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The Power of Relevancy
The Biometric Impact of Online
Advertising




Tony Marlow          Brian Levine
Strategic Insights            President
YAHOO!               Innerscope Research
Agenda

         Background and Method

          Personal Relevancy of Ads

         Contextual Relevancy

                  PR + Context

                 iPad Environment
Agenda

         Background and Method

          Personal Relevancy of Ads

         Contextual Relevancy

                  PR + Context

                 iPad Environment
Background
Research Goals and Questions
• Evaluate importance of display ad relevancy
  – Do personally relevant ads elicit specific biometric
    responses that are different to ads that are not relevant?
• Evaluate biological impact of contextual
  relevancy.
  – Does context significantly change individuals’ perceptions
    of the associated advertising and how?
• Context + Personal Relevancy
  – Are both important and how can they be leveraged?
Background

               CONSCIOUS


                ASSOCIATIVE
                                                    95%                  *

                                                OF OUR DECISION-
                                              MAKING OCCURS ON A
                                              NON-CONSCIOUS LEVEL




                NON-CONSCIOUS



             *How Customers Think by Gerald Zaltman (21 February 2003)
             *Habit by Neale Martin (6 July 2008)
Measuring How Consumers Process Stimuli




                                                        Conscious Processing
                                                        (Self-Reports, Surveys, Focus Groups)




Sensory Processing
    (Eye Tracking)




                     Unconscious Emotional Processing
                             (Advanced Biometrics)
Biometrics and Eye Tracking

                                                                                         Innerscope
                                                  Heart Response       Fight or Flight
                                                                                          Biometric
         Autonomic                                                                       Monitoring
       Nervous System                                                    Arousal &        System™
                                                  Skin Conductance
                                                                        Excitement

                                                                     Boredom, Tension,
                                                    Respiration
                                                                          Humor

                                                     Movement           Orientation

                                                                        Attention &
                                                    Eye Tracking
                                                                        Processing




International Patent Pending: PCT/US2007/019383
Methodology

• Sample (n=60)
  – Balance of males and females aged 25-49 years.
  – Household Income between $25k-$100k.
  – Yahoo! users.
• Stimuli
  – 12 pre-selected target articles + 12 pre-selected target ads.
  – 6 contextual pairings + 6 non-contextually relevant pairings.
• iPad Ethnography (sub-set)
  – n=16 iPad users
Methodology


Step 1:       Step 2:                 Step 3:                   Step 4:
Free surf     Selection page          Natural Browsing          Survey to Access
yahoo.com                                                       Personal Relevance




             Freely choose the order of reading the articles
            Repeat until all target articles have been viewed
Measuring Personal Relevance | Self Report

• Self-report is used to measure conscious judgment.
  Respondents were asked to rate the personal relevance of the
  ad, these scores are plotted on the x-axis of the Relevance Map
  to inform “which direction the wind is blowing.”




               “which direction the wind is blowing”
Measuring Emotional Relevance | Biometrics

   Biometrics are considered the gold standard to measure emotional
    resonance. These scores are plotted on the y-axis of the Resonance Map
    to inform “how strong the wind is blowing.”

    Four channels of biometric data (Skin




                                                                     “how strong is the wind”


    Conductance, Heart Rate, Respiration and
    Movement) are combined to create the
    measurement of Emotional Resonance.
   Eye-Tracking data is used to determine
    when respondents are actually looking at
    an ad.
   Emotional Resonance while the
    respondent is looking at the ad is then
    measured at a deviation from their
    baseline emotional levels.
Agenda

         Background and Method

          Personal Relevancy of Ads

         Contextual Relevancy

                  PR + Context

                 iPad Environment
Personal Relevancy of Online Display




                          What is the impact of
                          targeting consumers
                            with personally
                              relevant ads?
Personally Relevant Ads (PR Ads)

  High vs. Low Ad Relevancy: Elicited similar
   levels of ‘time to fixation’ and ‘ad notice’




When the display ads are relevant:
• People spend +25% time fixating on them and
• There is a 27% increase in pupil dilation (info
  processing)
Personal Relevancy, What their Eyes Tell us




   Personally Relevant Ad   Non-Personally Relevant Ad
Personal Relevancy, The TV Benchmark

