Thursday 7 June 2012

The Iceberg Atop Your Shoulders: Neuromarketing in the global economy

The European Business Review
58 March - April 2011
The Iceberg Atop Your Shoulders:
Neuromarketing in the global economy
By Dr. A. K. Pradeep
When I am asked why measuring the brain is so important
to marketing success, I often answer with a single statistic:
95%.
That figure represents a solid and widely-accepted estimate of
how much of our daily decision-making is performed at the subconscious
level of our minds. As humans, we are under the constant
misapprehension that we make all of our decisions consciously (and
ideally with forethought and wisdom, of course!)
The truth is actually far different. The portion of our brain functions
that involve conscious decision-making is only about 5%; the rest is
done on a continuous basis by the ‘iceberg’ of our subconscious—
that very large portion of our minds that lies submerged below our
consciousness. It is critical to understand that we cannot access nor
influence those subconscious processes—they are simply beyond
our reach, given how our brains are structured and how they function.
As I explain in my book, “The Buying Brain: Secrets for Selling to the
Subconscious Mind”, this is actually necessary for our existence—if
we were consciously aware of the vast amount of data flowing into
our brains every second through our five senses (approximately 11
million bits), and the comparatively tiny amount we can actually process
consciously—about 40 bits a second—we would be so overwhelmed
that we would be permanently frozen into inaction.
Why is this knowledge essential to marketers? Why is measuring
the brain the most accurate, reliable, and actionable form of marketing
research? For three primary reasons, as well as many others. (In a
moment, I will explain three fundamental brain measurement metrics
that are critical to understand and leverage for marketing success.)
The three primary reasons are that the subconscious is where
the core marketing objectives of initial product interest, purchase
intent, and brand loyalty are formed.
The brain, as I like to describe it, is an incredibly complex series
of neural networks. Specific regions and structures—many of which
perform multiple functions—are interconnected to (if you will pardon
the expression) a mind-boggling degree. Today, thanks to the
amazing advances that have been made in neuroscience, we understand
a great deal about how these networks operate, and we are
able to capture and analyze the brain’s responses to stimuli at the
subconscious level.
What does that mean for marketing, and marketing research? To
use the same phrase, a great deal. Now, we can measure—with extreme
precision, because we capture brainwave activity at such enormous
volumes, so fast—how much attention consumers are paying
to a stimulus; to what degree they are emotionally engaged by it;
and to what extent they are transferring data into memory.
At NeuroFocus, these are what we call our primary NeuroMetrics.
They are vital to marketing and marketing research for a very basic
reason. If a consumer does not notice much (or even anything) about
a stimulus, they will not be emotionally engaged by it. If they are not
emotionally engaged by it, they are not likely to remember it. And
if they do not remember it, they are not likely to form an intention
to buy.
In addition to an Overall Effectiveness score, which is developed
Now, we can measure how much attention
consumers are paying to a stimulus; to
what degree they are emotionally engaged
by it; and to what extent they are
transferring data into memory.
www.europeanbusinessreview.com 59
I described. Because we measure brainwave
activity at 2,000 times a second, across the
full brain, using high-density arrays of highly
sensitive EEG sensors, and we correlate that
massive amount of data with eye tracking
and other biometric measurements, we arrive
at an extremely detailed and precise picture
of just how effective a stimulus is.
At NeuroFocus, we concentrate on studying
subconscious responses to brands,
products, packaging, in-store marketing,
and advertising. Within each of those broad
categories, we have dozens of neuromarketing
products designed to capture even
more detailed information. We can analyze
the effect that specific attributes have on
brand perception (brand ‘lift’). We measure
the range of price points that consumers will
find acceptable. We detect how music impacts
advertising performance. We discover
how effectively package designs lead to purchase
intent. We isolate the specific aspects
of a product’s consumption that create what
we call Neurological Iconic Signatures—the
‘high points’ registered in the consumer’s
subconscious as he or she actually uses
or consumes a product. (These can be extremely
valuable applied to everything from
product design and formulation to packaging,
advertising, and POS marketing). That is
just a small sampling of the research studies
we conduct for clients on a daily basis in our
NeuroLabs around the world.
