Ad firms using tools to help them read your mind

Agencies
December 24, 2017

New York, Dec 24: Why did you splurge on that new pair of shoes? Or that pricey smartphone? More and more advertisers are trying to tap into the unconscious to divine the invisible forces that drive those spending decisions.

Using gadgets to track eye movements, computer maps of faces to capture a momentary grin (approval) or squinting (anger), and sensors to measure perspiration or monitor brain activity, companies are mining consumers' raw emotions for information.

Traditionally, ad firms have measured the success of their campaigns through consumer surveys, but that technique has its limits.

"It's not that people won't tell you, they actually can't tell you why they're making the decision they're making," said Jessica Azoulay, vice president of the market intelligence practice at Isobar, a digital marketing agency.

The new techniques recognize that our purchase decisions are driven by both rational and emotional factors, and reflect research showing the brain takes in information on different levels.

They "enable us to capture many different types of emotions and to be able to profile the emotions that are happening very granularly on a second by second basis," said Elissa Moses, chief executive of the neuro and behavioral science business at Ipsos, a consultancy and market research firm.

"People won't be able to tell you that something irritated them in scene three or thrilled them in scene seven, but we'll know from looking at the facial coding," Moses said.

The technologies can help track if brands are maintaining their edge over competitors, and make ads more effective by determining what to highlight, for example, whether to emphasize the distress of allergy symptoms or the relief of treatment when pitching medications.

And the techniques are being applied to other industries, such as retail, which is experimenting on ways to attract customers in the Amazon era.

"Ultimately there is a dance between the conscious and unconscious," Moses said, noting that "in order to actually buy a product, you have to make a conscious decision."

Some of the techniques were first employed in the 1970s, but now are being more widely adopted as equipment has improved.

An eye tracking test uses technology-enhanced glasses with a camera to record what a person is seeing on a television or in a store and read how long the eye settles on a particular cue.

That can be combined with other methods, such as galvanic skin responses with sensors applied to a person's hand to read perspiration, and electroencephalography (EEG) which reads brain activity through sensors on a person's head.

The data is used to produce a "heat map" with yellow, orange or red "hotspots" that show where the person's eye fixated.

Techniques measuring arousal can signal whether an ad stands out amid today's media avalanche.

Other tests that are becoming more popular seek to shed light on unconscious associations with products or shopping needs.

Johnson & Johnson has tested thousands of consumers about Tylenol pain relief and other over-the-counter products, showing them quick-fire images or words that connote a particular emotion.

Responses are tracked to the tens of milliseconds, said Eric Dolan, associate director for global strategic insights at Johnson & Johnson.

The insights can help determine "whether we want to dig in and reinforce those emotional spaces," or rethink the marketing to convey a different message, he said.

Tivity Health turned to many of these techniques for its "Silver Sneakers" fitness program for seniors, hiring Isobar to help it devise a marketing strategy based on a psychological profile of potential members.

Isobar had more than 1,000 seniors review a series of rapidly presented images and words about exercise. Based on their clicks, the report showed the population most valued exercise because it made them feel empowered or "ready to go."

The finding was important as Tivity weighed potential marketing campaigns, including "Living Life Well," which featured images of age-defying seniors, such as a grandfatherly figure balancing a toddler on his back while doing push-ups.

These ads performed better than an alternative campaign showing groups of smiling seniors together in swim class and in a gym which emphasized the social aspect of Silver Sneakers.

That campaign appeared to fall flat with seniors who view exercise as a means of staying independent, or who may be intimidated at the thought of immediately exercising in a group.

The results countered Tivity's assumption that the social aspect of the program was the "key motivating driver for members," said Elizabeth Rula, who directs research for Tivity Health. "We were a bit surprised."

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Agencies
June 18,2020

New Delhi, Jun 18: Vodafone Idea on Thursday told the Supreme Court that it has incurred Rs 1 lakh crore losses as it insisted it is not in a position to furnish bank guarantees.

A bench comprising Justices Arun Mishra, S. Abdul Nazeer, and M.R. Shah, taking up the adjusted gross revenue (AGR) matter through video conferencing, directed the telecom companies to submit their financial documents and books for the last 10 years.

Asking Vodafone if it was a foreign company, the bench said that how can the company say it would not furnish any bank guarantee.

"What if you fly away overnight in future without paying anything?" it asked.

Senior advocate Mukul Rohatgi, representing Vodafone Idea, denied his client is a completely foreign firm and cited before the bench its tie-ups and investments.

Vodafone owes over Rs 58,000 crore as AGR dues and so far, has paid close to Rs 7,000 crore.