                     80


                                           Initial strong emotion


                     60
Emotional Response




                                                                                      Tune out

                     40




                     20


                          0          :02             :05            :08   :11   :13         :15
                              Time
Personal Relevancy, The TV Benchmark
                                 High Emotional Resonance
               Intrusive                  0.7
                                          0.8                Engaged



                                         0.35
                                          0.4




Low Personal                                0
                                                                           High Personal
  Relevance    -3          -2      -1            0   1       2         3   Relevance


                    Low PR TVC           -0.35
                                          -0.4




               Apathetic                  -0.8
                                          -0.7              Comfortable

                                 Low Emotional Resonance
Low Ad Relevancy, TV vs. Display
                                  High Emotional Resonance
               Intrusive                   0.7
                                           0.8                Engaged


                    Low PR Display         0.4
                                          0.35




Low Personal                                 0
                                                                            High Personal
  Relevance    -3          -2        -1           0   1       2         3   Relevance


                     Low PR TVC            -0.4
                                          -0.35




               Apathetic                   -0.8
                                           -0.7              Comfortable

                                  Low Emotional Resonance
Online Ad Relevancy, Low vs. High
                                 High Emotional Resonance
               Intrusive                  0.8
                                                                Engaged



                                          0.4            High PR Display

                    Low PR Display
Low Personal                                                                   High Personal
  Relevance                                 0
                                                                               Relevance
               -3          -2        -1          0   1          2          3




                                          -0.4




               Apathetic                  -0.8
                                                             Comfortable

                                 Low Emotional Resonance
Online Ad Relevancy

• Fixation is required to determine
  relevancy.
  – This is why ‘notice’ levels are the same
    for relevant/non-relevant ads.


• Relevant ads elicit longer fixation
  – Longer fixation enhances opportunity
    for intake and emotional response.
  – Increased pupil dilation indicates
    stronger cognitive processing.
Agenda

         Background and Method

          Personal Relevancy of Ads

         Contextual Relevancy

                  PR + Context

                 iPad Environment
Contextual Relevancy




                       What is the impact of
                         pairing ads with
                        related content?
Contextually Relevant Ads
 Time to Fixate: Contextual relevancy increases time to first
        fixation by 15% compared to out of context
   Information Processing: Context synergy shows a 7%
      increase in pupil dilation (cognitive processing).




       Ads as Content: When contextually
    relevant, ads more easily blend to become
           content rather than just ads.
Contextual Relevancy, Gaze-plot
   10                             10
            bann
                       9                               8
                                           bann
            7
            er_a
              d
                                           7
                                           er_ad
        4                              3
                           8                               6
   3               1               2               1



                           sid
                                                           side
             2             e_
                            6
                           ad
                                           4                9
                                                           _ad




            5                              5




   Contextually Relevant Ad      Non-Contextually Relevant Ad
Contextual Synergy and Emotional Response
                                High Emotional Resonance
                                             0.7
                                             0.8
                    Intrusive                                      Engaged

                                       Contextual Display
                                             0.4
                                            0.35




                                  Non-contextual Display
Low Personal                                                                      High Personal
                                              0
  Relevance    -3          -2     -1               0        1      2          3   Relevance


                                            -0.4
                                           -0.35




                    Apathetic                                   Comfortable
                                            -0.8
                                            -0.7
                                Low Emotional Resonance
Contextual Relevancy
• Contextual synergy blends ads
  and content.
  – This is why ‘notice’ time is much faster
    for contextual placements.
  – It is also why pupil dilation is negligibly
    larger for the ad.
  – Contextual placements elicit twice the
    emotional response.


• Context alone doesn’t elicit more
  ad fixation time.
  – They don’t look at it longer, they just
    like it more.
Agenda

         Background and Method

          Personal Relevancy of Ads

         Contextual Relevancy

                  PR + Context

                 iPad Environment
Personal Relevance + Contextual Relevance




                         Do we get a multiplier
                         effect from hitting the
                           right people in the
                              right context?
Context + Personal Relevancy of Ads
 Fixate: PR + Context synergy increases time to first fixation
      by 11% AND increases total fixation time by 14%.
 Information Processing: PR + Context synergy shows a 40%
                  increase pupil dilation.




