Emotion Recognition Technology in Marketing

If you think responsive design was a game changer, think again. Recognizing the screen size of a device and adapting to that resolution is a pretty awesome feature that has pretty much been an industry standard now. What if your website could recognize the emotional reactions of a user and be responsive to that as well?

In a previous post I talked about the power of senses and how they help forge emotional associations with a brand or a product. Now imagine if you could identify these emotions and adapt your messaging accordingly. Live, real time, on the spot!

No, this is not from a science fiction movie. It is quite real and it is happening. It will probably be a few years until it is a reality but there has been a mountain of investment behind emotion recognition technology lately.

Power of Emotions in Marketing

The most successful and widely acclaimed marketing campaigns are always the ones that manage to make an emotional connection with their audience. Think Dove’s ‘Real Beauty’ campaign, Apple’s ‘Think Different’ campaign or Kleenex’s ‘Unlikely Best Friends’ campaign. They all have elements that appeal to different emotions and create really powerful, long lasting connections with the brand.

If you are thinking ‘the purpose of marketing (or being in business for that matter) is not to create emotional connections but to increase revenues’, there is a Nielsen study that was conducted in 2015, which revealed that ads with the highest emotional response resulted in over 20% increase in sales.

The greatest thing about emotional marketing is the longevity of its results. Emotions are extremely powerful. In fact, they are the main drivers of most human behaviour including purchasing decisions. So you can imagine how long lasting the results would be for a business that manages to create positive emotional associations with its customers.

Given the power of emotions, it is not a big surprise that emotion recognition technology is a hot topic in marketing these days. According to Markets and Markets, emotion detection and recognition market is estimated to be worth $22 billion USD by the year 2020.

Of course we cannot talk about cutting edge technology without mentioning Apple. The company has been very interested in emotion detection technology and even acquired an emotion recognition company earlier in 2016.

How Does Emotion Detection Work?

The idea is to catalogue hundreds of thousands of facial images and expressions on a daily basis to create a library, based on which a computer can recognize the changes on somebody’s face and understand their mood instantly.

And that will not be the extent of that either. Thinking about the rise of wearable technology in the last couple of years, collecting emotional data becomes even easier and more real-time. Your mobile devices and computers can only collect data when you are actively using them. But wearables are always connected to us. They are constantly measuring signs like heartbeat and breathing patterns. As the technology for these devices advances and they become more capable of tracking signs such as temperature, blood pressure and other vital functions, emotion detection will be even easier and more precise.

What Does This All Mean For Marketing?

When implemented fully, emotion recognition will be nothing short of a revolution in the world of marketing. The trend in the last 5 years has been towards more and more personalized content whenever and wherever possible. Emotion recognition will only make this easier for marketers and allow them to calibrate marketing efforts mid-stream. Every individual will experience a brand differently based on his or her reactions.

The flip side to this phenomenon is the fact that users will never know if they are seeing “the real” content. When everything is being adjusted to one’s current emotional state in real time, the transparency between a brand and its prospects could diminish dramatically. As much as personalized content makes us consumers feel special, we do not want to feel that we are being sold. There is a fine line between a genuine interaction and a sales pitch that only tells the prospect what he/she wants to hear and brands that know how to walk this line will come out as winners in this new era.

Creativity Knows No Bounds… Or Does It?

The conventional belief is that freedom fuels creativity. When you have artistic independence with no preconceptions or guidelines limiting your creativity, you are considered to have the optimal environment to come up with brilliant ideas.

However, if you are anything like me, you may find this concept a bit intimidating and overwhelming. I find that the idea of unlimited possibilities actually limits my ability to create anything because there is an infinite number of things I can do and in the end I feel overwhelmed with the number of options.

If you share this feeling, don’t feel bad because it turns out that we are not the only ones! Lately I have been reading a number of articles that talk about the correlation between constraints and creativity and how a healthy balance of restrictions can actually fuel the creative genius in people.

“Constraints can force people to be imaginative and think outside the box”

pi14802-hrWhen the German car manufacturer Audi was looking to improve its Le Man’s race car performance, the chief engineer presented his team with a constraint. He asked his team how they could win the race if their car couldn’t go faster than anyone else. In other words, he challenged his engineers to find a way to improve the car’s performance without increasing the vehicle’s top speed (the constraint). This self-imposed constraint forced the engineers to think outside of the box. Since they couldn’t increase the speed, they decided that making fewer pit stops during the race would put them ahead of the opponents if their car could go longer without having to refuel.

