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RANDALL BEARD EX GLOBAL PRESIDENT, NIELSEN INNOVATION EF MIT A BOLD NEW DAY The Disruptive Forces in Modern Marketing – New Age Innovation and Communications to Drive Revenue Growth
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Nielsen NeuroFocus Report
Randall beardex Global President, Nielsen InnovationEF MIT
A BOLD NEW DAY
The Disruptive Forces in Modern Marketing New Age Innovation and Communications to Drive Revenue Growth
Copyright 2012 The Nielsen Company. Confidential and proprietary.#
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AgendaTopic1. Disruptive Forces in New Product Innovation2. Disruptive Forces in Advertising & Media Testing3. Q & A / Discussion
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Disruptive forces in new product innovation A Bold new day
Copyright 2012 The Nielsen Company. Confidential and proprietary.#traditional formula for successful innovation
DISCOVERDEPLOY
A Compelling PropositionDEVELOP
A Winning ExecutionWith Excellent In-market Activation
DELIVERIncrementalGrowthLAUNCH
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#is being disrupted by technology
Big Data & Predictive Algorithms
Digital Technologies & PlatformsMass Personalization& Adaptive TargetingE-Commerce
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Companies want to evolve, but they struggleof CPG marketers think their company is using outdated technology for innovation 75%of CPG marketers feel like they are being out-innovated by their competitors 56%
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Questions companies are asking
We need faster methods for test and learnBetter forecasting methods that take into consideration the disruptive effect of technologyWhat is the architecture of launching new brands in todays environment?How do you anticipate market disruption? How do you learn and adapt more quickly?What will laser-focused targeting do to companies? Does it create a more level playing field for all companies?
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#
DISCOVER A Compelling Proposition
DEVELOP A Winning ExecutionDEPLOYWith Excellent In-Market Activation
To deliver incremental volume and share growthTechnology disruptors need to be harnessed Keep the essential, Universal Truths intact But optimize and accelerate with the modern and new
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#But HOW ?
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Discover compelling propositions Faster - using big data OLD WAYManually scan industry news / trend reports Manually search for interesting new ideas
NEW WAY MINE SCANNER DATA FOR INSIGHTSQuickly mine global innovation launch dataFind incremental, untapped areas for growthInnovation AlertsNew Initiative ProfilingNew Initiative Tracking & BenchmarkingInnovation Performance & Drivers
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Discover compelling propositions Faster - using big data OLD WAYManually scan industry news / trend reports Manually search for interesting new ideas
NEW WAY MINE UNSTRUCTURED DATAText analytics of on-line reviews, blogs, reviews etc.Quickly and easily identify new opportunitiesExamples: Revuze, SignalsGroup, etc.Measure and aggregate signalsCorrelate with in-market new item successApply to 1000s of small, in-market itemsPredict emerging edge to mainstream ideas
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Develop winning Products digitally using e-Commerce OLD WAYLaunch into e-commerce with little understanding of e-comm concept appeal & optimal executionNEW WAY E-COMM INNOVATION PLATFORMTest execution in private e-comm platformConcept, line-up & pricing, shopping optimizationOptimize, forecast and then go to market
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#DePLOY winning products with digital forecastingOLD WAYSingle point forecast with low and high scenariosHighly manualSeveral days to week for re-simulationsPowerpoint delivery
NEW WAY - REAL TIME FORECAST SIMULATIONDigital UIClear view of volume driversReal time re-simulations
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Deploy 1:1 launch marketing plans using response based targeting
OLD WAYPre-define target groupInvest in media that addresses targetExecute broadscale consumer & trade promotion NEW WAY RESPONSE BASED TARGETINGCalculate new item respondent level volumeIdentify and classify top ~80% volume consumersBuild look-a-like modelsDigitally target high volume buyers
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Deploy in-market launch optimization - using big data OLD WAYSlowly piece together multiple data setsDetermine launch results manually Slow learning and ability to react
NEW WAY AUTOMATED INNOVATION METRICSQuickly track in-market performance & drivers automaticallyUnderstand incrementality brand & categoryBenchmark against goal, category and past launches
NEW WAY NEW PRODUCT TOTAL BRAND SIMULATIONSimulate new scenarios and incremental volumeQuickly execute plan improvementsExample: Nielsen Marketing Planner
Innovation ForecastMMM
Optimization
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#
DISCOVER A Compelling Proposition
DEVELOP A Winning ExecutionDEPLOYWith Excellent In-Market Activation
To deliver incremental volume and share growthsummary Keep the essential, Universal Truths intact But optimize and accelerate with the modern and new
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Where advertising & Media testing is going A Bold new day
Copyright 2012 The Nielsen Company. Confidential and proprietary.#How does advertising work ?
