Revolutionizing Market Research: The Story of System1

Back in 1999, John Kearon had a vision to change the way market research was conducted. With a background in behavioural psychology, he founded Brainjuicer with the goal of solving the age-old problem of not knowing which half of advertising spend was effective. This innovative approach quickly gained traction, and over the next 15 years, Brainjuicer grew into a successful market research consultancy with a global presence, operating in 10 countries.

Fast forward to 2016, Brainjuicer introduced System1, a revolutionary new tool inspired by the work of psychologist and economist Daniel Kahneman. Named after the concept of “System 1” thinking in Kahneman’s book Thinking, Fast and Slow, System1 focuses on assessing consumers’ emotional responses to predict the success of advertising campaigns. This shift from evaluating ad effectiveness to predicting success based on emotional reactions was a game-changer in the industry.

The market responded enthusiastically to System1, with the company’s share price soaring to over £10 in May 2017. However, the unpredictable nature of one-off sales and future earnings made it challenging to forecast long-term growth. This uncertainty led to a sharp decline in the share price, ultimately settling around £2 and positioning the company as a microcap player with a market value of approximately £40mn.