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Reproduced with permission of Admap, the world’s primary source of strategies for effective

focustheconsumerbrain                              advertising, marketing and research. To subscribe visit www.admapmagazine.com.
                                                   © World Advertising Research Center




Neuromarketing: the future
of consumer research?
With the advent of brain scanning as a research tool, Peter Laybourne and
Dr David Lewis, Neuroco, discuss how marketers can benefit from new techniques


N
        EW METHODOLOGIES COME
        and go. In an era where technical
        advances have seen sweeping
changes in how we communicate, the
use of new brain-scanning techniques
to probe true emotional responses to
advertising could become a critical guide
to creative strategy development and
implementation.

Scam?
A few months ago the highly respected,
and for non-specialists largely incompre-
hensible, Nature Neuroscience, ran an
editorial provocatively entitled ‘Brain
scam?’ (1).
    In it the author commented that for
many neuroscientists: ‘Neuromarketing
is little more than a new fad exploited by
scientists and marketing consultants to      Brain wave: a shopper is wired up to an EEG
blind corporate clients with science.’
    Certainly the question of whether an     industry. In the 1980s, the response               So what exactly is neuromarketing
investment in this emerging new              ranged from extreme scepticism to out-          and how might it add to the effectiveness
research methodology will enhance            right hostility, with many condemning it        of brand and advertising communica-
advertising effectiveness or merely add an   as either a threat to creative freedom or       tions?
unnecessary cost to the budget seems         an assault on traditional methodologies.           Two main approaches are currently
likely to engage the attention of industry      Since then, while techniques such as         being followed, one called Functional
professionals and their clients over the     the use of bricolage and semiotics have         Magnetic Resonance Imaging (fMRI) and
coming months.                               been hailed as new-wave approaches to           the second Quantified Electroen-
                                             qualitative research, the sad truth is that     cephalography, or QEEG for short.
Expanding horizons                           none of these innovations is either                Although we do not believe, for
After decades of being restricted to         outstanding or even new.                        reasons to be explained in a moment,
hospitals and medical laboratories,             Further, Dr Bruce Hall (2) commented         that fMRI will ever make a significant
neuroscience is set to enter the world of    that over the last 25 years: ‘Copy-testing      contribution to neuromarketing, in view
brand communications and market              has not benefited from significant              of the extensive publicity it has received
research in a big way.                       innovation … Issues that emerged over           within the industry we will briefly
    There are three main reasons why this    half a century ago continue to divide the       describe what is involved.
is happening.                                industry.’
1. More knowledge about how the brain                                                        fMRI
works has been gained during the last        Goodbye to all that                             In fMRI a powerful magnet and radio
ten years than in the entire history of      Neuromarketing promises to change all           waves are used to create high-resolution
neuroscience.                                that by enabling us to see in real time and     images of the living brain. The subject’s
2. Developments in medical electronics       with great spatial accuracy what is             head is placed inside a giant magnetic
and software design enable us to observe,    happening below the level of normal             ring, which causes protons within the
record and analyse brain function more       awareness, to explore the mysterious            atoms that make up the brain to align
easily and in greater detail than has        world of the unconscious mind and gain          with the magnetic field. A pulse of radio
previously been possible.                    precious insights into how and why              waves is directed at the head, some of
3. These advances have been accompa-         consumers respond as they do to any form        which is absorbed by protons, knocking
nied by a sea-change in the attitudes of     of brand communication, but particularly        them out of alignment. In realigning
many in the marketing communications         advertising.                                    themselves they emit radio waves, which

28 Admap • May 2005                                                                                         © World Advertising Research Center 2005
Peter Laybourne is             Dr David Lewis is research
                                                                            chairman of Neuroco,           and development director
                                                                            a neuromarketing agency.       at Neuroco.


