Category: Brandwashing

Neuromarketing Research–Sponsors include Miller Coors, American Express, Hershey’s

excerpt on the Advertising Research Foundation’s “Inaugural NeuroStandards Retreat”–

On January 12-14, 2011 at Campbell Soup Headquarters in Camden, New Jersey, 40 senior review panel members, research vendors, gold brand sponsors, gold media sponsors, silver sponsors and ARF personnel gathered to discuss significant insights and key findings from the unprecedented Engagement 3: NeuroStandards Collaboration. This groundbreaking ARF research project,… will provide much-needed transparency about biometric and neurological research methods.
In advance of the retreat, each of the research vendors involved (Gallup & Robinson, Innerscope, MSW Research/LAB, Mindlab International, NeuroCompass, Neuro-Insight, Sands Research, and Sensory Logic) were asked to analyze eight commercials—one from each gold brand sponsor (American Express, Campbell Soup, Clorox, Colgate-Palmolive, General Motors, Hershey’s, Miller Coors and JP Morgan Chase).

The research vendors presented their reports to each sponsor prior to the retreat. The reports were also reviewed by a number of subject matter experts (for example, Electroencephalography (EEG) experts looked at EEG reports, Functional Magnetic Resonance Imaging (fMRI) experts looked at fMRI reports). Subject matter expert reports were then distributed to a panel of expert reviewers who provided their assessment at the retreat…

The expert reviews, discussions and key findings from the ARF NeuroStandards Retreat will be presented in March at Re:think 2011 – The ARF 75th Anniversary Annual Convention. Some of the major topics that will be explored include:

How neuromarketing research can produce new insights for advertising, branding, and other marketing research projects;
Which biometric and neurological methods are best suited for specific research objectives and what are the advantages and disadvantages of these methods compared to traditional research methodologies…

Draftfcb uses neuromarketing, academic ties to create Institute for Subliminal Advertising

Actually, the ad giant says it’s calling its new research arm the Institute of Decision Making. But given their plan to harness neuromarketing to better tap into the “instinctual ways that consumers behave,”  we think it should be renamed.  At the Cannes ad festival, Draftfcb discussed, according to a report, “how advertising messages have a mere 6.5 seconds to make a connection with the audience.”  A Draft exec. told the New York Times that “[U]nderstanding the foundation of consumers’ behavior decisions has become more complex [as they] consume more information and make decisions faster” [than before].   Hence, marketers like Draft–whose clients include MillerCoors and Levis–want to use neuroscience to create ads that deliberately bypass  a consumers rational decision-making system.   The ad agency is working with academics at UC Berkeley and Stanford–raising questions about the role scholars should play helping marketers–or anyone else–deliberately tap into our subconscious minds in order to influence our behavior.

Which “Network/Entertainment” Company is Expanding its use of Neuromarketing? NeuroFocus Looks for Specialist to help that showbiz client “Develop actionable insights from neurological studies”

Companies that rely on influencing brain behavior in order to achieve marketing goals are treading on a very slippery regulatory slope.  Nielsen-backed NeuroFocus is currently searching for a “Partner” in its “Consulting Practice.”  That person will be “responsible for the development and presentation of neurological studies commissioned by our key client in the network/entertainment industry…Of primary focus will be…developing insights from the neurological study results to benefit the client leading to a lasting relationship. Summary of essential job functions:

…
• Develop actionable insights from neurological studies
• Present results of neurological studies directly to clients
• Deep understanding of entertainment industry / network & cable television industry
• Experience in management consulting, market research, and advertising…

NeuroFocus, Inc. is the market leader in bringing neuroscience to the world of advertising, messaging, packaging, and product development. NeuroFocus clients include Fortune 100 companies across consumer package goods, food and beverage, entertainment, financial services, automotive, consumer electronics and retail sectors. NeuroFocus clients also include major companies in the TV and Motion Picture industries.”

Online Financial Marketing, Subprime Loans, Digital Banking & Neuromarketing–Why We Need the Consumer Protection Financial Agency

How we handle our money–including credit, loans and banking–is moving online.  Digital marketing of mortgages, credit cards, student loans and other financial products will become the dominant way we relate to banking and related services.  The CEO of Capital One has already said that ” [A] mobile phone is just a credit card with an antenna.”  So called M-commerce (mobile commerce) will be a crucial avenue where we actually apply for credit on “the fly,” so to speak, with our cell phones themselves used to buy products.   Banks and other financial companies are using Facebook, other social media, online video, Twitter, search engines and interactive online marketing techniques to sell their services to consumers.  They are also using digital media in PR campaigns designed to make consumers forget about their unethical behaviors which led to the current fiscal crisis.

