Capture their attention first, and the ‘heart’ next: attention & emotions in social media advertising

Written by Vanja Radic, Facial Coding Team Lead at EyeSee.

Many of our clients have asked what a successful social media campaign entails. In this article, we will address the most important creative aspects to have in mind when directing and optimizing social media ads. Those aspects revolve around two main pillars: attention management and emotional engagement.

TVC vs. social media

Although attention metrics can always provide additional insights, they are not essential when it comes to TVC testing; as for this advertising format, some amount of attention comes as a given – the TV is on, and we just move on to other activities until the TVC clutter dissipates. A lower level of attention is even considered a unique TVC advantage, allowing a more subliminal persuasion to take place (Heath, Robert). Countless academic discussions address the pros and cons of TVCs vs. social media advertising, however, when it comes to a younger and more specific target audience, social media marketing is without a doubt winning the game. Nevertheless, social media as an environment poses additional challenges when it comes to creating a successful video ad. Ferociously fast-moving timelines have brought on the need for marketers to become excellent managers of attention. Consequently, attention metrics come into play as the strongest indicator of success: being three times more predictive than viewability, attention metrics inform marketers about how much of the video content will actually be seen.

Let’s introduce an analogy: the difference between seeing a movie cover and seeing the whole movie or a part of it aptly illustrates the difference between viewability and attention. Unfortunately, most social media analytics limit themselves to viewability, in that way stunting the learnings from past campaigns.

Yet, it’s important to note that testing an ad only on attention metrics doesn’t give a full picture of its performance and therefore limits the feedback on where the spaces for improvement lies. Attention metrics represent only one side of the coin since they say nothing about a very important driver of attention and consumer behavior overall – emotions.

Attention vs. emotions

It’s difficult to talk about attention without appreciating emotions since they can critically modulate attentional processes and, at the same time, increase the likelihood that an emotional experience becomes part of our memory store; in turn, creating an emotional connection to the brand.

“A marketing strategy focused on appealing to consumers’ raw and most personal emotions can change a faceless, perhaps seemingly soulless, business into a brand that audiences can relate to and care about.” (Ingwer, Mark)

We are constantly bombarded by a plethora of information and experiences, only a small subset of which will be encoded into lasting memories. That small subset that is likely to be selected from the barrage of information is the emotional content. Apart from transforming experience into a memory, emotions powerfully, predictably, and pervasively influence our decision-making, which is why brands should make sure their advertising efforts elicit positive emotions.

The best way to access the emotional quality of an ad is by applying the Facial Coding method. As both appealing to emotions and managing attention are equally important, EyeSee’s methodology relies on both facial coding and attention measurement when assessing an ad’s performance on social media.

How we do it

Nothing better than an example to illustrate the complementarity and uniqueness of these two methods. Here are the results from a YT ad testing study, summarized in Retention rate per second (Attention) and Emotional engagement per second (Facial Coding) graphics. 

A look at attention measurements for this ad shows that the retention rate drops below the benchmark from the moment the skip button appears. This drop severely influences other attention metrics, like competition rate and overall focus, as the viewers who click the skip button are irreversibly gone (the line can only go down). Still, we can see that there is a shift in the 7th second, where the line starts to straighten, from that moment on, floating above the benchmark. 

Graph 1 Retention rate per second (Attention)

Now let’s consult the emotional metrics provided by Facial Coding:

Graph 2Emotional engagement per second (Facial Coding)

From the standpoint of facial coding, the ad is a high performer, reaching a 20% positive tipping point in the 11th second. Obviously, humorous scenes developing from the 7th second have done their part in positively engaging viewers’ emotions and need no further script-based modifications. If we go back to the Retention rate graphic (Graph 1), we cannot help but notice how emotions interfere with the attentional processes – i.e. attention drop-off decreases from the same moment that stimulus starts to engage the viewers. However, if we were limited to attention measurement metrics only, we might be tempted to wrongly assess this social media ad as an average-to-low performer; nevertheless, Facial Coding demonstrates its strength and potential in engaging positive emotions, hence sharpening the feedback given. Therefore, by combining both attention measurement and facial coding, we can say for certain that the biggest space for improvement lies in the first part of the stimulus; this is probably due to a lack of suspense or dynamic shift around the 5th second, that second being the stumbling stone for effective attention management in the YT environment.

Insights into social media ad performance can be even more enriched by supporting these two methods with other behavioral methods such as Eye Tracking, Virtual Shopping and Reaction Time Measurement. Given that Facial Coding yields data on how the respondents feel when exposed to an ad, Eye Tracking is utilized to pinpoint what exactly they are looking at when watching the video, uncovering the main areas of interest. And while an ad can be both entertaining and attention-grabbing for consumers, generally excelling from the creative side – the question of what it brings to the brand remains open. That is where Virtual Shopping comes into play, enabling us to measure the actual impact on sales, whereas Reaction Time Measurement ensures we understand the impact on the brand itself.

