
The Bloodhound Group Is Breaking The Cycle Of Ineffective Marketing Spending Through Its Partnership With Promosapiens
Marketing budgets have ballooned, and creative teams are working harder than ever to promote brands. And yet, results often fall flat. But why? That's the question Jim Cobb and his team at The Bloodhound Group (BHG), a brand consultancy firm, have been asking for decades. And it's also the reason behind their strategic partnership with Dalibor (Dado) Šumiga and his Zagreb-based behavioral marketing firm, Promosapiens.
The problem isn't creativity. It's a failure to understand how people actually make decisions. More than ninety percent of purchasing decisions are made emotionally, not rationally. Cobb, a longtime advocate for behavioral science in branding, further states, "Most marketing teams are focused on conscious decision-making frameworks. But that's not how we behave in the real world."
BHG, a brand strategy firm rooted in business design, sees behavioral and evolutionary psychology as essential to understanding customers. By partnering with Promosapiens, they're helping CMOs and CEOs finally bridge the gap between human behavior and marketing performance.
In today's fragmented media landscape, marketers face an overwhelming array of platforms and pressure. The natural response has been to spend more, push harder, and hope for the best. "The industry has been relying on vanity metrics and gut instincts for too long," says Cobb. "You get a beautifully produced ad with a multi-million dollar price tag, and zero analysis of how it actually affects the target audience on an emotional level."
Šumiga, founder of Promosapiens, states: "If you're doing the same thing over and over and expecting different results, you're wasting money." Creative teams aren't the problem, Šumiga emphasizes. It's that they're flying blind. "They're creating based on what people say they like, but self-reporting methods are highly unreliable because it's based on conscious thought. People say one thing and do another. Human behavior is predictably irrational, but only when you're able to understand unconscious motivations."
The biggest problem that plagues most campaigns: companies invest tens of thousands in testing finished creative work, only to find out it's average at best. "That's not a good business model," Cobb explains. "We want to help clients avoid that by identifying what will resonate emotionally before they waste their budget." Furthermore, as marketing grows noisier, trust in the industry is plummeting. "That's because people feel like everything is an ad thrown at them at all times," he notes.
Part of the challenge is that brands often only recognize a problem when it's physical, such as a bad store layout or poor signage. But creative issues are less tangible. You might not even realize you have a problem until after the spending is sunk. "That's why behavioral diagnostics are so powerful," says Šumiga. "You can't fix what you don't measure. And traditional tools don't measure what matters."
Through Promosapiens, BHG taps into tools that measure how people feel and behave, not just what they say. One of its tools detects unconscious reactions, which gauges brain activity between emotional and rational centers. The results are far more accurate than standard surveys or focus groups that are answered very consciously, as per Šumiga. One of Promosapiens Tools Measuring Brain Activity Between Emotional and Rational Centers. Bloodhound Group
In physical environments, Promosapiens also uses GDPR-compliant eye-tracking and spatial analytics software to map customer movement through spaces like retail stores, airports, museums, and malls. This generates heat maps and "dwell time" insights that reveal what catches attention and what drives purchases.
Then comes the optimization phase, testing variables like lighting, scent, and sound to engineer better experiences. "It's not manipulation," Cobb confirms. "It's resonance. You're creating conditions where customers have a better, more intuitive experience, and they reward that with loyalty and conversions."
It's not just a matter of improving brand performance; it's about unlocking smarter financial decisions. "CMOs are under enormous pressure to prove ROI," explains Global Brand Strategist of BHG Ann Wilson. "But without behavioral insights, they're making bets, not strategies." Bloodhound Group
BHG connects the dots between behavior modification and financial performance. "We don't just make people feel good; we help our clients make better decisions based on deeper insight," says Cobb. In short, BHG makes data actionable. Not by piling on dashboards or chasing click-throughs, but by delivering emotionally intelligent insights that actually predict outcomes.
Ultimately, BHG's partnership with Promosapiens offers a different path, one grounded in human truth, scientific rigor, and brand empathy. Cobb states, "We need to stop assuming more exposure equals more engagement. And start asking the real question: Does this make people feel something?" Because at the end of the day, marketing starts with understanding humans better. And with behavioral science on their side, it's a bet these brands will win.