Financial services companies are even using so-called neuromarketing–testing messages via fMRIs, for example–to help hone their marketing messages.  Neurofocus, a Nielsen backed company that helps create digital and other ads based on brainwave research, released a study  earlier this year that “dived deep into test subjects subconscious minds to discover their hidden, unspoken beliefs and feelings about financial institution brands.” They “tested consumers in its laboratory to determine exactly what financial brand messages they responded to best, at the deep subconscious level of their minds, where brand perceptions, brand loyalty, and purchase intent are truly formed.”  Financial marketers are also using behavioral targeting online, which stealthily collects data on us for tracking and target marketing. That’s why we keep seeing ads for credit cards and other money-related products.  The information gathered as we fill in forms on the Internet  can be sold as part of the online lead generation business.  Online lead generation played a role in the subprime debacle, as consumers provided marketers with personal information that helped trigger pitches for mortgages and other credit.

Alternet has just published my article on these issues.  It can be found here.

Microsoft’s latest Neuromarketing Research for its Xbox LIVE: Tracking “brain activity, breathing rate, head motion heart rate, blink rate and skin temperature”

Microsoft, Google and Yahoo, among many others, are using the latest tools from neuroscience to hone their interactive marketing services.  Microsoft released its latest neurmarketing “groundbreaking “study yesterday, which used “neuroscience to compare Xbox LIVE to traditional video…”  Here’s an excerpt from the release:

In the study, Microsoft and Initiative, a division of Mediabrands, measured advertising effectiveness across media types and explored how neuroscience technologies can help answer two questions that marketers have asked for years: how to measure audience engagement with their brand and how to measure advertising impact across several media types.

This pilot study, conducted by EmSense, a leading neuroscience company, involved two of Initiative’s clients, Hyundai and Kia Motors, in which test subjects were exposed to various media and advertising campaigns from the companies while wearing a special sensor-laden headset. The headset tracked brain activity, breathing rate, head motion, heart rate, blink rate and skin temperature. Test subjects were also asked to take a post-exposure survey.

The Xbox LIVE campaigns consisted of interactive billboards that users could click through to a branded landing page where they could then interact with content and download videos. The traditional videos used in this study included a 30-second television spot for Hyundai and a 60-second in-theater spot for Kia Motors America.

The results showed more time spent, greater recall and higher levels of emotional and cognitive response in association with the Xbox LIVE ad campaigns than with the traditional video spots. The interactive capabilities of Xbox LIVE enabled an additional 238 seconds of engagement beyond the traditional video ad, which lead to increased unaided recall and brand awareness. For example, the Xbox LIVE ads delivered 90 percent unaided brand recall, compared with 78 percent unaided brand recall rates for the 60-second spot. In addition, the Xbox LIVE ads delivered higher levels of both cognitive and emotional responses.

“We know from our standard performance metrics that our Xbox LIVE campaign is effective,” said Michael Hayes, executive vice president, managing director of Digital, Initiative. “What’s compelling about this research is that we now know that consumers are making an emotional connection with Kia Motors America as well.”

Even more compelling is the methodology that allows brands to compare impact and engagement across multiple measures and across a variety of media types…said Mark Kroese, general manager of the Microsoft Advertising Business Group, Entertainment & Devices Division, Microsoft. “…If we can crack the code on this, marketers and advertisers will be able to pinpoint ROI by media type and know which campaigns are yielding the greatest impact.”

