PART I: Neuroscience and ‘The Moment' we Changed Everything

PART II: Realtime Resonance with TV Brand Effect

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A standard creative process

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~ 5 - 6 month process

M essaging Early S tage TestingF ina l-S tage

C reative O ptim ization O n-a ir D ata

Brand team determines messagingAgency develops early-stage creative

Creative ideas go through testingAgency produces final-stage creative

Final creative optimizedCreative is on-airCampaign data

TIMELINES

BUDGETSEFFICIENCIES

Industry pressures tightening

Shrink it down

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DEEP INSIGHTS REAL TIME DATA

DRIVE ROI

M essaging

Testing

O ptim ization

O n-air

F inal-S tage C reative

Theoretical Process

Where Lowe’s is Heading

THE MOMENTYou realize you should pilot new

methodologies.

< < < Insert Example Ad > > >

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video

Lowe’s to select representative campaign ad

Partnering with Nielsen

NEURO

TVBEMIX

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DEEP INSIGHTS

REAL TIME DATADRIVE ROI

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Using neuroscience to make every moment count

Not Sacrificing Deep Insights

NEURO

Measuring the consumers nonconscious response

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Predicting outcome with nonconscious metrics

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MEMORYThe process of storing and retrieving discrete pieces of information about a brand, product, or messageEMOTION

Set of relatively brief, coordinated brain, autonomic and behavioral changes in response to information

ATTENTION The act or state of applying focus to something; a selective narrowing of brain resources

Understanding the campaign structure

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0

5

10

9 10 11 12

Seconds

0

5

10

5 6 7 8 9

Seconds

Focused processing with payoff

focused

Emotion Attention Memory

THE MOMENT

How do Consumers process the pause-punchline structure?

Effortless processing with payoff

Insert “moment” reel

effortless

“The m om ent you realize… ” “The m om ent you realize… ”

Understanding the creative assets –the jingle

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0

5

10

5 6 7 8 9 10 11 12 13 14 15 160

5

10

9 10 11 12 13 14 15 16

Lowe’s whistle-theme

Scene Transition

Memory

Insert audio clip

No whistle-theme

Lowe’s Solution(in-store sequence)

Scene Transition

Lowe’s Solution(in-store sequence)

? ?

Understanding the right use of end cards

How do different End Card deal treatments impact consumer engagement and motivations all while building mental availability for Lowe’s?

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End CardDeal Info

Identifying the efficacy of …deal info by product category

type of deal (monetary vs. service)style of voice overcreative elements

visual layout and format

Understanding how to more effectively cut-down

Scene in Neuro Compression Scene in Existing cut down

Ad Second1

Ad Second7

Ad Second13

Ad Second19

Ad Second25

2 3 4 5 6

8 9 10 11 12

14 15 16 17 18

20 21 22 23 24

26 27 28 29 30

Agency selecting

only ~60% of the most salient and engaging moments from the 30 second ad for the 15 second ad.

PART II: Realtime Resonance with TV Brand Effect

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Partnering with Nielsen

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TVBE

Using TVBE to make every moment breakthrough

Ensuring every breaks through in 2 ways:

Take action in real time• Change media weight• Adjust flighting schedule • Remove or adjust spots (15s vs. 30s)Establish benchmarks and norms of what success looks like• Lowe’s benchmarks of creatives compared to

each other• Category benchmarks of Lowe’s creatives

compared to competitors

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moment

TV Brand Effect captures the intersection of creative quality, media execution and external influences

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CREATIVE QUALITY- How strong is my creative at breaking through?

MEDIA SUPPORT + FLIGHTING - Do I have enough media weight? Not enough?

PROGRAM QUALITY / SYNERGY- How well are viewers engaged with a TV program when my ad runs?

COMPETITIVE INTERACTION - Is my ad being confused with competition? Are they winning SOV?