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DW
12 hours ago
- DW
How the fragile US-China trade truce is unraveling – DW – 06/05/2025
Donald Trump has accused Beijing of breaching last month's deal to cut steep tit-for-tat tariffs. Could a much-awaited call between the US and Chinese presidents break the deadlock? The world exhaled when the United States and China unveiled a 90-day tariff truce last month, pausing the escalating trade war between the globe's largest and second-largest economies, which had rattled businesses and investors. The deal, after tense negotiations in Geneva, slashed US tariffs on Chinese imports from 145% to 30% and China's retaliatory levies on US goods from 125% to 10%. Just three weeks later, however, US President Donald Trump reignited tensions, saying that China had "totally violated" the truce deal, without providing further details. Trump later said his Chinese counterpart, Xi Jinping, was "extremely hard to make a deal with." China swiftly countered, asserting that Washington had imposed "discriminatory and restrictive measures" since the Geneva talks, pointing to US curbs on chip design software and warnings about artificial intelligence (AI) chips produced by Chinese tech giant Huawei. Deal stalled over US access to rare earths US policymakers have voiced frustration at China's stalling on export license approvals for rare earths and other elements needed in the high-tech, defense, and clean energy sectors. China, which dominates global rare-earth production with over two-thirds of supply and 90% of processing capacity, has imposed export restrictions on several key minerals. The US, lacking domestic rare-earth processing capacity, remains highly vulnerable to Beijing's restrictions. Confusion remains over what was agreed on rare earths in Geneva. In an interview with news agency Bloomberg on Wednesday, Cory Combs, head of critical-mineral supply chain research at Trivium China, said Washington believed that Beijing would "completely remove the requirement of an approval [for export licenses]," which Beijing said it did not agree to. Michael Hart, AmCham China president, told the Financial Times on Monday that China has now stepped up approvals to ship rare earths to several US carmakers, noting how "only a handful" of officials are handling thousands of applications. Trump's economic philosophy: A real plan or simply chaos? To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Penny Naas, a distinguished fellow at the US-based German Marshal Fund think tank, thinks the rare earths are "China's biggest card," telling DW that "a key part of the negotiation will be when and how they liberalize the trade in those products." Naas expressed little surprise at the renewed war of words between Washington and Beijing, noting that, "You often see these highs and lows and even near-death experiences before deals are reached." But with the clock ticking until August 12 — when the 90-day pause expires — and both sides accusing the other of violations, the prospects for a lasting ceasefire and a long-term deal remain uncertain. Trump uses tariffs for maximum leverage Beyond securing access to China's rare minerals, the US seeks to cut its trade deficit with China, which was $295 billion (€259 billion) in 2024 — up nearly 6% on the previous year. The Trump administration has urged Beijing to boost purchases of American goods and eliminate non-tariff barriers, such as anti-monopoly probes targeting US companies and the designation of certain American firms as "unreliable entities." Washington has also demanded further economic reforms and an end to the manipulation of the Chinese yuan, which is kept artificially low to help boost exports. In April, when Trump announced his unprecedented tariffs, the yuan hit a 20-month low of 7.2038 against the dollar and is expected to weaken further if the higher US levies are reinstated. Trump has also pressed China to strengthen efforts to curb illegal immigration and halt exports of precursor chemicals used to produce fentanyl, an opioid fueling a public health crisis in the US. Will Trump-Xi call break the impasse? With US Treasury Secretary Scott Bessent acknowledging last week that negotiations have "stalled," all eyes are on whether a call between Trump and Xi will break the tariff deadlock. The US president has said for months that the two leaders were due to speak and even spoke of traveling to China for talks, without a public response from Beijing. US President Donald Trump said his Chinese counterpart is 'extremely hard' to make a deal with Image: Francis Chung/Imago The White House said Monday that a Trump-Xi call was "likely" to take place this week, a development that Antonio Fatas, an economics professor at INSEAD business school, said the US president would see as "his victory." "Trump's typically the one who calls people and tells them what to do," Fatas told DW. "But with a powerful player like China, that's not going to work. I wouldn't be surprised if China postpones the call." Although Trump will get the chance to talk to other world leaders on the sidelines of the upcoming G7 and NATO summits, the US and Chinese presidents aren't likely to meet in person until later in the year, signaling a protracted tussle that could last several more months. Tariff court battle plays into China's hands Another boon to China could be the lack of clarity over Trump's unprecedented tariffs after a US trade court last week ruled they were illegal. Although a higher court temporarily reinstated the levies, the White House has threatened to go to the Supreme Court for the ultimate