The global mind
Another question I am often asked is, “can
neuromarketing learnings be applied across
borders?” The answer is yes—and there are
two basic reasons for that. The first is based
on the neuroscientific fact I cited above. The
EGG technology we use captures data very
early in what is called the Cognitive Timeline,
which is simply the amount of time it takes
the brain to:
by combining these three primary Neuro-
Metrics, we derive three additional measures:
purchase intent, novelty, and awareness.
By way of explanation, novelty measures the
degree to which a stimulus stands out—for
example, how well a package design ‘pops
out’ on a store shelf. Awareness is the degree
to which messaging is understood.
The brain whispers; we listen
For marketers and market researchers, the
goal has always been to gain the most deep,
accurate, and reliable understanding of how
consumers respond to stimuli. But conventional
forms of market research such as
surveys and focus groups have well-known
structural flaws and shortcomings. There are
basic neurological reasons why this is so.
Fundamentally, the way that the human
brain is structured and how it functions
means that, despite their best intentions,
consumers are unable consistently to communicate
accurately and reliably about how
they truly feel or what they remember about
a particular stimulus. So-called ‘articulated
responses’—answers to questions gained
through surveys and focus groups—are affected
by a whole host of factors beyond
consumers’ conscious control. These factors,
such as language, education, ethnic and cultural
backgrounds, and others can influence
and distort articulated responses. A core
neurological fact is that when someone is
asked a question about something that they
experienced, in the course of formulating an
answer the brain actually alters the original
‘data’ it recorded. So it is very difficult to discern
accurately and reliably how consumers
responded to a stimulus by simply asking
them about it.
A deep dive to the truth
In contrast, EEG-based measurement of responses
at the subconscious level of the
brain does provide highly accurate, reliable,
and actionable data. These measurements
are made at such an early stage of the brain’s
reaction to a stimulus that they are not affected
(influenced or distorted) by the ‘external’
factors I mentioned above.
The critical advantage for marketers and
market researchers is that this data reveals
precisely how the consumer responded,
across the primary and derived NeuroMetrics
- register a stimulus through one or more of
the five senses;
- form an initial reaction to that stimulus;
- and then formulate a response to that stimulus
in the way of motor responses (speech
and other muscle movements).
Full-brain EEG-based brainwave activity
measurement is made at the second (reaction)
phase of the Timeline. That stage occurs
before the influences of culture, language,
education, and other factors come into play.
If you’re curious about how long the Cognitive
Timeline is, in most instances the entire
process is over in just one second or so. Our
EEG measurements generally occur between
300-500 milliseconds—or one-third to onehalf
a second.
The second reason is equally fundamental
to the human race. The fact is, our brains are
far more alike than they are different. While
some differences do exist—between young
(childhood and teenage) and older (generally,
over 60) brains, and between male and
female brains, neurologically our brains are
structured and function in a basically uniform
fashion. This universality means that research
findings from EEG-based neuromarketing
studies hold true regardless of national origin
or education or language, and the other factors
that impact results from traditional market
research methodologies.
This leads to the answer to another FAQ
about neuromarketing: how we can use the
sample sizes we do and still gain more precise,
reliable, and actionable results than conventional
research? The fact is, for the two
foundational reasons I explained, EEG-based
full-brain measurements require one-tenth
the sample size required by conventional
techniques. Consider that in the world’s leading
neuroscience laboratories, landmark research
studies into the brain and its functions
commonly use sample sizes of a dozen or so
subjects. The results are fully scientifically/
When someone is asked a question about something that
they experienced, in the course of formulating an answer
the brain actually alters the original ‘data’ it recorded. So it is
very difficult to discern accurately and reliably how consumers
responded to a stimulus by simply asking them about it.
The European Business Review
60 March - April 2011
gathered by the EEG sensors during studies)
is the same amount of data that one neuromarketing
company uses as its entire data
set. The phrase ‘garbage in, garbage out’ applies
well in this instance.
The second core point is that measuring
directly at the brain is the only reliable means
to ascertain how the subconscious is responding
to a stimulus. There are companies
that proffer various biometric measurements,
such as heart and respiration rates, and the
claim is that these somehow provide an accurate
picture of how the brain is responding
in real time.
The problem is, those biometric responses
can take up to five or more seconds to
fully materialize after the brain initially reacts
to a stimulus. The actual response rate varies
from biological system to biological system;
as well as from individual to individual. One
company claims to somehow systematically
and reliably ‘link’ these varying biometric responses
to the brain’s responses.
