What is neuromarketing? Most definitions describe the use of cognitive and behavioral science in market research to assess consumers' responses to marketing stimuli. To understand it, we need to look at how it works, what it is used for and why it matters in modern advertising.
Decision-making used to be simpler. Today, consumers face a flood of information. Even the simplest products come with a sea of possibilities. Navigating all those options to make a rational purchase is more than difficult; it can feel impossible. This applies to almost every product. As a result, consumers make almost all decisions subconsciously rather than through conscious reasoning. Yet most marketers still rely on traditional research methods such as focus groups and surveys. If consumers cannot consciously explain why they make a purchase, why rely only on what they say to inform marketing and advertising? Put simply, neuromarketing seeks information directly from the source of human decision-making: the subconscious. How does it work, and is it worth the investment?
Tools Used in Neuromarketing
Neuromarketers use a wide range of techniques and technologies to understand consumer behavior. These generally fall into two groups: those that measure neurological brain activity and those that infer neurological responses. The first includes EEG, fMRI and steady-state topography (SST), which directly measure activity associated with particular brain functions. SST, for example, measures the rate of electrical activity at the surface of the brain and relates changes in specific regions to measures such as engagement and memory encoding.
The second group includes biometric approaches such as eye tracking, facial coding and heart-rate monitoring. These techniques are not, strictly speaking, neuroscience. Because their data allow broader interpretation, their insights are less specific than measurements made with technologies such as SST and fMRI.
What Is Neuromarketing Used For?
Neuromarketing examines the brain to predict consumer decision-making. It can also be used in attempts to influence consumer behavior. Marketers use neural and other physiological signals to understand customers' motivations, preferences and decision processes. They also use this research to predict how a product, service or marketing campaign may perform.
Some confusion about neuromarketing comes from the difficulty of immediately seeing how it fits into existing business practice.
In 2007, researchers from Carnegie Mellon University, Stanford University and MIT Sloan School of Management used functional magnetic resonance imaging (fMRI) to examine what happened in people's brains as they made purchase decisions. By tracking which neural circuits became more or less active during the buying process, they found they could predict whether someone would buy a product.
In his 2008 book, Buyology: Truth and Lies About Why We Buy, Martin Lindstrom documented a three-year study that began in 2004. Its findings included:
- Warning labels on cigarette packs stimulated activity in a brain region associated with craving, even though participants said they believed the warnings were effective.
- Images of dominant brands such as the iPod stimulated the same part of the brain as religious symbols.
- An image of a Mini Cooper activated the part of the brain that responds to faces.
Neuromarketing has no single use case. Some of its main applications include:
- Testing product design.
- UX and website testing.
- Testing across screens and platforms.
- Optimizing TV advertising second by second.
- Rebranding.
Benefits of Neuromarketing
One of the main criticisms of neuromarketing is that it does not reveal anything new.
Many marketers believe their intuition is enough to assess an advertisement's effectiveness. At its most advanced level, however, neuromarketing is not simply a direct comparison of better versus worse. Developments in technologies such as SST take it beyond basic validation. Researchers can, for example, measure stimuli in context to help a brand understand whether an advertisement is likely to perform better on YouTube or Twitch.
- Honest feedback: Because customers cannot deliberately misrepresent neurological responses in the same way as spoken answers, these methods produce more reliable data. Even asking someone how they feel can change their feelings. Neuromarketing bypasses this problem, producing objective findings that a conventional satisfaction survey cannot provide.
- Subconscious insights: The approach reveals aspects of the subconscious and brief responses that people often do not remember.
- Cost efficiency: Neuromarketing can reduce the cost and increase the value of market research.
- Comprehensive strategies: It can be combined with traditional methods for a more complete approach to research.
The Association of National Advertisers reports that brands using neuromarketing associate it with an average revenue increase of 16.3%. Neuromarketing is presented as the only form of consumer research capable of accurately predicting purchase intent.
The Future of Neuromarketing
Overall, neuromarketing remains an emerging industry. One reason is that its technology is expensive and still developing. As it advances and becomes more accessible, more companies are expected to adopt these methods.
Virtual reality (VR) is expected to play an important part. A VR headset can be integrated with an EEG device to collect neurological data. This offers a much less expensive option than buying a standard EEG machine and can make it easier for consumers to participate in research.
VR devices can also incorporate eye trackers to monitor what customers focus on. Eye tracking and facial recognition are expected to become more common in retail and restaurants as tools for improving the customer experience.
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