Conclusion

Relying solely on attention metrics in social media testing is not enough if we really want to learn from past experience and squeeze the most out of the input available. By applying the right combination of EyeSee’s behavioral methods, we can understand both the emotional and attention aspects of video content, which allows us to pinpoint exactly where space for improvement lies. 

If understood and excavated properly, emotions can be powerful commercial tools and many brands have come to the conclusion that appealing not only to consumers’ reason and logic but also to their heartstrings can give them a competitive advantage. Besides establishing attention as an adequately managed KPI, Facial Coding method helps marketers ensure that their advertising efforts are successfully connecting with their audiences emotionally.

Heath, Robert. (2012). Seducing the subconscious: The psychology of emotional influence in advertising. Wiley-Blackwell.

Ingwer, Mark. (2012). Empathetic marketing: How to satisfy the 6 core emotional needs of your customers. Palgrave Macmillan.

Advertising Week: Attention is the New Metric

    Upcoming conferences | Join us for an insights chat!

    Interested in risk-free new product development? Not sure you are making the most out of your current research framework? Looking for ways to ensure that your social media ads drive attention, likability, and sales? We’ve got a few things up our sleeve! EyeSee’s very best Business Development Directors are heading to a number of events to present, talk and connect. Here is a rough breakdown to keep in mind.

    First up: MRMW EU | September 14

    EyeSee’s Business Development Director Dorte Torpe Hansen alongside our Insights Manager Tara Tesanovic will join the stage at MRMW EU to unlock the power of social media with in-context timeline testing and learn how to leverage it for ultimate ad optimization. EyeSee’s Business Development Director, Alexandre de Jubécourt will also be there to answer the burning research questions as well. Join them on September 15 at 12:30 – register here!

    Re-thinking Digital: DigiMarCon | September 15

    If you are interested in learning how to leverage in-context timeline testing or are in need of a solution to your research needs, join EyeSee’s partner, Joris de Bruyne, and Business Development Directors of APAC region, Jie Ying Chow and Vinay Rao, at the latest DigiMarCon event on September 15 at the Marina Bay Sands Expo and Convention Center for a friendly chat.

    Risk-free NPD: Printemps des études | September 29

    Less than 20% of new products pass the test of time once they hit the digital shelves – Strategic Project Manager, Marketing, Communication & Market Research from NAOS, Christine Varet, alongside EyeSee’s Business Development Director, Alexandre de Jubécourt, will join the stage in room 351 to discuss how to leverage more robust predictive methodologies to minimize the risk of an unsuccessful launch. As a friendly face at the agora will be EyeSee’s New Business Development Director, Nicole Tudosie. Join us in Paris! 

    Let’s connect: Succeet | October 21

     Join EyeSee’s Business Development Directors at the Succeet conference this October for an insights chat.

    A friendly face: IGD’s Insights and Impact | November 8

    If you are interested in learning how to create a winning behavioral research formula, join EyeSee’s New Business Development Director, Nicole Tudosie, at the newest Insights and Impact conference. Let’s chat in London!

    Thinking about consumers in 2023: TMRE | November 14

    With the new global crisis emerging this year, a shake in consumer confidence could be felt across all markets – EyeSee’s Laura Hoste will be joined by Dipti Paranjape, Global Business Insights and Analytics Director at McDonald’s to discuss and share important growth opportunities, patterns in loyalty trends and data-driven predictions for shopping behavior shifts in 2023.



      Forecasting innovation success: The power of NPD market share projection

      The pressure of launching an NPD is something every company eventually faces – and with massive investments in new product development, many brands might forgo the NPD efforts, especially during economic pressures. But uncertain times have proven to be the mother of innovation, and now is the time to think about pushing out new products and tapping into the changing consumer needs.

      Check out Marija Djordjevic (Product Director) and Milica Kovac (Product Manager) on this latest NPD Market Share Projection framework designed to estimate the in-market success of newly developed products by leveraging virtual environments:

      What is the crucial first step in NPD testing?

      One of the most important steps in every research study is Screening. Recruiting the right target audience is critical – especially for a new product launch strategy. That’s why necessary steps to pinpoint the right target audience for each study and do so diligently.

      Nowadays, most automated research platforms on the market only allow researchers to pick category shoppers, at best. Driven by this, we ensured our solution is highly customizable and tailored to each study – by adding more granular subcategory criteria, including usage frequency, understanding brand awareness and openness to purchasing the new product, and even filtering the geolocation in some cases. With every added testing criteria, the potential risk of a new launch gets smaller.

