insights Neuro methods most valuable When creative is focused on emotions When survey or focus group reports are questionable (social desirability, bias, rationalizations, poor recall) When research has major implications for sales, brand, etc. 39

40 Best Practices 2: Integrate Neuro into Org and Processes Use early in creative development process and work with Creative Teams Support ideation phase 40

41 Best Practices 2: Integrate Neuro into Org and Processes Use early in creative development process and work with Creative Teams Support ideation phase 41

42 Best Practices 3: Better Understanding of How Advertising Works Neuro 2, other Neuro research, reveal Emotions drive Attention, Involvement, Memory, Wanting/Linking, Purchase Intent Using Biometrics/Neuro will give you more insights 42

43 Summary New evidence: Neuroscience-based methods are valuable tools to measure emotional responses to marketing messages, and to diagnose and improve ad creative. Integrating neurological measures into traditional research protocols can increase sales and enhance branding impact significantly. If you reviewed Neuro methods and vendors two years ago, look again: progress in validation, technology, pricing 43