are picked up by a receiver and sent to a          tests. Similar studies, conducted at the     prove so disagreeable they are unable to
computer that constructs the brain                 Swinburne University of Technology in        continue. At best scanners are cramped
image. Since different parts of the brain          Melbourne, Australia, have shown that        and noisy affairs – the experience can best
respond to the radio waves differently             successful advertisements generate both      be compared to lying in a dustbin, in a
and emit slightly different radio signals,         high levels of emotional engagement and      heavy hailstorm. Then stimulus is directed
the computer is able to distinguish one            long-term memory encoding.                   onto the volunteer’s limited field of
brain structure from another.                         While fMRI provides a detailed record     vision by means of either a mirror or
   The resulting changes in the MRI                of brain activity at any particular time     of goggles equipped with miniature
signal are typically displayed as a patchy         the procedure is fraught with problems       television screens.
area of colour, representing the active            when it comes to using it in neuro-             The individual is prohibited from
brain area superimposed upon a conven-             marketing. The scanners are large,           responding spontaneously to what
tional, high-resolution, grey-scale image          cumbersome pieces of equipment, which        he/she is seeing and hearing, since any
of the subject’s brain.                            must be used within specialist locations.    sudden movement distorts the scan.
   In principle, fMRI can be used to               They are also costly – around £500,000 –        All of this means the surroundings are
observe activity within any part of the            and have to be operated by highly skilled    highly artificial and seem likely to
brain as it responds to almost any kind of         technicians, with the result that putting    introduce a significant bias into any
brief stimulation, ranging from sounds to          a single subject through a scanner has       results. As the Nature Neuroscience editorial
visual images to gentle touching of the            been reported as costing around £1,200,      commented, the results are: ‘Invariably
skin.                                              with the bill for large-scale studies        produced under controlled laboratory
   For example, at Baylor College of               exceeding £125,000.                          conditions and it is a major leap to extrap-
Medicine in Houston, neuroscientists                                                            olate to a genetically and culturally
have shown that the brain registers a              Disagreeable experience                      diverse population of people in an almost
preference for Coke or Pepsi similar to            Only one respondent can be tested at a       infinite variety of real world situations.’
that chosen by the subjects in blind taste         time and for many the experience may
                                                                                                QEEG
 FIGURE 1                                                                                       In contrast, QEEG uses an Electroen-
QEEG brain activity: attention vs inattention                                                   cephalogram (EEG) to detect and analyse
                                                                                                electrical activity in the brain (see Figure 1).
                     Inattention                                Attention                          Developed from the mid-1920s
                                                                                                onwards, EEG has long been widely used
                                                                                                to diagnose such neurological conditions
                                                                                                as epilepsy and brain tumours.
                                                                                                   Its use in market research goes back to
                                                                                                at least the early 1970s, when a single-
                                                                                                subject EEG study was conducted in an
                                                                                                attempt to uncover differences in the way
                                                                                                the brain responds to print or television
                                                                                                advertising. Improvements in technology
                                                                                                during the 1980s saw a surge of interest in
                                                                                                the market research potential for EEG,
                                                                                                with the publication of such papers as:
                                                                                                ‘Brain-activity responses to magazine and
                                                                                                television advertising’ (3) and ‘EEG
                                                                                                activity and the processing of television
                                                                                                Commercials’ (4).
  QEEG results can be presented as coloured maps of the brain, each depicting second-              A major drawback of these early studies
  by-second changes in mentation. Red, yellow and orange indicate high levels of activity
  over the ‘alpha’ range of frequencies (which the brain uses to idle itself) (8–14Hz), blues
                                                                                                was that output from the bulky, medical
  and greens significantly less alpha. The first image shows a more relaxed and inattentive     EEG machines comprised squiggly lines
  brain response than the second.                                                               drawn on a continuously moving band of
                                                                                                graph paper, which could be analysed

© World Advertising Research Center 2005                                                                                   May 2005 •   Admap 29
focustheconsumerbrain

only by visual inspection. While the
skilled eye of an experienced EEG operator         ‘The question is                                due to misleading and erroneous analysis
                                                                                                   of the results. Executed correctly by those
would have little difficulty in identifying,
for example, the unique patterns of spikes
                                                   whether an                                      with experience and intuition, it is to
                                                                                                   do with analysing minds and getting a
produced by epilepsy, their use as a neuro-        investment in this                              deeper understanding of emotional
marketing tool was obviously limited.                                                              response. In effect, providing a richer and
   Within our technologically advanced             emerging new                                    more meaningful vein of thinking than
age the approach being pioneered by                                                                current methodologies, which can be
Neuroco lies in the ease with which                research                                        used to inform a company’s marketing
information can be both obtained and
analysed. New EEG equipment is light
                                                   methodology will                                communications. Hence, brain data
                                                                                                   should rarely be considered in isolation.