ruling. "There may be a hesitancy to go all in on an offer at this moment when there's a large lack of clarity about the US position," the German Marshall Fund's Naas told DW. INSEAD's Fatas, meanwhile, predicted that the truce would be extended beyond the 90 days, adding: "Until I see the possibility of a real compromise on both sides, I'll remain very cautious and uncertainty remains incredibly high." Tariffs distract from US-China tech battle Both the Trump and Biden administrations have prioritized maintaining the US's technological edge over China, but there are growing concerns that the tariff policies are diverting resources and focus from US firms' ability to achieve this goal. Investor nervousness that the tariffs could cause a US recession has intensified. The tariffs have already increased costs and strained budgets for American tech firms, limiting their capacity to invest in research and development (R&D) at a critical time. With tariffs consuming significant attention among US policymakers, initiatives to bolster domestic innovation risk being sidelined. NVIDIA profits up, despite trade war challenges To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Beijing, meanwhile, has doubled down on the need to reduce its dependence on US technology. Through substantial state subsidies, China has advanced its capabilities in AI, quantum computing, advanced chip production, and 6G telecommunications, narrowing the technological gap with the US. Naas thinks that China has now caught up on "most of the technological advantage the US thought it had" and that US companies say they're "falling behind while spending all their time on reorienting their supply chains." "Is that the best use of their time when we're in hand-to-hand combat on the future of technology?" she asks. Edited by: Uwe Hessler


DW
a day ago
- DW
Isar Valley: How Munich became Europe's startup capital – DW – 06/04/2025
In the Bavarian capital, international talent meets an ecosystem built to help startups succeed. Here, founders gain access to capital, expertise, and networks that can turn ideas into thriving businesses. It's like navigating a labyrinth — a journey hundreds of young entrepreneurs across Europe embark on each year in search of opportunity, innovation, funding, and success. They're also looking for the country and city that offers the ideal conditions to launch a business. For an increasing number, that journey leads to Isar Valley, named after the river that runs through Munich, and which provided the informal nickname for the Bavarian capital's technology and artificial intelligence (AI) scene, inspired by the Silicon Valley technology hub in California. Munich's Technical University and its entrepreneurship center are essential for startup founders Image: UnternehmerTUM Munich ranks 17th globally in the latest Global Tech Ecosystem Index compiled by Netherlands-based data provider Dealroom. When measured by high-performance, innovation-driven ecosystems with strong per-capita output, Munich rises to 5th place — just behind US tech hubs San Francisco Bay Area, Boston, New York, and Cambridge. From hackathon enthusiast to startup founder Greek entrepreneurs Nikos Tsiamitros and Georgios Pipelidis also chose to launch their startup in Munich, even though Tsiamitros says there wasn't a "personal reason" to move to the capital of the German southern state of Bavaria. "I didn't know anyone here and had never even visited the city," he told DW, but added that he was well aware of the "excellent reputation" of the Technical University of Munich (TUM). Nikos Tsiamitros (left) and Georgios Pipelidis were drawn to Munich because of its excellent startup environment Image: Georgios Pipelidis Tsiamitros arrived from Athens to pursue his master's degree in Munich, while Pipelidis came to TUM via Austria to complete his PhD. "That's where we started working together on navigation software for public transportation," Pipelidis told DW. They joined a hackathon — an event where programmers team up for several days or weeks to develop software, often around the clock — and they won the competition. "From that moment on, we started to believe that our navigation and localization algorithm could become a real startup," said Tsiamitros. Then, in March 2019, they launched their first startup business called Ariadne — derived from the Cretan princess in Greek mythology who gave Theseus a thread to find his way out of the Minotaur's labyrinth. A fitting metaphor for their software, Pipelidis noted with a grin. UnternehmerTUM provides support with substance But having a strong algorithm is one thing. Launching a startup, writing a business plan, and securing capital is another. That's where Munich's startup ecosystem offers a crucial resource — the UnternehmerTUM entrepreneurship center based at TUM. At UnternehmerTUM, the two business founders learned how to start and run a company, Pipelidis said, adding that thanks to that support, Ariadne was generating revenue just a few months after launch. Ariadne's main product has since evolved from a navigation software into an AI-based people-counting and movement analytics tool. Today, it serves airports in Munich, Glasgow, and Los Angeles, as well as the German cities of Leverkusen, Bielefeld, and Regensburg, plus several malls and retailers, including IKEA. Startups like Ariadne also benefit from hands-on mentorship. Barbara Mehner, managing partner of the Xpreneurs incubator at UnternehmerTUM is one of them. "We help early-stage startups enter the market by connecting them with investors, mentors, and potential customers," she told