PR + Context: Increases in biometric measures indicate this
 is the optimal scenario for increasing cognitive processing
        plus it pushes emotional response and recall.
Context + Personal Relevancy of Ads
                                High Emotional Resonance
                                         0.8
                    Intrusive                                  Engaged
                                                        High PR + Context

                                         0.4



                Low PR + Non-context
Low Personal                                                                    High Personal
  Relevance                                0                                    Relevance
               -3          -2     -1            0   1           2           3




                                         -0.4




                    Apathetic                              Comfortable
                                         -0.8


                                Low Emotional Resonance
Summary of Personal Relevance and Context
                           High


                                     • Positive emotional response
                                     • Long fixation time                •   Draws attention very fast
                                     • Solid cognitive engagement        •   Long fixation time
Personal Relevance of Ad




                                                                         •   Positive strong emotional response
                                     But…                                •   Positive strong cognitive processing
                                     • Slower to draw attention


                                    • Noticed                                  • Draws attention fast
                                                                               • Strong emotional response
                                    But…
                                    • Negative emotional response              But…
                                    • Short fixation time                      • Shorter fixation time
                                    • Slow to draw attention                   • Potential to for some negative
                           Low




                                    • Low cognition                              emotional response.*

                                  Not Related                                                              Related
                                                                     Context
Agenda

         Background and Method

          Personal Relevancy of Ads

         Contextual Relevancy

                  PR + Context

                 iPad Environment
iPad Experience

• Methodology
    • A subset of “iPad Owners” using iPads naturally
• Examples


  Context        No Context   Relevant      Not Relevant


• Directional Insights
    • Greater Fixation on Personally Relevant Ads
    • Faster Time to First Fixation on Contextually Relevant Ads
    • Additional Insights for another time
Agenda

         Background and Method

          Personal Relevancy of Ads

         Contextual Relevancy

                  PR + Context

                  iPad Environment
                     Summary
Summary

• Evaluate importance of display ad relevancy
  – People fixate longer on personally relevant ads enhancing
    the opportunity for strong emotional processing and
    stronger information processing
• Evaluate biological impact of contextual relevancy
  – People notice advertising quicker when it is paired with
    contextually relevant content and contextual placements
    elicit twice the emotional response
• Context + Personal Relevancy
  – Leveraging both context relevancy and personal relevancy
    produces even stronger emotional processing and
    information processing than either condition alone
Implications for Advertisers


• The findings point out that different targeting tactics
  can be matched to the objectives of a
  campaign, here are some examples:
• A new product/line launch
  – When the objective is centered around awareness generation
    contextual placements will be a strong tactical option.
  – Context yields fast fixation and elicits the psychological principal
    of primacy (i.e. this increases the chances of the ad moving from
    ST to LT memory).
Implications for Advertisers

• A product change or improvement
  – When the objective is centered around communicating a
    specific and tangible key message
  – Personal relevancy (behavioral targeting) elicits stronger levels
    of pupil dilation – a key indicator of heightened cognition.


• Public service announcements (e.g. anti drink
  driving)
  – When the objective is centered around eliciting an emotional
    response (good or bad)
  – Context + Personal Relevance is most likely to elicit stronger
    emotional responses than other targeting.

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The Power of Relevancy The Biometric Impact of Online Advertising