and portable, making it possible to record
brain activity (on an internal 30-hour
                                                   enhance advertising                                Indeed, the key to success in neuro-
                                                                                                   marketing lies first in selecting the most
hard drive) while respondents are, for             effectiveness or                                appropriate mix of physiological, neuro-
example, window shopping in a mall,                                                                logical and motivational techniques
examining different car designs in a               merely add an                                   required by a specific research brief; and,
showroom, or watching advertisements
in their own front room or local cinema.           unnecessary cost                                second, in interpreting the vast amounts of
                                                                                                   data generated in an appropriate manner.
   Of all the imaging modalities currently
being employed in the fledgling field of
                                                   to the budget’                                     The further criticism that neuroscience
                                                                                                   must, inevitably, relegate creativity, inno-
neuromarketing, we are convinced on                                                                vation and intuition to the sidelines is a
both theoretical and practical grounds             qualitative research methods, our               straw man based on a false dichotomy.
that QEEG offers the most convenient and           approach enables us not merely to map              It is not a question of choosing between
cost-effective method for recording brain          the conscious tip of the cognitive              the supposed formulaic models presented
activity with a high degree of sensitivity         iceberg, but also to explore the otherwise      by neuromarketing, on one hand, and the
and temporal resolution. When                      mysterious depths of the subconscious –         freewheeling creativity of traditional
combined with proprietary software,                a determination of the mass of the iceberg      qualitative research on the other.
currently under development, it will               and also the depth of water in which               The future of effective and insightful
enable researchers both to aggregate data          it sits.                                        research that will enhance bottom-line
and inspect individual responses in                                                                growth and advertising effectiveness lies
near-real time.                                    Painfully slow adoption                         in a partnership between neuroscience
                                                   In view of its numerous advantages and          and traditional qualitative methodology;
Why bother?                                        the edge it can give decision-makers, why       a partnership in which each informs and
All of which, you may feel, fails to answer        has the adoption of QEEG by market              enriches the other.
the million-dollar question of why                 researchers been so painfully slow?                The positive ramifications of EEG are
advertisers should bother with the                    There seem to be three main reasons.         its extendibility, given the portable
technology at all.                                 First, as we have already mentioned, the        nature of equipment, into a variety of
    If you want to know what people are            early studies, based on visual inspection of    arenas within the marketing mix. The
thinking, why not follow the tried and             EEG paper traces, were considered too non-      scope to evolve NPD ideas and concepts;
trusted method of simply asking them?              specific to have any commercial value.          packaging design both in situ and isolation;
    The answer, as neuroscientists are                Second, most results were published in       and areas involving sensory experience
increasingly demonstrating, is that the            electrophysiological or brain research          such as taste and aroma are immense.
vast majority of our cognitions, including         journals, which, unsurprisingly and                ‘The times they are a-changin’,’ wrote
decision-making           and       emotional      understandably, are not usually high on         Bob Dylan in 1964. Today that prophecy is
reactions, occur below the level of                the reading list of advertising, marketing      rapidly coming true, as the marriage of
conscious awareness and, therefore,                and market research professionals.              motivational research techniques and
remain fundamentally inaccessible to                  Finally, is the suspicion that there         neuroscience offers the prospect of real
direct and conscious introspection.                is something sinister and vaguely               business growth through a complete
Cognitive psychologists George Lakoff              Orwellian about measuring brain activity        understanding of the way consumers
and Rafael Nunez point out: ‘Most every-           directly, rather than through the filters of    think, act and behave.                    ■
day thinking occurs too fast and at too            questionnaires, surveys and focus groups.
low a level in the mind to be accessible.          One recent critic went so far as to raise the   1. M Brammer: Brain scam? Nature
Most cognitions happen backstage.’                 possibility of Clockwork Orange-style              Neuroscience 7, 2004.
    By studying, in real time, variations in       mind-control fiction becoming reality.          2. B Hall: On measuring the power of commu-
the different patterns of electrical activity                                                         nications. Journal of Advertising Research
in the brain, it is possible to gain a consider-   Risk and irresponsibility                          44 (2) 2oo4.
able understanding of exactly what is going        The main danger in neuromarketing is            3. S Weinstein et al: Brain activity responses to
                                                                                                      magazine and television advertising. Journal
on in their minds at any given moment.             not about manipulating behaviour.