The simple fact--and the ‘caveat emptor’
for marketers considering relying exclusively
on biometric measurements--is that there is
no such neuroscientifically sound system.
It is not possible to establish a consistent
temporal link across and between various
biological systems’ responses and the brain’s.
The brain makes behavior; therefore, for the
most accurate and reliable results, you must
measure directly at the brain (and remember:
the full brain!)
How to use Neuromarketing
Armed with the fundamental knowledge
outlined above, how can companies make
the most effective use of EEG-based full brain
neuromarketing research for marketplace
success?
Obviously, one could write a book on the
subject—which I did. But here I will touch
upon some key learnings derived from the
thousands of neuromarketing studies that
we have conducted for clients around the
world. These findings are ones which every
business can apply almost immediately.
statistically valid—and the same holds true
for neuromarketing studies.
The whole brain, and nothing
but the whole brain (the
body need not apply)
As neuromarketing continues its rapidlyaccelerating
rate of adoption by companies
worldwide, and various claims are made by
one so-called ‘neuromarketing’ company or
another, it becomes increasingly critical for
marketers to understand the underlying science.
There are two abiding truths to be
learned:
- there is no substitute for full-brain measurement
- the brain makes behavior; the body is a
lagging indicator
As I described, the brain is a highly complex
series of neural networks. These networks
connect various structures and regions
of the brain. Many of these structures
perform multiple functions.
For this reason, the critical thing for marketers
to understand is that it is absolutely
vital to measure across the full brain. Unless
you do measure the full brain’s responses,
you will miss very large amounts of the
vital interactions that occur among these
networks. Your data is going to be woefully
incomplete, and you will not gather nearly
enough brainwave activity to render the
most accurate, reliable, and actionable results.
You will have a far higher ratio of spurious
‘noise’ (muscle activity) to actual brainwave
activity. In fact, depending on how few
sensors are used and where they are placed,
you may very well end up with largely muscle
activity, and little to no actual brainwave
activity at all as your database.
To put this into stark perspective, at NeuroFocus
the amount of data that we routinely
discard as this ‘noise’ (which represent
normal artifacts such as eye blinks that are
Faces are Fundamental: the brain simply
loves faces. Following many millennias’
worth of neurological development and refinement,
we are built to search facial expressions
for indications of intent. Are you friend
or foe? Potential lover/mate? One of our core
recommendations to clients is: find ways to
focus on faces in your packaging, advertising,
in-store displays, and other marketing
materials. Your customer’s brain will (subconsciously)
thank you for it.
Curves are Critical: the brain dislikes
sharp edges and straight lines. To the limited
extent they exist in nature itself, they represent
a threat to the subconscious mind. Such
features can cut, maim, even kill—and they
automatically invoke what is known as an
‘avoidance response’ deep in the brain. We
are driven away from them, without even being
aware of it.
How does this apply in the marketing
realm? Next trip to the supermarket, take a
look at the end cap—the arrangement of
products at the head and foot of aisles. Note
especially the sharp corners of the shelves.
This is some of the most prime real estate in
the retail realm—and it is fundamentally (if
unintentionally) designed to drive consumers
away. We always recommend to clients
that they explore every way they can to create
product displays and retail environments
that feature curves. The consumer’s brain will
breathe a subconscious sigh of relief.
Images on the Left, Words on the Right:
The brain is built to prefer this presentation.
Apply it to everything from advertising to
packaging to website designs and much
more.
MNEA is Meaningful: The brain prefers
four things in particular: motion, novelty,
error, and ambiguity. We are built to notice
things in motion (in mankind’s earliest days,
this enhanced our ability to recognize potential
prey, and predators). Even in static
circumstances (a print ad or POS display, for
example), the representation of motion can
help attract the brain’s attention.
Similarly, we are built to notice and value
The critical thing for
marketers to understand
is that it is absolutely vital
to measure across the
full brain.
The brain dislikes sharp edges and straight lines. To the
limited extent they exist in nature itself, they represent a
threat to the subconscious mind.
www.europeanbusinessreview.com 61
clients with the same superior scientific accuracy
as the wired model does now, but will
add even greater flexibility and will also make
possible whole new applications, which we
will also be announcing very shortly.
If I have conveyed that neuromarketing is
a category on the move, I have succeeded.
