WELCOME TO

INTEGRATED CONSUMER NEUROSCIENCE

UNDERSTANDING CONSUMERS MORE COMPLETELY THAN EVER BEFORE

2014 INNERSCOPE RESEARCH, INC.

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2014 INNERSCOPE RESEARCH, INC.

ON THE PATH TO INTEGRATED CONSUMER NEUROSCIENCE

Humans have evolved an elaborate network of neurons that is designed so that we connect with each other on a deep emotional basis. Our ability to make intimate connections is critical to forming social structures, including organizing our lives around family, friends and loved ones. And we never turn this ability off ... we are also capable of deep emotional connections with all types of brands, products and services. Innerscope Research is committed to leveraging neuroscience and non-conscious measures of consumer response to help our clients understand the nature and depth of these connections in order to make better business decisions.

OUR COMPANYS HISTORY

2006
After meeting and collaborating at the MIT Media Lab, technology expert Brian Levine and neuroscientist Dr. Carl Marci form Innerscope Research. The team integrates four biometric signals into one measure of emotional engagement, and publishes a definition of engagement and first results in the Journal of Advertising Research.

2009

Innerscope initiates the first Advertising Research Foundation (ARF) research review of a neuroscience-based market research company and presents findings with TiVo showing correlations between biometric engagement and in-market ad viewing behavior.

2012

Levine and Intuit present the in-market sales impact results for TurboTax at the Digital Marketing Summit. Biometric measurement is added to kiosks in the first scalable, distributed platform for neuroscience-based data collection. Dr. Marci is featured on CNNs Newsroom following fifth annual Super Bowl study in the Time Warner Medialab.

2007 2008

2010

The company starts measuring eye tracking and files its first patent for algorithms to calculate biometric emotional engagement.

The Wall Street Journal features Innerscope Researchs use of neuroscience-informed tools to help Campbells Soup change its iconic red and white soup label. Wired magazine sponsors Innerscopes third annual Super Bowl study, and Joe Mandeses MediaPost article This Is Your Brain On Screens inspires a new model of media engagement based on neuroscience and Innerscopes prior findings.

2013

Research industry veteran Bill Moult, formerly of Nielsen Media Analytics, joins the team as CEO. Innerscope becomes an integrated consumer neuroscience company and introduces its facial coding capabilities. Fast Company reports on Innerscopes ability to predict weekend box office success using measures of emotional engagement to movie trailers.

Innerscopes first annual Super Bowl study highlights our ability to capture emotional engagement across a wide audience for the entire game, including all 50 national advertisements. The results show that significant biometric engagement with the ads predicts online buzz up to nine months later, better than dial turning and self-report.

2011

Dr. Marci is guest editor for MEDIA Magazines special issue focused on the brain. Innerscope and MTV Networks win first place at CTAM for original research. Time Warner opens its Medialab in partnership with Innerscope.

2014

Innerscope announces the SensusTM kiosk, adding eye tracking and facial coding to the biometric data collection platform. Innerscope develops a number of wide-ranging business partnerships to fully support the integrated consumer neuroscience positioning.

It has already been a fascinating journey for us, from neuroscience learning about biological responses to learning about consumers, from large measurement devices to much smaller and even portable ones, from building the science to building a business. And as we add more tools and more science, the future of the business looks even more exciting. - Dr. Carl Marci, Founder and Chief Science Officer, Innerscope Research

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BECOMING AN INTEGRATED CONSUMER NEUROSCIENCE COMPANY

As a starting point for defining this part of the media and marketing research business, we chose respected industry sources to help define the consumer neuroscience landscape. We have added the terms we use to describe 10 major technologies, then we ranked them in rough order from most to least scalable.
BROAD CATEGORIES as listed by AdMap * Psychometrics METHODS as listed by AdMap* Implicit Testing Facial Decoding Eye Tracking Heartbeat Biometrics Skin Perspiration (GSR) TECHNIQUES as listed by ESOMAR** IAT: Implicit Association Tests FACS: Facial Coding Eye Tracking HR: Heart Rate EDA-SCR or GSR Motion Respiration Patterns RR: Respiratory Rate VPA: Voice Pitch Analysis EEG fMRI EEG/SST Electroencephalography/ Steady State Topography fMRI: Functional Magnetic Resonance Imaging 10 MAJOR TECHNOLOGIES OF CONSUMER NEUROSCIENCE as described by Innerscope Implicit Testing Facial Coding Eye Tracking Heart Rate Skin Conductance Motion Respiration Voice Analysis EEG fMRI

NeuroMetrics: Brain or Neural Response

*Source: Thom Noble, Neuroscience in Practice, AdMap magazine, March 2013. **Source: 36 Questions to Help Commission Neuroscience Research, The world association for market, social and opinion research (ESOMAR), 2012.

