LAB is a research company that specializes in biometric testing of advertisements using EEG, EMG, and GSR measurements to analyze emotional engagement, liking, and action response. Some key points: - LAB has pioneered brain-wave based (EEG) copy-testing in Europe and works with over 100 major brands across industries. - NeuroTrace is LAB's proprietary method for analyzing neurophysiological reactions to ads through 3 indices: Emotional Engagement, Liking, and Action Drive. - Case studies on Sony Bravia and Nespresso ads show how NeuroTrace can provide insights not available through traditional research by analyzing emotional responses and gender differences frame-by-frame. - LAB

1. What our brains buy?
Advanced Technology in Advertising
To Whisper
11.02.2010
Barcelona, Spain
Ć MARZENIA
R.K. OHME WARTO MIE 1

2. Information about LAB
LAB methodology is based on the latest findings from the
areas of psychology, neuroscience and economy.
LAB has pioneered a brain-waves based (EEG)
copy-testing research in Europe
Recently we won funding from the European Union
(the Innovative Economy Program) to lead the most
advanced biometric project in the world.
Key areas of research for LAB are:
TV copy-testing (biometric and traditional)
Brand Image (conscious and unconscious)
Purchase motives (conscious and
unconscious)
We cooperate with prestigious
advertising and research associations
in EU and US
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3. Information about LAB
LAB has worked with over 100
companies, including major international
brands from across every market sector
such as:
cosmetics, finance, telecoms,
media, electronics, pharmaceutical,
energy, automotive, etc.
LAB has conducted research in the USA,
Australia, Poland, Germany, Russia, Spain,
Romania and Guatemala. In Q12010 LAB
starts biometric in Argentina, South Africa
and Japan.
LAB biometrically tested
over 4000 respondents and 1500 ads

4. Who is Rafal Ohme?
Rafal Ohme (PhD) is a professor of psychology, expert in
persuasion and unconscious processing. In 1995-1996 he
held the Fulbright Scholarship at Kellogg School of
Management where he learned advertising. From1996 on
he visited Department of Psychology at Stanford
University, and researched unconscious processing and
emotions.
He is a member of Advertising Research Foundation,
American Advertising Association, European Academy of
Advertising, Association of Consumer Research,
NeuroPsychoEconomics as well as Association of Scientific
Study on Consciousness, Society of Personality and Social
Psychology, American Psychological Society, European
Association of Experimental Social Psychology.
He wrote New Mind of Consumer (in press), Unconscious
Affect (2007), Subliminal Facial Information (2003), and
trilogy Automaticity (2001, 2003, 2003).

5. R&D explorations
EU co-funded
European American
Advertising Academy Advertising Association
Advertising
ESOMAR
Research Foundation
3600 respondents (720/country)
INSAED Paris 2400 ads/16 prod. categ. Kellogg School of Management
Copenhagen Business School Villanova Business School
University of Amsterdam each product category: University of Pittsburg
150 ads (30/country)
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6. 2,465 respondents
and 823 ads
in BIO studies
from January 2004
until April 2009
LAB tested
30,165 respondents
and 1,307 ads
in TRA studies
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7. US activity (since April 2009)
„You exceeded our expectations!”
April, 29, 2009
- Nick Harrington
Head of P&G’s Cognitive Council

8. LAB is the only biometric company in the world…
that has managed to publish
its EEG method (NeuroTrace™)
in peer-reviewed
scientific journals
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9. 2. Theoretical framework
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10. Principles of the Scientific Revolution in Business
• Homo aeconomicus
is IRRATIONAL
• go BEYOND
verbal declarations
• explore
the UNCONSCIOUS
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11. Homo sapiens is irrational
We have received our name Homo
sapiens (thinking man) a little bit in
advance
Johann Huizinga (Dutch historian)
Aristoteles A. Smith J.S. Mill
The assumption of rationality as the
2002 Noble Prize
exclusive and sufficient basis for
winner in Economy,
making consumer choices is wrong. Daniel Kahneman
(Princeton University)
Homo aeconomicus is a whishfull
thinking
Irrationality protects us,
drives discoveries and
innovations
Kahnemann Langer Loftus
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12. Move beyond declarations
„Our consumers have been sending
us messages for years that they are
not interested in the traditional
survey process”
Kim Dedeker, V-P external capability
leadership, global consumer and market
knowledge, P&G
„We continue to torture consumers
with boring and antiquated search
methods”
Donna Goldfarb, V-P consumer and
market insights, Unilever Americas
The end of consumers Surveys?
„Advertising Age” - September, 15th, 2008
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13. Unconscious can be scientifically explored
UNCONSCIOUS is not about
repressed sexual desires
UNCONSCIOUS is about
neurophysiology, automaticity and
implicit social cognition
neurophysiological analyses
automatic associations
affective iconic priming
perceptual / semantic fluency
indirect methods,
e.g. experimental design
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14. Academic Publications on NeuroTrace applications
Ohme, R., Reykowska, D., Wiener, Choromanska, A.
(2009). Analysis of neurophysiological reactions to
advertising stimuli via EEG and GSR measures.
Journal of Neuroscience, Psychology and
Economics.
Ohme, R., Reykowska, D., Wiener, Choromanska, A.
(under revision). Application of frontal EEG
assymetry to advertising research: Sony Bravia case.
Journal of Economical Psychology. Special
Edition: Decision in Neuroscience.