  • 1. The Power of Relevancy The Biometric Impact of Online Advertising Tony Marlow Brian Levine Strategic Insights President YAHOO! Innerscope Research
  • 2. Agenda Background and Method Personal Relevancy of Ads Contextual Relevancy PR + Context iPad Environment
  • 3. Agenda Background and Method Personal Relevancy of Ads Contextual Relevancy PR + Context iPad Environment
  • 4. Background Research Goals and Questions • Evaluate importance of display ad relevancy – Do personally relevant ads elicit specific biometric responses that are different to ads that are not relevant? • Evaluate biological impact of contextual relevancy. – Does context significantly change individuals’ perceptions of the associated advertising and how? • Context + Personal Relevancy – Are both important and how can they be leveraged?
  • 5. Background CONSCIOUS ASSOCIATIVE 95% * OF OUR DECISION- MAKING OCCURS ON A NON-CONSCIOUS LEVEL NON-CONSCIOUS *How Customers Think by Gerald Zaltman (21 February 2003) *Habit by Neale Martin (6 July 2008)
  • 6. Measuring How Consumers Process Stimuli Conscious Processing (Self-Reports, Surveys, Focus Groups) Sensory Processing (Eye Tracking) Unconscious Emotional Processing (Advanced Biometrics)
  • 7. Biometrics and Eye Tracking Innerscope Heart Response Fight or Flight Biometric Autonomic Monitoring Nervous System Arousal & System™ Skin Conductance Excitement Boredom, Tension, Respiration Humor Movement Orientation Attention & Eye Tracking Processing International Patent Pending: PCT/US2007/019383
  • 8. Methodology • Sample (n=60) – Balance of males and females aged 25-49 years. – Household Income between $25k-$100k. – Yahoo! users. • Stimuli – 12 pre-selected target articles + 12 pre-selected target ads. – 6 contextual pairings + 6 non-contextually relevant pairings. • iPad Ethnography (sub-set) – n=16 iPad users
  • 9. Methodology Step 1: Step 2: Step 3: Step 4: Free surf Selection page Natural Browsing Survey to Access yahoo.com Personal Relevance Freely choose the order of reading the articles Repeat until all target articles have been viewed
  • 10. Measuring Personal Relevance | Self Report • Self-report is used to measure conscious judgment. Respondents were asked to rate the personal relevance of the ad, these scores are plotted on the x-axis of the Relevance Map to inform “which direction the wind is blowing.” “which direction the wind is blowing”
  • 11. Measuring Emotional Relevance | Biometrics  Biometrics are considered the gold standard to measure emotional resonance. These scores are plotted on the y-axis of the Resonance Map to inform “how strong the wind is blowing.” Four channels of biometric data (Skin “how strong is the wind”  Conductance, Heart Rate, Respiration and Movement) are combined to create the measurement of Emotional Resonance.  Eye-Tracking data is used to determine when respondents are actually looking at an ad.  Emotional Resonance while the respondent is looking at the ad is then measured at a deviation from their baseline emotional levels.
  • 12. Agenda Background and Method Personal Relevancy of Ads Contextual Relevancy PR + Context iPad Environment
  • 13. Personal Relevancy of Online Display What is the impact of targeting consumers with personally relevant ads?
  • 14. Personally Relevant Ads (PR Ads) High vs. Low Ad Relevancy: Elicited similar levels of ‘time to fixation’ and ‘ad notice’ When the display ads are relevant: • People spend +25% time fixating on them and • There is a 27% increase in pupil dilation (info processing)
  • 15. Personal Relevancy, What their Eyes Tell us Personally Relevant Ad Non-Personally Relevant Ad
  • 16. Personal Relevancy, The TV Benchmark 80 Initial strong emotion 60 Emotional Response Tune out 40 20 0 :02 :05 :08 :11 :13 :15 Time
  • 17. Personal Relevancy, The TV Benchmark High Emotional Resonance Intrusive 0.7 0.8 Engaged 0.35 0.4 Low Personal 0 High Personal Relevance -3 -2 -1 0 1 2 3 Relevance Low PR TVC -0.35 -0.4 Apathetic -0.8 -0.7 Comfortable Low Emotional Resonance
  • 18. Low Ad Relevancy, TV vs. Display High Emotional Resonance Intrusive 0.7 0.8 Engaged Low PR Display 0.4 0.35 Low Personal 0 High Personal Relevance -3 -2 -1 0 1 2 3 Relevance Low PR TVC -0.4 -0.35 Apathetic -0.8 -0.7 Comfortable Low Emotional Resonance
  • 19. Online Ad Relevancy, Low vs. High High Emotional Resonance Intrusive 0.8 Engaged 0.4 High PR Display Low PR Display Low Personal High Personal Relevance 0 Relevance -3 -2 -1 0 1 2 3 -0.4 Apathetic -0.8 Comfortable Low Emotional Resonance
  • 20. Online Ad Relevancy • Fixation is required to determine relevancy. – This is why ‘notice’ levels are the same for relevant/non-relevant ads. • Relevant ads elicit longer fixation – Longer fixation enhances opportunity for intake and emotional response. – Increased pupil dilation indicates stronger cognitive processing.
  • 21. Agenda Background and Method Personal Relevancy of Ads Contextual Relevancy PR + Context iPad Environment