How could they make fewer pit stops? If they had a more fuel-efficient car.
How could they make the car more fuel-efficient? Use diesel technology.

As a result of this process, Audi came up with its R10 TDI race car that ended up winning Le Man’s for the next three years straight! All because of a limitation that pushed the engineers to find a different solution that they normally wouldn’t think about.

Let’s get more scientific

Of course, this is just anecdotal evidence that glorifies one isolated example. But there is also academic research data that supports this theory. A study conducted by the University of Amsterdam set out to research people’s global processing ability based on a computer maze game.

Participants were divided in two groups; one group was given an easy maze with no obstacles and the second group was given a harder version of the same game with obstacles blocking one of the routes, which limited the player’s options.

After both groups finished the game, they were given a standard creativity test containing word puzzles. Three words appeared on the screen and the participants were asked to find the fourth word that connected them all.

The result, as you may have guessed already, is that the group that played the harder puzzle with constraints solved more puzzles than the other group (40% more to be precise). The researchers concluded that the constraints in the difficult version of the game forced the subjects in that group into a more creative mindset that later helped them perform better in the word puzzle game.

To conclude

If you are in a creative field or in any way required to come up with ideas and solutions to different challenges all the time, constraints are not always your enemy. A healthy balance of restrictions on projects can actually act as guidelines to streamline your creativity without being overwhelmed by the infinite other possibilities that can haunt you.

When working with a client, I find that I can deliver much better products if I am presented with certain conditions or challenges, as they help me focus my creative attention and be a lot more imaginative than I otherwise would be. If you are having a hard time getting started on a project because of infinite options, it may be worthwhile considering some self-imposed restrictions.

Marketing to Senses

In a previous post I talked about the power of sensory branding, which I believe, will be more and more relevant for marketers across the world. In a nutshell, sensory marketing is an all-encompassing approach that capitalizes on more than just the two senses (visual and auditory) that conventional marketing practices target. It aims to create an emotional bond between a consumer and a brand by stimulating multiple senses and reinforcing these associations over time.

The stimulations we are talking about here – be it visual, auditory, olfactory or other – can happen in one of two ways: branded or unbranded.

Imagine you are walking down the street going to work on a cold morning. As you are passing one of the stores, a nice freshly brewed coffee aroma is oozing out and tempting you to go inside to get a cup. In this example, the coffee smell on its own is a non-branded olfactory stimulus (unless your nose is so well trained that it can tell the difference between Starbucks and Tim Hortons). It becomes a branded stimulus when you see the coffee shop sign and associate the image with the smell.

As easy as it may sound in this example, a branded stimulus takes a long time and constant, persistent reinforcement to form. To establish the bond between a brand a sensory stimuli, two things are essential: uniqueness and habitualness. The stimulus has to be unique to the brand, rather than generic and replicable by others. It also needs to be reinforced by habits and repetition so that a strong association can be established. The good news is, once this association is formed, it is an extremely strong and long-lasting bond that can be utilized to its fullest.

The habitual nature of a stimulus is not just a marketing tactic, but also a scientific fact. Our brains are wired to form habits to facilitate our day-to-day activities. As Charles Duhigg explains it, “when a habit emerges, the brain stops fully participating in decision making. It stops working so hard, or diverts focus to other tasks. So unless you deliberately fight a habit the pattern will unfold automatically”.

This impact of habits plays a huge role in establishing impulse buys in marketing. This is why every McDonald’s looks the same. The company deliberately standardizes the look and feel of its restaurants, as well as what employees say to customers, so everything is a consistent cue to trigger the habit loop.

Back to sensory branding

A great example of how a sensory experience can change customer perspective was demonstrated in a study carried out by Dr. Alan Hirsch. Researchers placed two identical pairs of Nike shoes in two separate but identical rooms. The only difference between the two setups was that one room was infused with a pleasant floral scent while the other one was not. The participants were asked to examine the shoes in each room and then fill out a questionnaire. Amazingly, subjects preferred the shoes in the scented room by 84%! Moreover, when they were asked to appraise the value of each pair, they estimated the Nikes in the scented room costing on average $10 more than the ones in the non-scented room.

This experiment is a great illustration of how incorporating multisensory touch points into customers’ purchasing journey can improve the experience, as well as the perceived value of products.