15. The instruments
EEG electroencephalography GSR galvanic skin response EMG electromyography
GSR registers variations in galvanic Facial expression indicates whether
skin response. They are considered ad is entertaining. EMG has been
to reflect whether consumer got considered a powerful instrument to
energized by the ad. test voluntary (zygomaticus) and
involuntary (orbicularis) facial muscle
movements which respectively
reflect social and genuine smile.
EEG registers variations in brain
waves produced by cortex. It reflects
consumers’ emotional
engagement.
EEG has excellent temporal
resolution (1/1000 of a second). This
enables to track down each single
frame of an ad.
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16. NeuroTrace™ consists of 3 sets of indices:
EMOTIONAL LIKING index
[computed from EMG measures]
ENGAGEMENT index
[computed from EEG measures] when high – an ad is
considered attractive
when high - a brand image
is likely to be enhanced based on genuine and social smile
ACTION DRIVE index
[computed from EEG/GSR measures]
when high - a purchase
oriented behavior is likely
to be enhanced
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17. Emotions in the brain
Almost 30 years ago, Davidson and his coleagues
(Davidson, Schwarz, Saron, Bennet, Goleman, 1979)
suggested a model of emotions in which they argued
that emotions are:
A- organized around approach – avoidance tendency
&
B- differentially lateralized in frontal area of the brain.
The left frontal area is involved in the experience of
positive emotions such joy, interest and happiness –
the experience of positive affect facilitates and
maintains approach behaviors.
The right frontal region is involved in the experience (…) Research and marketplace findings over
of negative emotions such as fear, disgust, and last 10-15 years have identified that the
sadness; - the experience of negative emotions consumer’s emotional response toward the
facilitates and maintains withdrawal behaviors. brand and / or the ad can be powerful
motivator of consumption behavior (…)
(Allen, Machleit, Kleine, 1992; Erevelles, 1998;
Haley and Baldinger 1992; Journal of
Advertising Research, 1999)
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18. The major problem neuro research companies face
The problem How to deal with the problem?
• Criticise the conventional research
– NO
How to relate NEURO results to
• Pretend that conventional research do
CONVENTIONAL marketing not exist
measures? – NO
• Integrate conventional research with
neuro
– YES

19. 4. Selected cases
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20. SONY BRAVIA „The balls” 2005 campaign
What is so special about
this ad? Its two secret
moments that made
Sony big.
Jose Gonzales – author of the music

21. Is the ad engaging? Does the ad drive into action?
EMOTIONAL ENGAGEMENT index (EEG) & ACTION DRIVE index (GSR)
Is the ad entertaining? LIKING index (EMG)
A very famous ad. It has won many awards. Was created by the same ad agancy as the Cadbury Gorilla ad.
It produces high EMOTIONAL ENGAGEMENT in all key strategic scenes (i.e. opening, benefit, product and
brand exposures) and ACTION DRIVE in packshot scene.
See next slides for more.
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22. Two peripheral cues in the Sony BRAVIA ad
For comments read attached
Sony Bravia case pdf file

23. The FROG – a „magical” counterpoint!
It has turned out the Frog is not only charming (artistically) but also
very instrumental (i.e. enhances positivity toward product-benefit)
1 2 3 4
1
1
2
1 2 3 4
3
1
4
more at: www.testdifferent.com