Unlike some individuals and organizations who may have relied on one or a few of the 10 technologies, and sometimes even disparaged the use of others, Innerscope embraces all 10 as valuable neuroscience informed offerings. We are working hard to help the industry learn how to best integrate and extract the most value with them. We call it Innerscope 2.0, and we couldnt be more excited about what it can mean for our clients: Working with best-of-class partners to integrate the widest range of neuroscience technologies and traditional research measures in ways to help clients make better-informed media and marketing decisions every day. - Bill Moult, CEO, Innerscope Research

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2014 INNERSCOPE RESEARCH, INC.

OUR PRINCIPLES IN PRACTICE

We are committed to following three core principles for any products and services that we bring to market:

1.

MUST BE GOOD FOR CONSUMERS

We strive for measurement that is less intrusive and leads to better consumer experiences with brands, media and marketing.

2.

MUST BE GOOD FOR BUSINESS

We focus on research that is cost-effective and leads to better business outcomes in the marketplace.

3.

MUST BE BASED ON GOOD SCIENCE

We start with medical-grade measurement and effectively integrate scientific methods to achieve the desired business results.

HOW CAN WE THINK HOLISTICALLY ABOUT CONSUMERS?

The consumer can be considered, sometimes roughly in this order, a viewer, a reader, a listener or a user (of media of all types), then a shopper, a buyer and a user (of any branded products and services). Yes, the consumer is all of these and more. But most of all, the consumer is boss, as one highly respected CEO famously summarized for his consumer products company. Fortunately, that philosophy has become widespread, and consumer-centric thinking now permeates business environments from corporate boardrooms to retail locations.

HOW CAN WE THINK OF CONSUMERS IN A BUSINESS CONTEXT?

Consumers are critical to business, but in what measurable ways? The graphic on the lower right shows where various metrics in the marketing and media world fit into the broader business environment. Beginning with the orange Marketing and Media (M) sphere on the left, this is a Comprehensive, Integrated Response Cycle (CIRC) model. Marketing and Media (M) share of voice can be thought of as driving consumer Attitudes (A) and share of mind, which in turn drives Behavior (B) and share of market, which ultimately drives Financial (F) results and shareholder value. It continues as a cycle because levels and areas of marketing and media investment each year tend to be driven by historical and projected financial results.

HOW DO WE GET TO THE SCIENCE OF UNDERSTANDING CONSUMERS?

Our marketing and media worlds have learned how to do a quite good job of measuring Marketing and Media (M) activity, consumer Behavior (B) such as media consumption and product-and service-buying behavior, and of course evaluate Financial (F) measurements widely used by financial analysts. The A sphere, which traditionally has focused on the measurement of conscious attitudes, is where we need the most improvement. Thinking of it as only consumer attitudes is a serious and misleading over-simplification. That is why we have created the graphic at the upper right, which shows an enhanced view of the A sphere.

WHERE HEARTS MEET MINDS

The top half of the graphic at the upper right starts with conscious measures like awareness and consumer-reported attitudes. The bottom half measures of non-conscious processing are less visible but no less important. In fact, many experts would point out that non-conscious measures like attention and emotion (what psychologists call affect) are often more important, but rarely as well understood. Our industry is just starting to think of the A sphere in terms of share of hearts and minds and measurement of the non-conscious. Understanding the whole consumer is key. Not just what they do or what they say, but how they think and feel.

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capture rationalized explanations at a fixed point in time

Conscious Measures

Aw ar

s ne

At
What consumers are saying

ud t it
es

Whether or not were getting through to consumers

Ways To Gather These Measures

Awareness & Attitude Tracking Attitudes & Usage Studies Attitudinal Segmentation

Non-Conscious Measures

capture responses moment-by-moment as they happen throughout a measured consumer experience

t ec f f A

Awareness Differentiation Relevance

Perceived Quality Satisfaction

Attitudes Share of Mind

Marketing Spend Share of Voice Distribution New Products Discount

Marketing & Media Share of Voice

/E mo

What consumers are seeing and hearing

What consumers are feeling

Implicit Testing Facial Coding Eye Tracking Core Biometrics EEG/fMRI Other measures from consumer neuroscience

Behavior Share of Market

tion

e Att

io nt

Market Share Penetration Relative Price Paid Price Elasticity Loyalty

Financials Shareholder Value

In addition to the four main flows captured by the four arrows in this cycle, there are sometimes additional flows in other directions (not shown here for simplicity).

Sales Revenue New Product Revenue

Shareholder Value Gross Margin Profit

Adapted with permission from Sequent Partners Marketing-Capital Cycle. Illustrative measures drawn from Tim Amblers Marketing Metrics, 2000

TECHNOLOGIES OF NEUROSCIENCE

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2014 INNERSCOPE RESEARCH, INC.

WHY INTEGRATED CONSUMER NEUROSCIENCE?

The answer is quite simply because the whole is greater than the sum of its parts. Each of the 10 technologies of consumer neuroscience is unique in its science, measures and insights. Totally relying on any one of them is like describing an elephant from one angle; it may provide an accurate description from one perspective, but in many cases it offers an incomplete and potentially misleading one. Regardless, it is definitely not the whole picture. Used effectively in combination with other neuroscience and self-report data, different measures complement each other to provide value for clients, as in the case of core biometrics (moment-by-moment emotional engagement), facial coding (expressed emotions) and eye tracking (visual attention). These measures can also be complemented with implicit testing (associations to the brand). Finally, the depth of the science and the wide variety of measures in the marketplace can make consumer neuroscience complicated or even intimidating to clients, who often would rather focus on the business problems or opportunities they are trying to address than on the complexities of different neuroscience measures. Therefore, it is essential to educate clients and provide objective information that can help them make well-informed decisions.