Rohatgi contended before the court that the telecom company is in a tough situation, and cannot furnish any fresh bank guarantee, as profits have eluded the company in past many quarters. He submitted before the bench that Rs 15,000 crore bank guarantees are lying with the government, and his client's losses are over Rs 1 lakh crore.

"I cannot offer any more surety," he informed the bench.

Justice Mishra noted that this is public money and these dues should be recovered. "Do not tell us that you will pay if you were to make profits... the money must come," he noted.

Justice Shah observed that the telecom industry is the only industry which earned during the Covid-19 pandemic. "After all, this money will be used for public welfare", he said.

Rohatgi argued that his client would have to fold up if orders were issued to clear dues tomorrow. "11,000 employees will have to go without notice, as we cannot pay them," he added.

Senior advocate Abhishek Manu Singhvi, appearing for Bharti Airtel, contended before the court that out of Rs 21,000 crore AGR dues, the company has already deposited a sum of Rs 18,000 crore.

He argued that his client has given a bank guarantee, in excess of demand, to DoT, and supported the proposal for phased repayment of remaining AGR dues. He insisted that the company needs to sit down with the government and calculate the dues. Airtel owes Rs 25,976 crore after paying Rs 18,000 crore, as per the government.

Senior advocate Arvind Datar, representing Tata Telecom, informed the bench that his client has paid Rs 6,504 crore in AGR dues so far, and furnishing a bank guarantee may adversely impact investments in the sector.

The total AGR dues are close to Rs 1.5 lakh crore.

The top court will now take up the matter in the third week of July.

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Agencies
March 12,2020

Thiruvananthapuram, Mar 12: In the wake of COVID-19 outbreak, Internet service providers in Kerala have agreed to step up the network capacity by 30 to 40 per cent of the present capacity to meet the demand, especially in view of the spurt in work-at-home mode.

"The decision was made at a meeting of representatives of various telecom service providers in Kerala circle and officials of the Telecommunication Department convened by the Secretary, Electronics and IT, following a direction by Chief Minister Pinarayi Vijayan to look into the issue," said a press release by the IT Department.

The decision will be beneficial for those working in IT institutions. The government has come out with a set of suggestions to avoid social gatherings at public places in view of coronavirus spread. Telecom service providers have assured the government that they are well equipped to face the current situation.

The major part of Internet consumption in Kerala is made available through local servers. Moreover, global Internet traffic is very low as compared to the overall consumption. So, increasing the capacity won't be difficult, service providers informed.

"Complaints regarding the low availability of the Internet due to the spurt in consumption of the Internet can be made to the service providers to their complaint redressal number or inform state government call centre (155300). But complaints regarding the insufficiency in the current network infrastructure should be strictly avoided," said the release.

The IT Department will also demand daily reports from various telecom service providers. By analysing these reports, steps for remedies will be taken after bringing the sudden increase in consumption to the service providers.

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Agencies
May 30,2020

The GST Council is unlikely to make major changes in the indirect tax structure at its next meeting slated mid June.

A top government source said that the Centre is not in favour of increasing tax rates on any goods or service as it could further impact consumption and demand that is already suppressed due the COVID-19 pandemic and lockdown.

It was widely expected that the GST Council could consider raising tax rates and cess on certain non-essential items to boost revenue for states and the Centre. Several states have reportedly taken an over 80-90 per cent hit in GST collections in April, the official data for which has not yet been released by the Centre.

"The need of the hour is to boost consumption and improve demand. By categorising items into essential and non-essential and then raising taxes on non-essential is not what Centre favours. But, the issue on rates and relief will be decided by the GST Council that is meeting next month," the finance ministry official source quoted above said.

The GST Council is chaired by the Union finance minister and thus the views of the Centre play out strongly in the council meetings.

However, the Council will also have to balance the expectations of the states whose revenues have nosedived after the coronavirus outbreak and wide scale disruption to businesses while they have still not been paid GST compensation since the December-January period.

To the question of wider scale job losses in the period of lockdown as businesses get widely impacted, the official said that the Finance Ministry has asked the labour ministry to collect data on job losses during Covid-19 and is constantly engaging with the ministry to oversee job losses and salary cuts.

On restrictions put on Chinese investment in India, the official clarified that no decision had yet been taken to restrict China through the Foreign Portfolio Investment (FPI) route.

Asked about monetising government debt, the official said that the issue would be looked at when we reach a stage. It has not come to that stage yet.

In the government's over Rs 20 lakh crore economic package, the official defended its structure while suggesting that comparisons with the economic packages of other countries should not be drawn as India's needs were different from others.

"We have gone in more reforms that is needed to give strength to the economy. This is required more in our country," the official source said.

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