Why Use Neuromarketing?Answering the Question: “So What?”

November 2009

Neurons firing (electrophysiological measurements through EEG) in response to a specific stimuli. If neurons are not firing, the brain is not engaged and neurological functions, such as memory, attention, language processing and emotion are not taking place.

What is Neurological Engagement and Why Does it Matter?

VERY ENGAGED SLIGHTLY ENGAGED

Neuro-Engagement Factor TM (NEF)

Target Ad #3NEF: 3.73

Target Ad #2NEF: 3.7

Sands Research has developed a Neuro-Engagement Factor (NEF) scoring system based on the level of engaged response to the presentation material.

The NEF score is then compared against our growing proprietary database of hundreds of commercials with thousands of participants.

The NEF is derived from the mean of all participants from a study, and includes all of the electrophysiological activity in the brain.

Target Ad #1NEF:2.5

Reading the DataMean Global Field Power (MGFP)

The Data Movies are made to display the stimulus , the real-time neurological engagement (six views of the brain), and the Mean Global Field Power (MGFP) line which displays the average of all participants and all regions of the brain combined. The MGFP can be thought of as the ‘Cognitive Timeline’ of the advertisement.

Real-time neurological activityMean Global

Field Power (MGFP)

Target Media

How are these useful?The MGFP identifies key moments of engagement and the sustained response levels. Pausing the movies provides deeper insight into regions of the brain at specific scenes revealing what primary functions are taking place at which moments.

How Does Neurophysiology Help

Brands Succeed?Cognitive Responses Provide Unfiltered Data

Measurements of emotion, novelty and the effectiveness of brand placement Real-time neurological responses pin point the scenes that worked and (more importantly), the scenes that did not work. The neurological data sets provide insight into aspects of ad development that cannot be mined through standard questioning or focus groups, such as:

1) Was the overall message conveyed in a way that leads to action?2) Was the brand reinforced during moments of higher engagement?3) Did the ad storyline create a sustained interest or not?4) Did the key scenes generate localized brain activity, or a lack thereof?

Fact: People use an entirely different part of their brain to answer questions (on-screen or with a moderator). This ‘filter’ is the problem with only using behavioral-based research methods. By using both neurophysiology and standard methods, the correlations and lack of correlations can be determined and interpreted for brand success.

Memory Related Metrics Through a combination of EEG events and unaided recall we can determine what brands

and marketing elements encode into the long term memory of participants. Optimization of brand position and connection between the brand and it’s strategy:

Did they remember the brand? Did they remember the package or marketing of the product?

Emotion Related Metrics With the Eye-tracking and EEG events that correspond to the emotional regions, we can

determine exactly when an emotional event occurred and what they were looking at. By using those neurophysiological events we can question participants (on-screen)

further about which emotions were created and how they made them feel about the brand/product.

Purchase Intent Related Metrics By questioning participants (on-screen) about the brand and products post EEG, we can

balance and unify a cohesive data set that allows us to determine purchase intent and the actual likelihood of long term brand loyalty:

Target Product vs. Competitors? Short Term vs. Long Term Intention?

Integration of Neurophysiology and

Behavioral Data

Snack Food CompanyThe results from our Neuromarketing study revealed that the engagement level was higher and more neurologically effective with the 30 second Super Bowl spot than with the 60 second spot. This would have saved this company $3M for their 2008 Super Bowl media buy. This could have easily been learned during a study of the Animatics.

Communications CompanyThe results from our Neuromarketing research showed that the complex imagery and quick, flashing split-screen graphics were highly confusing and ineffective. The Neurophysiological data revealed that the spot was as engaging as a flashing light on the screen. The whole campaign was a failure as confirmed by the Research Director.

Automobile ManufacturerOur Neuromarketing research helped one automobile manufacturer improve five different spots which led to an sales increase of 12% during the quarter following our study.

Energy CompanyOur Neuromarketing research saved this firm significant monies on cancelling media buys for a spot that performed poorly in European testing, but worked well in the US.

Substantial ROI(By investing approximately $50k)

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For further information on the Neuromarketing services of Sands Research, Inc.

Please contact:

888-267-6087 ext. 812info@sandsresearch.comwww.sandsresearch.com

Thank You For Your Interest