BRIEF DESCRIPTIONS OF CONSUMER NEUROSCIENCE TECHNOLOGIES

IMPLICIT TESTING
SUBCONSCIOUS ASSOCIATIONS WITH BRAND OR PRODUCT ATTRIBUTES, DISCRETE EMOTIONS AND DEGREE OF PREFERENCE

SCIENCE
Developed out of the field of cognitive psychology, Implicit Association Tests capture rapid associative response reactions to semantically relevant attributes and stimuli. Participants may be unaware that they hold these associations, or may be unwilling to share them consciously.

STRENGTHS
Highly scalable, inexpensive and easy to use and interpret.

LIMITATIONS
No moment-by-moment measurement, making it challenging to identify specific creative elements that drive responses.

PROCESS
These tests can be administered in a number of ways, typically online or on mobile devices.

APPLICATIONS
Wide-ranging across multiple study areas, including brand drivers, brand essence, brand or product positioning, advertising messaging, and packaging elements.

The rise of practical implicit research technologies from the physiological, social and cognitive psychological disciplines has created a new market research practice, that Innerscope has duly dubbed integrated consumer neuroscience. By integrating our implicit association research platform, Sentient PrimeTM, within this practice, we are able to deliver deeper insight on the whys behind behavior. - Dr. Aaron Reid, Founder and Chief Behavioral Scientist, Sentient Decision Science, Inc.

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TECHNOLOGIES OF NEUROSCIENCE

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FACIAL CODING
DISCRETE EXPRESSED EMOTIONS ON THE FACE, SUCH AS JOY, SURPRISE, CONFUSION OR SADNESS

SCIENCE
Uses automated facial recognition software with built-in Facial Action Coding System (FACS), which identifies patterns of facial action unit activity related to the underlying musculature.

LIMITATIONS
Expressed facial emotion does not necessarily reflect the depth of felt emotions and is not always accurate (for instance, people can smile when they are not really happy). Limited array of pre-defined emotions and questions about universal applicability.

PROCESS
Respondents are videotaped, and facial coding software translates movements of facial action units into expressed emotions.

APPLICATIONS
TV advertising, video promos and program testing.

STRENGTHS
Scalable, portable, inexpensive and can be used for realtime evaluations.

Affectiva and Innerscopes continued innovations are transforming the way emotion insight is gathered through integrated consumer neuroscience. Using scientificallyvalidated facial coding, we can better understand how emotions drive consumers decision making, in real time and at global scale. - Nick Langeveld, President & CEO, Affectiva

EYE TRACKING
PRECISE LOCATION, AMOUNT AND PATTERNS OF VISUAL ATTENTION TO PREDETERMINED AREAS OF INTEREST

SCIENCE
Uses camera and infrared technology to monitor eye movements to locate precisely what elements catch attention, how fast and for how long.

STRENGTHS
Scalable, portable, inexpensive and real-time options available.

PROCESS
Respondents have their eye movement passively recorded by an infrared camera that is attached to a computer monitor or using head-mounted eye trackers to test in store or in the home.

LIMITATIONS
A measure of purely visual attention, without ability to measure emotion.

APPLICATIONS
Testing of video, digital, or print ads, packaging and shopper studies.

Eye tracking technology can add tremendous insight to a variety of research projects -- and when eye tracking is combined with other neuroscience research methods, the data and results captured can become even more valuable. We have worked with Innerscope for years and look forward to our continued joint efforts to develop integrated neuroscience research solutions that can uncover a myriad of benefits for media and market research. - Barbara Barclay, General Manager, Tobii Technology, North America

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2014 INNERSCOPE RESEARCH, INC.

CORE BIOMETRICS
THE OVERALL DEPTH OF EMOTIONAL ENGAGEMENT, AS WELL AS THE MOST AND LEAST ENGAGING MOMENTS

SCIENCE
Proprietary algorithms are used to combine up to four physiological measures of the autonomic nervous system (heart rate, skin conductance, motion and respiration) into comprehensive measures of emotional engagement.

STRENGTHS
Scalable, inexpensive, measures pure non-conscious emotional responses.

LIMITATIONS
Does not measure specific emotions.

PROCESS
Participants wear biometric monitoring devices with advanced sensors that measure moment-to-moment changes in biologic indicators of emotion.

APPLICATIONS
Innovation, concepts, ads, packaging, shopper studies, program content, experiential testing and multisensory studies.

