Global Neuromarketing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global Neuromarketing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Neuromarketing Market is expected to grow at a CAGR of 8.9% during the forecast period. 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.

Key Highlights

• 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 like PepsiCo, The Weather Channel, eBay, and Diamler have implemented neuromarketing research techniques to conduct market research, run focus groups, and design marketing campaigns.
• Various vendors are developing new technological approaches (software, applications, and user interfaces) 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 react differently to packaging, with 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 consumer's purchase decision with the help of various technologies, such as functional magnetic resonance imaging (fMRI), electroencephalography (EEG), and eye tracking.
• Privacy and data security can emerge as major concerns in many neuromarketing techniques, as all the data derived after scanning the brain can get leaked and lead to vulnerable situations. This acts as a restraint on the market growth.
• The impact of COVID-19 on the neuromarketing market was significant in the short run, as for an accurate analysis, a large sample of data is required. However, with people confined to their homes because of the global lockdown, data generated from the physical world, like brick-and-mortar showrooms, were drastically reduced. Also, the manufacturing of neuromarketing systems was slightly affected because the global supply chain was disrupted, and manufacturing facilities were shut down due to regulations imposed by various international governments.

Key Market TrendsBFSI End-User Vertical to Grow at a Significant Rate

• In the case of services, banking services, compared to tourism and other leisure services, can be evaluated as having higher risk, harder to influence by the consumer, and harder to understand.
• Given that most of the population uses banking services, the providers' websites - one of the communication means - have to be user-friendly, easy to understand in terms of the transmitted information, and easy to follow.
• Many banks have created web and mobile applications that are not optimized for people using them. Moreover, the usual bugs of poor integration with the bank's other services, glitchy apps, and apps that shut down without reason, even a well-performing app from a functionality perspective, can fail to consider users' requirements.
• Neuromarketers aim to reduce these problems as far as possible by assessing online user journeys and understanding the emotional experience a user has while navigating a website or app. Banking providers can use behavioral science to grow wallet share, increase products per household, and reduce attrition rates by engendering feelings of loyalty.
• Neuromarketing research techniques, such as the eye-tracking technique, can provide evidence on how consumers view the information presented on the website, the comprehension level of the considered information, indicate usability issues, and contribute to the improvement of banks' webpages design.

North America is Expected to Hold Largest Market Share

• North America is one of the most significant regions in the global neuromarketing market, owing to the growing number of US-based market vendors and high investment in digital marketing by North American end-user industries. Furthermore, the US is also a pioneer in the studied market and plays a significant role in bringing technological advancement to the global market.
• Furthermore, the region is home to globally renowned market research companies, like Nielson, IQVIA, Kantar, Information Resources Inc., and Ipsos, which also play a significant role in market development.
• Consumer behavior studies have gained massive traction in the region in the past few decades, owing to high investment in marketing strategies and competition among brands. Therefore, more research companies seek to augment traditional market research studies with physiological and neural data.
• US-based MediaScience is a provider of lab-based audience research, incorporating a range of neuro-measures, including biometrics, analysis of facial expressions, eye-tracking, response-latency testing, and EEG. In recent years, the company also collaborated with Hulu to study the efficacy of ads created for social media platforms when repurposed for the TV streaming platform.
• The market vendors in the region are increasingly utilizing neuromarketing techniques, which have resulted in various innovative studies helping regional marketers. For instance, according to consumer neuroscience research conducted by the US-based Mindshare, close-ups of hands resonate with people subconsciously, but there is a limit to how close the camera can get.

Competitive Landscape

The Global Neuromarketing Market is moderately competitive and consists of several players. Regarding market share, few players dominate with the rising demand for neuromarketing applications and technological advancement across emerging economies. Many companies are increasing their market presence and expanding their business footprint across new markets.

• June 2021 - Tobii Pro, a provider of eye-tracking research solutions, introduced a new mobile capability for their marketing and advertising research platform, Sticky by Tobii Pro. With the new mobile capacity, advertising and packaging researchers could gather insights into smartphone consumer behavior.
• March 2021 - Shimmer Research, a provider of wearable technology for research applications, announced the launch of its NeuroLynQ@Home remote psychophysiological monitoring system, that allows participants' emotional responses to entertainment and marketing materials to be evaluated from the comfort of their own home.
• January 2021 - Uniphore acquired Emotion Research Lab, a video and emotion AI company. Emotion Research Lab is a leading software developer that uses AI and machine learning to identify sentiment and engagement levels in real-time over video-based interactions. When combined with Uniphore's CSA solutions, which understand, analyze, and automate voice conversations in real time, Emotion Research Lab's extensive video-focused AI capabilities will deliver entirely new applications and experiences across the enterprise.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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