The impact of context on digital communication

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1 The impact of context on digital communication

2 Content and context don t work in isolation

3 Devices have an impact

4 A sense of immersion is key

5 Neuro-state matters

6 It can t always be second guessed

7 Environment has a halo effect

8 Today, we ll illustrate the importance of context by showcasing work done with Newsworks and AOP

9 A key trading dynamic Context Targeting Audience Targeting

10 Multiple studies prove that context and environment deliver positive advertising impact

11 The Halo Effect (2016) 3x effective for mid-funnel metrics (favourability, consideration) +51% higher effectiveness

12 Paying (for) attention (2017) Ads on newsbrand sites get noticed in roughly half the time required by other sites Digital newsbrand ads 80% more likely to be viewed (when viewable)

13 Ads on publisher-branded sites increase consideration by 60% vs. sites without publisher branding For regular readers consideration is 152% higher on publisherbranded sites (In)famous by association (2017)

14 Themes from these and other recent studies Editorial media delivers significant impact on medium-tolong term brand health positive impact on key business metrics media multiplier effect - especially for social media

15 Can we understand more about this performance? Is context impacting how ads are processed and acted upon?

16 Project objectives Better understand what s happening in the brain when consumers are exposed to ads in different online environments Focus on editorial contexts vs social media Neuroscience the obvious approach to take

17 Overview of approach The impact of context is difficult to measure But neuroscience allows us to do this For this study, we used Neuro-Insight s Steady State Topography (SST)

18 Sample and timings 139 respondents 18-60; evenly split by gender Regular internet users Had visited test sites in last month Bespoke tasks: Newsbrands + Social = 43% Magazines + Social = 40% Newsbrands + Magazines = 17% Device split reflective of natural consumption Fieldwork 6 th 10 th Nov 2017 in South-East London

19 Methodology A three stage approach was used across the study as a whole Free browsing Participants freely browsed different websites and naturally came across different brand communications Exposure to ads in different contexts Each respondent saw four brand ads, in two of three different environments (newsbrand, magazine and social media) Filmed online journey Respondents viewed film of someone navigating a newsbrand, magazine and then the two social media sites. Film included test and naturally occurring ads TV intro TV punctuation TV punctuation TV outro 3 mins 5 mins 3 mins 10 mins 3 mins 4 mins

20

21 Participating advertiser brands

22 Memory and attention Long-term memory encoding (LTME) Correlates with decision-making and purchase intent Measures both left brain (detail and language) and right brain (more global aspects of processing) Attention Measures visual attention, recorded in both the left brain (detail) and the right brain (holistic or emotional aspects)

23 Emotion and Engagement Engagement An indicator of how involved people are Generally triggered by material that is of personal relevance Emotional intensity Relates to the strength of emotion being experienced Approach/withdrawal The direction of the emotion being experienced whether it is positive or negative

24 Key measures and their brain regions Left Approach (like) Engagement (personal relevance) Right Withdrawal (dislike) Long-term memory encoding (verbal, detail) Long-term memory encoding (emotional/global features) Emotional intensity (arousal)

25 Test ads performed the same as naturally occurring ads Placed ads achieved very similar levels and pattern of brain response to other naturally occurring ads in the same contexts Memory (L) Engagement (personal relevance) Approach / Withdraw Memory (R) Emotional intensity Attention (L) Attention (R) Placed brand ads (premium + social) All other ads in same contexts

26 The pattern of response to ads seen during the general free browsing experience (phase one) Memory (L) Approach / Withdraw Memory (R) 0.3 Engagement (personal relevance) 0.2 Emotional intensity Attention (L) Attention (R) All ads - free browsing

27 Ads in social media elicited stronger levels of response than ads encountered during general free browsing - except for left brain memory encoding (for words and detail) Memory (L) Engagement (personal relevance) Approach / Withdraw Memory (R) Emotional intensity Attention (L) Attention (R) Placed brand ads - social All ads - free browsing

28 Ads in premium environments also elicit stronger levels of response than ads encountered during general free browsing Premium environments outperformed social on all metrics except attention Memory (L) Engagement (personal relevance) Attention (L) Approach / Withdraw Attention (R) Memory (R) Emotional intensity Placed brand ads - Premium Placed brand ads - social All ads - free browsing

29 Ads placed in premium and social perform better than run of internet But what performance differences exist between social and premium?

30 Median duration (seconds) Average time spent on the five brand ads on premium and social media % more time viewing ads on premium sites than on social media Premium Social

31 Comparison of brain response for premium and social media % Levels of brain response Engagement (personal relevance) is notably stronger for ads on premium sites higher than on social media Emotional Intensity Premium Engagement (personal relevance) Social

32 But do the higher levels of engagement, emotional intensity and time spent viewing via premium sites deliver better memory encoding?

33 Levels of brain response Left brain memory encoding (for words and detail) is: Comparison of left and right brain memory encoding for premium and social media 42% stronger on premium sites than social Right brain memory encoding (overall general picture) is: % stronger on premium sites than social 0.00 Memory - Left Memory - Right Premium Social

34 Correct targeting is important But environment and context are key for enhanced performance this study helps us understand why Premium and social environments outperform the online average Premium and social media have complementary strengths: Social media provide a holistic, visual, overall brand impression Premium stimulates high levels of left brain memory encoding (words and detail) and engagement (personal relevance) Both produce emotional intensity

35 Thank you Any questions?

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