Over the past several years, we have been focusing on creating affordable and predictive neuro platforms using biometric signals. With the expansion of the platform to an all-inclusive neuroscience paradigm, the opportunity to cross-train the predictive models of the various neuro signals not only enriches the algorithms and our learnings of the consumer emotive psyche, but also empowers market researchers to harness this knowledge and technology in an unprecedented manner. - Dr. Ravi Kothuri, Chief Technology Officer and VP of R&D, Innerscope Research

VOICE ANALYSIS
LEVELS OF VOCALIZED EMOTION, FROM ENGAGEMENT TO DISTRESS, IN ANY VERBAL INTERACTION

SCIENCE
Mathematical models translate subtle cues in speech features (e.g. pitch, talk time, entropy, harmonics) into meaningful patterns (e.g. speakers consistency in tone, level of engagement or distress in the conversation) to infer psychological state.

STRENGTHS
Ability to uniquely measure vocal engagement without relying on content analysis.

LIMITATIONS
Requires vocalized responses.

PROCESS
Voice analysis software is used to detect specific patterns in vocal recordings in real-time.

APPLICATIONS
Any verbal interaction experience, such as interviews, conversation, or reaction to entertainment.

Of the 10 consumer neuroscience technologies listed in this booklet, two are not yet offered commercially by Innerscope as of the first quarter of 2014: EEG and Voice Analysis. However, we have identified best-in-class collaborators for each, and are in active exploration with them. When the company has satisfied our own guiding principles for each of these (being less intrusive for consumers, more cost effective for clients, and integrated effectively with other neuroscience), they will be added to the research technologies available for our clients. For both EEG and Voice Analysis, this is expected to occur later in 2014.

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EEG
ATTENTION LEVELS, SENSORY ACTIVATION AND COGNITION BASED ON NEURAL ACTIVITY

SCIENCE
Measures electrical activity along the scalp produced by neurons firing. Available in high-density and lower-grade measurement devices.

LIMITATIONS
Takes time to prepare and turn around data by expert analysts. High level of noise may make data hard to interpret. Headset measurement can be somewhat intrusive. Low spatial resolution makes it difficult to determine involvement of specific brain regions.

PROCESS
Multiple electrodes are placed on the scalp to measure spontaneous electrical activity over a short period of time.

STRENGTHS
High temporal resolution with moment by moment indication of cause and effect triggers. Portable technology available for studies in-store or other locations.

APPLICATIONS
Wide range of study types, from innovation to marketing communications, short-form video, experiential testing and sensory studies.

Note: Please see the bottom of page 8 for information about the commercialization of EEG.

Even with tens of thousands of EEG measurements Ive made from UCLA to Mexico City, Im convinced they are most valuable when integrated with other neuroscience metrics. - Dr. Jaime Romano, President, Neuromarketing S.A. de C.V., author of The Neuropyramid

fMRI
SPECIFIC BRAIN AREAS INVOLVED IN LOYALTY, LIKING, RELEVANCE, EMPATHY AND REWARD

SCIENCE
Measures changes in oxygenated blood flow, which is related to neural activity (neurons require oxygenated blood to fire, which increases blood flow to the active area). This can reveal what brain regions are more active during a particular task or experience.

LIMITATIONS
Difficult to scale: lab or clinic-based, very costly and highly specialized. Low temporal resolution: activity is averaged over several seconds. Noisy, unnatural consumer experience. Difficult to infer a particular mental process based on just observing activity in a brain region.

PROCESS
Respondents lay in a large oval-shaped magnet while brain images are taken every two to three seconds.

APPLICATIONS
Studies for which moment-by-moment responses and triggers are not required, validation studies.

STRENGTHS
Best spatial 3-D mapping of normal brain activity. Can be used to validate other measures.

We are very excited to be connected with Innerscopes effort in integrated consumer neuroscience. Our mission at the Center for Neural Decision Making at Temple Universitys Fox School of Business is to advance consumer neuroscience by integrating multi-methodological approaches with academic theories. We are proud to be at the forefront of academic research in consumer neuroscience, and working closely with partners like Innerscope, allows us to apply academic rigor to address practical research questions. - Dr. Angelika Dimoka, Director, Center for Neural Decision Making, Fox School of Business, Temple University

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2014 INNERSCOPE RESEARCH, INC.

HARNESSING TECHNOLOGY AND SPURRING INNOVATION

For the past eight years, our company has worked beyond the cutting edge of wearable technologies, utilizing biometric data to understand consumers needs. Consumer-level technology is now catching up in the ability to capture data on a massive scale. Companies like Fitbit, Withings, Nike, Google, iHealth and many others are putting biometric data in the hands of consumers. However, these technologies are often limited to capturing consumer response without well-informed interpretation to maximize the value of these measurements. The opportunity in this new world is to leverage this explosion in technology and understand a users needs before the user in order to provide better content and services. To do so in a way that makes life easier for all, we aim to do the following: Use the advancements in consumer measurement and bring emotion measurement to the self quantification space; Leverage the massive installed base of these technologies to increase the footprint of emotion analysis; and Use these new platforms to bring a new level of insight to the companies that provide products and services to the general population. NEUROSCIENCE DATA COLLECTION VENUES ARE EVOLVING LEARNING AND IMPACT OVER TIME
From bringing consumers to the technology to bringing the technology to consumers

LABS

KIOSKS OR STREET LABS

ONLINE

MOBILE & WEARABLES: FROM HOME TO WORK TO RETAIL

From day one, we have considered technology both an enabler for innovation in neuroscience measurement, and an enabler for our clients innovation in their fast-changing media and marketing world. - Brian Levine, Founder and Chief Innovation Officer, Innerscope Research

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SENSUSTM KIOSK:

INNOVATIVE AND INTEGRATED TECHNOLOGY

SensusTM is the first commercially known fully-integrated consumer neuroscience kiosk, and it is designed to deliver a unique combination of market research tools in a single, scalable and cost-effective platform.