      On top of this, with the remote research approach, we can conduct studies in over 40 countries across the globe via respondents’ mobile or desktop devices – enabling our clients to tap into any market.

      How does this solution ensure in-store and digital innovation success?

      As the world of e-commerce continues to take the world by storm, more and more brands have been on a mission to establish their online presence. So, it goes without saying that nowadays, most new products end up on both the in-store and digital shelves. But what works in digital might not have the same impact in B&M, and vice versa.

      And this is where the contextual research of our NPD solution comes into play. Given that our tests are conducted remotely and on respondents’ devices to enable the findings’ scalability, developing highly realistic yet virtual shopping environments was essential. So, when it comes to new product launches in stores, we are able to recreate any store or retail environment with high accuracy, allowing shoppers to buy products as they normally would. With eye tracking, we can also measure respondents’ eye gazes to understand what they are or are not looking at and if they are noticing the new product on the shelf.

      The same goes for e-commerce – we can develop websites or webpage mock-ups such as Amazon, Target, Kroger – and let respondents shop and explore as they do in real life while we collect data about their shopping behavior.

      Having the ability and agility to put them in such a context that feels familiar and authentic and do so remotely for any market is undoubtedly the key player in estimating the success of any new product launch strategy.

      Why is a sequential monadic approach king in innovation testing?

      In order to really capture the switching behavior and potential cannibalization effects, EyeSee’s NPD solution rests on the premise of having the same people make two shopping purchases, one in a competitive environment before the new product introduction and then another one with a new product launched and implemented on the shelves or webpages.

      Of course, there can be certain bottlenecks with this approach, which is why it was crucial to develop tactics that overcome the potential downsides of sequential design – such as putting a cognitive load on people’s working memory with different memory tasks between purchases, exposing them to marketing materials, catalogs or newsletters with the NPD incorporated, etc.

      What does an NPD study entail and uncover?

      To help you paint the picture of what a Market share estimation study for brick and mortar looks like, we have conducted an NPD study that aimed to verify the EyeSee NPD solution against real-life sales data. Just like any NPD, the tested product had a specific proposition: it came from a beloved and trusted brand that’s a category leader but aimed to enter a completely new space – the breakfast category. With its type of packaging and position on the shelf, this product represented an alternative to instant oatmeal breakfasts.

      Just a few months before our study, the new product hit the shelves on the local market, allowing us to longitudinally follow the development of its sales on the one hand and conduct the study among consumers unaware of its existence on the other. This, in turn, provided the insights that confirmed our NPD solution based on virtual shelves, gives a reliable estimate of real NPD sales in the first year of launch.

      Additionally, the switching analysis on SKU level uncovered that not only oatmeals but some less expected breakfast categories also represent a relevant competition to this NPD. Consumers don’t switch within the same product category and same packaging type, but within the same flavor, same price range and consumption purpose.

      Interested in maximizing your new product development success? Reach out to us!

          Fresh perspective at EyeSee: Behavioral research as the key player in a crisis

          What are some of the innovative ways brands have been supporting consumers during difficult times like economic crises? Which markets and sectors have been benefiting from behavioral research and which ones are still missing out on it? How is tech changing the future of MR and is it really the key to successful innovation – both for brands and research suppliers? To answer these burning questions, we sat down with our new yet seasoned experts, Jason Bradbury (Senior Director of Client Service, EyeSee) and Vinay Rao (Director, Business Development APAC) and picked their brains on the current (and future) market research landscape. With their vast expertise covering the US, and the APAC markets, respectfully, we wanted to dive deep into the differences and opportunities each one has.

          Yes, brands are doing a lot to support consumers – but you can do more

          When talking about the different ways companies and brands have been helping their consumers under these inflationary pressures, Vinay stated that there had been innovative examples of leading brands in the APAC region, such as Lazada, who are paving the way in supporting consumers. Even tech giants like Apple are coming up with ways to ease this transitionary period for their users by introducing various payment plans. However, in Vinay’s opinion more opportunities for retailers lie in teaming up with e-commerce platforms to identify spaces where they can truly align and tap into the consumers’ current needs to drive growth.

          As Jason explained, historically, brands that have been active in promoting social change, community and tackling global issues were able to build more solid connections with their consumers – which in turn, reassured shoppers of their brand choices and provided them with new reasons to continue to support them despite potential changes like price increases. Furthermore, he noted, the state of the current economy presents a moment of “reappraisal” where shoppers reconsider how and where to spend their money. For many brands, this disruptive moment might push more shoppers towards Private Labels due to the lower price points – which only emphasizes the need for leading brands to create added value for their products even more. That’s where innovating comes in – either as introducing new products to market or going beyond the product and connecting with shoppers over bigger issues that create a sense of collaboration and partnership.

