Neuromarketing Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Neuromarketing Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Neuro Marketing Market size is estimated at USD 1.44 billion in 2023, and is expected to reach USD 2.21 billion by 2028, growing at a CAGR of 8.89% during the forecast period (2023-2028).

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.

Neuromarketing Market Trends

BFSI End-User Vertical to Grow at a Significant Rate

• In the context of services, it is possible to judge that banking services are more risky than travel or other forms of leisure, more demanding for consumers to influence, and more difficult to grasp due to their technicality.
• Since most people utilize banking services, the providers' websites one of the communication channels must be user-friendly, clear in terms of the information being conveyed, and simple to navigate.
• Numerous banks have developed online and mobile applications that are not tailored to the users. In addition to the typical flaws of shoddy integration with the bank's other services, glitchy apps, or apps that crash without warning, even a well-functioning app may fail to consider the needs of its consumers.
• By analyzing online user journeys and comprehending the emotional experience a person gets when visiting a website or app, neuro marketers seek to minimize this as much as feasible. By cultivating sentiments of loyalty, banking providers can employ behavioral science to boost products per home, expand wallet share, and lower attrition rates.
• For instance, eye tracking is a neuromarketing research technique that can show how consumers comprehend the information they view on a website, identify usability issues, and show where there is room for improvement in the design of a bank's website.

North America is Expected to Hold Largest Market Share

• Due to the rising number of US-based market vendors and large investments in digital marketing made by North American end-user industries, One of the most significant regions in the global economy is North America global neuromarketing industry. Additionally, the US is a market pioneer in the area under study and is important in advancing technology on a global scale.
• Additionally, the area is home to numerous well-known market research firms that are important to the growth of the market, including Nielson, IQVIA, Kantar, Information Resources Inc., and Ipsos.
• Due to heavy investment in marketing techniques and brand competitiveness, consumer behaviour studies have experienced tremendous growth in the region over the past few decades. Therefore, more research firms are attempting to include physiological and neurological data into standard market research studies.
• A source of lab-based audience research, MediaScience is situated in the US and uses a variety of neuro-measures, such as biometrics, facial expression analysis, eye-tracking, response-latency testing, and EEG. In recent years, the business also worked with Hulu to research the effectiveness of commercials made for social media platforms that were later repurposed for the TV streaming service.
• Market vendors in the area are increasingly using neuromarketing strategies, which has led to a number of ground-breaking studies that are beneficial to local marketers. People unconsciously respond to close-ups of hands, for example, according to consumer neuroscience study by the US-based Mindshare, but there is a limit to how close the camera can approach.

Neuromarketing Industry Overview

The Neuromarketing Market is moderately competitive and consists of several players. Due to the growing demand for neuromarketing applications and technical improvement in emerging economies, a small number of players hold the majority of the market share. Many businesses are expanding their reach into new markets and enhancing their market presence.

In April 2023, the Nielsen Company LLC (Nielsen Consumer Neuroscience) and digitalAudience announced data measurement collaboration for open web measurement in Northwestern Europe, where Nielsen will integrate demographic data provided by the digital audience into the Nielsen Identity System to provide more scope and accuracy in Nielsen's digital ad measurement for the open web, connecting digital impressions to demographics across millions of devices.

In September 2022, Tobii partnered with HeadVantage to bring eye tracking to sports fans and athletes. Through this collaboration, sports fans can better comprehend athletes' thought processes and assist them in their training and improvement across a variety of disciplines. A significant improvement in fan experience will also occur.

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