Were proud to be partnering to incorporate Innerscopes integrated consumer neuroscience methodology on eworks national network of consumer research kiosks, directly in relevant retail and cinema environments.
- Tim Hardy, CEO and Chip McDermott, President,

entertainment works Inc.

The first Sensus kiosks are already in place in Boston, Chicago, Orlando, and Los Angeles, as well as in the Time Warner Medialab in New York City, with additional national and international markets planned for later in 2014. Located in select malls and movie theaters, SensusTM is a cost-effective way to reach various consumer demographics.

FACIAL CODING

BIOMETRIC wristband

EYE TRACKING

SELF-REPORT

We love that Emotients facial coding technology plays a critical role in Innerscopes new kiosk-based integrated consumer neuroscience services, with additional collaboration on the horizon. Using a camera-enabled device, our software processes facial expressions to determine emotional response and turns that data into actionable information. - Ken Denman, CEO, Emotient

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2014 INNERSCOPE RESEARCH, INC.

VALIDATION
EXAMPLES
PREDICTING WHAT CONSUMERS WILL WATCH, TALK ABOUT AND BUY IN-MARKET
Emotional engagement of 40 biometric participants correlated with viewing behavior of TiVo panel of 100,000 viewers.
BIOMETRIC ENGAGEMENT
2

THE IMPORTANCE OF VALIDATION IN MEDIA AND MARKETING RESEARCH

Clients and the industry demand and deserve verifiable evidence that consumer neuroscience measures work reliably, consistently, and accurately. Fortunately, integrated neuroscience metrics do correlate to or predict a number of outcomes and behaviors, including: Sales (e.g. consumer electronics, fashion, magazines, movie box office) Online conversions Retail basket size Fast-forwarding and channelchanging behavior TV program viewership Online buzz (e.g. comments and views)

SET-TOP BOX DATA

AD POD SCORES

-1

-2

-3

Pod 1

Pod 2

Pod 3

Pod 4

Pod 5

% of Viewership Watching Entire Ad

Biometric Emotional Engagement Ad Score

Biometric engagement metric outperformed USA Todays dial and online self-report in correlating to the number of comments and views online after Super Bowl XLII.
BIOMETRIC ENGAGEMENT
0.6 0.3 0.4 0.2 Ratings Dial Testing Biometrics 0.3

CORRELATIONS

0.8

ONLINE COMMENTS

ONLINE VIEWS

Validation experience is and should be a desired and sought-after element of industry scrutiny.

Biometric engagement scores of movie trailers also correlated with opening weekend gross revenue across nearly 50 different movies.
$100

Adjusted Opening Weekend Gross Revenue

$90 $80 $70 $60

$50 $40 $30 $20 $10 $0 50 55 60 65 70 75 80 85 90

[Innerscopes] analytic expertise is superb while their scientific approach supports a consistent and thorough validation (R&D) program. This is essential to ensuring that Innerscopes results are reliable and valid measures to help clients make proper advertising and marketing decisions - ARF Research Review

MILLIONS

BIOMETRIC ENGAGEMENT SCORE

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CASE STUDIES

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CAMPBELLS
SHOPPER
CONSUMERS WARM UP TO SOUP: HELPING CAMPBELL SOUP COMPANY RECONNECT THROUGH REDESIGN CHALLENGE
Campbell had extensive quantitative and ethnographic research on the emotional strength of its soup products. But in spite of warm, comforting associations in-home, consumers were beginning to cool off to purchasing soup in stores. Faced with declining sales, Campbell needed to inspire change at the retail level and within its brand by finding opportunities to emotionally connect with budget-conscious consumers. They turned to our company to help rejuvenate and redesign their in-store display, product label and marketing.

SOLUTION
We worked with Campbell on a landmark study of how todays shoppers engage with products, particularly how shelf layouts, product groupings and on-shelf communications influence the buying process. Through virtual and in-store testing using our Biometric Monitoring System, we found that consumers positive affinity for Campbell soup often decreased when they entered a store, so Campbell needed to address this decrease and improve merchandising effectiveness. We identified strengths and weaknesses of the soup aisles traditional organization and ultimately provided Campbell with guidance on how to improve shelf configurations, display signage and labels to powerfully and positively resonate with consumers. Armed with these insights, Campbell embarked on a historic transformation of both its iconic label and in-store displays.