                                                                                                      of Advertising Research (20) 1980.
We can measure the level and span of               Rather, it lies in the risk that inexperi-      4. M Rothschild et al: EEG activity and the pro-
attention, whether a message is likely to be       enced and mis-informed experts, working            cessing of television commercials.
remembered, the extent of engagement               for the swarms of new companies hastily            Communications Research 13 (2) 1986.
with – or avoidance of – the brand message         established to cash in on the new technol-
and the type of emotions aroused.                  ogy, will result in false conclusions being     peter.laybourne@neuroco.com
    When combined with more traditional            drawn and unwarranted decisions made            david.lewis@neuroco.com

30 Admap • May 2005                                                                                               © World Advertising Research Center 2005

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  • 1. Reproduced with permission of Admap, the world’s primary source of strategies for effective focustheconsumerbrain advertising, marketing and research. To subscribe visit www.admapmagazine.com. © World Advertising Research Center Neuromarketing: the future of consumer research? With the advent of brain scanning as a research tool, Peter Laybourne and Dr David Lewis, Neuroco, discuss how marketers can benefit from new techniques N EW METHODOLOGIES COME and go. In an era where technical advances have seen sweeping changes in how we communicate, the use of new brain-scanning techniques to probe true emotional responses to advertising could become a critical guide to creative strategy development and implementation. Scam? A few months ago the highly respected, and for non-specialists largely incompre- hensible, Nature Neuroscience, ran an editorial provocatively entitled ‘Brain scam?’ (1). In it the author commented that for many neuroscientists: ‘Neuromarketing is little more than a new fad exploited by scientists and marketing consultants to Brain wave: a shopper is wired up to an EEG blind corporate clients with science.’ Certainly the question of whether an industry. In the 1980s, the response So what exactly is neuromarketing investment in this emerging new ranged from extreme scepticism to out- and how might it add to the effectiveness research methodology will enhance right hostility, with many condemning it of brand and advertising communica- advertising effectiveness or merely add an as either a threat to creative freedom or tions? unnecessary cost to the budget seems an assault on traditional methodologies. Two main approaches are currently likely to engage the attention of industry Since then, while techniques such as being followed, one called Functional professionals and their clients over the the use of bricolage and semiotics have Magnetic Resonance Imaging (fMRI) and coming months. been hailed as new-wave approaches to the second Quantified Electroen- qualitative research, the sad truth is that cephalography, or QEEG for short. Expanding horizons none of these innovations is either Although we do not believe, for After decades of being restricted to outstanding or even new. reasons to be explained in a moment, hospitals and medical laboratories, Further, Dr Bruce Hall (2) commented that fMRI will ever make a significant neuroscience is set to enter the world of that over the last 25 years: ‘Copy-testing contribution to neuromarketing, in view brand communications and market has not benefited from significant of the extensive publicity it has received research in a big way. innovation … Issues that emerged over within the industry we will briefly There are three main reasons why this half a century ago continue to divide the describe what is involved. is happening. industry.’ 1. More knowledge about how the brain fMRI works has been gained during the last Goodbye to all that In fMRI a powerful magnet and radio ten years than in the entire history of Neuromarketing promises to change all waves are used to create high-resolution neuroscience. that by enabling us to see in real time and images of the living brain. The subject’s 2. Developments in medical electronics with great spatial accuracy what is head is placed inside a giant magnetic and software design enable us to observe, happening below the level of normal ring, which causes protons within the record and analyse brain function more awareness, to explore the mysterious atoms that make up the brain to align easily and in greater detail than has world of the unconscious mind and gain with the magnetic field. A pulse of radio previously been possible. precious insights into how and why waves is directed at the head, some of 3. These advances have been accompa- consumers respond as they do to any form which is absorbed by protons, knocking nied by a sea-change in the attitudes of of brand communication, but particularly them out of alignment. In realigning many in the marketing communications advertising. themselves they emit radio waves, which 28 Admap • May 2005 © World Advertising Research Center 2005