DR

IVER

S O

F AD

PE

RFO

RM

ANC

E

TVBE uniquely addresses today’s breakthrough challenge

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TVBE measures real world performance of the full spectrum of TV content, both in-program and in-commercial pod, via custom

questions 24 hours after natural viewing

IN PROGRAM

PROGRAM CONTENT

IN-PROGRAM CONTENT

COMMERCIAL POD

HYBRID STANDARD AD

Replace with NCAA images from this past

tournament

How it works: The impact of TV ads is measured via surveys on Poprewards platform

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The TVBE survey reflects viewers’ ability to remember ad content next-day by asking viewers 5 simple questions

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Establishing benchmarks and norms: Lowe’s to Lowe’s

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0

500

1000

0%

10%

20%

30%

Feb Mar Apr

Brand C am paign G RPs (2018) Brand C am paign G RPs (2017)

Brand C am paign (2018) Brand C am paign (2017)

2017 Brand BM Norm = 21%

Ad P

erfo

rman

ce

Brand Campaign 2018 vs. 2017 Monthly Trended Brand Memorability

Media W

eight (In-Coverage GRPs)

Source: Nielsen TV Brand Effect, 02/07/17 – 04/30/18. Norms: 02/01/17 – 01/31/18. Media weight source: TVBE in-coverage GRPs

Optimizing in flight

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Q1’18 Brand Ad Performance by CreativeCreative Sample Ad

MemorabilityBrand

LinkageBrand

MemorabilityMessageLinkage

LikeabilityLinkage

Shopping Intent Linkage

Creative A 1,000Creative B 1,000Creative C 1,000Creative D 1,000Creative E 1,000Creative F 1,000Creative G 1,000Q1’18 Brand Campaign 15,0002017 Brand Norm 40,000

Source: Nielsen TV Brand Effect, 02/01/18 – 04/30/18. Norms: 02/01/17 – 01/31/18.Green and red shading indicates significance above or below the 2017 Brand Norm at a 90% confidence level

Brand A

Brand B

Brand C

Brand D

20 %

30 %

40 %

50 %

60 %

70 %

20 % 30 % 40 % 50 % 60 %

Establishing benchmarks and norms: Lowe’s to competitors

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Bra

nd L

inka

ge

Q1’18 Competitive Ad Performance by Brand

Ad Memorability

<<50% 2017 Category BL Norm

^^38% 2017 Category AM Norm

%’S AND BUBBLE SIZE REFLECT SHARE OF VOICE AMONG

COMPETITORS SHOWN, BASED ON GRPS INCLUDED WITHIN TVBE-

COVERED NETWORKS/DAYPARTS

Source: Nielsen TV Brand Effect, 02/01/18 – 04/30/18. Norms: 02/01/17 – 01/31/18.

H igh A d M em orabilityH igh B rand L inkage

Low A d M em orabilityH igh B rand L inkage

H igh A d M em orabilityLow B rand L inkage

Low A d M em orabilityLow B rand L inkage

Establishing benchmarks and norms: Lowe’s to competitors

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Brand A Jan – Oct vs. Nov – Dec Brand Response Distribution

53% 46%54%

35%

29%27%

7%17% 9%

5% 8% 10%

20 17 Bra nd AJan - Oct

20 17 Bra nd ANov - Dec

20 16 Bra nd Norm

B rand A

B rand B

B rand C

B rand D

Source: Nielsen TV Brand Effect, 01/01/17 – 12/31/17. Norms: 01/01/16 – 12/31/16.

Brand Linkage sample: 2017 Brand A Jan-Oct = 4,000; 2017 Brand A Nov-Dec = 1,500; 2016 Brand Norm = 20,000

Percentages represent the brand response

d istribution of view ers that w ere ab le to recall

the creative content

○ = indicates correct response

A solution for the creative process at Lowe’s

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NEURO

Using Neuroscience to inform the

frameworks of a campaign.

Understand the deep insights of what will

or will not work in our “Moments” campaign

or any other new campaigns in the

future.

TVBE

Creative and campaign-level data are collected in real-time to understand

the on-air performance of

Lowe’s brand and creatives relative to the competition, and

improve Lowe’s media execution.

MMM

Understand how the actions taken and

insights applied have succeeded for

Lowe’s and how they contribute to overall

ROI.

Validation Framework

© 2017 Lowe’s. All rights reserved. CONFIDENTIAL 27

NEURO

TVBEMIX

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