Neuromarketing 2.0: When AI reads the room

Marketing has changed considerably over the past few years. Instead of just looking at age groups and income levels, companies are now putting in greater effort than ever to understand how customers actually feel about their products and services. This new approach, called neuromarketing 2.0, combines artificial intelligence with brain science to figure out what makes consumers tick on an emotional level.

The old way of doing marketing research was pretty limited. Companies would ask people what they wanted in surveys or focus groups.

But this approach had its own limitations. People don't always know why they make certain choices. Most of our buying decisions happen without us even thinking about it. It’s our emotions driving these choices before our logical brain kicks in.

Traditional neuromarketing tried to solve this by hooking people up to expensive brain-scanning machines in labs. But this only worked with small groups of people, and the setting felt fake. Today's AI-powered approach uses everyday technology like smartphone cameras and fitness trackers to understand emotions from millions of people at the same time, in real situations.

In his book, 'How Customers Think: Essential Insights into the Mind of the Market' Harvard professor Gerald Zaltman claims that about 95% of our purchasing decisions are made by our subconscious mind. These are driven by feelings rather than logic.

Regular surveys just can't capture these hidden emotional responses. But AI systems can now spot tiny facial expressions that last less than a second, pick up on voice patterns that show how someone really feels, and read body signals that people aren't even aware of.

The technology revolution behind emotional intelligence

The technology behind Neuromarketing 2.0 works like a combination of a very smart camera, a sensitive microphone, and a lie detector all rolled into one. These systems watch facial expressions, listen to how people speak, and monitor things like heart rate to build a complete picture of someone's emotional state. Facial recognition can now identify emotions with remarkable accuracy, which is at times even better than most people can do just by looking.

A 2020 IJRAR paper highlights how McDonald’s used neuromarketing and eye-tracking technology to promote the McMuffin. By studying where customers’ eyes land on menus, displays, and ads, the brand identified the most attention-grabbing elements.

This insight enabled McDonald’s to refine menu layouts, reposition visual assets, and enhance in-store engagement—ultimately improving customer experience, driving sales, and boosting recall for products like the McMuffin.

Voice analysis is another breakthrough. The AI doesn't just listen to what people say, but how they say it.

Changes in pitch, speed, and tone can reveal frustration, excitement, or confusion that the person might not even realise they're feeling. Companies are using this to improve customer service by helping their staff understand when a caller is getting upset, even if the customer is trying to stay polite.

The body monitoring aspect uses data from fitness trackers and smartphones to measure things like heart rate and skin temperature. What makes it all the more interesting is the fact that these physical responses can't be faked.

When someone gets excited or stressed, their body reacts automatically. This gives companies honest feedback about how their marketing messages are really landing with customers.

What's really powerful is when all these different signals get combined. Instead of just looking at one thing, the AI creates a complete emotional profile by analysing facial expressions, voice, and body responses all at once.

Real-world applications transforming industries

Companies across different industries are already using this emotional intelligence technology in ways that directly affect customers. In many retail stores, smart digital signs now watch shoppers and change their advertisements based on the mood of the people walking by. If the system notices that people look bored or frustrated, it might switch to showing more upbeat, engaging content.

Streaming services are using emotional AI to figure out what kinds of shows and movies will keep viewers engaged. Instead of just tracking what people watch, they are working towards understanding the emotional journey that viewers go through. This helps them recommend content that will actually connect with people on a deeper level.

Car companies have discovered that ads focusing on emotions and lifestyle perform much better than ones that just list technical features. Many car brands are now shifting their entire advertising strategy based on these emotional insights.

But perhaps the most remarkable of it all is customer service across all industries, which is getting better because of emotional AI. The technology can spot when someone is getting frustrated during a phone call, allowing companies to step in before the situation gets worse.

The future of emotionally intelligent marketing

The future of marketing will likely revolve around emotional intelligence becoming a standard part of how businesses interact with customers.  The market for this technology is expected to grow from $3.74 billion in 2024 to over $7 billion by 2029 as per Research And Markets, showing that companies see real value in understanding customer emotions.

The companies that will succeed in this new landscape are those that use emotional intelligence responsibly. The goal should be creating better experiences for customers, not manipulating them.

The most successful businesses will be transparent about how they use emotional data and will give customers real benefits in return for sharing this personal information. The best implementations will use the technology to create more meaningful connections between brands and customers, serving both business goals and human needs.

- Kavita Rao, chief marketing officer, Findability Sciences.