RESULTS
These research results guided the commercially successful transformation of Campbells iconic soup label and in-store Maximizer display, resulting in coverage in the Wall Street Journal and other media outlets. Campbell improved its merchandising effectiveness and shopper satisfaction by making it easier for consumers to find their soup of choice.

Biometric measurement has existed for some time, but Dr. Marci and his firm have dramatically advanced the science by measuring with superb precision the activation of the customers nervous system. - Bob Woodard, former Vice President of Global Consumer and Customer Insights, Campbell Soup Company

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2014 INNERSCOPE RESEARCH, INC.

TURNER
MEDIA
GUIDELINES FOR OPTIMIZING THE SOCIAL TV EXPERIENCE: HELPING TURNER DEFINE SOCIAL MEDIA PRINCIPLES THAT KEEP VIEWERS ON-CHANNEL CHALLENGE
Like many businesses, Turner Broadcasting faces the challenge of marketing to the Millennial Generation. Delivering this audience to advertisers means understanding how Millennials watch television and how to keep them engaged with programming. Millennials are heavy cell phone users. This generation doesnt disengage from their electronic companions when they watch TV; instead, they use their phones to watch TV socially. To stay ahead of this trend and successfully engage viewers, Turner conducted a study on second-screen viewing and social media interaction.

SOLUTION
Turner Broadcasting partnered with Innerscope to understand the impact of second screens on the viewing experience and the strengths of different app options, such as show-specific apps and social media apps. Using its Biometric Monitoring System combined with mobile eye tracking and self-report, Innerscope evaluated the behavior, attention and emotional responses of 126 Millennial viewers watching comedy and entertainment news programs across a variety of social scenarios. The data revealed five core principles: 1. Social media and second screen viewing are here to stay. 2. Social viewing is more engaging for this demographic than solo viewing. 3. Second screen viewing fills the gaps when Millennials might otherwise be inclined to change the channel. 4. Audio is critical and can be used to direct visual attention back to TV ads. 5. Second screen viewing apps can increase engagement with TV programming if they are designed to complement the content.

RESULTS
Turner Broadcasting used Innerscopes insights as guidelines for optimizing the second screen viewing experience for its viewers and advertising partners. Turner Broadcasting presented the studys results at the Cable & Telecommunications Association for Marketings 2012 Insights Conference. The results were also covered in major media and mobile trade outlets, including Advertising Age, MediaPost and AppMarket.tv.

We are using Innerscope Research to develop second screen interactions that connect emotionally and create the best multi-screen viewing experience across Turner programming. - Jack Wakshlag, Chief Research Officer, Turner Broadcasting System, Inc.

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CASE STUDIES

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INTUIT
DIGITAL
HELPING INTUIT INCREASE REVENUE: INSIGHT GUIDES PROFITABLE WEBSITE REDESIGN FOR TURBOTAX.COM CHALLENGE
The days of the pen-and-paper tax return are numbered. This gives software companies marketing online tax preparation a big opportunity to attract new customersbut they have a lot of competition. To increase conversion of new prospects, and to decrease loss of at-risk customers, Intuit reached out to our company to understand the effectiveness of key elements of TurboTax. com.

SOLUTION
Target conversion pages on TurboTax.com were analyzed against equivalent pages on competitive websites using our proprietary Biometric Monitoring System combined with eye tracking. Research identified the precise online content that emotionally resonated with consumers. These research results were used to recommend website redesigns that would build consumer confidence and improve registrations. Intuit then used these insights to transform key pages on their site.

RESULTS
During the height of tax season, the new TurboTax.com registration page increased revenue by 10 percent. Intuit cited Innerscopes research as one of the companys most successful research initiatives ever. Intuit and Innerscope presented the study results at the Institute for International Researchs 2012 Audience Measurement Conference, noting that the research paid for itself through improved returns in just 3 hours. The success of this research led to TurboTax.coms first homepage redesign in more than five years.

Biometrics gets at things we cant with traditional ad testing. - Maria Scott, Senior Manager, Customer and Market Insights, Intuit

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2014 INNERSCOPE RESEARCH, INC.

FOX SPORTS
MEDIA
FOX SPORTS WINS WITH NASCAR ADVERTISERS: PREDICTING SUCCESS FOR SPLIT-SCREEN AD FORMAT CHALLENGE
Consumers today can choose what to watch and when to watch it. This abundance of choice has proved challenging for networks like FOX Sports, whose NASCAR viewership was in declineprompting the network to seek out new ways both to keep viewers engaged and to deliver increasing value to advertisers. One option they considered was double box advertising: splitting the screen between ads and the race during the commercial breaks. But advertisers were reluctant. If ads were competing with the race onscreen, would they still secure viewers attention? To answer this question, FOX Sports selected our company to accurately measure emotional engagement with double box advertising.

SOLUTION
Our company evaluated race fans watching NASCAR events with advertising in either double box or full- screen formats. Using our Biometric Monitoring System combined with eye tracking, Our company proved that emotional engagement with the advertising was higher during the double box format. Additionally, the results showed that the new format drove more sustained visual attention to the advertising. FOX Sports used these insights to increase adoption of the double box format among advertisers and to create new opportunities to use it during NASCAR races.