DW. KEWAZO 'liftbot' and the robotic revolution in scaffolding Among the more than 100 tech startups founded annually in Munich is KEWAZO, a company led by Greek founder Eirini Psallida. Eirini Psallida is one of many successful startup founders who have emerged from the Isar Valley tech hub Image: Eirini Psallida KEWAZO's core product is a battery-powered, remote-controlled robotic lifting system called LIFTBOT. This robot facilitates the transport and assembly of scaffolding and other construction materials. "All industries seemed fully automated — except construction," Eirini told DW, explaining the idea behind the company. Psallida named the startup after the Greek word kataskevazo, meaning "to produce." And like Ariadne, this startup was born out of a hackathon at UnternehmerTUM. Today, the company's robotic lift system is in daily use at major industrial and construction sites — from the chemical park of BASF in Ludwigshafen, Germany, to oil refineries in the US. KEWAZO's liftbots are seen on many construction sites, like in Dublin, where they helped rebuild the Presbyterian Church Image: Eirini Psallida "I can't imagine how we would have done it without UnternehmerTUM," Psallida told DW, as the incubator gave them access to hardware, software, legal and business advice. "And we got help securing public funding without giving up any equity," she added. One in four German unicorns founded by foreigners The KEWAZO team includes six founders from four different countries, reflecting the diverse nature of Germany's startup landscape. According to the latest Migrant Founders Monitor compiled by the Friedrich Naumann Foundation and Germany's Startup Association, a significant number of founders in the country have a migration background. "Fourteen percent of startup founders were born abroad," says Vanush Walk, senior researcher at the Startup Association and lead author of the report. Among the founders of so-called unicorns — startups valued at over a billion dollars — the share is even higher at 23%, he told DW. The survey shows that migrant founders stand out for their "strong entrepreneurial mindset, willingness to take risks, and resilience" — traits that are crucial for startup success. Migrant founders face higher barriers still Despite their strengths, migrant founders also face notable challenges in Germany. "Top of the list is access to networks," said Walk, adding that coping with Germany's infamous bureaucracy is also difficult, as well as gaining access to funding, no matter whether public or private. Germany: More support for migrant entrepreneurs? To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Georgios Pipelidis from Ariadne experienced this firsthand. One German venture capital firm made its investment conditional on replacing him as CEO with a German national. "They wanted a native speaker as the public face of the company," he recalled. "I understand that customers prefer dealing with someone who speaks fluent German — that's why all our salespeople are native speakers. But replacing me as CEO? That was too much," he said. In the end, Georgios Pipelidis and Nikos Tsiamitros secured support from a Greek VC firm. And despite the setbacks, their enthusiasm for Munich hasn't wavered. At the end of their own Ariadne thread still lies the Bavarian capital. This article was originally written in German.


Int'l Business Times
2 days ago
- Int'l Business Times
Musk Shocks Tesla Staff After Asking If Trump's Tariffs Were Affecting His Company: Report
Following the end of his temporary stint in government, billionaire Trump supporter Elon Musk has returned to his tech empire, surprising his own staff by inquiring about the impact of Trump tariffs upon his businesses. Though Musk's visits to Tesla offices and factories diminished following President Donald Trump's inauguration, he did visit one of his company's offices in Palo Alto, California, just days before an earnings call in April, according to the New York Times. He asked about how tariffs enacted by his presidential ally had impacted his company, and was briefed on supply chain weaknesses and subsequent effects upon Tesla. Some attendees of the meeting became concerned by the timing of Musk's inquiries, with Trump having announced the intended implementation of tariffs in February. Just days after the meeting, Tesla profits dropped to the lowest level they had been at in four years after vehicle sales fell 13 percent in the first quarter. According to California-based Tesla salesman Matthew LaBrot, it had become "a grind every day to sell a car when that did not used to be the case." Though Musk stated that he was not in favor of high or unpredictable tariffs in April, he followed this sentiment by adding that any decision on the implementation of tariffs "is entirely up to the president of the United States." During Tesla's first quarter earnings call in April, Musk stated that "if some country is doing something predatory with tariffs," or "if a government is providing extreme financial support for a particular industry, then you have to do something to counteract that." "He will listen to my advice. But then it's up to him, of course, to make his decision," Musk said of Trump. "I've been on the record many times saying that I believe lower tariffs are generally a good idea." Musk's time as a member of the Trump administration came to an end in May. "Elon is really not leaving," Trump told reporters in the Oval Office. "He's going to be back and forth. I think I have a feeling it's his baby, and I think he's going to be doing a lot of things." Originally published on Latin Times