          Luxury and digital are actually lagging behind FMCG

          Both Vinay and Jason agreed that behavioral MR has had an undoubtable impact on the FMCG industry – with the virtual shopping environments empowering brands to accurately measure key performance indicators of product visibility, navigation, emotional connection, and sales potential with a remote and scalable approach. For Jason, the manner in which the shopper engages in mainstream FMCG products – either physically in store or in digital marketplaces is generally consistent across retailers and relatively easy to produce – thus making measuring consumer behavior in these areas reliable.

          On the other hand, and maybe paradoxical, one domain Vinay believes is missing out on the fruits of behavioral research is, in fact, e-commerce. His perspective is that tech such as eye tracking and click tracking uncovering how users interact with e-comm platforms – and, more importantly, how they make purchase decisions can go a long way for many e-tailers.

          A few more areas that Jason acknowledges could benefit from behavioral, contextual research: products that have longer purchase cycles – such as, home fixtures, furniture, automotive, etc., and luxury or high-end consumer goods. But as research technology continues to transform and these categories become easier to engage with, more opportunities will arise for behavioral-driven insights to guide marketing decision-making.   

          The true way to democratize MR is driven to embrace novel tech

          From Vinay’s perspective, tech is transforming research in 2 major ways – firstly, the visualization of the shopping experience and that realism that brands typically try to achieve through surveys. With the simulated retail stores, websites and social media feeds, brands can obtain a more predictive response by putting consumers in environments that feel real to them. Another way tech is elevating research is its accessibility – it is faster and more cost-effective. Even reporting has evolved, through dashboards and various platforms, allowing a more nuanced look into the consumer insights.

          The strength of consumer insights that are derived from these immersive testing environments is something Jason finds the most exciting. The more realistic stimuli presentation and truer system-1 focused performance assessments, he notes, are ultimately narrowing the divide between traditional question-and-answer research and that which can be captured from observing actual real-life consumer behavior.

          You must rethink innovation and everything it encompasses

          As Jason stated, innovation must be based on creating benefits and added value for the end-user – both for brands and research suppliers. While brands must focus on enriching the consumer experience through meaningful product enhancements, features and benefits, suppliers’ mission should be to ensure that their solutions yield in-depth insights on how shoppers engage with brands and products. This will result in improved decision-making power, give enhanced agility to the end-user, and allow research professionals to better support their clients via deeper partnership and delivery of relevant thought leadership.

          The key to successful innovation, however, in not relying solely on technology – taking a step back and looking at the entire ecosystem of a business and THEN using tech to fill the gaps that were not possible in the past. Companies should allocate some research budgets to explore new and innovative methods and do so consistently until they become a part of the culture and their KPIs. But what is also crucial at the moment and will be in the upcoming months is the resilience of a business both in terms of economic uncertainties and sustainability – so brands must focus their innovation efforts on that as well.

          Interested in how to stay on top of the recession? Check out our series on the ongoing crisis and the fresh study findings on different pricing strategies!

          Jason Bradbury is the Senior Director of client service at EyeSee and a highly seasoned research professional of 30 years. He partnered with many Fortune 500 firms on marketing communications and shopper insights engagements.

          Vinay Rao is New Business Development Director at EyeSee with a broad experience in the Market research industry across four countries in APAC and with various methodologies in shopper, innovation, and brand research.

            The latest in social media testing: Replicated feeds for authentic behavior

            The future of shopping is set for a social revolution. Thanks to its accessibility, social media has quickly become one of the essential business operations for brands. And due to the highly competitive digital arena, growing a brand’s social presence has never been more challenging – from standing out in the clutter and ensuring ads actually trigger the conversion into purchases to knowing how to successfully navigate the polarizing timelines caused by turbulent events and crises.

            Check out Laura Hoste (New Business Development Director, EyeSee) give a comprehensive run-down of this innovative research approach to testing social media campaigns:

            What are the current social commerce trends and drivers?

            E-commerce sales have soared in the last years and with that, the way people are shopping has changed fundamentally. And now there is Gen Z – a new consumer group that is completely transforming the face of online shopping. A trend we have seen time and time again since the rise of TikTok is its potential to blow up products to unseen highs of virality and almost permanently clear them from the shelves. The power of social media is immense.

            But these short-format-based apps are certainly impacting our attention spans. In fact, viewers only spend 2.5s per post, according to Facebook. While 2.5s sounds scarce (because it is), the consumer’s attention in actual physical stores is not that much greater – only 7s!