RESULTS
FOX Sports increased the amount of double box advertising during NASCAR events. The success of the double box format with NASCAR has led FOX to test it with other programming.

The advertiser buy-in so far has been extraordinary. - Michael Mulvihill, Senior Vice President, Global Content Development, Twentieth Century Fox Home Entertainment

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CASE STUDIES

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PROCTER & GAMBLE

CLAIM SUPPORT
RESEARCH SUPPORTS NEW PRODUCT LAUNCH: GAIN IS PROVEN TO BE MUSIC TO YOUR NOSE CHALLENGE
P&G was launching new single-dose pods of their Gain laundry detergent. The client had known for years that users of Gain were very enthusiastic about the scent. They even referred to Gain loyalists as Gainiacs. They had speculated that the emotional connection to the scent of Gain was comparable to other emotionally significant experiences in their lives. The client was interested in testing the link between the scent and music; specifically, how the emotional responses to smelling Gain compare to when listening to ones favorite music among Gainiacs.

SOLUTION
Innerscope used biometrics and facial coding to measure the biological expression of emotion to Gain scents, as well as to a variety of other pleasant, neutral, and aversive scents. Responses to these scents were compared to music from a favorite genre. The data revealed that the scent of Gain products elicited a greater and more positive emotional response than listening to music from ones favorite genre. Additionally, experiencing the Gain scent before listening to ones favorite music had a priming effect. Respondents had an even greater emotional response to their favorite music when it was preceded by the scent of Gain. To sum up, participants experienced the Gain scents on an emotional level greater than the experience of listening to ones favorite music.

RESULTS
This breakthrough research became the basis for a new claim that allowed Procter & Gamble to say with confidence, Gain, Its Music To Your Nose. The new tagline Music To Your Nose is being used prominently in the new national campaign supporting the product launch of the single dose pods of Gain laundry detergent.

Innerscope helped us prove that smelling Gain makes people feel more positively than listening to their favorite music, revealing that Gain really is Music To Your Nose! This enabled us to provide our consumers with the ultimate Gain scent experience and it became the base for our new national campaign. - Silvia Tavara-Leal, Research & Development, Procter & Gamble

CASE STUDIES

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SUPER BOWL XLVIII

ADVERTISING
THE FIRST INTEGRATED NEUROSCIENCE STUDY OF ADVERTISING: USING MULTIPLE NEUROSCIENCE MEASURES TO DETERMINE EMOTIONAL REACTIONS TO SUPER BOWL ADS CHALLENGE
For the 2014 annual Super Bowl advertising study, our company collaborated with multiple partners to advance understanding of non-conscious drivers of advertising. The ads were holistically measured utilizing 8 of the 10 neuroscience technologies (see page 3). This years Super Bowl provided the opportunity to examine the relationships between different neuroscience measures.

SOLUTION
The study began during the Super Bowl with our company biometrically monitoring 80 participants live, using state-of-the-art technology to capture fluctuations in heart rate, skin conductance, and breathing patterns in the companys Media Lab and facilities in Boston and the Time Warner Medialab in New York. As part of the study, participants were also recorded on video, and their emotional responses from their facial expressions were coded using Emotients automated emotion recognition software. We then forwarded blind results, including top-and bottom-performing ads based on the biometric results, to Temple Universitys Center for Neural Decision Making. The Temple team used fMRI to monitor the brain activity of 26 participants as they watched more than 20 of the games ads.

RESULTS
The findings showed that ads that took audiences on an emotional journey -- ads from brands like Cheerios, Chevrolet, Budweiser and Hyundai delivered the highest moments of engagement. More importantly, this unique study showed convergence among different findings: - Ads that performed well on biometrics also elicited increased brain activity (relative to ads that performed poorly) in key areas of interest for marketers. These included brain regions associated with emotional relevance (amygdala), memory formation (hippocampus) and executive function (lateral prefrontal cortex). Among top performers, ads like those from Cheerios and Volkswagen elicited emotional responses while activating two additional regions of the brain commonly associated with valuation and reward the ventromedial prefrontal cortex and ventral striatum. These areas are consistent with prior work conducted by Temple Universitys Center for Neural Decision Making in the area of advertising effectiveness research.

MEASURE EMOTION. PREDICT BEHAVIOR. DRIVE SUCCESS.

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WORKING AROUND THE WORLD

First we had the realization that new science-led techniques benefited from blending with more traditional tools. Then, experienced users recognized the advantages of combining more of the new techniques together to deliver greater depth, clarity and richer consumer insight. As these technologies continue to develop, so does our understanding and experience of automating and combining measures of nonconscious responses. We are beginning to witness a new generation of multi-modal platforms. Innerscopes experience in fusing together an array of biometric sources underpins their credentials to extend further into this new world of integrated solutions. This, together with their strategy of partnerships, looks set to see the Innerscope team play a leading role in shaping the future of the market research industry not just in North America or here in Europe, but around the globe. - Thom Noble, Founder, NeuroStrata With our partners, we are building a growing infrastructure to serve clients need for global solutions.