Neuromarking for Politics and Online Ads: “which [ad] has a greater effect on the brain”

excerpt:  At MindSign Neuromarketing we use the only free-standing independent functional MRI facility and our own brain activation methodology to show what consumers are thinking while using a new product, and seeing an ad… Pennsylvania Avenue (politics):  We take your political TV, Web Video or Radio ad, and show you what parts or scenes cause activation and what parts cause deactivation, which parts we’re the most engaging, and which parts were the least, for each and every demographic and political affiliation. We compare your ads to your competitor’s ads to see which is more activating and at what parts. We then graph the brain responses to your ad versus our database and show you which parts of your ad are more activating than the average brain response to an advertisement, and which parts are less activating. We make a video graph, so you can watch your ad and see the brain reaction mapped over it in real-time—you can see what about your ad causes brain activation or deactivation moment by moment…Madison Avenue (advertising)…We take your Print or Web Advertisment and compare it to our database to see if your product design is more or less activating than the average brain response for all similar advertisements. We compare your product to your competitor’s and see who’s is most activating. Finally, if you’re trying to decide between different versions of your own print or web advertising, we’ll show you which one has a greater effect on the brain, helping you make a better final decision.

Viacom/MTV Uses Neuromarketing to research ads in video games [Annals of Neuromarketing]

As we explained last month in our congressional testimony on behavioral targeting and advertising, the growing reliance on neuroscience-related techniques to design digital marketing messages is a serious policy issue.  Here’s an excerpt from a recent Viacom/MTV press release on a study it commissioned:

Using breakthrough biometric monitoring, a new study by MTV Networks has uncovered the most effective strategies for marketers to reach casual gamers.  The study, “Game Plan: Strategies for Marketing through Casual Games,” found that casual games command 99 percent focused attention from consumers.  By tracking respondents’ hand sweat, heart rate, respiration, movement patterns and visual attention during game play, the research yielded a clear road map for harnessing that engagement through targeted ad formats, lengths and integrations.

“Casual gaming continues to grow as a dominant online activity, and marketers have more opportunities than ever to connect with these highly engaged consumers from nearly every demo,” said Nada Stirratt, Executive Vice President of Digital Advertising, MTV Networks.  “This study provides a blueprint on how to leverage casual games for every marketing objective from driving awareness to increasing purchase intent to building a brand.”

The study was presented today to marketers and media buyers at MTV Networks headquarters in New York.   The research revealed a number of strategies for marketers looking to connect with casual gamers:

o     Get Ahead of the Action: Video placed before action games is among the most effective use of online video, commanding up to 85 percent focused attention.
o     Shorter is Better: A fifteen second pre-roll ad before a game commands 85 percent focused attention for the duration of the ad. Significantly, longer pre-rolls can be damaging, as aided recall for these drops by more than half.
o     Get in the Game: Brand integrations, or advergames, are best for games requiring higher levels of mental processing and focused attention. In games where brands achieved fifteen seconds or more of focused attention, aided recall approached 80 percent.
o     Anticipation = Opportunity: Consumer anticipation is a powerful opportunity — the load screen, menu pages and reward screens in games represent ideal placements for brand messaging, as gamers have the highest level of cognitive processing while waiting for their game to begin.

“Game Plan” tracked eye and biometric measures of respondents as they engaged in four online gaming experiences. These included a combination of branded and unbranded games, as well as video and display advertising around the games.  Biometric signals were integrated with data obtained from eye trackers, which measured players’ visual attention and pupillary response…

source: Breakthrough Biometric Research Uncovers the Most Effective Advertising Strategies for Connecting with Casual Gamers: New MTV Networks Study Reveals The “Game Plan” For Casual Gaming Advertising.  June 10, 2009

Behavioral Targeting Meets Neuroscience: “The ability to tap into psychological and physiological testing for ad targeting is an emerging field”

Here’s an excerpt from the article BT: Can It Mean Behavioral Responses To Ads?:

Companies touting the targeting of online ads to consumers as a mixture of art and science could soon find psychologists employed among their midst…One To One Interactive will open its primary research lab, OTOinsights, to other advertising agencies and research firms… Along with the main lab in Charleston, Mass., a mobile lab that can travel anywhere offers input on eye tracking; click tracking; bio-feedback such as heart rate, respiratory rate, galvanic skin response; neuro-feedback such as EEG/active attention; and facial recognition technology that interprets six fundamental human emotions: happy, sad, angry, surprised, scared, disgusted, and neutral…The ability to tap into psychological and physiological testing for ad targeting is an emerging field…There are between 10 and 15 firms…spearheading efforts. …Neurofocus…focuses on EEG electroencephalographic- (EEG-) based neurological testing that reveals the degrees of attention, emotional engagement, and memory retention that consumers experience at the deep subconscious level of the brain.

source:  Laurie Sullivan.  Behavioral Insider.  June 4, 2009.