            Of course, researchers and marketers know how precious and hard to obtain attention is in any environment – but the digital arena is way more cutthroat and competitive than anything we’ve seen so far.

            What are the go-to research tools?

            Because of the highly competitive environment, the pressure is on brands to find more innovative data and drive successful campaigns. However, researchers usually take the route of extracting data from live analytics via social media platforms, different social media tools, surveys and focus groups. And while these methods can be handy, they are not without some gaps.

            First off, they are missing the why – why is a certain trend happening, and why are consumers resonating more with this post instead of that one. Then there’s the reputation risk and the opportunity cost of launching a non-tested ad. And, of course, it’s hard to understand if consumers are connecting with your brand – although extremely important when it comes to advertising, tools like live analytics give no insight into which parts of the post or ads are performing well or how they are directly impacting the in-store purchase behavior. And finally, none of these methods can provide strategic insights both across social media channels and other marketing channels such as TVC, digital, print, OOH.

            What is the value of CMS or in-context social media testing?

            CMS stands for content management system, which is a computer software used to manage the creation and modification of digital content. Essentially, it is a platform capable of cloning or rather replicating social media channels and websites.

            By developing a replica of the social media environment, the quality of research insights significantly boosts. And the more realistic the environment, the more predictive and precise understanding of authentic consumer behavior! But this also means that you can have full control over the testing in terms of stimuli, the target group, the entire timeline, and its features. Shortly, the study setup is completely customized to your particular research needs. And with the help of an in-house design team, any major social media platform can be recreated – and in it, any format of an ad or content can be tested and optimized!

            Testing with combined methods yields higher predictive power and maps out specific elements of an ad that work (or don’t work) with the target audience. As a result, you gain a lot more strategic insights that allow you to create guidelines and frameworks for creative agencies and for developing ads that can be tweaked according to the platform. Especially since each one has unique qualities to it and what works on one, let’s say, putting the brand logo in the left corner on Twitter ads might not work on Instagram, where it needs to be in the bottom right. This is why it’s crucial to pre-test and really understand how your content can be additionally tweaked and optimized for every platform. And that is how we designed this CMS solution – to deliver brands a competitive overview of their ads and content performance across different platforms such as TikTok, Instagram, Twitter, YouTube, Snapchat and Facebook – check out the demo!

            How does in-context social media testing work?

            For reliable and valid insights, it is crucial to use a mix of behavioral and traditional methods that focus on consumer behavior in the timeline and its impact on sales uplift. Surveys help uncover the why behind ad performance – beyond just the clicks, views and other analytics, but digging deeper into consumer perception.

            Eye tracking, in particular, allows granularity into which ad elements are seen and which are often missed, while facial coding identifies whether consumers are engaging with your brand by analyzing their emotions through facial expressions. And virtual shopping provides a direct link between the performance of an ad and in-store purchase behavior with the help of realistic simulated store environments that tap into authentic consumer behavior.

            And because of the online and accessible approach, respondents are recruited from anywhere in the world via a third-party panel, allowing studies across different markets, countries and industries. And the best part is that no extra tech is needed – respondents simply use their own laptops or mobile phones during the test.

            What does CMS testing uncover?

            Every metric and KPI you need to know about your ad performance:

            1. Visibility –  how many users have actually seen your content?
            2. Attention – how long do they watch it for?
            3. Video retention – what are the usual points where you start to lose them?
            4. Emotional reach – is the ad resonating with them?
            5. Survey KPIs – does it fit with the brand, and do users like it?
            6. Sales uplift – does the ad impact sales?

            But going beyond these KPIs, it is important to have a holistic view of how the ad performs across different platforms – to gain overarching best practices and guidelines.

            How are simulated feeds the gateway to connecting with consumers?

            Apart from enabling an incredibly nuanced understanding of ad performance, testing content in simulated social media feeds opens opportunities for brands to connect with consumers and explore topics relevant to them. Since this, too, varies from platform to platform, uncovering the sophisticated differences in behavior that would go undetected with traditional social media research tools is crucial! Here are some insights we have accumulated over the years:

            Instagram: In one of the most extensive mobile behavioral studies conducted on 1800 respondents in an Instagram environment that tackled brand perception, we uncovered that IG users tend to prefer full body shots, celebrities & female protagonists – for most industries, that is. Ads featuring Female protagonists drive more positive emotions and are evaluated as more attractive and transparent, and this stands for Endorsement and Seasonal ads in particular. 

            Twitter: Another study done on a Twitter timeline showed that the key to uplifting sales is that combining and showcasing both brand and product significantly increases the purchase intent. Only showing the brand or product does not have the same impact. Furthermore, the findings showed that placing the brand logo in the upper left corner actually boosts recall!