Top marketers in Latin America are demanding the most advanced tools, technologies, and strategies to succeed in this rapidly evolving market. All are abundantly aware that understanding customers at a deeper, non-conscious level is essential to build brands that trigger powerful emotions, fulfill unmet needs and forge meaningful, long-lasting relationships. We believe that Innerscopes effort to deliver a more complete, multi-disciplinary and strategically integrated set of neurosciencebased tools to clients around the world is critical to the evolution of the marketing industry and we are pleased to be collaborating on various levels to make this a reality in Latin America. - Josiah Foster, Co-Founder and Chief Play Officer, Minds@Play

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LEARNING FROM UNIVERSITIES

The following is the list of universities that our team graduated from or collaborated with:

Boston College Boston University Brown University Brunel University, London Carnegie Mellon University Colby-Sawyer College Columbia University Concordia University, Montreal Harvard Business School Harvard Graduate School of Education Harvard Medical School Harvard University

The London School of Economics and Political Science Massachusetts Institute of Technology Massasoit Community College MIT Sloan School of Management Mt. Holyoke College Northeastern University Ohio Wesleyan University Oxford University The Rockefeller University Suffolk University Temple University Trinity College

Tufts University University of California, Berkeley University of California, Santa Barbara University of Chicago University of Massachusetts, Boston University of Michigan University of Pennsylvania University of Rochester University of St. Louis University of Wisconsin Wellesley College The Wharton School

Like my teammates, Im grateful my parents encouraged me to embrace education. Ive benefited from studying under brilliant people at institutions that enabled me to carry the academic rigor to the business environment by stressing the importance of learning from clients, research, and reading, and actualizing this knowledge to achieve goals in the real world. - Caleb Siefert, Assistant Professor, University of Michigan at Dearborn and Consultant, Innerscope Research

MEASURE EMOTION. PREDICT BEHAVIOR. DRIVE SUCCESS.

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LEARNING FROM OUR CLIENTS

We are proud to work with some of the worlds best-known companies, including these select clients, listed in alphabetical order.

LEARNING FROM OUR INDUSTRY

We are big believers in the value of strong industry organizations, and these four that deserve special mention for their enormous contributions to consumer neuroscience. We encourage our entire industry to support them.

OUR CLIENTS HAVE THE LAST WORD

"More than ever, it's important to have an understanding of how consumers are engaging with media on a conscious and unconscious level. Our partnership with Innerscope allows us to stay on the cutting edge to help deliver unparalleled insight through the Time Warner Medialab. - Kristen OHara, Chief Marketing Officer, Time Warner Global Media Group We were excited to collaborate with Innerscope on a groundbreaking study proving the link between the scent of Gain and music. - Silvia Tavara-Leal, Research & Development, Procter & Gamble We initially used Innerscope on TurboTax website research and the success of that test, including in-market outcomes, gave us confidence to use Innerscope with advertising research as well. - Maria Scott, Senior Manager, Customer and Market Insights, Intuit The traditional interview had limited usefulness because peoples words didnt fully capture their unconscious responses Campbell needed approaches that would help it understand the neurological and bodily responses to an ad rather than how people thought theyd reacted. - Bob Woodard, former Vice President of Global Consumer and Customer Insights, Campbell Soup Company Innerscope was an incredible partner that allowed us to literally get into the hearts and minds of young guys and uniquely revealed their visceral reaction to our programming and marketing content. The study went a long way in accomplishing our goals for our ad sales team and allowed us to unearth valuable insights in new and interesting ways. - Beth Coleman, SVP Audience Research, Viacom Media Networks Entertainment Group

The beauty of biometrics is that is gives us an opportunity to improve audience response in every medium and on each platform. Were after differentiation from other platforms but also validation of the unique value of our same-content across platform offerings. - Audrey Steele, SVP Sales Research, FOX Broadcasting Company Biometrics is part of a true paradigm shift in market research. For years, the huge error ratio present in the current research methods has plagued us all. Suddenly, with the aid of biomeasures, stubborn cultural barriers and response biases are greatly reduced. The picture becomes clearer as does the actionability of the research results. All respondents, all humans are physiologically the same. We now have a level playing field. - Melissa Mullen, former Director International Theatrical Research, Fox Entertainment Group

Innerscopes insights informed a new set of criteria for Yahoo! to guide our marketers to the most effective online targeting for their advertising objectives. - Tony Marlow, Head of Category Insights, Yahoo!

GENERAL CONTACT
98 N. Washington Street, 2nd Floor, Boston, MA 02114 617-904-0555 info@innerscope.com innerscoperesearch.com
Innerscope, Sensus, Engagement Map, Engagement Video, Impact Map, and AQ are trademarks of Innerscope Research. Third party trademarks and tradenames used in this booklet are the property of their respective owners. Use of any third party trademark or tradename herein does not imply any affiliation with or endorsement of Innerscope Research by the owner.