  • 22. Contextual Relevancy What is the impact of pairing ads with related content?
  • 23. Contextually Relevant Ads Time to Fixate: Contextual relevancy increases time to first fixation by 15% compared to out of context Information Processing: Context synergy shows a 7% increase in pupil dilation (cognitive processing). Ads as Content: When contextually relevant, ads more easily blend to become content rather than just ads.
  • 24. Contextual Relevancy, Gaze-plot 10 10 bann 9 8 bann 7 er_a d 7 er_ad 4 3 8 6 3 1 2 1 sid side 2 e_ 6 ad 4 9 _ad 5 5 Contextually Relevant Ad Non-Contextually Relevant Ad
  • 25. Contextual Synergy and Emotional Response High Emotional Resonance 0.7 0.8 Intrusive Engaged Contextual Display 0.4 0.35 Non-contextual Display Low Personal High Personal 0 Relevance -3 -2 -1 0 1 2 3 Relevance -0.4 -0.35 Apathetic Comfortable -0.8 -0.7 Low Emotional Resonance
  • 26. Contextual Relevancy • Contextual synergy blends ads and content. – This is why ‘notice’ time is much faster for contextual placements. – It is also why pupil dilation is negligibly larger for the ad. – Contextual placements elicit twice the emotional response. • Context alone doesn’t elicit more ad fixation time. – They don’t look at it longer, they just like it more.
  • 27. Agenda Background and Method Personal Relevancy of Ads Contextual Relevancy PR + Context iPad Environment
  • 28. Personal Relevance + Contextual Relevance Do we get a multiplier effect from hitting the right people in the right context?
  • 29. Context + Personal Relevancy of Ads Fixate: PR + Context synergy increases time to first fixation by 11% AND increases total fixation time by 14%. Information Processing: PR + Context synergy shows a 40% increase pupil dilation. PR + Context: Increases in biometric measures indicate this is the optimal scenario for increasing cognitive processing plus it pushes emotional response and recall.
  • 30. Context + Personal Relevancy of Ads High Emotional Resonance 0.8 Intrusive Engaged High PR + Context 0.4 Low PR + Non-context Low Personal High Personal Relevance 0 Relevance -3 -2 -1 0 1 2 3 -0.4 Apathetic Comfortable -0.8 Low Emotional Resonance
  • 31. Summary of Personal Relevance and Context High • Positive emotional response • Long fixation time • Draws attention very fast • Solid cognitive engagement • Long fixation time Personal Relevance of Ad • Positive strong emotional response But… • Positive strong cognitive processing • Slower to draw attention • Noticed • Draws attention fast • Strong emotional response But… • Negative emotional response But… • Short fixation time • Shorter fixation time • Slow to draw attention • Potential to for some negative Low • Low cognition emotional response.* Not Related Related Context
  • 32. Agenda Background and Method Personal Relevancy of Ads Contextual Relevancy PR + Context iPad Environment
  • 33. iPad Experience • Methodology • A subset of “iPad Owners” using iPads naturally • Examples Context No Context Relevant Not Relevant • Directional Insights • Greater Fixation on Personally Relevant Ads • Faster Time to First Fixation on Contextually Relevant Ads • Additional Insights for another time
  • 34. Agenda Background and Method Personal Relevancy of Ads Contextual Relevancy PR + Context iPad Environment Summary
  • 35. Summary • Evaluate importance of display ad relevancy – People fixate longer on personally relevant ads enhancing the opportunity for strong emotional processing and stronger information processing • Evaluate biological impact of contextual relevancy – People notice advertising quicker when it is paired with contextually relevant content and contextual placements elicit twice the emotional response • Context + Personal Relevancy – Leveraging both context relevancy and personal relevancy produces even stronger emotional processing and information processing than either condition alone
  • 36. Implications for Advertisers • The findings point out that different targeting tactics can be matched to the objectives of a campaign, here are some examples: • A new product/line launch – When the objective is centered around awareness generation contextual placements will be a strong tactical option. – Context yields fast fixation and elicits the psychological principal of primacy (i.e. this increases the chances of the ad moving from ST to LT memory).
  • 37. Implications for Advertisers • A product change or improvement – When the objective is centered around communicating a specific and tangible key message – Personal relevancy (behavioral targeting) elicits stronger levels of pupil dilation – a key indicator of heightened cognition. • Public service announcements (e.g. anti drink driving) – When the objective is centered around eliciting an emotional response (good or bad) – Context + Personal Relevance is most likely to elicit stronger emotional responses than other targeting.