The Neuromarketing market is expected to register a CAGR of 15.6%, during the forecast period (2020-2025). Neuroscience is beneficial in interpreting and studying consumer perceptions and has played a major role in enhancing the behavioral predictions of consumers. Neuroscience allows research firms and marketing companies to concentrate and customize their services according to customer expectations.
- Neuromarketing solutions are assisting the process of consumer data in a marketing environment in an extremely effective manner, due to the usage of neuroscience techniques. The increasing awareness about the potential benefits offered by these techniques is further driving the adoption of various neuromarketing solutions at a rapid pace. Major companies, such as PepsiCo, The Weather Channel, Ebay, and Diamler, have implemented neuromarketing research techniques to conduct market research, run focus groups, and design marketing campaigns.
- New technological approaches are being developed (software, applications, and user interfaces) by various vendors to enable companies to understand their customers and deliver a tailor-made marketing approach. Brands, like Campbell’s and Frito-Lay, have adopted neuroimaging to reimagine their packaging strategy. Studies have revealed that customers demonstrate different reactions to packaging, with factors, such as color, text, and imagery, influencing their purchase decisions.
- Major companies have implemented neuromarketing research techniques to measure consumer behavior for their respective products to identify the purchase decision of the consumer, by the help of various technologies, such as functional magnetic resonance imaging (fMRI), electroencephalography (EEG), eye tracking.
- The impact of Covid-19 on neuromarketing market will be significant in the short run because for doing an accurate analysis a large sample of data is required. But, with people confined into their homes because of the global lockdown, data generated from the physical world, like brick and mortar showroom, will be drastically reduced. Also, the manufacturing of neuromarketing systems will be hit because the global supply chain is disrupted and manufacturing facilities are under complete shutdown.
Key Market Trends
Eye-tracking Technology is a Key Driving Factor for the Market
- Eye tracking is a tool for understanding interaction with both online and bricks-and-mortar environments. Eye movement validates the focus and attentional bias, distribution and gaze time and pupil dilation by the consumer.
- This technology is of precious value, especially for TV advertisements, in which lots of information is generated every millisecond, thereby hindering the identification of what the viewer really liked, that actually called his attention in a positive or negative way. Therefore, eye tracking technology is expected to have a substantial market share of neuromarketing technology over the forecast period. Valuable feedback allows the end-users to strategically place the advertisement at location mostly seen by the potential customers.
- According to the Greenbook Directory Survey, currently, the eye-tracking approach is approximately 38% in-use application across the industry whereas it is expected to be approximately 19% under-consideration in near future, as compared to other approaches.
North America is Expected to Hold Largest Market Share
- The neuromarketing market in the Americas is expected to hold the largest share. Neuromarketing technology finds several applications in the Americas region, with the United States being the leading country in the region. The increasing investments in the field of neuroscience, along with the presence of a large number ofsolution providers across the region, are expected to drive the Americas neuromarketing market over the forecast period.
- Some of the prominent companies across the region have made massive investments on the study of various subjects that are related to neuromarketing, in order to understand the response to their advertising campaigns and media, which, consequently, is impacting the global market for neuromarketing solutions, remarkably. The need for studying consumer behavior is also adding to the growth of the market.
- US-based music company Steereo Inc. partnered with Immersion Neuroscience for predicting a hit song by allowing 21 people to listen first minute of seven songs from seven artists. With this technology, the company has achieved 92% accuracy in predicting Spotify streams, 72% accuracy with Shazam lookups, and 71% accuracy in predicting song completions.
The neuromarketing market is moderately competitive and consists of several players. In terms of market share, few of the players currently dominating with the rising demand for neuromarketing application along with technological advancement across the emerging economies, Many companies are increasing their market presence thereby expanding their business footprint across the new markets.
- May 2019 - Conroy Media, Ltd. entered into a multi-year agreement with Nielsen for local TV and audio electronic ratings services in multiple markets across the country. Conroy Media, a long-time Nielsen Scarborough subscriber, has expanded its relationship with Nielsen, citing a number of reasons, notably accuracy and accountability.
- April 2019 - Neural Sense partnered with Pieter Walser, a Cape winemaker from the BLANKBottle label, and using neuroscience and biometric technologies, tested 21 different white wine and 20 different red wine varietals from a number of different vineyards across the country. They assessed Walser’s emotional and cognitive responses to each taste testing experience to create the world’s first NeuroWine (one bottle of red and one white).
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