Next Steps

Despite all the advantages that sensory marketing offers, there are still barriers to be overcome. I am talking about the physical limitations such as the inability to incorporate smell and taste into a TV commercial or a radio ad. Having said that, there are already companies offering sensory branding experiences in different touch points.

Cinescent is one such company that allows marketers to pump out fragrances into movie theaters when commercials for those brands are displayed on the screen. An interesting case study was conducted for Nivea wherein the scent of Nivea sunscreen was infused into the theater simultaneously with the commercial. Results were quite incredible based on the cinema exit polls. Moviegoers who were exposed to the scent displayed a 515% increase in brand recall compared to the group that saw the ad without the scent.

It is interesting to think about what the future holds for sensory marketing. As the technology advances, we will see more and more sensory experiences being incorporated into advertising in creative ways. It is the only way that brands can break through the clutter in the oversaturated world of visual ads.

“All credibility, all good conscience, all evidence of truth come only from the senses.”
-Friedrich Nietzsche

 

 

Why User Generated Content is Critical for Brands

User generated content (or UGC as it is called by acronym-loving marketers) has become one of the main trends in the industry. What UGC really means is that consumers are now in control of their own story. It is no longer a journey where companies are in the driver seat telling consumers where to go but rather a two-way communication in which the consumers decide where they want to go and how they want to get there.

In this new user-focused landscape, there are several different reasons why UGC is crucial for brands. The user-engagement methods may vary from industry to industry but the importance of UGC is the same for all of them.

It lets your brand develop its personality

personalityOne of the benefits of UGC is the fact that consumers can bring their own perspective of the product to the table. If a company has 100 customers it means that there are 100 different ways that people are experiencing the product. What better way to make things interesting than to let your customers share these experiences? This can really help a brand develop its own personality in the digital space.

It is measurable

measureAs great as it is to generate valuable content, what ultimately matters is the results. The return on investment on UGC is completely measurable through social media analytics tools and Google Analytics so that businesses can tell what is working and what is not. It is the ideal way to drive revenue and demonstrate value by measuring the engagement.

Millennials like it

millennialsWith e-commerce rapidly increasing in popularity among millennials, purchasing behaviour is naturally evolving with it. Millennials, otherwise known as Generation Y, are estimated to be the largest consumer group in the US history. According to market research reports by Ipsos and Crowdtap, a large percentage of millennials say that they use UGC to inform important purchasing decisions that they make.

UGC is more influential on purchase than any other media

As irrational as it may seem, nowadays customers are paying more attention to peer reviews than professional evaluations. In a landscape where 50% of the audience is using fellow consumers’ opinions to make decisions, it is impossible as a brand to ignore the significance of UGC.

It overcomes trust issues

trustThese days, consumers have inherent trust issues against corporations. Every time we see an ad that says “free …” we are immediately suspicious. Consumers know that there is no such thing as free when it is coming from a company that is looking for ways to increase its bottom line.

This phenomenon was tested in a very interesting experiment by Ayelet Gneezy, Stephen Spiller and Dan Ariely, who set up a booth in a busy location with a large sign that read “Free Money”. All that passers-by needed to do was to stop, grab a $50 bill from the table and move on with their day. Despite the simplicity of it, only 19% of passers-by stopped to take the free money. The researchers concluded that consumers have become so cynical that they disengage as soon as something sounds too good to be true.

UGC is a huge step in mitigating this mistrust by letting the real users of a product do the talking for you. When the information is coming from the company itself, we immediately activate our cynicism and start questioning it. But when the claims come from other users just like us, we know that they have been through the same process that we are planning on going and they are telling us their first hand experience, which we perceive as a much more credible source of information.

It is psychologically proven

psychSocial proof theory suggests that people are automatically drawn to things that they know others already like and trust. This goes hand in hand with building trust, as the more people are talking about a product (and hopefully saying good things), the better the chances of recruiting more customers. This works from both a consumer and a business perspective. When people don’t have enough information or are unsure of what to do, they turn to a larger group of people who have more knowledge than them. As for the companies, it is a great way to legitimize their claims about a product through actual users validating it for them.

Monitor and Engage

To be clear, UGC is not simply about asking your customers to write reviews for you. It is about engaging in the conversation and continuously monitoring the Internet to see what is being said about your brand.