24. Retail application
the trigger

25. An ad can be effective even if it doesn’t entertain people
Consumers claim the ad is not
interesting and is boring.
NeuroTrace™ predicts the ad
will build brand image and drive
consumers to purchase. The
shelf test and actual sales
confirm these predictions.
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26. Is the ad entertaining?
LIKING index (EMG)
N=45
This ad is not very entertaining. Actually respondents react negatively (blue colors) or neutrally
(yellow colors) throughout most of the time. But, contrary to common belief, the LIKING index is
not crucial in effective advertising for most product categories (see next slide)
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27. Is the ad engaging? Does the ad drive into action?
EMOTIONAL ENGAGEMENT index (EEG) & ACTION DRIVE index (GSR)
Crucial aspects of successful ad are: high EMOTIONALLY ENGAGEMENT (red colors) and high ACTION
N=45 DRIVE in packshot scenes (purple blocks). This is a great ad – it enhances the brand and drive sales!
Actually it is one of the most successful ads – sales-wise – in the history of Procter & Gamble!
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28. Sometimes buying less media is more
Why pay for a 60 sec commercial during
prime Super Bowl time when 30 sec’s is
much better?
This finding was not detected by any of
the standard research methods. Only
NeuroTrace™ did it.
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29. POSITIVE/NEGATIVE neuro-reactions to the PEPSI 60 ad
WOMEN vs MEN
EMOTIONS
emotional response average in the ad’s
sequences
dynamics of emotional index recorded
during the ad exposition
positive reaction
negative reaction
11 neg
EMOTION
index
4 pos
time (s)
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30. POSITIVE/NEGATIVE neuro-reactions to the PEPSI 30 ad
WOMEN vs MEN
EMOTIONS
emotional response average in the ad’s
sequences
dynamics of emotional index recorded
during the ad exposition
positive reaction
negative reaction
2 neg (was 11)
EMOTION
index
9 pos (was 4)
time (s)
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31. How georgeous George affects women
and how men feel about it?
February 2008
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32. Is the ad engaging? Does the ad drive into action?
EMOTIONAL ENGAGEMENT index (EEG) & ACTION index (GSR)
N=40
LAB OBSERVATIONS: The ad induces much positive emotional engagement, mainly in response to the George Clooney scenes. We
do not observe positivity when the brand is presented, however, these scenes generate strong action drive.
See enclosed motion spectrum:
NESPRESSO_CLOONEY_engage_action.exe
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33. Does gender matter?
EMOTIONAL ENGAGEMENT index & ACTION DRIVE index [gender split]
N=40
A great ad but… for women only. Men seem to envy handsome George.
Poor chances they will buy the Nespresso machine.
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34. Ad Mastering
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35. Conclusion: BIOMETRICS will make marketing communication:
1. MORE PRECISE
2. LESS EXPENSIVE
New Era in Advertising
is about to begin
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36. Other biometric
applications
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37. Bio-media planning
How would the same TV ad influence viewers
when aired during various TV programs?
October 2008

38. You know it already, but now we can see how strong
a context effect is!
The same ad (from a product category X) is good for nothing during TV shows but works perfectly when
placed during police documentaries! Moreover, this effect is also resembled by repondents purchase
behavior (see: Shelf-test results). The number of participants who decided to buy the category X product was
almost doubled by the docu-dramas to compare with the „funnies”!
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39. How TV programs alter reactions toward the same ad
SHELF-Test
TV
SHOW
SERIES
INTERVENTIO
N PROGRAM
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40. BIO-POLITICS
R.K. OHME DAWID POKONAŁ GOLIATA
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41. Official poll results regarding voting preference in the 2009 Nov 22nd elections,
according to CCSB (Center of Sociological Research and Branding)
Voting preference trendline
July 2009 35,4
August 2009 30,5
CANDIDATE 1 November 01st 2009
36
November 17th 2009 35
July 2009
19,1
August 2009 19,2
CANDIDATE 2 November 01st 2009 growth by 9 pp
22
November 17th 2009
31
July 2009 21,5
CANDIDATE 3
August 2009
November 01st 2009 16
20,1 LAB work result
November 17th 2009
18
July 2009 24
August 2009
30,2
Others or udecided November 01st 2009
26
November 17th 2009 16
0 5 10 15 20 25 30 35 40
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42. Benefits of using NeuroTrace
NEURO TRACE™ can identify which A/V elements are likely to:
effectively improve product benefits and brand image perception
activate purchase-related behavior irritate or disengage consumers NEURO TRACE™ objectively:
evaluates key-strategic A/V moments
(e.g. What reactions are generated by the packshot and logo?
Which elements of the presented offer are the most attractive?)
reveals „creative magnifiers” imbedded in the ad
NEURO TRACE™ indicates ad effectiveness in terms of influencing
different target groups.
Moreover, NEURO TRACE™ is perfect for:
soundtrack and voice-over pre-testing ad mastering (e.g. how to shoe the product) it gives inspirations for visuals in
print, outdoor, internet and POS communication Finally, NEURO TRACE™ gives reliable arguments for media
planning:
how to shorten the ad successfully? how to position the ad in the
programming context?
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43. When we manage to fully
INTEGRATE neuro pre-tests with
conventional research
our ability to develop
relationships with consumers
will be limited only by our
imagination

44. Thank you
Contact details:
LABoratory & Co
Headquarters:
1825 NE 45th Street, Suite A
Fort Lauderdale 33308, FL, USA
Spain & Portugal:
Daniel Razniewski
Country Development Director
+34.646.018.500
d.razniewski@labtd.com
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