            Facebook: A Facebook study where 26 ads from 6 different industries were tested found that ads from the Food industry were the ones grabbing the most attention – they outperformed other ads on visibility, attention and emotional reach. And – if you can, avoid GIFs! Videos are proven to be far more persuasive, driving both better brand perception and differentiation.

            Interested in optimizing your social media presence? Reach out to us!

              Feeling the consumer pulse: Confidence and sentiment amid crisis

              As reports of the plunging consumer confidence continue to emerge in the developing global situation and inflation becomes a challenge across the world – the critical question for marketers and businesses is: what will be the impact on shoppers’ behavior? In a comprehensive study, our team took a closer look at the shifting sentiment in new circumstances using a tech-driven approach leveraging virtual shopping.

              This is part two of a three-part series on global inflation and its impact on consumer confidence – check out part one and get the full report!

              How did we approach this complex question?

              The first wave of this study focused on the US market – but stay tuned for EU results! In order to gain an in-depth insight into consumer confidence, the study included two separate samples. One group was exposed to virtual shopping exercises, while the other sample completed a conjoint exercise – both followed by the same survey aimed to identify new patterns of behavior and understand shoppers’ perspectives on the current situation.

              When the prices change, consumers behave differently

              As inflation brings on new challenges for both businesses and consumers, many brands across industries are faced with pressures to change parts of their businesses in order to combat the effects of the uncertain economic environment. One such strategy is increasing their prices – but this comes with certain risks. For instance, if just some brands increase their costs and it is possible for shoppers to compare the price tags on the shelf, we’ve seen that the most price-sensitive ones walk away from the shelf. However, when the whole category increases the prices, comparison shopping makes the differences in pricing less obvious, so consumer behavior remains consistent. Another factor to keep in mind is how frequently a product is bought – and the changes across these categories are not to be amiss.

              Low frequency category: Body wash and dish detergent

              A noticeable trend for the low-frequency category is that shoppers tend to opt for a smaller package within the same brand. So, when deciding on a body wash and dishwashing detergent, they do stick with a brand they already trust but choose smaller volume packs. On top of this, the findings uncovered that the most significant drop in demand for this category was exactly with the bigger packages from the best-selling brands.

              What is important to remember here is when the best-selling brands are the ones taking the price increase, they stand to see the impact the most – but here the good news is that pack size can still play a role in consumer decision-making. 

              High frequency category: Bacon and Chips

              What happens when  the prices increase for the products that get purchased more frequently? We have noticed a general switch towards alternatives and exploration of different brands​ that didn’t change the costs. So, when talking about chips, most shoppers are quick to jump to a different brand altogether – and since there is a great variety of these products, they’re easily replaced. Therefore, price increase leads to a significant drop in brands’ penetration when 1/3 of the brands increase

              Another reason for the change in consumer behavior might be that the prices are more aligned across the category, so the price increase is easily noticed (3.99 or 3.59 as the standard price).

              Interestingly, the bacon category didn’t see ANY changes – there was no sensitivity to price increases, no switching between brands and the best-sellers remained the best, and some performed even better when the prices jumped.

              Volume changes are risky business

              So, if the price increases, shoppers tend to go for the smaller packs. But, does this mean that brands should decrease the sizes of their products? Well, this tactic can be risky in the long run since consumers might feel tricked if not properly communicated. 

              But there are 2 scenarios where it could be done – if all the brands in a category align and decrease the volumes at the same time OR there is such variation across the category that it’s really not possible to compare the different sizes easily. Overall, volume decreases are another strategy brands could leverage to tackle times of crisis, but keep in mind that consumers become more sensitive to any changes during these periods, so decreasing the volumes without transparent communication could lead to frustration.

              Shoppers would rather skip buying than go for Private Label

              Even when high inflationary pressures do not affect the everyday life of consumers, the biggest challenge brands have to deal with is remaining competitive – especially with the growing penetration of private label brands. With the appealing prices combined with the on-par quality of shopper-favorite products, private label packs have been making their way into consumer carts more and more over the last years.

              Now, in the changed global setting with higher price points, it would be expected that consumers would gravitate even more towards PL brands that are friendlier to their wallets. However, as mentioned above, shoppers actually prefer to stick to the brand they already use rather than trying to find alternatives and switching to a completely new private label product. 

              This is particularly true for the low frequency category – since consumers buy these less regularly and the tested products were for personal care, it makes sense that they want to continue to buy the ones they trust and know perform well. More good news for brands is that the findings showed that sales for the private labels actually stay consistent throughout different price increase scenarios – meaning there is no migration of shoppers!

