Sensory Logic ’ s Engagement Research Studies Show Radio Ads are as ENGAGING as TV Commercials

Sensory Logic, Inc Who is Sensory Logic?  The market leader in helping major, global companies measure and manage emotions in strategic as well as tactical terms for over a decade. What is Sensory Logic ’ s method?  Combining unique research tools like eye tracking and facial coding with traditional ratings and verbal input. Why this method?  Integrating different research activities allows Sensory Logic to build a complete emotional analysis of response to commercials.

Dan Hill President of Sensory Logic, Inc Dan Hill is a recognized authority on the role of emotions in consumer and employee behavior. Sensory Logic’s unique research tool, facial coding, is highlighted in Malcolm Gladwell's best-seller, Blink, and is used by the CIA and FBI. Background: Dan Hill received his Ph.D. from Rutgers University following studies at Brown University, Oxford University, and St. Olaf College. He is a frequent speaker at business conferences and seminars in the U.S., as well as in Europe and Asia.

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Packaged Goods Brown-Forman Colgate-Palmolive Daisy Brands General Mills Johnson & Johnson Kellogg’s Kraft MillerCoors Unilever Healthcare Abbot Labs Astra Zeneca Bayer BristolMyersSquibb Eli Lilly GlaxoSmithKline Henry Schein Merck Schering-Plough Fashion Clinique Givaudan Hanes IFF Jockey Reebok Media Sprint/Nextel CBS Condé Nast McGraw/Hill Nokia Rosetta Stone Sensory Logic Clients

“The face is an enormously rich source of information about emotions.” “By the 1980s, psychologists had largely accepted as a ‘fundamental axiom of behavioral science’ the link between faces and emotions. Emotion therefore explains facial behavior, and facial behavior is an objective index of emotion.” The Importance of Facial Coding

Sensory Logic Web Testing Participants with webcams engage in testing online. Sensory Logic ’ s Testing Options - OR - One-on-One Interviews Traditional, moderator-driven Interviews in focus-group facilities.

Sensory Logic utilizes the Facial Action Coding System to determine a Consumer ’ s Emotion Engagement How is the system scored?  A FACS coder "dissects" an observed expression, breaking it down into 23 specific AU’s (Action Units) that are produced by the movement of 43 facial muscle movements that each correspond to one or more of 7 core emotions that are universal across cultures: Happiness Surprise Sadness Fear Anger Disgust Contempt –Facial coding works because the expressions are hardwired into the brain (even a person born blind has the same expressions), and is real-time, not cognitively filtered data.

Sensory Logic ’ s Engagement Research Results The following summarizes Radio/TV commercial engagement scores over the past 5 years using the Facial Action Coding methodology

Radio has a 15% advantage over TV for engaging consumers Radio vs Television Number of Commercials Tested Average Sample Size Engagement %

To qualify as being engaged at least one of the 23 AUs (action units) had to be observed while viewing or listening to the commercial to qualify as being “engaged.”  So 40% as the average engagement score for TV means that, on average, 40% of the people that were tested experienced at least one code-able emotional response while taking in the commercial (it can be multiple emoting, but has to be at least one per person to qualify them as engaged).

Radio Outperforms TV Throughout the Engagement Continuum -“Minimum” and “maximum” refers to the scores of the highest scoring and lowest scoring commercials. -“Mean” is the average. -1 st quadrant summarizes lowest scoring 25% of commercials. -3 rd quadrant represents scores of third highest scoring quartile Radio vs. Television

These results mirror the findings of Gallup & Robinson with Sensory Logic & G&R both evaluating facial muscle activity to gauge emotional engagement. Sensory Logic utilizes a webcam to record reactions, while G&R utilized biofeedback via Facial Electromyography and Continuous Emotional Response Analysis, both of which attached electrodes to the face of the participants to determine muscle movement and thus engagement.

Engagement, Emotions, and the Power of Radio A New Study of How Radio Affects Consumer Emotions Conducted by Gallup & Robinson (Part One) Part of the Ongoing Series, “Radio and the Consumer’s Mind: How Radio Works,” published by the Radio Ad Lab (Radio Ad Lab), published June 2007

Radio edged out TV for higher positive ad receptivity by consumers

Conclusion  Two extremely well respected research companies with “similar” methodological practices came to the same conclusion  Radio advantage becomes more pronounced when cost/pricing is considered  As media plans are finalized for rest of 2010 and created for 2011, it would be wise for any marketer intent on outperforming the competition to give radio the consideration the medium deserves