  • 2. Peter Laybourne is Dr David Lewis is research chairman of Neuroco, and development director a neuromarketing agency. at Neuroco. are picked up by a receiver and sent to a tests. Similar studies, conducted at the prove so disagreeable they are unable to computer that constructs the brain Swinburne University of Technology in continue. At best scanners are cramped image. Since different parts of the brain Melbourne, Australia, have shown that and noisy affairs – the experience can best respond to the radio waves differently successful advertisements generate both be compared to lying in a dustbin, in a and emit slightly different radio signals, high levels of emotional engagement and heavy hailstorm. Then stimulus is directed the computer is able to distinguish one long-term memory encoding. onto the volunteer’s limited field of brain structure from another. While fMRI provides a detailed record vision by means of either a mirror or The resulting changes in the MRI of brain activity at any particular time of goggles equipped with miniature signal are typically displayed as a patchy the procedure is fraught with problems television screens. area of colour, representing the active when it comes to using it in neuro- The individual is prohibited from brain area superimposed upon a conven- marketing. The scanners are large, responding spontaneously to what tional, high-resolution, grey-scale image cumbersome pieces of equipment, which he/she is seeing and hearing, since any of the subject’s brain. must be used within specialist locations. sudden movement distorts the scan. In principle, fMRI can be used to They are also costly – around £500,000 – All of this means the surroundings are observe activity within any part of the and have to be operated by highly skilled highly artificial and seem likely to brain as it responds to almost any kind of technicians, with the result that putting introduce a significant bias into any brief stimulation, ranging from sounds to a single subject through a scanner has results. As the Nature Neuroscience editorial visual images to gentle touching of the been reported as costing around £1,200, commented, the results are: ‘Invariably skin. with the bill for large-scale studies produced under controlled laboratory For example, at Baylor College of exceeding £125,000. conditions and it is a major leap to extrap- Medicine in Houston, neuroscientists olate to a genetically and culturally have shown that the brain registers a Disagreeable experience diverse population of people in an almost preference for Coke or Pepsi similar to Only one respondent can be tested at a infinite variety of real world situations.’ that chosen by the subjects in blind taste time and for many the experience may QEEG FIGURE 1 In contrast, QEEG uses an Electroen- QEEG brain activity: attention vs inattention cephalogram (EEG) to detect and analyse electrical activity in the brain (see Figure 1). Inattention Attention Developed from the mid-1920s onwards, EEG has long been widely used to diagnose such neurological conditions as epilepsy and brain tumours. Its use in market research goes back to at least the early 1970s, when a single- subject EEG study was conducted in an attempt to uncover differences in the way the brain responds to print or television advertising. Improvements in technology during the 1980s saw a surge of interest in the market research potential for EEG, with the publication of such papers as: ‘Brain-activity responses to magazine and television advertising’ (3) and ‘EEG activity and the processing of television Commercials’ (4). QEEG results can be presented as coloured maps of the brain, each depicting second- A major drawback of these early studies by-second changes in mentation. Red, yellow and orange indicate high levels of activity over the ‘alpha’ range of frequencies (which the brain uses to idle itself) (8–14Hz), blues was that output from the bulky, medical and greens significantly less alpha. The first image shows a more relaxed and inattentive EEG machines comprised squiggly lines brain response than the second. drawn on a continuously moving band of graph paper, which could be analysed © World Advertising Research Center 2005 May 2005 • Admap 29
  • 3. focustheconsumerbrain only by visual inspection. While the skilled eye of an experienced EEG operator ‘The question is due to misleading and erroneous analysis of the results. Executed correctly by those would have little difficulty in identifying, for example, the unique patterns of spikes whether an with experience and intuition, it is to do with analysing minds and getting a produced by epilepsy, their use as a neuro- investment in this deeper understanding of emotional marketing tool was obviously limited. response. In effect, providing a richer and Within our technologically advanced emerging new more meaningful vein of thinking than age the approach being pioneered by current methodologies, which can be Neuroco lies in the ease with which research used to inform a company’s marketing information can be both obtained and analysed. New EEG equipment is light methodology will communications. Hence, brain data should rarely be considered in isolation. and portable, making it possible to record brain activity (on an internal 30-hour enhance advertising Indeed, the key to success in neuro- marketing lies first in selecting the most hard drive) while respondents are, for effectiveness or appropriate