Impact of Social Advertising: Evidence from P 300, Event Related Potentials

(ERP)

Presented By: Sharad Agarwal

Doctoral Student, IIM Ranchi Sharad.agarwal12fpm@iimranchi.ac.in

Sharad2021@gmail.com

Neuro Marketing

• Neuro marketing is the branch of neuroscience research that aims to better understand the consumer through his cognitive processes and has application in marketing, explaining consumer's preferences, motivations and expectations, predicting his behavior and explaining successes or failures of advertising messages

• “Applying the methods of neurology lab to the question of the advertising world” (Thomson, 2003)

Advantages of Neuro Marketing • It avoids the problem of relying heavily upon

subjects’ self-reports when it is highly unlikely that even the most determined subject could accurately articulate his or her crucial subconscious motives

• Neuro scientific tools take inputs from the processes happening in the brain, and skip all emotion, introspection and ego

• It is difficult for a survey to capture the emotional reasons underlying consumer preferences or decisions

Functional Magnetic Resonance Imaging (fMRI)

• It allows observation of deep brain structures and it is suitable for neuro marketing studies

• It combines magnetic field and radio waves, producing a signal that allows viewing brain structures in detail

• It allows measuring brain activity while subjects perform certain tasks or experience marketing stimuli, searching for patterns

Electroencephalography (EEG)

• EEG measures electric product of the brain activity, when brain undergoes any stimulus.

• It captures variations in brainwaves, and the amplitudes of the recorded brainwaves correspond to certain mental states, such as wakefulness , relaxation, calmness and sleep

• A number of electrodes (up to 256) are placed on the scalp of the subjects, in certain areas, in order to measure and record the electricity for that certain spot.

Electroencephalography (EEG)

• For the analysis, voltage and frequency are measured for each subject and compared to the data that was recorded without using marketing stimuli.

Event Related Potentials (ERP) • Event Related Potentials (ERP) are very small voltages

generated in the brain structures in response to specific events or stimuli.

• ERP in humans can be divided into two categories.

1 The early waves or components peaking roughly within first 100 milliseconds after stimulus are termed ‘sensory’ or ‘exogenous’ as they depend largely on the physical parameters of the stimulus.

2 ERPs generated in later parts reflect the manner in which the subject evaluates the stimulus and are termed ‘cognitive’ or ‘endogenous’ ERPs as they examine information processing

P 300 Wave

• The P300 (P3) wave is an event related potential (ERP) component elicited in the process of decision making.

• It is considered to be an endogenous potential, as its occurrence links not to the physical attributes of a stimulus, but to a person's reaction to it

• When recordedby electroencephalography (EEG), it surfaces as a positive deflection in voltage with a latency (delay between stimulus and response) of roughly 250 to 500 ms

The Oddball Paradigm

= Standard

= Deviant/Oddball/Target

Typical Task Alternatives: Count oddballs Press only for oddballs Different buttons for standard, oddball

© S. J. Luck

Oddball Paradigm

• Two different stimuli are presented in a series such that one of them occurs relatively infrequently- that is the oddball

• The subject is instructed to respond to the infrequent or target stimulus and not to the frequently presented or standard stimulus

• Majority of studies have employed stimuli to elicit the P3 wave as it is easy to produce, readily captures the subject’s attention and produces least artifact.

Advantages of ERP

• Event-related potentials constitute a millisecond-by-millisecond record of neural information processing that occurs between presentation of a discrete stimulus and the production of the motor response.

• The level of temporal resolution is vastly greater than other functional neuro imaging techniques

• The instrumentation is potentially portable so studies can be obtained in a variety of settings

• Moreover, while fMRI cannot be performed on some individuals (e.g., if they have implanted metal devices, fear enclosed spaces)

EEG Headsets

Experiment

• Subjects were required to watch a 25 minute video with 12 advertisements embedded into it, EEG was recorded while the subjects watched the video.

• 6 advertisements each with social and without social messages were placed in random order in two slots , positioned at 5th minute and 16th minute respectively

• Recall task, developed using oddball paradigm after 10 minutes of the end of video

Example of Non Social advertised Brand (Target Brand : Alfa)

Example of Social advertised Brand (Target Brand: KLM)

Conceptual Framework of study

Electrode placing in progress on scalp of one of the subjects in the ERP Lab

Results*

• The P300 latency of social events is greater than the P 300 latency of non social events across all the electrodes, taken in the analysis

• P300 amplitude of the social events measured during the ERP task given to the subjects revealed greater amplitude in non social events than those of the amplitudes of social events

*Analyzed from prefrontal lobe and dorsolateral prefrontal cortex

Grand averaged P300 waves for nonsocial events*

Marked Grand averaged P 300 for nonsocial events*

Grand averaged P300 waves for social events*

Marked Grand averaged P 300 for social events*

Thank You !

Questions ??