Google and WPP Fund Neuromarketing Research for Digital Ads: Ethical Issues and the Need for Policymaker Scrutiny [with an update on the grants!]

The Wall Street Journal and other publications report that Google and ad giant WPP will announce today the $4.6 million grants it will award for academic research designed to “improve understanding and practices in online marketing, and to better understand the relationship between online and offline media.” Among the research efforts given funds are projects that will “analyze internet users’ surfing habits to determine their thinking styles, such as whether they are most influenced by verbal or visual messages or if they are more holistic or analytical, and how to tailor ads accordingly” and an “analysis into how online ads effect blood flow to different areas of the brain. This research would seek to show the role that emotions play in decision making.”   Academics from MIT, Stanford, and Harvard will receive funds, among others. (And for those of us concerned about the role online advertising and data collection is playing in China–and impacts human rights and environmental sustainability–one of the new grants will fund “how Chinese web users respond to different online-ad formats, such as display and search ads”).

As we will tell the European Commission at the end of the month, at a workshop they have organized to discuss interactive advertising and consumer protection, the evolving role of neuromarketing with online advertising raises a number of troubling concerns–and should trigger a serious policy review.   We have not yet seen a final list of the grantees.  But Google should be funding independent research that will honestly explore the impact and ethics of online marketing.  They should be ensuring that the ethical issues of online marketing–such as the concerns raised by their new behavioural profiling and targeting system–receive a honest scholarly review.

The growing controversy over the role pharmaceutical companies are playing with scholarly research on drugs, we think, has implications here.  We believe all the academic institutions receiving these grants must vet them to ensure they truly address the real impact online ad techniques have on individuals and society.

Update:  Google & WPP made the academic research announcement–eleven grants awarded.  Here are some to ponder–and raise questions:

*  “Targeting Ads to Match Individual Cognitive Styles: A Market Test”; Glen Urban, Professor, MIT Sloan School of Management;

*  “How do consumers determine what is relevant? A psychometric and neuroscientific study of online search and advertising effectiveness”; Antoine Bechara, Professor of Psychology and Neuroscience, Department of Psychology/Brain & Creativity Institute, University of Southern California and Martin Reimann, Fellow, Department of Psychology/Brain & Creativity, University of Southern California;

*“Unpuzzling the Synergy of Display and Search Advertising:Insights from Data Mining of Chinese Internet Users”; Hairong Li, Department of Advertising, Public Relations, and Retailing, Michigan State University and Shuguang Zhao, Media Survey Lab, Tsinghua University;

*”Are Brand Attitudes Contagious? Consumer Response to Organic Search Trends”; Donna L. Hoffman, Professor, A. Gary Anderson Graduate School of Management, University of California Riverside and Thomas P. Novak, A. Gary Anderson Graduate School of Management, University of California Riverside;

*“Marketing on the Map: Visual Search and Consumer Decision Making”; Nicolas Lurie, Assistant Professor of Marketing, College of Management, Georgia Institute of Technology, College of Management and Sam Ransbotham, Assistant Professor of Information Systems, Carroll School of Management, Boston College.

Why Google Can’t Say a Word that Starts With “P”—Privacy

The senior execs and DC lobbying team at Google really have a major problem addressing one of the company’s gravest problems–its lack of leadership protecting consumer/citizen privacy. While Google claims to reporters and others it’s been proactively strengthening its privacy policies, most of the changes have come as a result of pressure from policymakers and privacy advocates.

This week, Google released a booklet which “spelled out…2009 policy priorities” for the new Administration and Congress, including several Internet related issues. The booklet’s release coincided with a speech Google CEO Eric Schmidt gave at the New America Foundation in Washington, D.C. Missing from the booklet’s agenda was any discussion of privacy or the role and structure of online advertising (You would never know, for example, that Google was just forced by the Department of Justice’s antitrust division to drop its proposed deal with leading rival Yahoo!).

Google should be playing a leadership role supporting the enactment of serious privacy rights for the public–including “opt-in,” real transparency, user control, limits on retention, etc. If Google believes its golden digital goose will be baked once consumers better understand and control how they are being profiled and targeted, they should examine how it defines corporate social responsibility. But Google’s current approach—we can’t admit we are collecting your data for interactive marketing and cannot even say the word privacy in public-– will ultimately have consequences for Google’s future–including its share price.