mix of physiological, neuro- example, window shopping in a mall, logical and motivational techniques examining different car designs in a merely add an required by a specific research brief; and, showroom, or watching advertisements in their own front room or local cinema. unnecessary cost second, in interpreting the vast amounts of data generated in an appropriate manner. Of all the imaging modalities currently being employed in the fledgling field of to the budget’ The further criticism that neuroscience must, inevitably, relegate creativity, inno- neuromarketing, we are convinced on vation and intuition to the sidelines is a both theoretical and practical grounds qualitative research methods, our straw man based on a false dichotomy. that QEEG offers the most convenient and approach enables us not merely to map It is not a question of choosing between cost-effective method for recording brain the conscious tip of the cognitive the supposed formulaic models presented activity with a high degree of sensitivity iceberg, but also to explore the otherwise by neuromarketing, on one hand, and the and temporal resolution. When mysterious depths of the subconscious – freewheeling creativity of traditional combined with proprietary software, a determination of the mass of the iceberg qualitative research on the other. currently under development, it will and also the depth of water in which The future of effective and insightful enable researchers both to aggregate data it sits. research that will enhance bottom-line and inspect individual responses in growth and advertising effectiveness lies near-real time. Painfully slow adoption in a partnership between neuroscience In view of its numerous advantages and and traditional qualitative methodology; Why bother? the edge it can give decision-makers, why a partnership in which each informs and All of which, you may feel, fails to answer has the adoption of QEEG by market enriches the other. the million-dollar question of why researchers been so painfully slow? The positive ramifications of EEG are advertisers should bother with the There seem to be three main reasons. its extendibility, given the portable technology at all. First, as we have already mentioned, the nature of equipment, into a variety of If you want to know what people are early studies, based on visual inspection of arenas within the marketing mix. The thinking, why not follow the tried and EEG paper traces, were considered too non- scope to evolve NPD ideas and concepts; trusted method of simply asking them? specific to have any commercial value. packaging design both in situ and isolation; The answer, as neuroscientists are Second, most results were published in and areas involving sensory experience increasingly demonstrating, is that the electrophysiological or brain research such as taste and aroma are immense. vast majority of our cognitions, including journals, which, unsurprisingly and ‘The times they are a-changin’,’ wrote decision-making and emotional understandably, are not usually high on Bob Dylan in 1964. Today that prophecy is reactions, occur below the level of the reading list of advertising, marketing rapidly coming true, as the marriage of conscious awareness and, therefore, and market research professionals. motivational research techniques and remain fundamentally inaccessible to Finally, is the suspicion that there neuroscience offers the prospect of real direct and conscious introspection. is something sinister and vaguely business growth through a complete Cognitive psychologists George Lakoff Orwellian about measuring brain activity understanding of the way consumers and Rafael Nunez point out: ‘Most every- directly, rather than through the filters of think, act and behave. ■ day thinking occurs too fast and at too questionnaires, surveys and focus groups. low a level in the mind to be accessible. One recent critic went so far as to raise the 1. M Brammer: Brain scam? Nature Most cognitions happen backstage.’ possibility of Clockwork Orange-style Neuroscience 7, 2004. By studying, in real time, variations in mind-control fiction becoming reality. 2. B Hall: On measuring the power of commu- the different patterns of electrical activity nications. Journal of Advertising Research in the brain, it is possible to gain a consider- Risk and irresponsibility 44 (2) 2oo4. able understanding of exactly what is going The main danger in neuromarketing is 3. S Weinstein et al: Brain activity responses to magazine and television advertising. Journal on in their minds at any given moment. not about manipulating behaviour. of Advertising Research (20) 1980. We can measure the level and span of Rather, it lies in the risk that inexperi- 4. M Rothschild et al: EEG activity and the pro- attention, whether a message is likely to be enced and mis-informed experts, working cessing of television commercials. remembered, the extent of engagement for the swarms of new companies hastily Communications Research 13 (2) 1986. with – or avoidance of – the brand message established to cash in on the new technol- and the type of emotions aroused. ogy, will result in false conclusions being peter.laybourne@neuroco.com When combined with more traditional drawn and unwarranted decisions made david.lewis@neuroco.com 30 Admap • May 2005 © World Advertising Research Center 2005