Companies and consumers stand to reap rewards
through better understanding of how
the brain responds, and what it loves.
About the author
Dr. Pradeep founded NeuroFocus in 2005.
Now the company ranks as the world leader
in the fast-growing neuromarketing research
field, with numerous patents for its advanced
technologies and a blue-chip client list representing
Fortune 100 companies in dozens
of categories.
The Advertising Research Foundation
honored him with the 2009 Great Minds
Award Grand Prize, which recognizes “an individual
who brings excellence to advertising
research in the category of research innovation.”
He was also named “2010 Person of
the Year” by the USA India Business Summit
for his “impressive innovations and achievements
in the field of neuromarketing.”
His new book The Buying Brain: Secrets to
Selling to the Subconscious Mind was published
in 2010.
Dr. Pradeep holds a Ph.D. in engineering
from the University of California at Berkeley.
expression will capture the subconscious’ interest
more.
These, and a whole host of other neurological
learnings and best practices, underlie
and underscore the value of neuromarketing
in today’s competitively heightened, global
marketplace. Knowing, with clarity and confidence,
how the subconscious will respond to
a new product introduction; a new ad campaign;
a revamped logo or package design;
the roll-out of in-store marketing materials,
and similar big-ticket investments is one of
the advantages of applying neuromarketing.
The savings, in both time and money, are
considerable. The competitive advantage of
entering the marketplace certain that your
brand, product, packaging, retail marketing,
and advertising are going to receive the subconscious’
acceptance is obvious.
The future unfolding
Neuromarketing is rapidly coming into its
own as the 21st century proceeds. Some exciting
advances are being made as I write this.
First, neuroscience itself is recording amazing
new discoveries about the human brain.
Very promising progress is occurring across
many fields simultaneously. One which we
at NeuroFocus are very interested in is BCI, or
Brain Computer Interface. Knowledge of the
brain’s circuitry is being combined with advanced
computer science to devise means of
marrying the two to help overcome paralysis
and ‘locked-in’ syndrome.
In the commercial sector, we have recently
unveiled the world’s first neuroscience-based
3D virtual reality in-store research methodology.
N-Matrix 3D offers companies the capability
of testing consumers’ subconscious responses
to everything from package designs
to product and aisle displays, store layout
and signage, marketing materials and much
more, all in a hyper-realistic environment designed
to appeal to the brain as ‘authentic’, all
without having to set foot in an actual store.
This is an example where significant savings
can be had, at the same time that the most
accurate and reliable research results are obtained.
Another major breakthrough will be in
wireless technology, which we are pioneering
and will be announcing as this article goes to
print. This ‘next generation’ of EEG-based fullbrain
neuromarketing research will provide
novelty. We seek out what is new in our environment,
or we pay particular attention to
things that stand out in our visual field. Marketers
who find ways to make their package
designs ‘pop out’ on the shelf; or who call attention
to product features by applying color
highlights in an ad; or similar devices that
grab our attention will appeal to the subconscious.
Error seems like an odd thing to recommend
for marketing purposes, but the brain
loves solving simple puzzles; especially visually-
based ones. By injecting a certain element
of ‘error’ in some marketing materials,
the brain’s attention and engagement can
be gained. An example I use in “The Buying
Brain: Secrets for Selling to the Subconscious
Mind” is a print ad showing a small bird’s body
with a small dog’s head attached. The brain
does not recognize the existence of such a
creature—so additional cognitive resources
are immediately applied to try to ‘solve’ this
visual puzzle. The result is, more time spent
focusing on the ad.
The best expression and explanation of
the Ambiguity factor can be found in one
of the world’s most famous paintings. For
centuries the Mona Lisa has captivated our
imaginations. Generation after generation
has pondered her face and sought to divine
the answers to some very basic questions:
what is she thinking? Is she smiling, or not?
Why? The underlying reason for our fascination
is the fact that the brain is intrigued
by the less-obvious. We are drawn to try to
understand the meaning behind her ambiguous
expression. It is, in effect, a puzzle
which the brain seeks to solve. So our neuromarketing
counsel to clients is: dispense
with the smiling models in your packaging
and in your ads; a more ‘neutral’, ambiguous
The brain loves solving
simple puzzles; especially
visually-based ones.
By injecting a certain element
of ‘error’ in some
marketing materials, the
brain’s attention and engagement
can be gained.

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