In order to achieve this, companies need to know how their customers spend their time on the Internet. What social media sites do they regularly follow? What channels do they use to find information? Once these potential touch points are identified, it is easier to connect with the consumers at the right time with the information.

The Decoy Effect

Marketers will try anything to get customers to buy the product/service that they are selling. In a fiercely competitive environment, one has to come up with smart marketing ideas and get creative. One such technique is the decoy effect that we all encounter on a daily basis but probably do not pay too much attention.

Here’s the idea in a nutshell: If you want to sell more of a product, offer your customers a similar but slightly more inferior product in the same price range. Sounds pretty counterintuitive, even borderline stupid right?

Turns out this tactic actually works like a charm! Dan Ariely, who conducts extensive research in behavioural economics, ran a little experiment to see how it actually plays out. When he came upon a banner on the Economist magazine’s website, advertising their subscription plans, Ariely could not make sense out of the two plans that were priced exactly the same but one of them was clearly a much better alternative.

economist

Puzzled by this, he created two versions of this ad, one that included ‘print subscription’ and one that did not.

versions

One group was shown version 1 and the other group was given version 2 to decide which subscription model they prefer. The results are quite interesting.

When people were asked to choose from all three options, 84% of them said they wanted the print & web subscription, 16% went for the online-only plan, while not a single participant signed up for the print subscription, which clearly provided no value. It all makes sense so far. Here’s where it gets interesting: When the subjects were given only two of these options (online subscription or print & web subscription), 68% of the respondents chose the online option while only 32% said they would go with the print & web alternative.

Let’s put this into perspective. If we calculate the company’s sales from each scenario based on 100 participants, here are the results:

Price Scenario 1 Scenario 2 Profit 1 Profit 2
Online $59 16 68 $944 $4,012
Print $125 0 N/A 0 0
Print & Web $125 84 32 $10,500 $4,000
$11,444 $8,012

 

By simply adding a third price plan (decoy), the company has increased its sales significantly in the first scenario, even though the decoy plan had no subscriptions.

The decoy effect works for a very simple reason: relativity. Human brain is designed to think in relative terms. We as a species have an extremely hard time processing information in absolute terms. In this case, introducing a less attractive version of the product that you actually want to sell makes the superior version of that product look even more attractive. Not just relative to its inferior, but also to other products.

Imagine a new product being launched. It is a brand new technology and nothing like this has ever been done before. It is so unique that it doesn’t even belong to any product category that we know. As a consumer, how do you decide what a fair price for this product would be? You have no anchor point, no benchmark, no reference. This is exactly how the decoy effect works by creating an anchor (the inferior product) so that the consumer can value the other options relative to that. Its simplicity is why it is brilliant.

Sex in Advertising

34. That’s the number of times a man thinks about sex on average per day. The same number for a woman is 19.*

This shouldn’t come as a surprise, given that we are creatures driven by primal urges including survival and procreation. And businesses that want to sell us their products know this very well. In fact, they have been using our urges against us to sell for almost a century! Just take a look at the ad below from the 1920s.

1920

Sex in advertising has always been a controversial topic, sparking a wide range of reactions from public outrage to curious attraction. We all heard about the infamous phrase “sex sells” and we are bombarded by advertisements with sexual content these days. While it’s true that including sexual elements in advertising drastically increases the chances of attention grabbing, there are numerous studies to refute the hypothesis that it actually increases sales.

Let’s start with a few examples to see how different companies use sexually suggestive ads to sell their products. When it comes to sex in advertising, the first brand that comes to mind in North America is Calvin Klein. Those who are old enough to remember the commercials featuring Brooke Shields know what I mean. If you don’t, just take a look at the video below:

Keep in mind that this was the early 1980s when sexually suggestive commercials were not as common as it is today. In fact, it wouldn’t be incorrect to say that this is the ad that started the trend to use sex to sell a product in the modern era. The ad was controversial to say the least, as it was successful. Calvin Klein jeans shot up to two million pairs a month in sales and the company, seeing the potential of this new advertising strategy, took it up a few more notches over the next couple of years by rolling out more controversial campaigns with Mark Wahlberg (then known as the rapper Marky Mark), Christy Turlington and Kate Moss. Despite the public outrage, protests by anti-pornography groups and even cancellation of certain campaigns, the company enjoyed increasing sales over the course of next two decades. In the 2000s, Calvin Klein started facing heavy competition from new players with the likes of Abercrombie & Fitch and American Apparel. It was almost as though the company’s code for growth was cracked when other firms started using the power of sex and controversy in their advertising. It became almost standard issue for clothing brands to create racy, sexual and sometimes soft-pornographic advertisements to spark public fury and capitalize on the free publicity that it creates. Just a quick look at the assortment of advertisements below will give you a better visual idea of what I mean:

AF
Dolce Gabbana
x6028As these cases indicate, sex in advertising works when it comes to creating awareness and buzz for your brand. The question is whether it’s the sex that sells or the controversy it creates. To answer this, let’s take a look at a study conducted in 2007 at the University College London. This research looked at the recall of sexual and non-sexual television commercials embedded within programmes, with or without, sexual content. To do this, the researchers divided 60 adults into four groups, two of them watching a sexual program (Sex and the City) and two of them watching a non-sexual TV show (Malcolm in the Middle). Each TV episode was embedded with either sexual or non-sexual commercials to measure brand recall. After the experiment, the participants were asked to remember the names of the brands they had seen during the commercials. The results, as you can see below, are quite fascinating in that the group that watched Sex and the City had a much lower recall rate than the other group, regardless of the content of the commercials. The researches concluded that the existence of sexual content in a program impairs the ability of the brain to focus on other content.

Sex and the City
Sexual Ad Non-Sexual Ad
Mean Standard Deviation Mean Standard Deviation
Free Recall 3.87 2.13 5.67 1.95
Cued Recall 5.53 2.64 6.87 2.67
Malcolm in the Middle
Sexual Ad Non-Sexual Ad
Mean Standard Deviation Mean Standard Deviation
Free Recall 7.2 3.1 6.53 2.23
Cued Recall 9.73 2.37 9.6 1.96

Putting this academic research into a business context, it could be quite possible that over the top sexual content in advertising may actually be working against a brand. Sexy models and/or nudity might attract initial attention from the viewers, however the actual brand message is often eclipsed by the sexual content of the advertisement. This is further supported by another study** conducted by MediaAnalyzer Software & Research, where 200 subjects were shown ads ranging from suggestive cigarette ads to very unsexy credit card promotions. The results showed that especially men had a much lower brand recall than women when it comes to commercials that include sexual content, as they spend too much time looking at the suggestive content, rather than the brand message itself.

Untitled

MediaAnalyzer used the above image to sum up its findings from the research. This picture perfectly explains the difference between the way a man and a woman looks at an advertisement and why brand recall is much lower within the male population.

Another explanation is about the product itself. According to Jeffrey Richards, an advertising professor at the University of Texas, sex only sells if the product you are selling is related to sex. So if you were selling, say, condoms, then it would make perfect sense for your brand to create an advertising campaign around that. But Richards says that when companies use sex to sell very unsexy products (such as the drain cleaner below), consumers might be intrigued but they are not going to remember your company name, or the product you are selling.

To recapitulate some of the arguments about sex in advertising:

 

  • Brand recall: Sex in advertising creates an obstacle for the viewer to focus on the actual content of the ad, in most cases overshadowing the brand name and reducing brand recall.
  • Relevance: Sex sells if the product you are selling is related to sex.
  • Gender: When sex does sell, it usually sells to men

 

Sex in advertising remains to be a very debatable concept and what is memorable and acceptable to one person might not be for another. Having said that, the data suggests that there is a correlation between sexual content and brand recall, which is why companies should be careful when designing a risqué ad campaign. Going back to the Calvin Klein example one more time, it is undeniable that the controversy that sex triggers has a multi-prong effect that not only intrigues people about the brand and the product, but also creates an attraction towards the condemned. Just like a movie or a book becoming popular after being banned, the same principle applies to the ad campaigns that are publicly denounced, creating buzz and curiosity around them. Calvin Klein took advantage of the free publicity and the controversy it created through its racy ads for years and it has proven to be quite powerful. To me the question still remains: is it sex that sells, or the controversy?

* The numbers are derived from the study conducted by Dr. Terri D. Fisher, Professor of Psychology at The Ohio State University at Mansfield. (https://www.psychologytoday.com/blog/the-sexual-continuum/201112/how-often-do-men-and-women-think-about-sex)

** http://www.adweek.com/news/advertising/does-sex-really-sell-82104