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#advertising EffectivenessNielsens 3R Framework
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The 3R FrameworkReach the right people
REACH
RESONANCEDrive purchase
REACTIONPre-market optimization
In-market measurement
Impact their opinions & feelings
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Nielsens Philosophy of advertising effectiveness
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How advertising works, circa 1980Advertising works like the grass grows; you never see it happen but you have to mow the grass every week.--Nielsen, 1980
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#How advertising works, max sutherland
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Copyright 2012 The Nielsen Company. Confidential and proprietary.#Influential academicsAntonio DamasioInfluence of emotion on behavior Somatic marker theory
Daniel KahnemanSystem 1 / System 2 Thinking
Robert HeathApplication of emotion theoriesto consumer advertising
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Copyright 2012 The Nielsen Company. Confidential and proprietary.#Thinking Fast & Slow
Based on D. Kahneman, Thinking, Fast and Slow 2011
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Advertising works in two waysNON-CONSCIOUS VALUESOften, emotions (instinct) lead directlyto purchase
Emotions biaswhat we believeCONSCIOUS FACTS (taste, refreshment, price)
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#The role of the subconscious
Our brains process 11,000,000 bits of sensory information every second.But our conscious minds can only handle about 40 bits per second.Thats a selection ratio of 0.000004%.What happens to the other 10,999,960 bits of information?Consumer brains process them subconsciously.
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Did you notice ?McDonalds ?Beauty and the Beast ?Canon ?Howard Johnsons ?Grease
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Copyright 2012 The Nielsen Company. Confidential and proprietary.#Shopping for wine italian or german ?
Music made a difference in what people bought
vsItalian MusicGerman Music
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Nielsen Neuro: overview
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Copyright 2012 The Nielsen Company. Confidential and proprietary.#Neuro Measurement toolsWhat consumers say they think, do or plan to do.SELF REPORTOverall level of emotional engagement, the most and least engaging moments.CORE BIOMETRICSDiscrete facially expressed emotions, such as surprise, confusion, joy and sadness.FACIAL CODINGPinpoint visual attention to content, including specific areas that attract the most and least attention.EYE TRACKING32 sensors collect data 500 times every second to fully capture activity across all brain regionsEEG
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#
Key Neuro EEG metricsEMOTIONAL ENGAGEMENTMEMORY ACTIVATIONATTENTIONNEUROLOGICAL EFFECTIVENESSRelevant Neurological research: ADD (Attention), Alzheimers (Memory), Autism (Emotion)
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Neuro: measurement for optimizationDeep diagnostics, database comparisons, and key insightsOverall EffectivenessVs. DatabaseSecond-by-Second DiagnosisBrand Resonance Vs. DatabaseAD PERFORMANCE
Brand ResonanceNeurometrics
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Copyright 2012 The Nielsen Company. Confidential and proprietary.#Ad performance second by secondATTENTION:7.6EMOTIONAL ENGAGEMENT:5.2MEMORYACTIVATION:6.4High in first third due to challenging visuals and frequent scene shifts.Downward engagement trend early, improving toward the end.Memory activation drops initially, but then remains above average for most of the adExample Ad
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Neuro Validation:Does it Work ?
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Neuro validation
strong correlation R2 = 75%validation study across multiple brands, companies and categories
Vs.neuro metricsin-market outcomes
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#NEURO VALIDATION BY NEURO TOOLEEG and combination of Neuro measures have strongest correlation.* Preliminary analyses
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Copyright 2012 The Nielsen Company. Confidential and proprietary.#How Does this ad work ?Gorilla
https://www.youtube.com/watch?v=TnzFRV1LwIo
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Case study
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Shelter PeT Project:TV Ad OPtimization
Copyright 2012 The Nielsen Company. Confidential and proprietary.#objectivesHow is ad being processed neurologically ?
What are the strengths ?
Which elements can be improved ?
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Jules - originalJules
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#
Very strong creative approach with a few potential optimization areas Effectiveness:6.8Attention:6.2Emotion:7.1Memory:5.6
Jules 1st Appearance2nd Appearance3rd AppearanceMessageCall to ActionNeuro identifies drivers & detractors
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Jules - revised
Jules IIhttps://www.youtube.com/watch?v=Xpnvug7Uwg8
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#Jules is dialed down a bit at key points to focus on message and call to action
Memory: 7.4Memory: 9.9Memory: 6.6Memory: 7.3Jules OriginalJules Revised
Good to great
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#CREATE SHORTER, MORE EFFECTIVE ADSAd compressionIdentify the most neurologically effective scenes and edit into a shorter and often more effective version
Copyright 2015 The Nielsen Company. Confidential and proprietary.
Copyright 2012 The Nielsen Company. Confidential and proprietary.#
in New Product Innovation
DiscoverBig data & predictive analytics - ID White Space OpportunitiesDigital platforms - genetic algorithm concept optimization
Develope-Commerce platform - develop and optimize new productsDigital platforms - Real time simulation and optimizationDemand based targeting - Target likely new product buyers
DeployBig data & predictive analytics - real time tracking and driversDigital platforms - real time total brand re-simulation
in Advertising & Media Measurement
NeurosciencePrediction and second by second optimizationAd compressionA BOLD NEW DAY
Copyright 2012 The Nielsen Company. Confidential and proprietary.#
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discussion
Copyright 2012 The Nielsen Company. Confidential and proprietary.#