              If you want to hear how experts at Kraft Heinz are navigating the crisis, make sure you check out the entire webinar:

                  Keeping up with the latest crisis: Consumer confidence and pricing sensitivity

                  Co-written by Vinay Rao, New Business Development Director, APAC at EyeSee. 

                  Two years into the pandemic, the world is faced with another crisis – and the shake in consumer confidence could be felt across all markets. As the gas prices reach record highs, so do the concerns about the cost of daily lives. The long lines at the supermarkets at the start of the pandemic were replaced by queues at the gas stations across the world. The surge in consumer confidence was evident. So what is the first step brands should take to stay on top of this new global complex environment?

                  Every crisis has unique qualities

                  All the new pressures of this crisis have led to similar challenges brands had to make two years ago – shortages, supply chain issues, and consequently, prioritization of product distribution. Due to this, brands had to make complex decisions in terms of trimming their portfolio, reducing pack sizes and counts, or shifting pricing at the same time.

                  Relying on past data is simply not an option now when pricing sensitivity is fluctuating and consumer confidence is unstable. Although previous experiences with different recession periods showed us the various consumer reactions across categories – it is brands’ reactions that are also changing the market landscape.

                  Shifting pricing and sensitivity

                  One of the go-to ways brands have been navigating crisis is by adjusting their pricing strategies due to production and raw material costs. But the biggest question lies in how does this impact consumer behavior? We’ve seen reports of prices doubling up across all industries, and consumers were spending more on groceries and items than the previous year until inflation – but now are mostly resorting to cost-saving measures and new purchase behaviorAnd our latest study showed that when 1/3 of products prices increase – price sensitive shoppers drop out and the value share decreases.

                  In the current climate of uncertainty, even loyal consumers can seek more cost-effective options. So, prices shouldn’t be the only thing that changes – rethinking the approach to promotions and marketing is a necessary step brands must take to ensure consumer trust.

                  Volume and size changes

                  Under the inflationary pressure, another strategy manufacturers and brands are opt for is reducing pack sizes and product volumes. Because the price of production of individual SKUs increased, downsizing products and distributing lower volume standards is a safe bet for brands – but this can be risky in the long run. However, our comprehensive study uncovered that there are two situations when it makes sense.

                  An effective way to de-risk the impact of both volume and price changes on shopper behavior is to understand how to feel consumers’ pulse in the right context and showcase the brand’s value beyond price.

                  Behavioral methods such as virtual stores offer precise insights into a realistic model of consumer behavior. In order to get a better understanding of the current buying behavior, EyeSee tested 4 different product categories in various shopping scenarios – including price and volume changes.

                    A hard look at eye tracking: What is the ‘best’ solution on the market

                    Written by Milica Kovac (Product Manager) and Jelisaveta Milovanovic (Senior Data Analyst) at EyeSee.

                    This is the first installment of the series focusing on eye tracking solutions and their validation – stay tuned for more!

                    It’s no secret that market research has had a serious glow-up in the past years and with it new methods keep emerging. Eye tracking, although not entirely novel, has been a major area of innovation. However, with a plethora of commercially available solutions comes a familiar challenge – how does one navigate all the options and make a sound business choice? What makes a ‘good’ eye tracking method to begin with?

                    For a little over a year, we’ve set out to test every relevant eye tracking tech. Based on market demand and sophistication, eye tracking tech worth your time can be sorted into 4 main groups:

                    • head-mounted glasses
                    • screen-based portable eye tracking system
                    • smartphone eye tracking
                    • web-based desktop eye-tracking

                    So, let’s gaze at what we’ve uncovered (pun entirely intended):

                    Head-mounted glasses designed for testing in any real-world setting
                    (Commercial eye-tracker market leader)

                    PROS: You can test in any real-world setting just by putting on the glasses and going to a real-life store / or lab-store. It also allows a high sampling frequency which yields good data quality results.

                    CONS: The technology is expensive, and as such, it is not accessible for remote testing and is not scalable. The calibration procedure requires the presence of an examiner next to the respondent as well as high-tech requirements, like using special markers for the calibration procedure.

                    Portable eye tracking system for screen-based eye tracking (EyeLink Portable Duo)

                    PROS: It is a video-based eye-tracker with one of the best accuracy and precision currently available. With a sampling frequency up to 2000Hz, it gives high-quality data results and can be applied in more rigorous areas than marketing – academic research can serve as a “ground truth.”

                    CONS: It is a costly technology that requires testing in a “lab” with controlled conditions – lighting and equipment position is crucial, and the head stabilizer should preferably be used. It is not accessible for remote testing, and as such, it is not scalable. The calibration procedure requires the presence of an examiner next to the respondent and high tech requirements such as using special equipment for testing, a host PC next to the display PC, etc.

                    Smartphone eye tracking technology for remote research studies (Oculid)

                    PROS: It is easily accessible with minimal tech requirements – only some phone memory for installing the app, good lighting and minimal head movements. It is scalable and can be used in remote conditions by virtually anyone who has a smartphone. It requires a simple calibration and can be used in fast and global studies.

                    CONS: There are limitations in the stimuli type – you can’t test shelf studies via mobile. The validation data is still not available, but in our experience, it yields good enough results for testing in a market research context, especially having that mind it is mobile-based.

                    Web-based desktop eye-tracking technology for remote research studies (EyeSee)

                    PROS: The tech is easily accessible with not a lot of requirements – again, only some PC memory for installing the app, good lighting and minimal head movements. It is scalable and can be used in remote conditions by anyone with a PC, enabling fast and global studies. It has a simple calibration process and ensures ethical consciousness – the app erases itself from the PC once the test is done.

                    CONS: A lower sampling frequency than external device eye-trackers. For desktop ET, there are limitations in terms of testing stimuli that are too complex.

                    Ok, how should you pick the ‘ideal’ eye tracking solution for you?

                    With the commercial accessibility of the third-generation eye trackers, both researchers and brands have gained a quite straightforward way of gathering insights. But, while the current eye tracking options on the market aren’t endless, picking the right one for your research needs might seem challenging. So, here is a set of criteria to consider for your particular research needs:

                    All of this can affect data quality, so conducting thorough data cleaning is an important step. What we have noticed is that most tech does not have the option to clean the data, whereas our website-based solution allows both manual and automatic cleaning – and top of that, we accept 50% of the tested sample to secure the highest validity and precision of the obtained insights.  

                    Verdict

                    Our endeavor led to an assessment that the desktop and mobile apps are, generally speaking, convenient and optimized for market research studies. This is especially true for those that need to be done quickly and with numerous stimuli. App-based remote eye tracking is also easier for respondents to use, ensuring a larger study sample and more valid insights. After all, it’s worth remembering that scalability and predictive power are what ROI dreams are made of.

                    If this article sparked your interest in the latest developments in behavioral insights, make sure to check out this blog about attention retention (during polarizing times such as global crises).

                      Let’s connect! Upcoming conferences and latest insights

                      In turmoil between a pandemic and a war affecting the global market, a shake in consumer experience could be felt across all industries. With many changes already affecting the shifting landscape, EyeSee’s brightest Business development Directors are venturing to a couple of events to tackle new behavioral learnings on consumer confidence, price sensitivity, and unique online consumer needs and trends in a digital arena. Here is a breakdown of the upcoming events to keep in mind!

                      First up: ESOMAR webinar | April 7

                      EyeSee’s Directors Dobrinka Vicentijevic and Jie Ying Chow, alongside top insights experts Sanchita Ray (Lazada Group), Natnicha Bhumaratana (Charoen Pokphand Foods), Anindita Mitra (Danone) are untangling how brands can promote sustainability and drive innovations of the online consumer experience. Tune on April 7 at 3PM SGT / 9 AM CET – register here!

                      Stay ahead of global crisis: Quirk’s Chicago | April 11

                      If you are interested to learn on the latest behavioral study insights on what the shaken consumer confidence means for pricing and pack sensitivities, EyeSee’s Business Development Director, Heather Graham and Kraft Heinz Head of Insights, Sarah Zangler, will join the stage at Quirk’s Chicago to tackle the current global crisis that is affecting consumer experience. Join them on April 11 at 9:45 AM in Room 3 here!

                      Seize the opportunity on Social Media: IIEX North America | April 20

                      Join Laura Hoste at IIEX North America on April 20 at 3 PM CDT to learn how brands can optimize ads on social media, stimulate a purchase with their main message, and ensure that ads drive attention and likability. Join us!

                        #FollowInsight: Finishing Women’s Month right!

                        Introducing #FollowInsight – insightful sessions where we will cover all the latest insights brands should know about!

                        With many brands still using the traditional gender representation in advertising, the questions of societal change remain –  how are non-traditional gender roles perceived in advertising campaigns? Can they open new doors to social change while still improving brand equity?

                        In the light of Women’s History Month, we are looking back into how advertising portrayals of gender roles influence brand perception, viewer’s focus, and implicitly affect consumer purchase behavior – with three impactful insights from our work with Twitter. EyeSee’s Digital Insights Director, Morana Kristek, is tackling the sought-after insights that can help brands drive awareness and avoid advertising errors in the future.

                        Here’s a session with three essential insights – but make sure to check out the full study for all the insights:

                        Interested in social media in-feed testing? Reach out to us for more details at [email protected]

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